Tax Relief in Sight for Dealerships Suffering LIFO Recapture in 2020 – 2021
What is the Supply Chain Disruptions Relief Act? This bill was drafted to provide tax relief to new motor vehicle dealerships using the LIFO method who had qualified inventory liquidations solely attributable to supply chain disruptions that occurred between 2020 – 2021, which in turn caused LIFO recapture & increased tax liabilities to be recognized […]
View full articleNovember 2022 CPI Release Highlights
The Bureau of Labor Statistics (BLS) released November 2022 Consumer Price Indexes (CPI) today. Highlights are as follows (all indexes are on a seasonally unadjusted basis): All items rose 0.2% in the last month and increased 8.2% in the last twelve months Food at home increased 0.6% from October 2022 and rose 13.0% since November […]
View full articleHow LIFO Works: A Beginner’s Guide to LIFO
Download PDF Guide Why Use LIFO? Tax Benefits LIFO often creates material long-term tax deferral/savings: Not just a one-time tax benefit or timing difference between book & tax such as straight-line vs. accelerated depreciation During periods of rising costs, LIFO: Provides more after-tax free cash flow than non-LIFO methods when there’s inflation Ensures taxes aren’t […]
View full article2022 Auto Dealer IPIC LIFO Case Study
Download PDF Guide Auto Dealer LIFO Submethods Comparisons Alternative LIFO method (ALM): Measures inflation based on comparing current & prior period’s invoice costs; Item definition is specific to each vehicle/VIN, meaning inflation must be calculated for each vehicle, not just by make or type (car, truck, SUV) Pros Historically created more inflation & tax deferral […]
View full articleNovember 2022 PPI Release Highlights
The Bureau of Labor Statistics (BLS) released November 2022 Producer Price Indexes (PPI) today. Highlights are as follows (all indexes on a seasonally unadjusted basis): Farm products increased 6.8% in the last month and rose 29.6% in the last twelve months Processed foods + feeds rose 1.3% from October 2022 and increased 11.0% since November […]
View full articleOctober 2022 PPI Release Highlights
The Bureau of Labor Statistics (BLS) released October 2022 Producer Price Indexes (PPI) today. Highlights are as follows (all indexes on a seasonally unadjusted basis): Farm products increased 0.1% in the last month and rose by 26.7% in the last twelve months Processed foods + feeds decreased 0.8% since September 2022 and increased 9.5% from […]
View full articleOctober 2022 CPI Release Highlights
The Bureau of Labor Statistics (BLS) released October 2022 Consumer Price Indexes (CPI) today. Highlights are as follows (all indexes are on a seasonally unadjusted basis): All items increased 0.2% in the last month and rose by 8.2% in the last twelve months Food at home rose 0.6% from September 2022 and increased 13.0% since […]
View full article2022 Updated PPI Table 9 Category Name File Released
LIFOPro has completed the annual updates to the Excel file used by LIFOPro clients for populating BLS PPI Table 9 category names via VLOOKUP formulas in their inventory detail files. LIFOPro clients should use the email received containing the Complete Table 9 PPI Category Name file download link to obtain the updated file (feel free […]
View full articleElection Requirements & Method Alternatives
Although LIFO is the biggest inventory-related tax savings tool for companies with inflation, it’s important to understand the requirements & sub methodology options available related to LIFO elections. This blog outlines the most important LIFO election requirements, provides a comprehensive list of LIFO method alternatives & breaks down the pros & cons of each alternative. […]
View full articleSeptember 2022 CPI Release Highlights
The Bureau of Labor Statistics (BLS) released September 2022 Consumer Price Indexes (CPI) today. Highlights are as follows (all indexes are on a seasonally unadjusted basis): All items rose 0.2% in the last month & increased 8.2% in the last twelve months Food at home increased by 0.6% from August 2022 and rose 13.0% since […]
View full articleSeptember 2022 PPI Release Highlights
The Bureau of Labor Statistics (BLS) released September 2022 Producer Price Indexes (PPI) today. Highlights are as follows (all indexes on a seasonally unadjusted basis): Farm products decreased 0.7% in the last month and increased 25.6% in the last twelve months Processed foods + feeds decreased by 0.5% from August 2022 and rose 9.7% since […]
View full articleAugust 2022 PPI Release Highlights
The Bureau of Labor Statistics (BLS) released August 2022 Producer Price Indexes (PPI) today. Highlights are as follows (all indexes on a seasonally unadjusted basis): Farm products decreased 2.9% over the last month and increased 22.7% over the last twelve months Processed foods + feeds rose 0.7% from July 2022 and increased 11.7% since August […]
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