| NOTE 4: INCOME TAXES | At
December 31, 2018 and 2017, the Company had federal net operating loss carry forwards of $213,635 and $142,8323, respectively,
which expire in varying amounts beginning in 2031. Components
of net deferred tax assets, including a valuation allowance, are as follows at December 31, 2018 and 2017.
December
31, 2018 December
31, 2017
Deferred
tax assets:
Valuation
allowance $ 44,863 $ 29,995
Less:
Valuation allowance (44,863 ) (29,995 )
Net
deferred tax assets $ -- $ -- As
of December 31, 2017 the effective top tax rate for corporations was reduced from 35% to 21%. The effect of the reduced rate decreased
the valuation for the year ended December 31, 2017 from $49,991 to $29,995 or by $19,996. In
assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or
all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation
of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled
reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment.
As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31,
2018. A
reconciliation of income taxes at the federal statutory rate to amounts provided for the years ended December 31, 2018 and 2017
is as follows:
2018 2017
U.S. federal statutory
rate 21 % 21 %
Net
operating loss (21 %) (21 %)
Effective
tax rate -- % -- % As
of December 31, 2018, the Company’s tax years from inception through the year ended December 31, 2018 remain subject to
examination by Federal and California jurisdictions. |
