2024 Top Five LIFO Tax Savings Tips & Tricks
Check out our comprehensive guide containing the top 2024 LIFO opportunities and strategies for all companies Quickly find the most meaningful LIFO tax savings available this year for companies that aren’t on LIFO, but are ideal candidates, or download our complete list of 2024 top LIFO election candidates Excel file 2024 Top Tax Savings Tips […]
View full articleUsing Bargain Inventory Purchases to Create Sizable LIFO Election Tax Benefits
Overview The IRS defines a bargain purchase as an acquisition of assets at a price that’s lower than the seller’s cost. Such events frequently occur as a part of a bulk purchase of assets from a business experiencing financial distress. These events can also occur with a bulk purchase of assets where the allocation of […]
View full articleLIFOPro’s 2024 LIFO Opportunities & Strategies Guide
Updated 1/30/2025 with December 2024 Inflation Rates View/Download the PDF report version of this guide or our 2024 Top LIFO Candidates List Excel file by clicking the buttons below! 2024 Top LIFO Tax Savings Opportunities Abound Although inflation has returned to a more normalized level, there are many industries with inflation at or above the […]
View full articleLIFOPro’s 2024 Top LIFO Election Candidates Guide
UPDATED 1/29/25 TO INCLUDE DECEMBER 2024 BUREAU OF LABOR STATISTICS INFLATION RATES! View/Download the PDF report version of this guide or our 2024 Top LIFO Candidates List Excel file by clicking the buttons below! LIFOPro’s 2024 Top LIFO Election Candidates List LIFOPro’s 2024 top LIFO election candidates list provides you with the ability to quickly […]
View full articleUse of External Inflation Indexes for Financial Reporting
Dollar-value LIFO Background The vast majority of companies on LIFO use what’s called the dollar-value method. Under this method, LIFO is essentially treated as an annual top-side adjustment to account for the change in the current vs. prior period’s LIFO reserve and to convert the year end inventory balance from cost to its LIFO value. […]
View full articleFinancial Reporting & Tax Treatment of Change to LIFO Method
Tax Treatment of Change to LIFO For tax purposes, the IRS allows all taxpayers to use LIFO method, and establishing preferability regarding the use of LIFO is not required. The tax requirements incident with and subsequent to a LIFO election are as follows: LIFO must be applied as a cutoff change, meaning it’s to be […]
View full articleTop 2023 LIFO Election Locks
Learn about the best opportunities to obtain meaningful tax benefits from electing LIFO for the 2023 year end!
View full articleLIFO Financial Reporting Disclosure Requirements & Alternatives
What Rules Exist Regarding LIFO Disclosures for Financial Reporting Purposes? The IRS tax law commonly referred to as the “LIFO conformity rule” is the authoritative guidance that prescribes the financial report and statement requirements for companies that use the LIFO method (assuming financial reports or statements are issued to external parties; these rules are not […]
View full articleExploring Interim LIFO Estimate Approaches
Why do companies perform interim LIFO estimates? The dollar-value LIFO method is a calculation designed to be performed annually or one time each reporting period (this is the method used by the vast majority of companies using LIFO). Furthermore, IRS Regs. prescribes for LIFO to be applied annually & never mentions performing interim LIFO estimates […]
View full articleWhy Companies Use Different Book & Tax LIFO Methods
What is the LIFO Conformity Rule? IRS Reg. §1.472-2(e)(1) requires for taxpayers using the LIFO method to also do so for financial reporting purposes beginning in the year that LIFO is adopted for tax purposes (LIFO can be adopted for financial reporting purposes prior to the adoption for tax purposes, but not vice versa). What […]
View full articleHow the IPIC Method Could Maximize Your LIFO Reserve
What is the IPIC Method? Dollar-value LIFO method users are allowed to use an internal or external inflation measurement source to calculate inflation. Here’s an overview of these two methods: Internal indexes Current period’s quantities are double extended against current & prior period unit costs (prior period unit costs are used if the link-chain method […]
View full articleThe LIFOPro Difference
Our Clients Stay on LIFO Far Longer than Non-clients An internally developed study of publicly traded companies found that LIFOPro clients are far more likely to remain on LIFO than non-clients. More specifically, as of the 2011 year-end, there were 318 publicly traded companies on LIFO. Of the 318 companies were on LIFO as of […]
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