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Note 5 Income Taxes
12 Months Ended
Dec. 31, 2013
Notes  
Note 5 Income Taxes

NOTE 5 INCOME TAXES

 

The Company accounts for income taxes in accordance with ASC Topic No. 740, “Income Taxes.” ASC Topic No. 740 requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards.

 

The Company has available at December 31, 2013 an unused operating loss carryforward of approximately $199,900 that may be applied against future taxable income and which expires in 2033.  The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined.  Due to a change in control of the Company in December 2009, the annual amount of the NOL that can be applied against future earnings is limited.  Because of the uncertainty surrounding the realization of the net deferred tax assets, the Company has established a valuation allowance equal to their tax effect and, therefore, no deferred tax asset has been recognized.  The net deferred tax assets are approximately $30,000 and $26,700 as of December 31, 2013 and 2012, with an offsetting valuation allowance of the same amount.  The change in the valuation allowance for the year ended December 31, 2013 is approximately 3,300.