INCOME TAXES

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

NOTE 8 - INCOME TAXES

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income tax rate of 21% is being used for 2017 due to the new tax law recently enacted.

Net deferred tax assets consist of the following components as of December 31:

	2017			2016
Deferred Tax Assets:
NOL Carryover	$	82,200		$	38,400
Related party accrual		-			50,100
Less valuation allowance		(82,200	)		(88,500	)
Net deferred tax assets	$	-		$	-

At December 31, 2017, the Company had net operating loss carry forwards of approximately $211,000 that may be offset against future taxable income from the year 2018 to 2036. The valuation allowance decreased approximately $6,300 from 2016 to 2017. No tax benefit has been reported in the December 31, 2017 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards 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. The Company files income tax returns in the U.S. federal jurisdiction, and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2012.