Note 8 Income Taxes

12 Months Ended

Dec. 31, 2017

Note 8Income Taxes

The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. The Company is current on all of its corporate tax filings. Tax year 2017 is currently under extension and we expect to file the returns by the due date.

Due to the enactment of the Tax Reform Act of 2017, the corporate tax rate for those tax years beginning with 2018 has been reduced to 21%. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $2,180,000 and $1,758,000 at December 31, 2017 and 2016 and will expire beginning in 2028.

At December 31, 2017 and 2016, deferred tax assets consisted of the following:

	2017	2016
Deferred tax assets
Net operating losses	$ 458,000	$ 615,000
Less: valuation allowance	(458,000)	(615,000)

Net deferred tax asset	$ -	$ -

Incoming, Inc. 10-K