# Temporary difference

> Temporary difference — A difference between an asset or liability's tax basis and its book carrying amount that will reverse in future years — the source of deferred taxes.

Source: https://lopifi.com/glossary/temporary-difference
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is temporary difference?** In accounting, temporary difference means a difference between an asset or liability's tax basis and its book carrying amount that will reverse in future years — the source of deferred taxes.

## Words this system refuses for it

- permanent difference (never reverses)

- **Category:** Tax
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** liability, asset, basis