Getting a huge NOL this year (~1M), so I am assuming that I need to record a deferred tax asset to account for the NOL carryover into future years. So I would debit "Deferred Tax Asset", but what am I supposed to credit? I have read that you can credit the income tax expense but we don't have any, so it will result in a negative tax expense if we do, which would look strange.
It is a high risk VC funded startup and we don't know when we will start capturing the NOL carryover.
Is it acceptable to just credit everything under "Deferred tax valuation allowance"?
