Income Taxes

3 Months Ended

Mar. 31, 2017

Income Taxes [Abstract]

Income Taxes

Note 8. Income Taxes

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:

	Three Months Ended March 31,
	2017			2016
Federal income tax provision at statutory rate of 35%	$	(121	)	$	482
Dividends-received deduction		(24	)		(22	)
Other permanent differences		19			18
Income tax expense (benefit)	$	(126	)	$	478

The components of income tax expense (benefit) were:

	Three Months Ended March 31,
	2017			2016
Current – Federal	$	-		$	-
Deferred – Federal		(126	)		478
Total	$	(126	)	$	478

The primary difference between the effective tax rate and the federal statutory income tax rate for the three month periods ended March 31, 2017 and 2016 resulted from the dividends-received deduction (“DRD”).  The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income.