Income Taxes	6 Months Ended
Jun. 30, 2012
Income Taxes	14. Income Taxes For the six months ended June 30, 2012, income tax expense $0.1 million, resulting from taxable income in SHI, offset by the decrease in the deferred tax asset valuation allowance. At June 30, 2012, the net deferred tax asset was $36.9 million, which primarily related to available loss carryforwards, impairments of inventory and available-for-sale investments, housing inventory and land basis differences, and timing of income recognition. The $36.9 million deferred tax asset valuation allowance fully reserves the net deferred tax asset due to inherent uncertainty of future income. To the extent eligible taxable income exists, which allows tax benefits of these deferred tax assets to be utilized, the effective tax rate may be reduced, subject to certain limitations under Internal Revenue Code Section 382 (“Section 382”), by reducing the valuation allowance and offsetting a portion of taxable income. In 2009, we filed a petition with the United States Tax Court (the “Tax Court”) regarding our position on the completed contract method for homebuilding activities by SHLP, SHI and subsidiaries. During 2010 and 2011, we engaged in formal and informal discovery with the IRS and the Tax Court heard trial testimony in July 2012 and has ordered the Company and the IRS to exchange briefs. We expect the matter to be submitted for decision to the Tax Court by the end of November 2012. We expect our position to prevail, and have accordingly, not recorded a liability for related taxes or interest for SHI and its subsidiaries. Furthermore, as a limited partnership, any income taxes, interest or penalties imposed on SHLP are the responsibility of the Partners and are not reflected in the tax provision in these consolidated financial statements. However, if the Tax Court rules in favor of the IRS, SHI could be obligated to pay the IRS and applicable state taxing authorities up to $61 million and, under the Tax Distribution Agreement, SHLP could be obligated to make a distribution to the Partners up to $104 million to fund their related payments to the IRS and the applicable state taxing authorities.

Income Taxes

6 Months Ended

Jun. 30, 2012

14. Income Taxes

For the six months ended June 30, 2012, income tax expense $0.1 million, resulting from taxable income in SHI, offset by the decrease in the deferred tax asset valuation allowance. At June 30, 2012, the net deferred tax asset was $36.9 million, which primarily related to available loss carryforwards, impairments of inventory and available-for-sale investments, housing inventory and land basis differences, and timing of income recognition. The $36.9 million deferred tax asset valuation allowance fully reserves the net deferred tax asset due to inherent uncertainty of future income. To the extent eligible taxable income exists, which allows tax benefits of these deferred tax assets to be utilized, the effective tax rate may be reduced, subject to certain limitations under Internal Revenue Code Section 382 (“Section 382”), by reducing the valuation allowance and offsetting a portion of taxable income.

In 2009, we filed a petition with the United States Tax Court (the “Tax Court”) regarding our position on the completed contract method for homebuilding activities by SHLP, SHI and subsidiaries. During 2010 and 2011, we engaged in formal and informal discovery with the IRS and the Tax Court heard trial testimony in July 2012 and has ordered the Company and the IRS to exchange briefs. We expect the matter to be submitted for decision to the Tax Court by the end of November 2012. We expect our position to prevail, and have accordingly, not recorded a liability for related taxes or interest for SHI and its subsidiaries. Furthermore, as a limited partnership, any income taxes, interest or penalties imposed on SHLP are the responsibility of the Partners and are not reflected in the tax provision in these consolidated financial statements. However, if the Tax Court rules in favor of the IRS, SHI could be obligated to pay the IRS and applicable state taxing authorities up to $61 million and, under the Tax Distribution Agreement, SHLP could be obligated to make a distribution to the Partners up to $104 million to fund their related payments to the IRS and the applicable state taxing authorities.