NOTE F - INCOME TAXES
For the period ended December 31, 2017, the Company has incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $358,079 at December 31, 2017, and will expire beginning of the year 2025.
The provision for Federal income tax consists of the following for the years ended December 31, 2017 and 2016:
| 2017 | 2016 | |||||||
| Federal income tax benefit attributable to: | ||||||||
| Current Operations | $ | 1,880 | $ | 3,060 | ||||
| Less: valuation allowance | (1,880 | ) | (3,060 | ) | ||||
| Net provision for Federal income taxes | $ | — | $ | — | ||||
The cumulative tax effect at the expected rate of 21% and 34% respectively of significant items comprising our net deferred tax amount is as follows as of December 31, 2017 and 2016:
| December 31, 2017 | December 31, 2016 | |||||||
| Deferred Tax Asset | $ | 75,197 | $ | 118,704 | ||||
| Valuation allowance | (75,197 | ) | (118,704 | ) | ||||
| Net Deferred Tax Asset | $ | — | $ | — | ||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $358,079 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.