11. Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Reconciliation of the statutory federal income tax rates, 34% for the years ended December 31, 2016 and 2015, to the Company’s effective income tax rates follows:

	2016						2015
	($ in thousands)
				Percent of						Percent of
	Amount of tax			Pre-tax Income			Amount of tax			Pre-tax Loss
Expected tax (credit)	$	986			34.0	%	$	(2,876	)		-34.0	%
State income taxes, net of
federal tax benefits		116			4.0	%		(338	)		-4.0	%
Decrease in land inventory basis		(160	)		-6.0	%		-			0.0	%
Decrease in environmental
liability		2			0.0	%		15			0.0	%
Increase (decrease) in valuation
allowance		(944	)		-32.0	%		3,199			38.0	%
	$	-			-		$	-			-

At December 31, 2016, the Company had an operating loss carryforward of approximately $ 66,420,000 which will expire at various dates through 2035.

	2016			2015
	($ in thousands)
Deferred tax asset:
Net operating loss carryover	$	25,240		$	26,342
Adjustments to reduce land to net
realizable value		-			12
Expenses capitalized under IRC 263(a)		56			56
Environmental liability		7			9
Valuation allowance		(25,303	)		(26,247	)
		-			172
Deferred tax liability:
Basis difference of land and
improvement inventories		-			172
Net deferred tax asset	$	-		$	-

The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2013.