Income Taxes

12 Months Ended

Jun. 30, 2024

NOTE 7. INCOME TAXES

We did not provide any current or deferred US federal income tax provision or benefit for the years ending June 30, 2024 and 2023 as we incurred tax losses during both of these years.

When it is more likely than not, that a tax asset cannot be realized through future income, we must record an allowance against any future potential future tax benefit. We have provided a full valuation allowance against the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward periods.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended June 30, 2024 and 2023 as defined under ASC 740, "Accounting for Income Taxes." We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of the accumulated deficit on the balance sheet.

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes.

The sources and tax effects of the differences for the periods presented are as follows:

	For The Year ended June 30, 2024			For The Year ended June 30, 2023
Statutory U.S. Federal Income Tax Rate		21	%		21	%
State Income Taxes		5	%		5	%
Change in Valuation Allowance		(26	)%		(26	)%
Effective Income Tax Rate		0	%		0	%

A reconciliation of the income taxes computed at the statutory rate is as follows:

	For The Year ended June 30, 2024			For The Year ended June 30, 2023
Tax credit (expense) at statutory rate (26%)	$	10,471		$	8,910
Increase in valuation allowance		(10,471	)		(8,910	)
Net deferred tax assets	$	—		$	—

As of June 30, 2024, the Company had a federal net operating loss carryforward of approximately $135,000. The federal net operating loss carryforward does not expire but may only be used against taxable income to 80%. No tax benefit has been reported in the financial statements. The annual offset of this carryforward loss against any future taxable profits may be limited under the provisions of Internal Revenue Code Section 381 upon any future change(s) in control of the Company.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

VECTOR 21 HOLDINGS, INC. 10-K