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Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Taxes  
Income Taxes

NOTE 11 - 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 provision for Federal income tax consists of the following for the years ended December 31, 2014 and 2013:

 

    2014   2013
Federal income tax benefit attributable to:                
Current operations   $ 1,444,983     $ 556,328  
Less: valuation allowance     (1,444,983 )     (556,328 )
Net provision for Federal income taxes   $ —       $ —    

 

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of December 31, 2014 and 2013:

 

    2014   2013
Deferred tax asset attributable to:                
  Net operating loss carryover   $ 2,265,333     $ 820,350  
  Valuation allowance     (2,265,333 )     (820,350 )
      Net deferred tax asset   $ —       $ —    

 

At December 31, 2014, the Company had net operating loss carry forwards of approximately $5,600,000 that may be offset against future taxable income from the year 2014 to 2033. No tax benefit has been reported in the December 31, 2014 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.