Hello Class, Future deductible amounts are generally categorized as deferred tax liabilities and deferred tax assets. Simply put deferred tax liabilities means future increase in taxable income, and deferred tax assets result in a decrease in future taxable income. Both options result in the same amount of taxes being paid, but through different time periods. One example for deferred tax liabilities are unrealized gain from recording investments at fair value. The company would have to report this unrealized gain on the income statement yearly, but will report it on the tax return when it is sold. This gives companies the option to hold their investment until the time is favorable. Many would hold until lower taxes are introduced. On the other side, Revenue collected in advance would be reported as taxable income when collected, but would be put on the income statement when revenue is realized. This would allow companies to pay taxes and reduce their income in already unfavorable years in order to have a big comeback year for investors. These are two types of future deductible amounts for when revenue is expected. How do I respond to this