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, 2011
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
8. INCOME TAXES

 

Income taxes charged to income were:

 

    2011     2010  
                 
Foreign - current   $ 14,608     $ -  

 

The amounts of U.S. and foreign income before income taxes, with a reconciliation of tax at the federal statutory rate (34%) with the provision for income taxes were:

 

    2011     2010  
             
Loss (earnings) before income taxes:                
United States   $ 965,303     $ 1,069,902  
Foreign     123,479       (58,337 )
    $ 1,088,782     $ 1,011,565  
Computed "expected" income tax expense (benefit)   $ (370,200 )   $ (343,900 )
Foreign taxes below federal statutory rate     12,300       -  
State income taxes, net of federal benefit     (43,600 )     (40,500 )
Travel, entertainment and other     4,008       10,100  
Valuation allowance     412,100       374,300  
Income tax expense (benefit)   $ 14,608     $ -  

 

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Major components of deferred tax assets and liabilities at December 31, 2011 and 2010 were:

 

    2011     2010  
             
Net operating loss carryforwards   $ 1,688,500     $ 1,381,600  
Capital loss carryforwards     630,100       478,300  
Investments     (86,700 )     8,900  
Foreign operations     49,000       -  
Total deferred tax assets     2,280,900       1,868,800  
Valuation allowance     (2,280,900 )     (1,868,800 )
Net deferred tax assets   $ -     $ -  

 

The Company has a net operating loss carryforward of approximately $4,443,000 which will expire at various dates beginning in 2024 through 2031, if not utilized. The Company has a capital loss carryforward of $1,658,000 which expires between 2015 and0 2016 if not utilized. The tax basis of investments is less than their book cost by approximately $228,000.