Tax Provision: Deferred Taxes

In this video we dive into everyone's favorite topic....taxes. We focus much of the episode on deferred taxes, but start with the basics of a tax provision. We briefly discuss permanent differences, and then dive into temporary differences that usually cause a deferred tax liability (DTLs). We walk through two examples of those deferred tax liabilities and even the journal entries associated.

The video also addresses deferred tax assets (DTAs), Net Operating Losses (NOLs), and Valuation Allowances (VAs).

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0:00 Intro
0:15 Taxable Income
0:43 Tax Provision
1:02 Permanent Differences
1:33 Temporary Differences
2:04 PPE Dep. Temp. Diff.
2:57 Example: Cash vs Accrual
3:28 Example: Journal Entries
3:52 Example: Depreciation
4:45 Deferred Tax Asset (DTA)
5:10 Example: (NOLs)
5:33 Valuation Allowance
6:03 Close