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Income Taxes
 3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
3. Income Taxes

 

The Company incurred a loss for the three month periods ended March 31, 2013 and 2012 and accordingly, no provision for federal income tax has been made in the accompanying financial statements. At December 31, 2012, the Company had available net operating loss carryforwards of approximately $2,800,000, expiring during various years through 2032.

 

A summary of the deferred tax asset using an approximate 34% tax rate is as follows:

 

    March 31,
2013		     December 31,
2012		  
             
Net operating loss   $ 952,000     $ 954,000  
Valuation allowance     (952,000 )     (954,000 )
Total   $ -     $ -  

 

The net operating loss carryforwards could be subject to limitation in any given year in the event of a change in ownership as defined by IRC Section 382.

 

The deferred tax liability of $43,300 and $47,600 at at March 31, 2013 and December 31, 2012, respectively, results from the difference in the carrying amount of furnishings and equipment between financial reporting and income tax reporting.

 

The deferred tax benefit included in the statement of operations represents the change in the deferred tax liability at each balance sheet date.

 

The difference between the statutory and the effective tax rate is primarily due to a change in valuation allowance on deferred taxes, as the Company has fully reserved the deferred tax asset resulting from available net operating loss carryforwards.