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INCOME TAXES
 12 Months Ended
Dec. 31, 2013
INCOME TAXES [Abstract]  
INCOME TAXES

NOTE 7. INCOME TAXES

Income tax expense (benefit) consists of the following:

 

2013

 

2012

   Current tax

 

           $(64,814)

 

          $(96,217)

   Deferred tax

 

         (247,378)

 

        (208,121)

   Valuation allowance

 

          312,192

 

         304,338

 

 

 

 

 

 

 

 $            -  

 

 $              -  

 

 

2013

 

2012

Deferred tax liabilities:

 

 

 

 

 

Temporary differences related to:

  Depreciation

 

         (167,049)

 

        (173,312)

 

 

 

 

 

Deferred tax assets:

 

 

 

 

  Net operating loss carry forward

 

       4,694,585

 

      4,633,802

  Related Party interest

 

       1,836,267

 

      1,692,634

  Other

 

-                    

 

                 -  

 

Net deferred tax asset before

valuation allowance

 

       6,363,802

 

      6,153,124

  Valuation Allowance

 

      (6,363,802)

 

     (6,153,124)

 

 

 

 

 

 

 

 $              -  

 

 $              -  

 

 

2013

 

2012

Income tax at federal rate

 

35.00%

 

35.00%

Permanent differences

 

-35.00%

 

-35.00%

 

 

 

 

 

Effective income tax rate

 

0.00%

 

0.00%

As of December 31, 2013 and 2012, the Company has available for income tax purposes approximately $21.0 and $20.0 million respectively in federal net operating loss carry forwards, which may be available to offset future taxable income. These loss carry forwards expire in 2019 through 2032. The Company may be limited by Internal Revenue Code Section 382 in its ability to fully utilize its net operating loss carry forwards due to possible future ownership changes. A 100% valuation allowance has been effectively established against the net deferred tax asset since it appears more likely than not that it will not be realized.

The provision (benefit) for income taxes attributable to income (loss) from continuing operations does not differ materially from the amount computed at the federal income tax statutory rate.