Income Taxes

6 Months Ended

May 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted on December 22, 2017. The 2017 Tax Act includes a number of changes to existing U.S. income tax laws that affect the Company, most notably a reduction of the top U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. The 2017 Tax Act also provides for the acceleration of depreciation for certain assets placed in service after September 27, 2017, as well as changes beginning in 2018, including additional limitations on the deductibility of executive compensation and interest.

On May 16, 2019, the Company entered into a share exchange agreement which resulted in Hestia Investments, Inc. becoming a wholly owned subsidiary of the Company and the former shareholders Hestia Investments Inc becoming the new majority shareholders of the Company. Prior to this date the Company and Hestia Investments, Inc., have been taxed as separate C-Corporations for federal income tax purposes.

The provision (benefit) for income taxes for six months ended May 31, 2023, and the year ended November 30, 2022, consist of the following:

	May 31, 2023		Nov. 30, 2022
Current:
Federal	$	0	$	0
State		0		0
Total Current	$	0	$	0
Deferred:
Federal	$	0	$	0
State		0		0
Change in valuation		0		0
Total provision (benefit)	$	0	$	0

The Company, and its subsidiary have net deferred tax assets resulting from net operating loss (“NOL”) carryforwards. These NOL carryforwards are subject to limitations on their use and availability. Under the 2017 Tax Act, NOL carryforwards can offset only 80% of taxable income in any given tax year and are significantly or completely reduced whenever there is a substantial change in the ownership of the Corporation.

The income tax provision (benefit) differs from the amount computed by applying the U.S. federal statutory tax rate of 21% in 2023 and 2022 to net income (loss) before income taxes for the six months ended May 31, 2023 and May 31, 2022 and adjusting for the following:

	May 31, 2023			May 31, 2022
Net income (loss) before taxes	$	(287,116	)	$	(1,679,091	)
US federal income tax rate		21	%		21	%
Computed expected tax provision (benefit)		(60,294	)		(352,609	)
Permanent differences		-			-
Timing differences		60,294			352,609
Limitations on NOL carryforwards due to change in stock ownership of the Corporation
Federal income tax provision	$	-		$	-

The Company and its subsidiary file income tax returns in the U.S. federal jurisdiction and, if necessary, in various state and local jurisdictions. All tax years from 2017 to 2022 are subject to examination.