What Makes a Good LIFO Candidate?

Who Should Use the LIFO Method
LIFOPro has developed a proprietary scoring system to identify good LIFO candidates & provide LIFO election recommendations, which requires for the following criteria to be met:
- Historical Inflation Frequency: Inflation in 11 or more of the last 20 years (determined by assigning BLS CPI/PPI categories to current period’s product mix & performing 20Y pro forma IPIC LIFO calculation). Best LIFO candidates have high inflation frequency & low likelihood of deflation/LIFO recapture
- Historical Average Annual Inflation Rate: Must be ≥ 1%. Best LIFO candidates have historical average annual inflation rates of well above 1%.
- At least $2M – $5M of inventory: Is more subjective because this amount is dependent on the following:
  - Historical average annual inflation rate: Higher the rate, lower the minimum inventory balance & vice versa
  - LIFO election year inflation rate: Same as historical average annual inflation rate
  - Company’s tax rate & perceived benefit of tax deferral/savings from LIFO
In the event that the following criteria listed above is met, a current year LIFO election recommendation is made if the current year inflation rate in the potential election year is greater than or equal to the historical average annual inflation rate calculated by LIFOPro

To recap, the following criteria should be met to make a LIFO election for your company’s upcoming year end:
1. Historical average annual inflation rate is greater than or equal to 1%
2. Consistent inflation (11 or more of the past 20 years)
3. At least $1-5 million in inventory & profits will be reported on tax return before applying LIFO reserve
4. Election year inflation is estimated to or will be greater than or equal to the historical average annual inflation rate
For companies with inflationary inventories, LIFO acts like an annuity that provides annual returns, and the long-term benefits can be substantial. Choosing the right time to start using LIFO will allow you to maximize the tax benefits that it provides.
When to elect LIFO
- Electing LIFO in a year where the inflation is greater than or equal to historical averages is important because it ensures the year one LIFO benefits will justify or more than offset the implementation costs
- Electing in a above-average or record high inflation period ensures the year one LIFO reserve will be much larger than the sum of any future LIFO recapture (taxable income) that could occur during deflationary periods. In other words, electing LIFO in a year where the inflation & tax benefits from LIFO is many times higher than the historical one year average allows you to obtain what would normally take multiple years to accrue, and as a result, electing LIFO during such a period ensures that LIFO will always provide a net favorable tax position even if deflation & partial LIFO recapture occurs in the future.
- A Five year LIFO reserve comparison example shown below illustrates differential between electing in a high vs. average inflation period
Five Year LIFO Reserve Comparisons: Electing in a High-Inflation vs. Average Inflation Period

High Inflation Period – 10% inflation in election year (2022)

Average Inflation Period – 2% inflation in election year (2023)
Would LIFO Benefit my Company or Client?
LIFO-PRO recommends using the following two-step approach to determine the potential benefits of LIFO for your company:
1. Preliminary analysis – Utilize the Good LIFO Candidates Lists shown below to determine if your company or client the meet the three criteria listed in the Who Should Use the LIFO Method section above.
2. Full analysis – Obtain a complimentary LIFO Election Benefit Analysis from LIFO-PRO. Analysis includes a final recommendation regarding if LIFO should be used or not & the reasons why.
Quick Analysis LIFO Tax Savings Formula

Use the following formulas to calculate the estimated LIFO tax savings that a company could achieve in the year of the LIFO election:
- Current year taxable income reduction (LIFO expense) = Prior year end inventory balance at cost * Current year inflation rate
- Current year tax liability reduction (after-tax cash savings) = Current year LIFO expense * combined federal & state tax rate
Example: To illustrate the use of the Quick Analysis LIFO Tax Savings Formula, assume the following:
Prior year end inventory balance at cost: $10M
Estimated current year inflation rate: 10%
Combined Federal/State Tax rate: 35%
Current year LIFO expense: $10M * 10% = $1M
Current year income tax reduction: $1M * 35% = $350K

Publicly Traded Companies on LIFO by Primary Business Activities or Product Types

Business or Industry Type	Count	Business or Industry Type	Count
Machinery Manufacturing	40	Beverage and Tobacco Product Manufacturing	7
Merchant Wholesalers, Durable Goods	29	Wood Product Manufacturing	7
Chemical Manufacturing	27	Electrical Equip., Appliance & Component Mfg.	7
Fabricated Metal Product Manufacturing	26	Textile & Textile Product Mills	7
Petroleum and Coal Products Manufacturing	23	Plastics and Rubber Products Manufacturing	6
Food Manufacturing	21	Printing and Related Support Activities	6
Transportation Equipment Manufacturing	18	Clothing and Clothing Accessories Stores	6
Merchant Wholesalers, Nondurable Goods	17	Publishing Industries (except Internet)	6
Paper Manufacturing	16	Steel Pipe And Tubes	5
Primary Metal Manufacturing	13	Leather and Allied Product Manufacturing	4
Miscellaneous Retailers	13	Mining (except Oil and Gas)	4
Food and Beverage Stores	12	Miscellaneous Manufacturing	4
General Merchandise Stores	10	Apparel Manufacturing	4
Motor Vehicle and Parts Dealers	9	Nonmetallic Mineral Product Manufacturing	3
Furniture and Related Product Manufacturing	8	Furniture and Home Furnishings Stores	3
Computer and Electronic Product Manufacturing	8	Health and Personal Care Stores	3

LIFO-PRO Clientele by Business Activity or Product Type

Primary Business Activity or Product	Primary Business Activity or Product
Auto and Home Supply Stores	Industrial Supplies
Beer and Ale	Industrial Trucks, Tractors, Trailers & Stackers
Beverage and Tobacco Product Manufacturing	Industrial Valves
Bolts, Nuts, Screws, Rivets & Washers	Laboratory Apparatus and Furniture
Building Material and Garden Equipment and Supplies Dealers	Lighting Equipment
Chemical Manufacturing	Lumber and Other Building Materials Dealers
Department Stores	Machinery Manufacturing
Drugs, Drug Proprietaries & Druggists’ Sundries	Metals Service Centers
Durable and Non-Durable Goods Wholesalers	Construction Machinery & Heavy Duty Equipment
Electrical Machinery, Equipment & Supplies	Navigation, Measuring, Medical & Control Instruments
Electrical Machinery, Equipment, Appliance & Component Mfg.	Nonmetallic Mineral Product Manufacturing
Fabricated Metal Product Manufacturing	Paper Manufacturing
Fabricated Pipe and Pipe Fittings	Petroleum and Coal Products Manufacturing
Fabricated Plate Work (Boiler Shops)	Plastics and Rubber Products Manufacturing
Fabricated Structural Metal	Plastics Foam Products
Farm and Garden Machinery and Equipment	Plastics Material Synthetic Resins & Nonvulcanizable Elastomers
Farm Supplies	Plastics Materials and Basic Forms and Shapes
Food and Beverage Stores	Plumbing and Heating Equipment and Supplies (Hydronics)
Food Manufacturing	Power, Distribution & Specialty Transformers
Furniture and Home Furnishings Stores	Primary Metal Manufacturing
Furniture and Related Product Manufacturing	Publishing Industries (except Internet)
Gaskets, Packing & Sealing Devices	Pumps and Pumping Equipment
Gasoline Stations	Recreational Vehicle Dealers
General Industrial Machinery and Equipment	Steel Works, Blast Furnaces (Inc. Coke Ovens) & Rolling Mills
General Merchandise Stores	Tobacco and Tobacco Products
Hand and Edge Tools, Except Machine Tools and Handsaws	Transportation Equipment Manufacturing
Hardware Stores	Variety Stores
Health and Personal Care Stores	Warm Air Heating and Air-Conditioning Equipment and Supplies
Industrial & Commercial Fans & Blowers & Air Purification Equipment	Wines, Brandy & Brandy Spirits
Industrial Machinery and Equipment	Wood Product Manufacturing

LIFOPro's Top LIFO Candidates by Bureau of Labor Statistics Producer Price Index Commodity

BLS PPI Code	BLS PPI Commodity Description	9M Ended Sep. '22 (YTD)	12M Ended Sep. '22	12M Ended Dec. '21	12M Ended Dec. '20	3 Year Annual Avg.	5 Year Annual Avg.	10 Year Annual Avg.	20 Year Annual Avg.	Inflation Freq-uency	Infl-ation Freq. Rate	YTD vs. 20Y Average Multiplier
02	Processed foods & feeds	10.2%	9.7%	10.4%	2.0%	4.9%	3.2%	1.7%	2.8%	17 of 20	85%	3.6
021	Cereal & bakery products	12.9%	15.6%	9.2%	0.1%	3.2%	2.7%	1.5%	2.8%	16 of 20	80%	4.6
022	Meats, poultry & fish	3.8%	-2.3%	20.0%	2.7%	9.2%	4.8%	2.7%	3.3%	14 of 20	70%	1.2
023	Dairy products	13.2%	18.0%	7.6%	-3.0%	4.0%	1.9%	1.0%	2.2%	11 of 20	55%	6.0
024	Processed fruits & vegetables	14.3%	16.3%	4.5%	3.8%	2.4%	2.4%	1.7%	2.7%	17 of 20	85%	5.2
025	Sugar & confectionery	8.6%	9.4%	3.1%	-1.4%	1.7%	1.2%	0.5%	2.6%	16 of 20	80%	3.3
026	Beverages & beverage materials	8.6%	10.4%	3.3%	2.1%	2.3%	1.9%	1.4%	2.1%	20 of 20	100%	4.1
027	Fats & oils	10.5%	11.8%	42.5%	10.8%	14.7%	8.3%	1.9%	6.3%	11 of 20	55%	1.7
028	Miscellaneous processed foods	14.6%	16.9%	5.9%	1.2%	2.0%	2.4%	1.6%	2.2%	16 of 20	80%	6.7
029	Prepared animal feeds	17.1%	15.9%	8.0%	9.6%	5.9%	3.9%	1.4%	3.9%	15 of 20	75%	4.4
03	Textile products & apparel	8.7%	12.9%	15.4%	-0.2%	4.7%	3.8%	1.9%	1.8%	13 of 20	65%	4.8
032	Processed yarns & threads	17.9%	27.1%	29.3%	-2.0%	6.7%	5.8%	1.8%	2.7%	13 of 20	65%	6.5
033	Greige fabrics	11.7%	15.3%	13.3%	-1.1%	3.2%	2.6%	0.3%	1.6%	11 of 20	55%	7.1
034	Finished fabrics	9.1%	12.1%	14.5%	1.8%	5.7%	4.1%	2.3%	2.2%	14 of 20	70%	4.1
038	Apparel & other fabricated textile prods	4.2%	7.3%	7.0%	-0.1%	2.7%	2.2%	1.8%	1.4%	16 of 20	80%	3.1
039	Miscellaneous textile products/services	26.1%	37.5%	25.7%	2.2%	5.2%	3.7%	1.7%	1.8%	12 of 20	60%	14.5
043	Footwear	6.6%	10.0%	6.0%	-0.2%	3.0%	2.3%	2.7%	2.1%	18 of 20	90%	3.1
044	Other leather & related products	4.0%	5.0%	3.0%	1.1%	1.8%	1.7%	2.1%	1.6%	19 of 20	95%	2.5
05	Fuels & related products & power	33.8%	36.6%	38.3%	-6.3%	6.7%	6.9%	0.2%	4.9%	13 of 20	65%	6.8
053	Gas fuels	72.8%	93.5%	108.2%	9.1%	1.3%	7.8%	0.5%	4.6%	11 of 20	55%	15.8
055	Utility natural gas	8.7%	33.7%	40.5%	14.5%	9.0%	9.3%	4.5%	4.4%	13 of 20	65%	2.0
056	Crude petroleum (domestic production)	33.0%	31.1%	48.6%	-22.3%	9.2%	6.0%	-3.9%	7.7%	13 of 20	65%	4.3
057	Petroleum products, refined	39.5%	40.6%	57.4%	-15.3%	11.8%	10.8%	-1.0%	7.7%	13 of 20	65%	5.1
058	Asphalt & other petroleum & coal products	19.4%	44.1%	48.7%	11.9%	8.7%	15.2%	-1.9%	9.0%	12 of 20	60%	2.2
06	Chemicals & allied products	5.5%	6.4%	22.9%	0.7%	6.4%	5.5%	2.6%	4.5%	17 of 20	85%	1.2
061	Industrial chemicals	5.7%	4.1%	44.5%	-3.1%	9.3%	7.3%	0.9%	5.3%	12 of 20	60%	1.1
062	Paints & allied products	17.9%	21.4%	13.9%	1.4%	6.0%	5.1%	2.7%	3.9%	17 of 20	85%	4.6
064	Fats & oils, inedible	16.0%	8.0%	49.7%	15.2%	21.3%	8.3%	0.5%	7.4%	12 of 20	60%	2.2
065	Agricultural chemicals & chemical products	14.6%	30.8%	49.5%	3.8%	12.5%	10.2%	2.4%	5.1%	13 of 20	65%	2.9
067	Other chemicals & allied products	9.7%	13.4%	8.7%	0.3%	3.3%	2.8%	1.9%	2.4%	19 of 20	95%	4.0
07	Rubber & plastic products	9.2%	14.3%	21.1%	0.6%	6.4%	5.1%	2.5%	3.2%	17 of 20	85%	2.9
071	Rubber & rubber products	11.3%	12.7%	11.0%	0.3%	3.5%	2.8%	0.6%	2.7%	14 of 20	70%	4.2
072	Plastic products	8.6%	14.8%	24.1%	0.7%	7.2%	5.7%	3.1%	3.3%	16 of 20	80%	2.6
082	Millwork	10.9%	14.9%	17.7%	7.9%	8.6%	6.8%	4.8%	3.2%	19 of 20	95%	3.4
084	Other wood products	9.9%	7.7%	17.1%	2.9%	7.2%	6.0%	3.9%	2.5%	15 of 20	75%	3.9
085	Logs, bolts, timber, pulpwood & wood chips	4.8%	3.0%	7.8%	3.2%	2.1%	1.9%	1.2%	2.0%	15 of 20	75%	2.4
086	Prefabricated wood buildings & components	8.5%	13.8%	25.6%	6.2%	10.6%	8.0%	5.3%	3.7%	17 of 20	85%	2.3
087	Treated wood & contract wood preserving	10.5%	22.1%	6.1%	12.4%	7.1%	4.8%	4.3%	2.7%	14 of 20	70%	3.9
09	Pulp, paper & allied products	9.4%	12.8%	16.0%	3.0%	5.3%	4.1%	2.3%	2.6%	16 of 20	80%	3.6
091	Pulp, paper & prod., ex. bldg. paper	9.2%	12.5%	18.6%	1.6%	4.9%	4.2%	2.3%	2.8%	15 of 20	75%	3.3
094	Publications, printed matter & printing material	12.6%	17.4%	9.5%	1.5%	4.5%	3.2%	1.7%		11 of 20	92%	7.4
103	Metal containers	19.1%	27.0%	21.6%	0.7%	6.9%	6.4%	2.7%	3.2%	14 of 20	70%	6.0
104	Hardware	4.4%	11.7%	17.5%	1.8%	6.6%	5.0%	2.9%	2.8%	17 of 20	85%	1.5
105	Plumbing fixtures & fittings	8.7%	11.1%	5.4%	1.9%	3.5%	3.4%	2.5%	2.7%	20 of 20	100%	3.5
106	Heating equipment	7.1%	14.5%	21.3%	0.4%	8.3%	6.4%	4.1%	4.0%	20 of 20	100%	1.7
107	Fabricated structural metal products	7.7%	14.2%	41.6%	2.2%	13.0%	9.7%	4.9%	4.5%	17 of 20	85%	1.6
108	Miscellaneous metal products	6.6%	10.9%	14.0%	0.7%	5.1%	4.3%	2.1%	2.4%	17 of 20	85%	3.2
11	Machinery & equipment	7.8%	10.1%	7.1%	1.0%	3.2%	2.6%	1.5%	1.2%	15 of 20	75%	5.0
111	Agricultural machinery & equipment	10.1%	16.2%	14.6%	1.0%	5.8%	4.3%	2.8%	2.9%	20 of 20	100%	3.7
112	Construction machinery & equipment	8.5%	13.4%	10.1%	1.2%	4.4%	3.5%	2.6%	2.8%	20 of 20	100%	3.2
113	Metalworking machinery & equipment	6.7%	9.5%	7.3%	0.7%	3.1%	2.7%	1.9%	1.8%	18 of 20	90%	3.6
114	General purpose machinery & equipment	12.2%	15.3%	10.1%	1.8%	4.6%	4.0%	2.8%	3.0%	20 of 20	100%	4.3
1141	Pumps, compressors, and equipment	14.6%	16.0%	7.6%	0.7%	3.1%	3.2%	2.6%	3.1%	20 of 20	100%	4.8
1142	Elevators, escalators, and other lifts	4.3%	17.3%	16.7%	0.9%	7.1%	5.3%	3.4%	2.4%	16 of 20	80%	1.8
1143	Fluid power equipment	10.9%	13.7%	8.7%	1.1%	4.0%	3.3%	2.4%	3.0%	20 of 20	100%	3.6
1144	Industrial material handling equipment	7.6%	12.9%	14.4%	1.7%	5.6%	4.6%	3.4%	3.3%	19 of 20	95%	2.3
1145	Mechanical power transmission equipment	12.3%	13.7%	8.0%	1.7%	3.8%	3.4%	2.3%	3.1%	18 of 20	90%	4.0
1146	Scales and balances	7.4%	9.0%	11.9%	1.1%	4.8%	5.3%	3.9%	2.9%	20 of 20	100%	2.5
1147	Air purif. equip. & indust./commerc. fans/blowers	9.2%	10.1%	9.6%	1.8%	4.9%	4.0%	2.9%	2.8%	19 of 20	95%	3.2
1148	Air conditioning and refrigeration equip	19.0%	24.9%	14.7%	2.6%	6.7%	5.4%	3.3%	2.8%	19 of 20	95%	6.8
114902	Metal valves, except fluid power	12.3%	14.2%	4.9%	2.8%	3.2%	3.6%	3.2%	4.1%	20 of 20	100%	3.0
114903	Metal pipe fittings, flanges, and unions	14.1%	16.0%	14.4%	13.6%	9.5%	7.8%	3.5%	3.4%	15 of 20	75%	4.1
116	Special industry machinery & equipment	8.4%	10.0%	11.6%	2.1%	5.1%	3.7%	2.3%	2.0%	19 of 20	95%	3.6
118	Miscellaneous instruments	7.6%	9.2%	3.5%	1.3%	2.3%	2.1%	1.8%	1.8%	20 of 20	100%	4.2
119	Miscellaneous machinery	4.9%	6.6%	4.1%	0.8%	2.1%	1.8%	1.1%	1.8%	17 of 20	85%	4.5
12	Furniture & household durables	7.1%	9.3%	10.9%	1.6%	4.7%	3.9%	2.4%	2.1%	20 of 20	100%	3.0
121	Household furniture	7.1%	10.0%	13.3%	0.9%	5.4%	4.3%	2.7%	2.5%	19 of 20	95%	2.6
122	Commercial furniture	10.0%	12.0%	12.5%	1.9%	5.5%	4.8%	2.9%	2.7%	18 of 20	90%	3.4
124	Household appliances	8.5%	10.5%	8.3%	1.9%	4.4%	3.7%	1.9%	1.3%	12 of 20	60%	4.5
126	Other household durable goods	5.0%	6.6%	9.8%	2.6%	4.5%	3.2%	2.1%	1.8%	20 of 20	100%	2.4
13	Nonmetallic mineral products	12.2%	13.8%	7.8%	2.1%	3.8%	3.5%	3.0%	3.3%	19 of 20	95%	4.0
131	Glass	6.6%	8.9%	6.5%	3.3%	3.7%	3.0%	2.8%	1.5%	15 of 20	75%	2.4
132	Concrete ingredients & related products	11.9%	11.9%	4.1%	3.8%	3.7%	3.7%	3.6%	3.8%	19 of 20	95%	3.3
133	Concrete products	12.5%	15.4%	8.4%	2.7%	4.6%	4.0%	3.6%	3.5%	17 of 20	85%	3.5
134	Clay construction products ex. refractories	5.8%	7.2%	5.4%	2.0%	2.9%	1.9%	1.5%	1.3%	15 of 20	75%	3.8
135	Refractories	10.3%	11.1%	7.2%	0.5%	4.3%	3.8%	2.7%	3.5%	18 of 20	90%	3.8
136	Asphalt felts & coatings	16.4%	14.9%	11.7%	2.3%	4.2%	5.1%	1.9%	4.8%	11 of 20	55%	8.7
137	Gypsum products	16.5%	18.6%	20.2%	3.7%	6.1%	6.0%	6.9%	4.4%	15 of 20	75%	2.4
138	Glass containers	10.9%	12.4%	6.8%	1.7%	3.7%	2.8%	2.1%	2.7%	20 of 20	100%	5.2
139	Other nonmetallic minerals	13.3%	15.1%	8.4%	-0.5%	2.6%	2.5%	1.9%	3.3%	16 of 20	80%	6.9
14	Transportation equipment	3.7%	5.1%	3.9%	0.9%	1.7%	1.5%	1.3%	1.4%	19 of 20	95%	2.7
141	Motor vehicles & equipment	3.7%	5.3%	4.6%	0.7%	1.7%	1.4%	1.3%	1.0%	16 of 20	80%	2.9
142	Aircraft & aircraft equipment	3.7%	4.3%	1.6%	1.3%	1.4%	1.3%	1.4%	2.2%	19 of 20	95%	2.6
143	Ships & boats	4.6%	6.1%	5.2%	1.3%	3.2%	2.4%	1.8%	2.7%	20 of 20	100%	2.6
149	Transportation equipment, n.e.c.	5.7%	9.9%	10.2%	0.5%	3.7%	3.3%	2.0%	1.7%	16 of 20	80%	2.8
15	Miscellaneous products	7.4%	9.0%	6.3%	2.8%	4.3%	3.6%	2.7%	2.5%	18 of 20	90%	2.8
151	Toys, sporting goods, small arms, etc.	7.7%	9.7%	9.7%	0.3%	4.8%	2.9%	2.0%	1.7%	16 of 20	80%	3.8
152	Tobacco products, incl. stemmed & redried	9.1%	10.7%	7.7%	6.4%	6.8%	6.3%	5.5%	4.3%	18 of 20	90%	1.7
153	Notions	6.4%	13.5%	12.6%	0.6%	4.8%	3.6%	2.2%	3.1%	18 of 20	90%	2.9
154	Photographic equipment & supplies	8.5%	10.3%	7.2%	-0.1%	4.7%	3.4%	2.0%	1.5%	12 of 20	60%	4.3
155	Mobile homes	8.3%	15.0%	30.1%	8.6%	15.4%	11.0%	6.8%	5.2%	20 of 20	100%	1.2
156	Medical, surgical & personal aid devices	3.3%	3.8%	1.3%	1.1%	1.3%	1.2%	1.0%	1.1%	20 of 20	100%	3.4
157	Other industrial safety equipment	7.4%	9.2%	7.0%	2.9%	3.0%	2.0%	2.1%	1.8%	18 of 20	90%	3.5
159	Other miscellaneous products	12.0%	14.9%	8.7%	2.1%	5.4%	4.0%	2.2%	2.3%	18 of 20	90%	5.4

LIFO Tax Savings Calculator
Instructions:
- Identify the year to date & 20 year average annual historical inflation rates for your company using the tables shown below the calculator
- Enter the following values into the blue-colored cells:
  - Prior year end inventory balance at cost
  - Current year inflation rate
  - 20 year average annual inflation rate: used to calculate the 20 year projected tax savings
  - Combined federal & state tax rate
- The green-colored cells will automatically update as soon as all values have been entered into the blue-colored input cells
Note: LIFO is adopted on a prospective basis & LIFO tax savings accrue beginning in the year of the change. Prior period benefits can NOT be retrospectively recaptured. 20 year cumulative taxable income reduction & after-tax cash savings shown in calculator are for analysis purposes only & is provided to project the potential tax savings from LIFO that could occur over the next 20 years based on your current year inventory balance at cost & the historical inflation rates.
Learn More

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How LIFO Works

Sec. 473 Relief Estimate Request Form

Auto Dealer IPIC LIFO Case Study

2023 Top LIFO Opportunities & Strategies Guide

How LIFO Works: A Beginner’s Guide to LIFO

How to Identify Clients that are Good LIFO Election Candidates

How to Easily Implement LIFO

Complimentary Interim LIFO Estimate Request Form

Best LIFO Practices & Review

Auto Dealer LIFO Case Study

LIFO Election Benefit Analysis

Downloads

Get information about LIFO-PRO’s offerings, valuable guides & white papers & sample LIFO reports!

IPIC LIFO Guide

Get educated on the Inventory Price Index Computation (IPIC) method, including the origins, advantages & disadvantages, calculation procedures, options & much more!

Service Organization Control Report

Learn how LIFO-PRO receives an annual review of our policies & procedures to provide required assurances to our clients.

LIFO Tax Benefit Calculator

Calculate the potential tax savings from using LIFO & determine your company’s historical inflation percentages!

Secure File Upload Portal

Here you can send us all files needed for us to seamlessly give you the best LIFO results possible. We look forward to working with you!

CPA Firm LIFO Opportunities & Training Guide

Learn about LIFO opportunities abound for CPA firms, how to increase the scope of your LIFO offerings & learn how to easily identify good LIFO candidates!

Interim Estimate Options

Learn how to easily make interim LIFO estimates manually or within our software!

Non-disclosure Agreement Request Form

Get a NDA generated electronically in less than a minute using LIFO-PRO’s online request form page & avoid having to print, sign & scan a paper NDA!

IPIC LIFO Resources

Learn how the IPIC LIFO Method works, find valuable Bureau of Labor Statistics (BLS) links and stay up to date on all changes related to the IPIC Method!

LIFO Success Stories

Learn about LIFOPro’s past roles in partnering with companies & CPA firms to deliver great value by finding solutions to the most challenging LIFO issues!

IPIC LIFO Overview

The Inventory Price Index Computation (IPIC) method allows taxpayers to use published external indexes to calculate inflation for the purpose of valuing LIFO inventories.

LIFO Methods, Rules & Regulations

Your comprehensive resource for authoritative LIFO guidance, LIFO election requirements, and method alternatives!

Supermarket Physical Count Procedures

Find helpful information on how IRS regulations effect grocery LIFO Count Procedures for CPI & PPI taxpayers on our Supermarket Count Procedures page.

Special Challenges for Supermarkets

Supermarkets face LIFO calculation issues unique to the industry. Find out why & answers to how they are dealt with Special Challenges for Supermarkets page.

Why the Double-extension LIFO Index Calculation Method is Unreliable

Facts describing why the double-extension LIFO index calculation method is unreliable and examples proving how this method creates unpredictable results.

Addition of Services Table 9 Codes

Find recent important changes & BLS addition of Table 9 Wherever-provided Services & Construction PPI Indexes & Important Change in PPI Code Structure page.

CPI Category Updates

Find information on CPI Category Changes & Bureau of Labor Statistics Consumer Price Index update information such as new medical commodity codes here!

PPI Category Updates

Learn IRS Regulations Requirements for missing PPI Indexes, procedures for reassigning discontinued PPI Categories at LIFO-PRO’s PPI Category Changes page.

Producer Price Index Usage by Supermarkets to Increase Tax Deferral

Learn how drugs, non-foods & food/beverage indexes cause increase LIFO tax benefits at our PPI Index Usage by Supermarkets to Increase Tax Deferral page.

BLS CPI & PPI Inflation History

Get the most up to date Bureau of Labor Statistics Consumer & Producer Price Index inflation data from LIFOPro!

IPIC LIFO Advantages

Switching from the double-extension to link-chain method? Want to achieve higher possible inflation indexes? Learn more at the IPIC LIFO Advantages page.

LIFO Repeal Updates

Get the latest LIFO repeal updates including the latest news on corporate tax reform at LIFO-PRO’s LIFO Repeal Updates page.

LIFOPro Videos

LIFO-PRO Company Overview – Quick 1 minute video explaining LIFO-PRO’s service and software offerings.

Request Forms Page

Request a software trial, LIFO Election Benefit Analysis, Best LIFO Practices Methods Review or cost estimate. All of our requests are complimentary & free of obligation!

FAQ’s

View some of our frequently asked questions to learn more about LIFO

LIFO Glossary

Accounting and financial professionals who work with LIFO need to understand the jargon associated with LIFO. Below are a number of LIFO-related terms.

What Makes a Good LIFO Candidate?

Get answers to who should use the LIFO method, how much LIFO may benefit your company or client & good LIFO candidates by industry & principal business activity along with historical inflation data.

How LIFO Works

Hundreds of companies & CPA firms utilize our LIFO outsourcing solutions or the LIFO-PRO software for turnkey LIFO solutions.

What Makes a Good LIFO Candidate?