Note 7 - Income Taxes

6 Months Ended

Jul. 31, 2014

NOTE 7 – INCOME TAXES

As of July 31, 2014, the Company had net operating loss carry forwards of approximately $41,635 that may be available to reduce future years’ taxable income in varying amounts through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following:


	January 31, 2013	January 31, 2014
Federal income tax benefit attributable to:
Current Operations	$ 3,763	$ 14,156
Less: valuation allowance	(3,763)	(14,156)
Net provision for Federal income taxes	$ 0	$ 0

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:


	January 31, 2013	January 31, 2014
Deferred tax asset attributable to:
Net operating loss carryover	$ 3,763	$ 14,156
Less: valuation allowance	(3,763)	(14,156)
Net deferred tax asset	$ 0	$ 0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $ 41,635 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

- 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.

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Modern PVC Inc 10-Q/A