deferred income tax


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Deferred Income Tax

On a balance sheet, a tax that a company will owe on its income, but that has not yet been assessed. Because of differences between tax regulations and the Generally Accepted Accounting Principles, income may be recognized on a balance sheet for accounting purposes, but not for tax purposes. However, that income will eventually be recognized for tax purposes and income tax will then be assessed. This tax is called deferred income tax, and is recorded as a liability on the balance sheet.

deferred income tax

A liability created by income recognized for accounting purposes but not for tax purposes. The liability recognizes future taxes due when earned income is later reported for tax purposes. Use of accelerated depreciation for reporting to the Internal Revenue Service and straight-line depreciation for reporting to stockholders is one of the major reasons a firm includes deferred income taxes as a liability on its balance sheet.
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The first item the board is proposing is elimination of the exception in ASC Section 740-10-25, Recognition, that prohibits recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party.
The first item the board is proposing is elimination of the exception in ASC Subtopic 740-10, Recognition, that prohibits recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party.
5 million benefit from the reversal of the valuation allowance related to deferred income tax assets.
of the CCU investment and a fourth-quarter 2004 deferred income tax benefit
Had the issue been expected to occur over more than a year, a long-term receivable would have been set up with a corresponding long-term deferred income tax liability account shown.
The second way is to convert a regular IRA or a rollover IRA into a Roth IRA by paying any deferred income tax.
While the standardization of recording of the impairment in value of fixed assets should increase the comparability of financial reporting, it may also bring about a significant, decrease in the amount of reported deferred income tax liabilities.
The Company's statement of operations reflects non-cash deferred income tax expense for the third quarter of 2012 in the amount of $125,200.
The Company defines Adjusted net income as follows: Net income before certain restructuring and special charges, costs associated with financing and other transactions, deferred loss/(gain) on other hedges, depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory, deferred income tax and other tax expense, amortization of deferred financing costs, and other costs.
Financial statements will recognize current and deferred income tax assets and liabilities.
For example, if the underlying assets in the example had a basis of $100,000 at the time of the gift, the deferred income tax (assuming a 28% capital gains rate) on the underlying assets supporting the 80% limited partnership interest would be $201,600 [($800,000 - $80,000) X 0.
Deferred income tax assets and liabilities represent assets and liabilities, not residual deferred charges and credits.