Can Form 8854 Liabilities 2023-2024

Taxes part one: deferred tax liability - This is Ken Boyd, the owner of St. Louis Test Preparation. - Here's our email address and phone number. - You can also find us on Facebook: Single AS Test Prep. - Here's our Facebook page. - Let's define deferred tax liability. - It means taxes that are not due currently or immediately. - They are deferred to a later year. - They are a liability because they are deferred. - They are not due now. - So what would cause a deferred tax liability? - The reason is that accounting or book income differs from the income on the tax return. - This creates a temporary difference between book and tax. - However, the long-term result is the same. - Eventually, it balances out. - Now let's jump over to an example in Excel. - In this example, we have pre-tax accounting income and depreciation for tax purposes. - The depreciation expense differs between book and tax. - We use accelerated depreciation for tax purposes. - As a result, taxable income differs between the two. - We also have a varying tax rate each year. - This leads to an income tax amount payable each year. - In our example, the temporary difference is the difference between book and tax depreciation. - For book purposes, we use straight-line depreciation. - For tax purposes, we use accelerated depreciation. - As a result, we have temporary differences between the two. - It's important to note that the total depreciation assets over four years is the same in both instances, just at a different rate. - So, what happens with the deferred tax liability from a debit and credit standpoint? - In the early years, taxes are deferred to future years, resulting in a deferred tax liability (credit). - In the later years, when there...