Temporary Differences in Reporting Expenses Financial Tax Expense Deductions Reporting Reporting Deduct now Deduct later Example: Product When When warranty expense. Estimated Paid Deduct Slower Deduct faster Example: Methods Straight-Line MACRS of depreciation Method Method c125C12 - 5 Temporary Differences in Reporting Expenses Deduct Now Deduct Later Deduct Slower Deduct Faster Example: Product warranty expense. When Estimated When Paid Financial Reporting Tax Reporting Example: Methods of depreciation. Straight-Line Method MACRS Method Expense Deductions