INCOME TAXES

3 Months Ended

Oct. 31, 2013

INCOME TAXES [Text Block]

NOTE H - INCOME TAXES

As of July 31, 2013, the Company had net operating loss carry forwards of approximately $170,000 that may be available to reduce future years’ taxable income 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 three months ended October 31, 2013 and 2012:

Federal income tax benefit attributable to:		2013			2012
Current	$	63,502		$	680
Less:		(63,502	)		(680	)
Net provision for	$	-		$	-

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of October 31, 2013 and July 31, 2013:

Deferred tax asset attributable to:		2013			2012
Net operating loss carryover		117,768			54,266
Less: valuation allowance		(117,768	)		(54,266	)
Net deferred tax	$	-		$	-

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $119,685 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.