deferred 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 tax

a PROVISION which a company may make to reflect the difference between CORPORATION TAX actually payable (based on CAPITAL ALLOWANCES), and the tax which would have been payable if the charge had been based solely on accounting profits (reflecting DEPRECIATION rates applied).
References in periodicals archive ?
On the other hand, deferring large amounts of tax each year may be a good reason for using a tax-deferred account for a given asset.
IOVAs are a subset of variable annuity that are, as the name suggests, focused on the investment potential of a tax-deferred annuity product.
Most of the potential clients with whom I meet have the lion's share of their assets in their taxable and tax-deferred bucket, and little if any in their tax-free bucket.
If I believe I will be in the 15 percent marginal tax bracket in retirement and I have $18,000 to save in 2015,1 may want to save my first $12,550 in a tax-deferred account like a 401(k) that avoids current income tax and the remaining $5,450 in tax-free account (Roth) that I pay tax on now, but will grow tax free.
Owning a tax-deferred asset, like the stock of a good company or fund, in a taxable account is often wiser than holding the same fund or company in a tax-deferred account like an IRA or 401(k).
Assets in your 401(k) or IRA would be the tax-deferred bucket.
Also an investment in limited partnership units of the Partnership were exchanged on a tax-deferred basis for Explorer Series Fund A/Rollover Series Class Shares with equal value, according to an arrangement between the Partnership and the Mutual Fund Corporation.
* Expected time horizon: The longer an executive's time horizon, the greater the likelihood that the tax-deferred growth of investing in an IRA will overcome the initial, onetime tax relief provided by the NUA election.
A textbook asset location strategy would put all tax-efficient asset classes in taxable vehicles, and all tax-inefficient asset classes in tax-deferred vehicles.
It has been informally suggested that Section 1031 tax-deferred exchanges may result in price premiums being paid for agricultural land.
Likewise, in contrast to the traditional IRA, the Roth IRA permits an individual to make nondeductible contributions to a tax-deferred account up to the same dollar limits.
When a mutual fund is owned outside of a tax-deferred retirement account, it is important to consider how a fund's investment activity will result in taxation of the fund investor.