Note 9 Income Taxes
The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. The Company is current on all of its corporate tax filings. Tax year 2016 is currently under extension and we expect to file the returns by the due date.
The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $1,758,000 and $1,532,000 at December 31, 2016 and 2015 and will expire beginning in 2028.
At December 31, 2016 and 2015, deferred tax assets consisted of the following:
2016 |
| 2015 | |
Deferred tax assets |
|
|
|
Net operating losses | $ 615,000 |
| $ 536,000 |
Less: valuation allowance | (615,000) |
| (536,000) |
|
|
|
|
Net deferred tax asset | $ - |
| $ - |