INCOME TAXES

12 Months Ended

Jun. 30, 2022

INCOME TAXES

INCOME TAXES

NOTE 5       INCOME TAXES

Management believes the income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the years ended June 30, 2021, 2020, and 2019 are subject to examination by the Internal Revenue Service taxing authority.

The sources of deferred income tax assets and liabilities at June 30, 2022 and 2021 are as follows:

	June 30,		June 30,
	2022		2021
Deferred tax assets:
Bad Debt Allowance		200		3,600
Deferred Income		900		1,200
Contribution Carryover		500		—
Net operating loss carryforwards		38,900		38,600
		40,500		43,400
Deferred tax liabilities:
Book/Tax Difference on Property and Equipment		(10,000)		(18,000)
		(10,000)		(18,000)
Net deferred tax asset before valuation allowance		30,500		25,400
Valuation allowance:
Beginning balanace		(25,400)		(77,232)
(Increase) Decrease during the period		(5,100)		51,832
Ending balance		(30,500)		(25,400)
Net deferred tax asset	$	—	$	—

The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax income (loss) for the years ended June 30, 2022 and 2021 due to the following:

	For the Years Ended
	June 30,
	2022		2021
Computed at statutory rate	$	(4,487)	$	76,384
Increase (decrease) resulting from:
Nondeductible Meals & Entertainment		—		9
PPP Loan Forgivenss Income		—		(36,015)
State income taxes - net of federal tax benefit		(675)		6,076
Change in deferred tax asset valuation allowance		5,100		(51,832)
Other		62		5,378
Actual tax provision	$	—	$	—

The Company has available at June 30, 2022, $161,212 of net unused operating losses that may be carried forward and applied against future taxable income. Within this amount of net operating loss carryforwards, $54,902 expires on June 30, 2038, the remaining balance does not expire.