deferred tax

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Related to tax-deferred: tax-deferred annuity, tax-deferred exchange, Tax-deferred income

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 ?
When rapid accumulation of capital is necessary, tax-deferred plans may be the best option.
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.
Almost nine out of 10 fund-owning households own them through tax-deferred accounts earmarked for retirement, including IRAs and 401(k) plans.
TSP is a tax-deferred fund, which means the money contributed to the account is deducted right away from the person's taxable income, and the money in the fund isn't taxed until it is withdrawn at retirement.
If you do not want to actively manage a property and want to do a tax-deferred transaction, consider other low-risk real estate investments such as single-tenant net lease deals.
However, the transfer could be accomplished on a tax-deferred basis, if the existing USHoldco shareholders receive less than 50% of PLC's shares in the transfer.
The earnings in college savings plans grow tax-deferred from federal taxes.
If your income allows, also consider a universal life insurance policy, which will allow you to build up a cash account you can borrow against that will also grow tax-deferred.
Assets that are held in tax-deferred retirement savings accounts, such as Individual Retirement Accounts or 401(k) plans, face lower tax burdens than assets that are held outside such accounts.
03, page 63), suggests clients should avoid tax-deferred annuities.