What are Deferred Tax Assets?
Deferred tax assets refer to a future tax liability or asset, which exist due to temporary differences and carry-forwards between the companies book value of assets (which they report to shareholders) and the value of their assets which they report on the balance sheet to the IRS. They essentially exist due to a timing difference in the recognition of the gains and losses. Remember, it is every companies goal to reduce their tax burden as far as they can and therefore, companies will paint a much better picture to their shareholders than they do to the IRS.
