NOTE 7 - INCOME TAXES

12 Months Ended

Dec. 31, 2018

Notes

NOTE 7 - INCOME TAXES

NOTE 7 – INCOME TAXES

The Company follows ASC 740, under which deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry-forward has been recognized, as it is not deemed likely to be realized.

The cumulative tax effect at the expected rate of 21 percent (for 2018) and 34 percent (for 2017) of significant items comprising our net deferred tax amount is as follows:

	Year ended December 31, 2018	Year ended December 31, 2017
Income tax benefit attributable to:
Net operating loss	$(37,450)	$(56,131)
Change in valuation allowance	37,450	56,131
Net refundable amount	$-	$-

The cumulative tax effect at the expected rate of 21 percent (for 2018) and 34 percent (for 2017) of significant items comprising our net deferred tax amount is as follows: 

	December 31, 2018	December 31, 2017
Deferred tax asset attributable to:
Net operating loss carry forwards	$(1,237,814)	$(1,934,445)
Common stock issued for services	113,692	184,072
Valuation allowance	1,124,122	1,759,373
Net deferred tax asset	$-	$-

The Company’s zero percent effective tax rate for each year, as compared to the 21 percent statutory rate, results from non-deductible stock based compensation and the change in valuation allowance.

At December 31, 2018, the Company had an unused net operating loss carry-forward of approximately $1,237,814 that is available to offset future taxable income; the loss carry-forward will begin to expire in 2027.