10. Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Reconciliation of the statutory federal income tax rates, 34% for the years ended December 31, 2017 and 2016, to the Company’s effective income tax rates follows: 

	2017						2016
	($ in thousands)
				Percent of						Percent of
	Amount of tax			Pre-tax Income			Amount of tax			Pre-tax Loss
Expected tax (credit)	$	(513	)		-34.0	%	$	986			34.0	%
State income taxes, net of
federal tax benefits		(60	)		-4.0	%		116			4.0	%
Decrease in land inventory basis		-			0.0	%		(160	)		-6.0	%
Decrease in environmental
liability		7			0.0	%		2			0.0	%
Increase (decrease) in valuation
allowance		623			41.0	%		(944	)		-32.0	%
	$	57			3.0	%	$	-			-

The Company recognized an income tax expense of $57,000 during the year ended December 31, 2017 for the 2016 Alternative Minimum Tax on the 2016 gain recognized on the sales of real estate. 

At December 31, 2017, the Company had an operating loss carryforward of approximately $67,793,000 which will expire at various dates through 2036.

	2017			2016
	($ in thousands)
Deferred tax asset:
Net operating loss carryover	$	16,948		$	25,240
Expenses capitalized under IRC 263(a)		37			56
Environmental liability		-			7
Tax credits (AMT)		57			-
Valuation allowance		(17,042	)		(25,303	)
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 2014.