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Deferred Tax Asset and Liability Calculator (ASC 740)

What does this come to under the current IRS rules?

Gross DTA and DTL from temporary differences and carryforwards, valuation allowance, net position and deferred tax expense.

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  • Nothing stored or sent
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Your figures
Example figuresIllustrative only. Type over them with your own.
Net deferred tax asset (liability as negative)
-$80,000
Noncurrent on the balance sheet
Gross deferred tax assets
$600,000
Valuation allowance
-$30,000
Drawn to one scale
Net deferred tax asset (liability as negative)-$80,000
Gross deferred tax assets$600,000
Valuation allowance-$30,000
Deferred tax liabilities-$650,000
Deferred tax expense (benefit)-$70,000
All results
MeasureResult
Net deferred tax asset (liability as negative)-$80,000
Gross deferred tax assets$600,000
Valuation allowance-$30,000
Deferred tax liabilities-$650,000
Deferred tax expense (benefit)
Before items in OCI or equity
-$70,000
How this was worked out
Work shownrecomputed as you type
Gross DTA = (deductible differences + loss carryforwards) x rate + credit carryforwards
DTL = taxable differences x rate
Net = gross DTA - valuation allowance - DTL
Deferred tax expense = opening net - closing net

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Gross DTA = (deductible differences + loss carryforwards) x rate + credit carryforwards
  • DTL = taxable differences x rate
  • Net = gross DTA - valuation allowance - DTL
  • Deferred tax expense = opening net - closing net

How it works

ASC 740 measures deferred taxes at the enacted rate expected to apply when the differences reverse. A valuation allowance reduces deferred tax assets to the amount more likely than not to be realized.

ASU 2015-17 requires all deferred tax assets and liabilities to be classified as noncurrent. Within a tax-paying component and jurisdiction they are offset and shown as one amount.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Can I net across jurisdictions?

No. Offset is within a tax-paying component of an entity and within a particular jurisdiction.

Does the expense figure always hit income?

Not if part of the change relates to OCI items or business combinations. Exclude those amounts.

What rate if rates step down?

Schedule the reversals by year and apply the enacted rate for each reversal year when the rates differ.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

Related audit calculators

CalculatorValuation Allowance Calculator: Four Sources of Taxable IncomeDeferred tax assets supported by the four sources in ASC 740-10-30-18, and the valuation allowance for the rest.CalculatorUncertain Tax Position Measurement: Cumulative Probability (ASC 740-10)Largest benefit greater than 50 percent likely of being realized from up to five outcomes, and the unrecognized tax benefit.CalculatorInterim Income Tax Provision Calculator: Estimated Annual Effective RateYear-to-date tax at the estimated annual effective tax rate, less prior quarters, plus discrete items, under ASC 740-270.
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