INCOME TAXES

12 Months Ended

Dec. 31, 2018

NOTE 8: INCOME TAXES

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has net operating losses of $17,212,933 since inception. The Company computes tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. The net operating loss can be carried forward indefinitely.

The components of the net deferred tax asset at December 31, 2018 and December 31, 2017 and the statutory tax rate, the effective tax rate and the elected amount of the valuation allowance are indicated below:

	December 31,			December 31,
	2018			2017

Net Operating Losses	$	740,908		$	1,457,859
Statutory Tax Rate		21	%		21	%
Effective Tax Rate		—			—
Deferred Tax Asset		155,590			306,150
Valuation Allowance		(155,590	)		(306,150	)
Net Deferred Tax Asset	$	—		$	—

The tax years ended December 31, 2015, 2018 and 2017 are open for audit by both federal and state taxing authorities.

Income tax benefit resulting from applying statutory rates in jurisdictions in which we are taxed (Federal and State of Florida) differs from the income tax provision (benefit) in our financial statements. The following table reflects the reconciliation for the years ended December 31, 2016 and 2016:

	Year Ended December 31,
	2018			2017

Benefit at federal and statutory rate		(35	)%		(35	)%
Change in valuation allowance		35	%		35	%
Effective tax rate		0	%		0	%

FUTURELAND CORP. 10-K