NOTE 12 – INCOME TAXES
Indoor Harvest operates in the United States; accordingly, federal and state income taxes have been provided based upon the tax laws and rates of the US. Deferred taxes are determined based on the temporary differences between the financial statement and income tax bases of assets and liabilities as measured by the enacted tax rates, which will be in effect when these differences reverse.
The components of deferred income tax assets and liabilities as of December 31, 2016 and 2015 are as follows:
|
Description |
|
2016 |
|
|
2015 |
|
||
|
|
|
|
|
|
|
|
||
|
Deferred tax assets |
|
|
|
|
|
|
||
|
Net operating losses |
|
$ | 1,005,468 |
|
|
$ | 458,202 |
|
|
Deferred tax liabilities |
|
|
|
|
|
|
|
|
|
Accelerated tax depreciation |
|
|
19,183 |
|
|
|
16,911 |
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax assets |
|
|
986,285 |
|
|
|
441,291 |
|
|
Less: Valuation allowance |
|
|
(986,285 | ) |
|
|
(441,291 | ) |
|
|
|
|
|
|
|
|
|
|
|
Net |
|
$ | - |
|
|
$ | - |
|
At December 31, 2016 and 2015, the Company has provided a full valuation allowance for the deferred tax assets. The Company’s accumulated net operating loss as of December 31, 2016 of $2,957,258, if not used, will begin to expire in 2036.
This loss carryforward expires according to the following schedule:
|
Year Ending December 31, |
|
Amount |
|
|
|
|
|
|
|
|
|
2033 |
|
$ | 217,074 |
|
|
2034 |
|
|
368,378 |
|
|
2035 |
|
|
761,615 |
|
|
2036 |
|
|
1,610,192 |
|
|
|
|
|
|
|
|
Total |
|
$ | 2,957,258 |
|