Income Taxes

12 Months Ended

Dec. 31, 2014

Note 8 – Income Taxes

Deferred income taxes reflect the net tax effects of operating loss and tax credit carry forwards and temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Due to the uncertainty of the Company’s ability to realize the benefit of the deferred tax assets, the deferred tax assets are fully offset by a valuation allowance at December 31, 2014, and December 31, 2013.

Income tax expense for 2014 and 2013 is as follows:

	2014			2013

Current:
Federal	$	—		$	—
State		—			—

		—			—

Deferred:
Federal		(304,501	)		(210,597	)
State		(50,208	)		(34,749	)
Change in Valuation allowance					245,346
	$	—		$	—

The following is a summary of the Company’s deferred tax assets at December 31, 2014 and 2013:

	2014			2013

Deferred Tax Assets:
Net operating losses	$	481,599		$	364,842
Accounts payable		379,013			151,625
Net deferred tax assets		860,612			516,467
Deferred Tax Liabilities:
Accounts receivable		(45,727	)		(46,587	)
Depreciation and amortization		(12,575	)		(22,070	)
Net Deferred Tax Liabilities		(58,302	)		(68,658	)
Valuation allowance		802,310			(447,809	)
	$	—		$	—

A reconciliation between the expected tax expense (benefit) and the effective tax rate for the years ended December 31, 2014 and 2013 are as follows:

	2014			2013

Statutory federal income tax rate		34	%		34	%
State taxes, net of federal income tax		5.61	%		5.61	%
Effect of change in valuation allowance		(21.01	%)		(5.19	%)
Non-deductible expenses		(18.60	%)		(34.42	%)
		0	%		0	%

As of December 31, 2014, the Company had a tax net operating loss carry forward of approximately $1,214,000. Any unused portion of this carry forward expires in 2030. Utilization of this loss may be limited in the event of an ownership change pursuant to IRS Section 382.

- 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

AMERICAN DOCTORS ONLINE, INC. 10-K