Tax Asset
/ˈtæks ˈæset/
Definitions
- (n.) A documented economic benefit that may reduce future tax liability, such as a deductible expense or a carryforward loss.
The company recorded a significant tax asset on its balance sheet due to accumulated net operating losses.
Forms
- tax asset
- tax assets
Related terms
See also
Commentary
Tax assets typically arise from timing differences or loss carryforwards and are recognized when it is probable they will reduce taxable income.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.