You may not understand what your asking, in provision and "tax" are 2 different things. Provision is a purely accounting (GAAP) term. it has nothing to do with IRS tax really. It isn't even part of IRS vernacular really. An Income Tax Provision basically has 2 components; Deferred Tax Provision & Current Tax Provision. (Some ancillary accounting lines may have to do with credits and tax effect of state tax deduction for example). The total income tax provision is the combination of the 2. If current tax provision is higher than deferred tax provision, than the deferred tax provision is a tax benefit. A very common thing that happens when tax accounting requires a provision be recorded for income recorded for GAAP before it is income for tax.
an deferred revenue is known as accounting
There are two sides to the entry, upon cash receipt you debit cash, credit deferred income. To apply the deferred income, the entry is debit deferred income and credit revenue.
No. Interest payments, whether from banks or other sources are taxable unless some special provision applies. For example, interest paid on an Individual Retirement Account (IRA) and remaining in the IRA, and not taxable at all.
Deferred cost has similar treatment to prepayment.
Is deferred interest deductable
You may not understand what your asking, in provision and "tax" are 2 different things. Provision is a purely accounting (GAAP) term. it has nothing to do with IRS tax really. It isn't even part of IRS vernacular really. An Income Tax Provision basically has 2 components; Deferred Tax Provision & Current Tax Provision. (Some ancillary accounting lines may have to do with credits and tax effect of state tax deduction for example). The total income tax provision is the combination of the 2. If current tax provision is higher than deferred tax provision, than the deferred tax provision is a tax benefit. A very common thing that happens when tax accounting requires a provision be recorded for income recorded for GAAP before it is income for tax.
Yes
To make a journal entry for provision on interest on fixed deposit, you would debit the Provision for Interest on Fixed Deposit account to recognize the expense and credit the Interest Income account to reduce the income earned on the fixed deposit. This adjustment ensures that the financial statements reflect the estimated liability for future interest payments accurately.
Deferred int expenses is a term used in accounting for business and finance. It is used to refer to the interest on loans and payments, which is considered an expense that is deferred, or expected to be paid at a later date.
A tax deferred fixed annuity pays a flat interest rate.
That all depends on which macbook where you buy it and where you live.
Deferred int expenses is a term used in accounting for business and finance. It is used to refer to the interest on loans and payments, which is considered an expense that is deferred, or expected to be paid at a later date.
Yes, as long as you stay in school, the student loan remains deferred. Still, be careful of the interest rates, for it may continue to accumulated even though your in school.
Regarding a HAMP (Home Affordable Mortgage Plan) modification, in order for your new PITA payment to be under the 31% guidelines at 2%, sometimes a portion of the balance owed is deferred to the end of the loan term. By reducing the amount of the balance you're paying as well as its interest, your payment will be under 31% of your income. The deferred amount must be payed later, you still owe it; however it accrues no interest! So a deferred principal balance is the interest FREE portion of your original loan balance. It's just pushed back to a lump sum at the end of the term.
An annuity that will not begin until some time period in the future.A deferred annuity is an annuity in which the taxes due on any taxable portion is deferred until you start to withdraw from the annuity. It is a way of compounding interest on the money you would normally paid taxes on if not in a ta deferred annuity. In a way it is like using the government's money to make you money.
A variable deferred annuity is an annuity that is variable and deferred. What this means to you is that being variable it is associated with the risks of the markets that the money is invested into. There is no guarantee to interest or principle, which may be volatile in a low market. Deferred means that it grows tax deferred whereas no taxes are paid by you until you start receiving payments from the annuity. The tax will be on the growth of the product and not what you placed in as principle. Please remember though growth is not guaranteed with a variable product.