General form of registration statement for all companies including face-amount certificate companies

INCOME TAXES

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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
INCOME TAXES

NOTE 11 – INCOME TAXES

 

At December 31, 2023, net operating loss carry forwards for Federal and state income tax purposes totaling approximately $2,782,000 available to reduce future income which under the Tax Cuts and Jobs Act of 2018, allows for an indefinite carryforward period, with carryforwards limited to 80% of each subsequent year’s net income. There is no income tax affect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets.

 

A reconciliation of the statutory income tax rates and the effective tax rate is as follows:

 

    December 31,  
    2023     2022  
             
Statutory U.S. federal rate     21.0 %     21.0 %
State income tax, net of federal benefit     7.0 %     7.0 %
Permanent differences     - %     (7.5 )%
Valuation allowance     (28.0 )%     (20.5 )%
                 
Provision for income taxes     0.0 %     0.0 %

 

 

The tax effects of the temporary differences and carry forwards that give rise to deferred tax assets consist of the following:

 

    2023     2022  
    December 31,  
    2023     2022  
             
Deferred tax assets:                
Net operating loss carry forwards   $ 2,781,577     $ 1,674,531  
Accrued payroll     203,771      

-

  
Stock-based compensation     60,321       -  
Depreciation and amortization     (21,911 )     -  
Valuation allowance     (3,023,758 )     (1,674,531 )
                 
Total   $ -     $ -  

 

Major tax jurisdictions are the United States and California. All of the tax years will remain open three and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. There are no tax audits pending.

 

NOTE 10 – INCOME TAXES

 

At December 31, 2021, net operating loss carry forwards for Federal and state income tax purposes totaling approximately $1,408,000 available to reduce future income which under the Tax Cuts and Jobs Act of 2018, allows for an indefinite carryforward period, with carryforwards limited to 80% of each subsequent year’s net income. There is no income tax affect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets.

 

 

A reconciliation of the statutory income tax rates and the effective tax rate is as follows:

    December 31,  
    2022     2021  
             
Statutory U.S. federal rate     21.0 %     21.0 %
State income tax, net of federal benefit     7.0 %     7.0 %
Permanent differences     (7.5 )%     (4.0 )%
Valuation allowance     (20.5 )%     (24.0 )%
                 
Provision for income taxes     0.0 %     0.0 %

 

The tax effects of the temporary differences and carry forwards that give rise to deferred tax assets consist of the following:

    2022     2021  
    December 31,  
    2022     2021  
             
Deferred tax assets:                
Net operating loss carry forwards   $ 1,674,531     $ 1,073,527  
Valuation allowance     (1,674,531 )     (1,073,527 )
                 
Total   $ -     $ -  

 

Major tax jurisdictions are the United States and California. All of the tax years will remain open three and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. There are no tax audits pending.