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9. Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule of deferrred tax assets and liabilities
     June 30,      December 31,  
     2019      2018  
             
 Deferred tax asset:            
 Net operating loss carryovers (1)   $ 2,029,412     $ 90,438  
 Claims reserve discount     455,200       343,905  
 Unearned premium     3,445,635       3,145,682  
 Deferred ceding commission revenue     651,033       564,202  
 Other     141,163       383,733  
 Total deferred tax assets     6,722,443       4,527,960  
                 
 Deferred tax liability:                
 Investment in KICO (2)     759,543       759,543  
 Deferred acquisition costs     4,076,900       3,760,625  
 Intangibles     105,000       140,700  
 Depreciation and amortization     557,084       664,194  
 Net unrealized gains (losses) of securities - available for sale     1,007,442       (1,151,335 )
 Total deferred tax liabilities     6,505,969       4,173,727  
                 
 Net deferred income tax asset   $ 216,474     $ 354,233  

 

(1) The deferred tax assets from net operating loss carryovers (“NOL”) are as follows:

 
Losses subject to annual limitation
     June 30,      December 31,    

 Type of NOL

    2019      2018  

Expiration

               
 Federal only, current year   $ 1,959,030     $ -     None
 Amount subject to Annual Limitation, federal only     -       2,100   December 31, 2019
 Total federal only     1,959,030       2,100    
                   
 State only (A)     1,504,514       1,305,365   December 31, 2039
 Valuation allowance     (1,434,132 )     (1,217,027 )  
 State only, net of valuation allowance     70,382       88,338    
                   
 Total deferred tax asset from net operating loss carryovers   $ 2,029,412     $ 90,438    

 

(A) Kingstone generates operating losses for state purposes and has prior year NOLs available. The state NOL as of June 30, 2019 and December 31, 2018 was approximately $23,146,000 and $20,083,000, respectively. KICO is not subject to state income taxes. KICO’s state tax obligations are paid through a gross premiums tax, which is included in the condensed consolidated statements of operations and comprehensive income (loss) within other underwriting expenses. A valuation allowance has been recorded due to the uncertainty of generating enough state taxable income to utilize 100% of the available state NOLs over their remaining lives, which expire between 2027 and 2039.