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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets are as follows at the respective year ends:
| 2018 |  | 2017
Deferred income tax assets: |  |  |
Sale leaseback deferred gain | $ | 1,310,850 |  |  | $ | 1,382,270 |
Inventory valuation reserves | 174,377 |  |  | 209,745 |
Allowance for doubtful accounts | 35,955 |  |  | 7,944 |
Inventory capitalization | 1,500,710 |  |  | 943,203 |
Environmental reserves | — |  |  | 124,029 |
Warranty accrual | 8,084 |  |  | 8,132 |
Deferred compensation | 28,090 |  |  | 36,617 |
Accrued bonus | 910,824 |  |  | 483,238 |
Accrued expenses | 22,957 |  |  | 24,749 |
State net operating loss carryforwards | 1,934,071 |  |  | 2,069,258 |
Equity security mark to market | 622,189 |  |  | 3,248 |
Straight line lease | 230,841 |  |  | 123,570 |
Other | 507,997 |  |  | 352,520 |
Total deferred income tax assets | 7,286,945 |  |  | 5,768,523 |
Valuation allowance | (1,765,993 | ) |  | (2,087,860 | )
Total net deferred income tax assets | 5,520,952 |  |  | 3,680,663 |
Deferred income tax liabilities: |  |  |
Tax over book depreciation and amortization | 5,120,533 |  |  | 3,971,816 |
Prepaid expenses | 377,498 |  |  | 174,322 |
Interest rate swap | 103,708 |  |  | 87,016 |
Other | 172,201 |  |  | 83,419 |
Total deferred income tax liabilities | 5,773,940 |  |  | 4,316,573 |
Deferred income taxes | $ | (252,988 | ) |  | $ | (635,910 | )
Significant components of the provision for income taxes from continuing operations are as follows:
| 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | 3,468,673 |  |  | $ | 1,067,490 |  |  | $ | (980,495 | )
State | 290,459 |  |  | 106,832 |  |  | 190,230 |
Total current | 3,759,132 |  |  | 1,174,322 |  |  | (790,265 | )
Deferred: |  |  |  |  |  |  |  |
Federal | (107,879 | ) |  | (1,043,384 | ) |  | (1,329,302 | )
State | (275,043 | ) |  | 6,201 |  |  | (78,433 | )
Total deferred | (382,922 | ) |  | (1,037,183 | ) |  | (1,407,735 | )
Total | $ | 3,376,210 |  |  | $ | 137,139 |  |  | $ | (2,198,000 | )
Tax benefit from discontinued operations amounted to $51,000 for the fiscal year ended December 31, 2016. The Company did not have any discontinued operations for 2018 and 2017. The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:
| 2018 |  | 2017 |  | 2016
Amount |  | % |  | Amount |  | % |  | Amount |  | %
Tax at U.S. statutory rates | $ | 3,459,464 |  |  | 21.0 | % |  | $ | 502,690 |  |  | 34.0 | % |  | $ | (3,125,382 | ) |  | 34.0 | %
State income taxes, net of federal tax benefit | 268,924 |  |  | 1.6 | % |  | 65,546 |  |  | 4.4 | % |  | (48,842 | ) |  | 0.5 | %
State valuation allowance | (314,505 | ) |  | (1.9 | )% |  | 8,498 |  |  | 0.6 | % |  | 95,961 |  |  | (1.0 | )%
Life insurance cash surrender value | — |  |  | — | % |  | — |  |  | — | % |  | 503,700 |  |  | (5.5 | )%
Manufacturing exemption | — |  |  | — | % |  | (116,980 | ) |  | (7.9 | )% |  | — |  |  | — | %
Stock option compensation | (39,401 | ) |  | (0.2 | )% |  | 226 |  |  | — | % |  | 45,929 |  |  | (0.5 | )%
Rate change effects | — |  |  | — | % |  | (380,961 | ) |  | (25.8 | )% |  | — |  |  | — | %
Other, net | 1,728 |  |  | — | % |  | 58,120 |  |  | 4.0 | % |  | 330,634 |  |  | (3.6 | )%
Total | $ | 3,376,210 |  |  | 20.5 | % |  | $ | 137,139 |  |  | 9.3 | % |  | $ | (2,198,000 | ) |  | 23.9 | %
Income tax payments of $2,419,009, $2,576,515 and $991,888 were made in 2018, 2017 and 2016, respectively. The Company had state net operating loss carryforwards at the end of fiscal years 2018 and 2017 of $46,511,086 and $49,711,027, respectively. The majority of these losses will expire between the years of 2018 and 2037, while various losses are not subject to expiration. A valuation allowance has been set up against $41,742,152 of these state net operating loss carryforwards because it is not more likely than not that the losses will be realized in the foreseeable future. The portion of the valuation allowance for the state net operating loss carryforwards was $1,689,246 and $2,064,674 at December 31, 2018 and December 31, 2017, respectively. In addition, a $76,747 and $23,186 valuation allowance was established at December 31, 2018 and 2017 respectively, for other deferred tax assets. This resulted in a valuation allowance decrease of $321,867 all related to continuing operations. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company is no longer subject to U.S. federal examinations for years before 2014 or state income tax examinations for years before 2013. The Company had no uncertain tax position activity during 2018 or 2017. The Company's continuing practice is to recognize interest and/or penalties related to income tax matters in the provision for income taxes. The Company had no accruals for uncertain tax positions including interest and penalties at the end of 2018. On December 22, 2017, the Tax Cuts and Jobs Act (“The Tax Act”) was signed into law by the President of the United States, enacting significant changes to the Internal Revenue Code effective January 1, 2018. The Tax Act includes a number of provisions including, but not limited to, a permanent reduction of the U.S. corporate tax rate from 35 percent to 21 percent, eliminating the deduction for domestic production activities, limiting the tax deductibility of interest expense, accelerating the expensing of certain business assets and reducing the amount of executive pay that could qualify as a tax deduction. Many effects of The Tax Act are international in nature, such as the one-time transition tax, base erosion anti-abuse tax and the global intangible low-taxed income tax, and thus would not pertain to the Company as it has no international operations. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of The Tax Act. During the fourth quarter ended December 31, 2018 the Company completed the accounting of certain income tax effects upon filing of the U.S. corporate income tax return. As a result, the Company recorded an insignificant amount of income tax expense to complete its accounting for The Tax Act, allowed under SAB 118.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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