The most common source of deferred tax liabilities is depreciation, the process by which companies allocate the cost of assets. Say that your company spends $6,000 on a machine that will last ...

Deferred tax liability is a record of taxes incurred but not yet paid. This line item on a company's balance sheet reserves money for a known future expense that reduces the cash flow a company ...

"Tax payable" and "deferred income tax liability" both appear as liabilities on a company's balance sheet; both represent taxes that must be paid in the future. However, they arise in different ways.

Say it has $3,000 in deferred tax assets and a tax liability of $10,000. For the sake of example, imagine that the company is being taxed at a rate of 30%, meaning it owes $3,000 in taxes.

Say it has $3,000 in deferred tax assets and a tax liability of $10,000. For the sake of example, imagine that the company is being taxed at a rate of 30%, meaning it owes $3,000 in taxes.

Understanding Deferred Tax Liabilities By Emil Lee – Updated Nov 15, 2016 at 1:28AM Earlier this week, we looked at deferred tax assets .

Get key insights on deferred revenue as a liability. Plus, understand proper analysis to inform business decision-making along with investment strategies.

Figure 1: Companies with the Largest Net Deferred Tax Liabilities. Companies with Largest Deferred Tax Liabilities. New Constructs, LLC. The Telecom sector stands out as the largest total winner.

This leaves Citigroup with gross deferred tax assets valued at $51 billion -- though if you exclude deferred tax liabilities, the number drops to $48 billion.Suffice it to say, ...

Deferred tax liability commonly arises when there are differences between financial and tax accounting in the timing of recognizing revenue, valuing inventories, or depreciating fixed assets.

Revenue Recognition. Revenue recognition differences also lead to deferred tax liability. Consider a company with a 30% tax rate that sells a product worth $10,000, but receives payments from its ...

Tax liability is anything that a person or company owes taxes on, such as income or revenue. ... Continue reading → The post What Is a Deferred Tax Asset? appeared first on SmartAsset Blog.