Income Taxes

12 Months Ended

Dec. 31, 2016

NOTE 7 – INCOME TAXES

Tax rates

Transatlantic is subject to a 15%-35% corporate tax rate in the United States.

For financial reporting purposes, loss before income taxes includes the following:

	For the Years Ended December 31,
	2016			2015

Net Loss	$	(43,792	)	$	(21,857	)

Deferred Tax
		For the Years Ended December 31,
		2016			2015
Deferred tax assets:
Net Operating loss carry forward	$	1,145,257		$	1,139,445
Valuation allowance		(1,145,257	)		(1,139,445	)
Net deferred tax assets	$	—		$	—

The deferred tax assets have been fully offset by a valuation allowance. The net change in the total valuation allowance for the years ended December 31, 2016 and 2015 was an increase of $5,812 and $7,431 respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are reducible. Management considers projected taxable income and tax planning strategies in making this assessment. In order to fully realize the deferred tax asset, the Company will need to generate future taxable income prior to the expiration of the deferred tax assets governed by the tax code. Based on the level of historical taxable losses, management believes that it is more likely than not that the Company will not realize the benefits of these deductible differences.

As of December 31, 2016, the Company has net operating loss carry forwards for federal income tax purposes of approximately $3.3 million, after consideration of approximately $201,400 of net operating loss carry forwards that are expected to expire unused due to an ownership change as defined under the Internal Revenue Code section 382 that occurred in early 2006. These federal net operating loss carry forwards will expire if not utilized on various dates through 2027. Tax years since 2013 are open for review.

Reconciliation of Income Tax Benefit (Expense)

A reconciliation of the theoretical income tax computed on the loss before income taxes at the statutory tax rate and the actual income tax provision is presented as follows:

	Year ended December 31,
	2016			2015
Loss before income taxes as per the income statement

Tax calculated according to the statutory tax rate of 34%		(5,812	)		(7,431	)

Increase (decrease) in income tax resulting from:
Non-tax benefit losses		5,812			7,431
Total income tax benefit	$	—		$	—

The income tax payable as of December 31, 2016 and 2015 was $0.

Accounting for Uncertainty in Income Taxes

As of January 1, 2016 and for the 12 months ended December 31, 2016, the Company did not have any unrecognized tax benefits and do not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. The Company’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits as a component of income tax expense.

TRANSATLANTIC CAPITAL INC. 10-K