General form of registration statement for all companies including face-amount certificate companies

INCOME TAXES

v2.4.0.6
INCOME TAXES
 12 Months Ended
Dec. 31, 2010
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
9.
INCOME TAXES
 
During the years ended December 31, 2010 and 2009, the provision for income taxes (all deferred) differs from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before provision for income taxes as a result of the following:
 
   
2010
    
2009
  
             
Computed "expected" income tax expense (benefit)
   $ (343,900 )   $ (276,700 )
State income taxes, net of federal benefit
     (40,500 )     (32,500 )
Travel, entertainment and other
     10,100       (8,900 )
Valuation allowance
     374,300       318,100  
Income tax expense (benefit)
   $ -     $ -  
 
Significant components of net deferred income tax assets are as follows:
 
   
2010
    
2009
  
             
Investments
   $ 8,900     $ 461,700  
Net operating loss carryforwards
     1,381,600       1,003,300  
Foreign losses
     -       16,500  
Capital loss carryforwards
     478,300       13,000  
Total deferred tax assets
     1,868,800       1,494,500  
Valuation allowance
     (1,868,800 )     (1,494,500 )
Net deferred tax assets
   $ -     $ -  
 
The Company has a net operating loss carryforward of approximately $3,656,000, which will expire at various dates beginning in 2024 through 2030, if not utilized.  The Company has a capital loss carryforward of $1,258,000 which expires in 2015 if not utilized.  The tax basis of investments exceeds their book cost by approximately $23,000.