Note 3 - Significant Accounting Policies: Income Taxes (Policies)

3 Months Ended

Mar. 31, 2017

Policies

Income Taxes

Income Taxes

The Company maintains deferred tax assets that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. These deferred tax assets consist of net operating loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the Company’s history of losses. Utilization of operating losses and credits may be subject to substantial annual limitation due to ownership change provisions of the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization.

The income tax provision for the three months ended March 31, 2017 and March 31, 2016 are as follows:

		For the Three Months Ended March 31, 2017		For the Three Months Ended March 31, 2016
Current Tax Provision:
Federal:
Taxable income	$	-	$	-
Total current tax provision	$	-	$	-
Deferred Tax Provision:
Federal:
Loss carryforwards	$	768,601	$	643,619
Loss for the period	$	15,665	$	18,387
Net loss carryforward		784,266		662,006
Less valuation allowance		(784,266)		(662,006)
Total net deferred tax Assets	$	-	$	-

The Company had the following deferred income tax assets as of March 31, 2017 and December 31, 2016:

		March 31, 2017		December 31, 2016
Net deferred tax assets	$	784,266	$	768,601
Less: Valuation allowance		(784,266)		(768,601)
Total net deferred tax assets	$	-	$	-

The Company provided a valuation allowance equal to the deferred income tax assets for the period ended March 31, 2017 and December 31, 2016 because it was not known whether future taxable income will be sufficient to utilize the loss carry forwards. The potential tax benefits arising from these loss carryforwards begin to expire in 2026.

The Company did not identify any material uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits.

The federal income tax returns of the Company are subject to examination by the IRS generally for three years after they file.