NOTE F - INCOME TAXES

12 Months Ended

Jun. 30, 2014

NOTE F-INCOME TAXES

Due to the operating loss and the inability to recognize an income tax benefit there is no provision for current or deferred federal or state income taxes for the year ended June 30, 2014.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.

The Company’s total deferred tax asset, calculated using federal and state effective tax rates, as of June 30, 2014 is as follows:

Total Deferred Tax Asset	$	34,934
Valuation Allowance		(34,934	)
Net Deferred Tax Asset		—

The reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes for the period from inception through June 30, 2014 and 2013 is as follows:

	2014			2013
Income tax computed at the federal statutory rate		34	%		34	%
State income tax, net of federal tax benefit		0	%		0	%
Total		34	%		34	%
Valuation allowance		-34	%		-34	%
Total deferred tax asset		0	%		0	%

Because of the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased by approximately $7,752 and $6,786 for the years ended June 30, 2014 and 2013, respectively.

As of June 30, 2014, the Company had a federal and state net operating loss carry forward in the amount of approximately $102,747, which expires in the tax year 2034.

ONE XL CORP 10-K