NOTE 4 – Income Taxes

The Company accounts for income taxes in accordance with ASC Topic No. 740. This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards.

The Company has available at December 31, 2013, unused operating loss carryforwards of approximately $2,693,959, which may be applied against future taxable income and which expire in various years through 2033. However, if certain substantial changes in the Company’s ownership should occur, there could be an annual limitation on the amount of net operating loss carryforward which can be utilized. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the loss carryfowards of approximately $404,094 and $293,200 at December 31, 2013 and 2012, respectively, and, therefore, no deferred tax asset has been recognized for the loss carryforwards. The change in the valuation allowance is approximately $110,894 and $103,611 for the years ended December 31, 2013 and 2012, respectively.

Deferred tax assets are comprised of the following:

	2013		2012
Deferred tax assets:
NOL carryover	$	404,094	$	293,200
Valuation allowance		(404,094)		(293,200)
Net deferred tax asset	$	-	$	-

The reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the Company’s effective tax rate for the period ended December 31, 2013 and 2012 is as follows:

	2012		2011
Book Income	$	(110,117)	$	(102,834)
Organization costs		(777)		(777)
Valuation allowance		110,894		103,611

Tax at statutory rate	$	-	$	-