Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2014

Note 5 – Income Taxes

The provision (benefit) for income taxes differs from the amount computed at federal statutory rates as follows:

		2014	2013

Federal income tax benefit at statutory rate	$	(7,000)	(2,000)
State income tax benefit, net of federal tax benefit		(1,000)	(1,000)
Expiration of net operating loss carry-forward		-	5,000
Change in valuation allowance		9,000	(3,000)
Other		(1,000)	1,000
	$	-	-

Note 5 – Income Taxes (continued)

Deferred tax assets (liabilities) are comprised of the following:

		2014	2013

Net operating loss carry-forwards	$	729,000	732,000
Asset retirement obligation		66,000	62,000
Depletion and amortization		128,000	120,000
Stock compensation expense		66,000	66,000

		989,000	980,000
Less valuation allowance		(989,000)	(980,000)
	$	-	-

As of December 31, 2014, the Company had net operating loss (NOL) carry-forwards of approximately $2,143,000. If substantial changes in the Company’s ownership should occur there would be an annual limitation of the amount of NOL carry-forwards which could be utilized. Also, the ultimate realization of these carry-forwards is due, in part, on the tax law in effect at the time and future events, which cannot be determined.

The Company’s NOL amounts and related years of expiration are as follows:

Year			Year of
Generated		Amount	Expiration

1998		68,000	2018
1999		1,980,000	2019
2001		4,000	2021
2002		78,000	2022
2011		12,000	2031
2012		1,000	2032

	$	2,143,000

The Company is no longer subject to examination by federal and state taxing authorities for years prior to 2011.

ALLIED RESOURCES INC 10-K