As of December 31, 2017, the Company had net operating loss carry forwards of $287,939 that may be available to reduce future years’ taxable income through 2036 if not limited. 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 years ended December 31, 2017 and December 31, 2016:
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Federal income tax benefit attributable to: | ||||||||
| Net loss | $ | 11,508 | $ | 12,122 | ||||
| Less: valuation allowance | (11,508 | ) | (12,122 | ) | ||||
| Net provision for Federal income taxes | $ | - | $ | - | ||||
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of December 31, 2017 and December 31, 2016:
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Deferred tax asset attributable to: | ||||||||
| Net operating loss carryover | $ | 287,939 | $ | 276,431 | ||||
| Less: valuation allowance | (287,939 | ) | (276,431 | ) | ||||
| Net deferred tax asset | $ | - | $ | - | ||||
The valuation allowance increased by $11,508 from December 31, 2016 to December 31, 2017.
Due to the change in ownership in March 2012, the net operating loss carry forwards as of December 31, 2011 of $213,844 may be subject to limitations in accordance with Sec 382 of the provisions of the Tax Reform Act of 1986 for Federal income tax purposes.