NOTE 8 – INCOME TAXES
A reconciliation of differences between the effective income tax rates and the statutory federal rates for the years ended December 31, 2017 and 2016 are as follows:
|
| 2017 |
|
| 2016 |
| ||||||||||
|
| Rate |
|
| Amount |
|
| Rate |
|
| Amount |
| ||||
Tax benefit at US statutory rate |
|
| 34 | % |
| $ | (53,407 | ) |
|
| 34 | % |
| $ | (90,193 | ) |
State taxes, net of federal benefit |
|
| 5 | % |
|
| (7,854 | ) |
|
| 5 | % |
| $ | (13,264 | ) |
Change in valuation allowance |
|
| (39 | )% |
|
| 61,260 |
|
|
| (39 | )% |
|
| 103,457 |
|
|
|
| — |
|
| $ | — |
|
| — |
|
| $ | — |
| |
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2017 and 2016 consisted of the following:
|
| 2017 |
|
| 2016 |
| ||
Net Operating Loss Carryforward |
| $ | (575,526 | ) |
| $ | (522,169 | ) |
Valuation Allowance |
|
| 575,526 |
|
|
| 522,169 |
|
Total Net Deferred Tax Assets |
| $ | — |
|
| $ | — |
|
As of December 31, 2017, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $1.69 million that may be offset against future taxable income through 2031. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amounts available to offset future taxable income may be limited. No tax assets have been reported in the financial statements because the Company believes there is a 50% or greater chance the carryforwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount.