Deferred Tax Liability

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	A Few Related Terms


	Depreciation Balance Sheet Def. Tax Asset 10-K


	Deferred Tax Liability Term category: Finance/Accounting In 10 words or less: An asset created by a company "underpaying" its taxes during a given time.


	Definition: A deferred tax liability occurs when a company underpays its taxes due to a difference between how it accounts for an asset on its books versus how it accounts for it on a tax basis. StockJargon Advice: Deferred tax liabilities aren't very good because they increase the liability in the future. Because this has value, they're recorded as an liabilities. Investors should give these a little consideration when analyzing a company's financials because high deferred tax assets and liabilities may signal that the company is too aggressive in its accrual accounting.


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