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Income Taxes | 3 Months Ended
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Mar. 31, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes The Company records income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on future tax consequences attributable to (1) temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (2) operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. In accordance with ASC 740-10, Income Taxes, we evaluate our deferred tax assets, including the benefit from net operating losses (“NOLs”) and tax credit carryforwards, to determine if a valuation allowance is required. Companies must assess, using significant judgments, whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. Based upon a review of all available evidence, we recorded a full valuation allowance against our deferred tax assets during 2008 due to economic conditions and the weight of negative evidence at the time. During the year ended December 31, 2013, the Company concluded based on its analysis of positive and negative evidence, that the objective positive evidence outweighed the negative evidence and that the Company will more likely than not realize a majority of its deferred tax assets. As a result of such determination, the Company reversed a majority of its deferred tax asset in 2013. On February 1, 2014, M/I Financial Corp. was converted from a wholly-owned Ohio C corporation to a wholly-owned Ohio limited liability company, and its name was changed to M/I Financial, LLC. M/I Financial, LLC will be disregarded for state and federal income tax purposes as an entity separate from its owner and will report its income and deductions on M/I Homes, Inc.’s federal and state tax returns. As a result, we estimate that we will utilize more of our state tax NOLs than previously estimated, and recognized a tax benefit of approximately $5.3 million during the first quarter of 2014. Of that amount, approximately $3.0 million is attributable to the conversion of M/I Financial and the remainder was attributable to better than anticipated operating results during the first quarter of 2014. These reversals were partially offset by income tax expense incurred of $5.2 million. At March 31, 2014, the Company's total deferred tax assets were $116.0 million, which, inclusive of our remaining valuation allowance, results in a deferred tax asset of $112.1 million. The $112.1 million total deferred tax asset after valuation allowance is offset by $0.8 million of total deferred tax liabilities for a $111.2 million net deferred tax asset. The $111.2 million net deferred tax asset is reported on the Company's Unaudited Condensed Consolidated Balance Sheets, net of a $4.0 million valuation allowance. The tax effects of the significant temporary differences that comprise the deferred tax assets and liabilities are as follows:
(In thousands) | March 31, 2014 |  | December 31, 2013
Deferred tax assets: |  |  |
Warranty, insurance and other accruals | $ | 11,373 |  |  | 12,003 |
Inventory | 14,892 |  |  | 16,657 |
State taxes | 109 |  |  | 106 |
Net operating loss carryforward | 88,699 |  |  | 91,659 |
Deferred charges | 944 |  |  | 897 |
Total deferred tax assets | $ | 116,017 |  |  | $ | 121,322 |
Less valuation allowance | $ | (3,964 | ) |  | $ | (9,291 | )
Total deferred tax assets, net of valuation allowance | $ | 112,053 |  |  | $ | 112,031 |
Deferred tax liabilities: |  |  |
Depreciation | (497 | ) |  | 774 |
Prepaid expenses | (342 | ) |  | 346 |
Total deferred tax liabilities | (839 | ) |  | 1,120 |
Total deferred tax assets, net of valuation allowance | 111,214 |  |  | 110,911 |
The provision (benefit) from income taxes consists of the following:
| Three Months Ended March 31,
(In thousands) | 2014 |  | 2013
Current: |  |  |
Federal | $ | — |  |  | $ | — |
State | $ | 155 |  |  | $ | 299 |
| $ | 155 |  |  | $ | 299 |
(In thousands) |  |  |
Deferred: |  |  |
Federal | $ | (205 | ) |  | $ | — |
State | $ | (97 | ) |  | $ | — |
| (302 | ) |  | — |
Total | $ | (147 | ) |  | $ | 299 |
At March 31, 2014, the Company had federal NOL carryforwards of approximately $69.4 million and federal credit carryforwards of $4.4 million. Federal NOL carryforwards may be carried forward up to 20 years to offset future taxable income. Our federal carryforward benefits begin to expire in 2028. The Company had $15.0 million of state NOL carryforwards at March 31, 2014. State NOLs may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with $8.3 million expiring between 2014 and 2027 and $6.7 million expiring between 2028 and 2032, absent sufficient state taxable income.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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