What's The Difference Between DTA & DTL? | Series 79 | Knopman Marks 

In this Series 79 Key concepts video, we’ll break down the difference between a deferred tax asset (DTA) and a deferred tax liability (DTL). To understand the difference between a DTA and a DTL, we first need to understand SEC filings and tax returns, the two types of financial statements US companies leverage. SEC filings go to your shareholders, so you want to show strong earnings. Where as tax returns go to the IRS, so you want to show as little income as possible. The reconciliation between these two types of financials is what creates a deferred tax asset (DTA) and a deferred tax liability (DTL). If a company’s taxable income is higher than its book-reported income, or what was shown on SEC filings, it generates a deferred tax asset. If a company’s taxable income is lower than its book-reported income, it generates a deferred tax liability.
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