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TAXES
12 Months Ended
Dec. 31, 2023
TAXES  
TAXES

NOTE 11. TAXES

    

    

For the year ended

For the year ended

December 31, 2023

 December 31, 2022

Deferred tax assets:

 

 

Start-up costs

$

420,391

$

180,281

Total deferred tax assets

 

420,391

180,281

Valuation Allowance

 

(420,391)

(180,281)

Deferred tax asset, net of allowance

$

$

    

    

For the year ended

For the year ended

December 31, 2023

December 31, 2022

Federal

 

 

Current

$

550,465

$

303,890

Deferred

 

(240,110)

(180,281)

State and local

 

Current

 

Deferred

 

Change in valuation allowance

 

240,110

180,281

Income tax provision

$

550,465

$

303,890

As of December 31, 2023, the Company had no U.S. federal operating loss carryovers.

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of 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 during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the period ended December 31, 2023 and December 31, 2022, the change in the valuation allowance was $240,110 and $180,281, respectively.

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:

    

For the Year

    

For the Year

 

Ended

 

Ended

 

December 31,

 

December 31,

 

2023

 

2022

 

U.S. federal statutory rate

 

21.0

%

21.0

%

Transaction Costs

(2,074.9)

%

%

Penalties

(21.5)

%

%

Valuation allowance

(1,605.7)

%

30.6

%

Income tax provision

(3,681.1)

%

51.6

%

The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns since inception remain open to examination by the taxing authorities.