NOTE 7 – INCOME TAXES
As of January 31, 2017, the Company had net operating loss carry forwards of approximately $151,000 that may be available to reduce future years’ taxable income in varying amounts through 2033. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The provision for Federal income tax consists of the following for the periods ended January 31:
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2017 |
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2016 |
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Federal income tax benefit attributable to: |
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Current Operations |
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$ | 23,668 |
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$ | 12,770 |
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Less: valuation allowance |
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(23,668 | ) |
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(12,770 | ) |
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Net provision for Federal income taxes |
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$ | - |
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$ | - |
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The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of January 31:
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2017 |
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2016 |
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Deferred tax asset attributable to: |
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Net operating loss carryover |
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$ | 51,193 |
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$ | 27,525 |
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Less: valuation allowance |
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(51,193 | ) |
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(27,525 | ) |
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Net deferred tax asset |
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$ | - |
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$ | - |
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Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $151,000 for Federal income tax reporting purposes are subject to annual limitations. Changes in ownership could result in net operating loss carry forwards being limited as to use in future years.