Who Form 8854 Deferred 2023-2024

Here is the corrected version: What we're going to be going over here is deferred tax assets with evaluation allowance. When we're dealing with these deferred tax assets, we set up this valuation allowance here where it's more likely than not, or greater than 50% chance, that we will not realize some portion or all of this deferred tax assets. Let's look at first determining what our deferred tax assets is. In this case, we're going to be looking at two years, year x1 and year x2. We have to look at it in terms of our financial accounting and our book accounting versus our tax accounting. So this is how I have it laid out here. We're going to have this temporary difference here, which is some unearned revenue per our book accounting, but it's going to be cash received for tax accounting purposes. It's also going to be some rent received in advance. We set up this temporary difference here for year x1 for tax accounting purposes. We recognize it in the first year here, and it's going to be $30,000. In financial accounting, we're not going to recognize it until future years. We're going to start recognizing it in year x2 through year x4. This is where this temporary difference is going to reverse itself by $10,000 per year. Looking at our tax accounting first, we have to determine our deferred tax assets. That's the future deductable amount multiplied by the future tax rate. In this case, the future deductable amount is $30,000, which we recognize in year x1. For year x2 and beyond, we don't have to recognize any of that taxable revenue. Therefore, it's considered a deductable amount and is not included in any future incomes. To determine our deferred tax assets, it's the $30,000 worth of...