NOTE 5 INCOME TAXES

Management believes the income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the years ended June 30, 2019, 2018, and 2017 are subject to examination by the Internal Revenue Service taxing authority.

The sources of deferred income tax assets and liability at June 30, 2020 and 2019 are as follows:


	2020		2019
Deferred Income Tax Assets:
Net Operating Loss Carryover	$	93,681	$	66,741
Valuation Allowance on Net Operating Loss		(77,232)		(39,682)
Trade Receivables		3,416		3,333
Deferred Income		1,600		1,937
Contribution Carryover		1,748		1,297
Total Deferred Income Tax Assets		23,213		33,626

Deferred Income Tax Liability:
Property and Equipment		(23,213)		(33,626)
NET DEFERRED INCOME TAX ASSET	$	—	$	—

The net deferred income tax asset is presented in the accompanying June 30, 2020 and 2019 consolidated balance sheets as follows:


	2020		2019
Deferred Income Tax Asset	$	—	$	—

The benefit for income taxes for the years ended June 30, 2020 and 2019 consists of the following:


	2020		2019
Current Income Tax	$	—	$	—
Deferred Income Tax Credit		—		—
Total	$	—	$	—

The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax loss for the years ended June 30, 2020 and 2019 due to the following:


	2020		2019
Computed at Federal Statutory Rates	$	(30,670)	$	(7,363)
Increase (Decrease) in Income Taxes Resulting from:
Non-Deductible Expenses		9		138
Changes in Judgment on Realizability of Deferred Tax Assets		30,661		7,225
Total	$	—	$	—

The Company has available at June 30, 2020, $361,181 of unused operating loss that may be carried forward and applied against future taxable income. Of the net operating loss carryforward, $15,902 expires on June 30, 2038, the remaining balance does not expire.