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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Taxes [Abstract] |
Income Taxes | 11. Income Taxes The Company’s benefit for income taxes consists of the following for the year ended December 31, 2013 and 2012:
|  | 2013 |  |  | 2012 |
Deferred: |  |  |  |  |  |
Federal |  | $ | (692,787 | ) |  | $ | (535,089 | )
State and local |  |  | (389,582 | ) |  |  | (406,952 | )
Total deferred |  |  | (1,082,369 | ) |  |  | (942,041 | )
Total benefit for income taxes |  |  | (1,082,369 | ) |  |  | (942,041 | )
Less: valuation reserve |  |  | 1,082,369 |  |  |  | 942,041 |
Income Tax provision |  | $ | - |  |  | $ | - |
A reconciliation of the federal statutory rate of 0% for the year ended December 31, 2013 and 2012 to the effective rate for income from operations before income taxes is as follows:
|  | 2013 |  |  | 2012 |
Benefit for income taxes at federal statutory rate |  |  | 34.0 | % |  |  | 34.0 | %
State and local income taxes, net of federal benefit |  |  | 9.6 |  |  |  | 10.6 |
Differences attributable to change in state business apportionment |  |  | (1.9 | ) |  |  | 7.0 |
Change in fair value of derivative liabilities |  |  | 7.3 |  |  |  | 2.0 |
Other |  |  | 1.3 |  |  |  | (0.3 | )
Less valuation allowance |  |  | (50.3 | ) |  |  | (53.3 | )
Effective income tax rate |  |  | 0.0 | % |  |  | 0.0 | %
During 2013, the Company adjusted its estimate of business apportionment, thus decreasing its effective state and local tax rate from 10.6% to 9.6%. The decrease is primarily due to allocation of business receipts from New York State and New York City. The tax effects of these temporary differences along with the net operating losses, net of an allowance for credits, have been recognized as deferred tax assets at December 31, 2013 and 2012 as follows:
|  | 2013 |  |  | 2012 |
Net operating loss carryforward |  | $ | 2,294,888 |  |  | $ | 1,443,296 |
Bad debt reserve |  |  | 121,792 |  |  |  | 75,163 |
Employee stock compensation |  |  | 510,816 |  |  |  | 334,393 |
Accrued losses on uncompleted jobs |  |  | 4,318 |  |  |  | - |
Depreciation |  |  | 419 |  |  |  | (370 | )
Related party expenses |  |  | 2,618 |  |  |  | - |
Total deferred tax asset |  |  | 2,934,851 |  |  |  | 1,852,482 |
Less valuation allowance |  |  | (2,934,851 | ) |  |  | (1,852,482 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
The Company establishes a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the deferred assets will not be realized. The valuation allowance increased $1,082,369 and $942,041 during 2013 and 2012, respectively, offsetting the increase in the deferred tax asset attributable to the net operating loss and reserves. As of December 31, 2013, the Company has a net operating loss carry forward of approximately $5,260,000 for Federal tax purposes. The net operating loss expires through 2032. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. As of December 31, 2013, the Company has no unrecognized tax positions, including interest and penalties. The tax years 2010-2012 are still open to examination by the major tax jurisdictions in which the Company operates. The Company files returns in the United States Federal tax jurisdiction and various other state jurisdictions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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