Income Taxes

6 Months Ended

Jun. 30, 2014

NOTE L – INCOME TAXES

Expected income tax expense (benefit) computed by applying the United States statutory income tax rate of 34% to pretax income (loss) differs from the Company’s provision for (benefit from) income taxes, as follows:

	3 Months Ended		3 Months Ended
	June 30, 2014		June 30, 2013

Expected income tax expense (benefit) at 34%	$	35,946	$	147,849
Non-deductible stock-based compensation				107,535
Non-taxable income from revaluation of equity-based financial instruments with characteristics of liabilities at fair values
Change in valuation allowance		35,946		255,384

Provision for income taxes	$	-	$	-

The components of net deferred income tax assets are as follows:

	June 30, 2014			June 30, 2013

Allowance for doubtful accounts	$	342,027		$	200,127
Net operating loss carryforward		2,422,594			2,314,594
Total		2,764,621			2,514,721
Less valuation allowance		(2,764,21	)		(2,514,721	)
Net deferred income tax assets	$	-		$	-

Based on management’s present assessment, the Company has not yet determined it to be more likely than not a deferred income tax asset of up to approximately $1,351,003 attributable to the future utilization of the net operating loss carryforwards and other timing differences of approximately $3,973,539 as of June 30, 2014 will not be realized. Accordingly, the Company has maintained a 100% allowance against the deferred tax asset in the financial statements at June 30, 2014. The Company will continue to review this valuation allowance and make adjustments as appropriate. The $3,464,820 net operating loss carryforward expires $1,743,693 in year 2028, $983,226 in year 2029 and $737,901 in year 2030.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

MIT Holding, Inc. 10-Q/A