Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, the recognition of future tax benefits, such as net operating loss carry forwards, is required to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date.

In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities result in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies.

As of July 31, 2021, the Company had net operating loss carry forwards of approximately $675,171 that may be available to reduce future years’ taxable income in varying amounts through 2040.

The Company’s income tax returns are subject to examination by tax authorities. Generally, the statute of limitations related to the Company’s federal and state income tax return is three years from the date of filing. The state impact of any federal changes of prior years remains subject to examination for a period of up to five years after formal notification to the states.

Management has evaluated tax positions in accordance with FASB ASC 740, Income Taxes, and has not identified any significant tax positions, other than those disclosed.

Income taxes on continuing operations include the following:

	Jul 31, 2021		Jul 31, 2020
Currently payable	$	-0-	$	-0-
Deferred		-0-		-0-

Total	$	-0-	$	-0-

A reconciliation of the effective tax rate with the statutory U.S. income tax rate is as follows:

	Jul 31, 2021						Jul 31, 2020
				% of						% of
				Pretax						Pretax
	Income			Amount			Income			Amount

Income taxes per statement of operations	$	-0-			0	%	$	-0-			0	%

Loss for financial reporting purposes without tax expense or benefit		(8,500	)		(21	)		(8,400	)		(21	)

Income taxes at statutory rate	$	(8,500	)		(21	)%	$	(8,400	)		(21	)%

The components of and changes in the net deferred taxes were as follows:

	Jul 31, 2021			Jul 31, 2020
Net operating loss carryforwards	$	141,800		$	133,300

Compensation and miscellaneous		4,300			3,200

Deferred tax assets		146,100			136,500

Valuation Allowance		(146,100	)		(136,500	)

Net deferred tax assets:	$	-0-		$	-0-

Tax periods ended July 31, 2017 through 2021 are subject to examination by major taxing authorities.