INCOME TAXES

12 Months Ended

Dec. 31, 2012

Notes

INCOME TAXES

NOTE 11 - INCOME TAXES

During December 31, 2011, the Linea Deportiva Prince Mexico, was not owned by a Prince Mexico, Inc as such, no U.S. tax effect is discussed.

At December 31, 2012, the Company had a federal operating loss carryforward of $138,254, which begins to expire in 2033.

Components of net deferred tax assets, including a valuation allowance, are as follows at December 31, 2012:

	2012
Deferred tax assets:
Net operating loss carryforward	$ 48,389
Total deferred tax assets	48,389
Less: Valuation allowance	(48,389)
Net deferred tax assets	$  -

The valuation allowance for deferred tax assets as of December 31, 2012 was $48,389, which will begin to expire 2033. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2012 and maintained a full valuation allowance.

Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2012:

	2012
Federal statutory rate	(35.0)%
State taxes, net of federal benefit	(0.00)%
Change in valuation allowance	35.0%
Effective tax rate	0.0%