An asset that is used to reduce the amount of tax that a company will have to pay in a later tax period. It is often associated with a loss carryover, and is used as a future write-off if the next tax period is expected to produce positive earnings. The asset is kept on the balance sheet. For example, a deferred tax asset of $100,000 from the previous year could be applied to before-tax income of $250,000 this year, resulting in taxable income of $150,000 ($250,000 - $100,000).

Related information about deferred tax asset:

1. Deferred Tax Asset Definition | Investopedia
   An asset on a company's balance sheet that may be used to reduce any subsequent period's income tax expense. Deferred tax assets can arise due to net loss ...
    
2. Deferred tax - Wikipedia, the free encyclopedia
   In years 3 and 4, the tax value exceeds the accounting value, therefore the company should recognise a deferred tax asset (subject to it having sufficient forecast ...
    
3. Summary of Statement No. 109 - Financial Accounting Standards ...
   A deferred tax asset is recognized for temporary differences that will result in deductible amounts in future years and for carryforwards. For example, a temporary ...
    
4. Deferred Tax Assets
   Jan 9, 2007 ... In other words, a deferred tax asset (DTA) is a future tax benefit. ... This results in a deferred tax asset, because Best Buy "prepaid" these ...
    
5. What is deferred tax asset? definition and meaning
   Definition of deferred tax asset: An asset that is used to reduce the amount of tax that a company will have to pay in a later tax period. It is often associated with a ...
    
6. Deferred Tax Assets - PDF - FDIC
   Apr 12, 2012 ... A Valuation Allowance should be established for the portion of a deferred tax asset for which it is more likely than not that a tax benefit will not ...
    
7. Should a Deferred Tax Asset Be Considered an Intangible Asset ...
   Deferred tax assets can be thought of as prepaid taxes. They arise because businesses commonly keep two sets of financial records: one to show to investors ...
    
8. What Is a Deferred Tax Asset?
   A deferred tax asset is a balance sheet asset that can be used to reduce a company's future tax liability. For example, if a...