Deferral of Taxes

Deferral of Taxes means:
the postponement of tax payments from the current year to a later year. For example, delaying the receipt of income to a subsequent year can postpone payment of taxes, or like-kind exchanges may postpone taxes on a gain until the new property is sold. Deferring taxes is worthwhile because interest can be earned on money not yet paid as taxes; moreover, the deferred amount can often be offset by subsequent losses or recognized in a year when the taxpayer is in a lower tax bracket.