NOTE 8 TAXES
The components of deferred taxes are as follows:
|
December 31, 2016
|
December 31, 2015
|
|||||
| Deferred income tax assets: | ||||||
|
Operating loss carryforwards |
$207,772 |
$115,961 |
||||
|
Less: Valuation allowance |
(207,772) |
(115,961) |
||||
|
$- |
$- |
|||||
The components of income tax benefit for the periods ended are as follows:
|
December 31, 2016 |
December 31, 2015 |
||
|
Current tax benefit |
$(91,810) |
$(36,553) |
|
|
Change in valuation allowance |
91,810 |
36,553 |
|
|
Income tax provision |
$- |
$- |
At December 31, 2016 and 2015, a valuation allowance was established for the entire amount of the net deferred tax asset as the realization of the deferred tax asset is dependent on future taxable income. The Company calculates the valuation allowance using a Federal Income rate of 34.0% and a State Income rate of 3.6%.
At December 31, 2016, the Company had net operating loss carryforwards for tax purposes of $552,586 which will expire beginning in 2033, if not previously utilized. The Company is subject to taxation in the United States and various state jurisdictions. As of December 31, 2016, the Company's tax years for 2013, 2014, and 2015 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2016, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2012. Tax year 2012 was open as of December 31, 2015.