It's basically when you can claim that you operated at a loss in a given year and for tax purposes carry over that loss to a different year. This lets you pay l

It's basically when you can claim that you operated at a loss in a given year and for tax purposes carry over that loss to a different year. This lets you pay less taxes in a year when you actually make profits. I am not an accountant, here's a likely better explanation: http://www.investopedia.com/terms/d/deferredtaxasset.asp http://www.investopedia.com/terms/d/deferredtaxasset.asp