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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7. INCOME TAXES

The tax reform bill that Congress voted to approve Dec. 20, 2017, also known as the “Tax Cuts and Jobs Act”, made sweeping modifications to the Internal Revenue Code, including a much lower corporate tax rate, changes to credits and deductions, and a move to a territorial system for corporations that have overseas earnings.

The act replaced the prior-law graduated corporate tax rate, which taxed income over $10 million at 35%, with a flat rate of 21%.

The Company has not reviewed all of the changes the “Tax Cuts and Jobs Act” that apply to the Company, but is reviewing such changes. Due to the continuing loss position of the Company, such changes should not be material.

For the years ended December 31, 2017 and 2016, the Company incurred a net loss of ($85,990) and ($628,040), Net of Discontinued Operations Income of $37,022. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is $21,526,862 as of December 31, 2017 and will expire beginning in the year 2033. The provision for income tax of 2017 consists of the following:

		December 31,
		2017
Federal income (tax) benefit attributable to:
Current operations		$ (85,990)
Stock-based compensation		5,345
Amortization		(110)
Less: valuation allowance		(80,755)
Net provision for Federal income taxes		$ -

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset is as follows:

	2017		2016
Net operating loss carryforward	21,521,627		20,596,578
Related Party interest	-		6,918,509
Depreciation, amortization and other	5,235		(308,000)
Net operating loss carryforward	21,526,862		27,207,087

Net deferred tax assets	4,520,641		9,522,480

Valuation allowance	(4,520,641)		(9,522,480)
Net deferred tax assets	-		-


		2017		2016
Income tax at federal rate		21.00%		35.00%
Permanent differences		-21.00%		-35.00%

Effective income tax rate		0.00%		0.00%

As of December 31, 2017 and 2016, the Company had available for income tax purposes approximately $21 million and $27 million respectively in federal net operating loss carry forwards, which may be available to offset future taxable income. These loss carry forwards expire in 2020 through 2033. 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. Management has established a 100% valuation allowance 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.