Note 3 - Significant Accounting Policies: Provision for Income Taxes (Policies)

12 Months Ended

Dec. 31, 2017

Provision for Income Taxes

The Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 are summarized as follows:

		2017		2016

Net operating loss carry forward	$	2,834,901	$	3,700,517

Building and land impairment		126,461		175,522

Deferred tax assets		2,961,362		3,876,039

Valuation allowance		(2,961,362)		(3,876,039)

Total deferred tax assets	$	-	$	-

Federal and state income tax expense for the years ended December 31, 2017 and 2016, are summarized as follows:

		2017		2016

Current federal and state tax expense	$	-	$	-

Deferred federal and state tax (expense) benefit		(914,677)		340,256

Change in valuation allowance		914,677		(340,256)

Income tax expense	$	-	$	-

The Company has adopted FASB ASC 740-10 to account for income taxes. The Company currently has no items creating material temporary differences that would give rise to deferred tax assets or liabilities except as noted above. Net operating losses give rise to possible tax assets in future years. Due to the uncertainty of the utilization of net operating loss carry forwards; a valuation allowance has been made to the extent of any future tax benefit that the net operating losses may generate. A provision for income taxes has not been made due to the deferred tax asset associated with the net operating loss carry-forwards of approximately $10,903,000 and $10,279,000 as of December 31, 2017 and 2016, respectively, which may be offset against future taxable income. These net operating loss carry-forwards begin to expire in the year 2020. No tax benefit has been reported in the financial statements. Tax rates differ from statutory rates due to the uncertainty of the above.

The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations in the provision for income taxes. As of December 31, 2017, and 2016, the Company had no accrued interest or penalties related to uncertain tax positions.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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