Note 3. Income Taxes
We have adopted ASC 740 which provides for the recognition of a deferred tax asset based upon the value the loss carry-forwards will have to reduce future income taxes and Management's estimate of the probability of the realization of these tax benefits.
We have a current operating loss carry-forward of $93,901. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all our net deferred tax asset.
Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry forwards before full utilization.
| June 30, 2017 | June 30, 2016 | |
| Individual components giving rise to the deferred tax assets are as follows: | ||
| Future tax benefit arising from net operating loss carryovers | $32,865 | $25,280 |
| Less valuation allowance | (32,865) | (25,280) |
| Total deferred tax asset | $ - | $ - |
The Company is not under examination by any jurisdiction for any tax year. The Company has no active business operations. Our federal and state income tax returns are open for fiscal years ending on or after June 30, 2008.