Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.21.1
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 9 – INCOME TAXES

 

At December 31, 2020, net operating loss carry forwards for Federal and state income tax purposes totaling approximately $1,229,000 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:

 

          From Inception  
          (October 29,  
          2019) through  
    December 31,     December 31,  
    2020     2019  
Statutory U.S. federal rate     21.0 %     21.0 %
State income tax, net of federal benefit     7.0 %     7.0 %
Permanent differences     0.0 %     0.0 %
Valuation allowance     (28.0 )%     (28.0 )%
                 
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:

 

    December 31,  
    2020     2019  
Deferred tax assets:                
Net operating loss carry forwards   $ 352,912     $ 434  
Valuation allowance     (352,912 )     (434 )
                 
    $ -     $ -  

 

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.