1. Expected future taxable income exclusive of reversing temporary differences and carryforwards.
1. a company might support its predictions of future table income with evidence of existing contracts or a sales backlog that will produce enough taxable income to realize the deferred tax asset when it reverses.
2. Tax planning strategies:
1. sale and lease back of operating assets, changing inventory accounting methods, refraining from making voluntary contributions to the company pension plan, sale of noncore assets…etc.