LIFO Election Benefit Analysis

LIFO Election Benefit Analysis

Make the decision to elect LIFO with the utmost confidence, fully understand the risks/rewards of LIFO, and simplify the LIFO due diligence process with our complimentary LIFO Election Benefit Analysis. Let the LIFO experts streamline scoping out a LIFO election, learning about how LIFO works, and understanding all the pros/cons from adopting LIFO! The process is quick and easy and only requires a minimal amount of preexisting information from your accounting system. Included with the benefit analysis report is a turnkey outsourcing solutions fee quote for companies seeking to engage LIFOPro to manage all aspects of their calculation. LIFOPro offers free discovery calls upon delivery of your benefit analysis to discuss the report results, findings & recommendations. Get a free LIFO election benefit analysis or learn more using the content below!

  • Overview

    Performing comprehensive cost-benefit analysis is an essential component of the LIFO election due diligence process because it allows potential LIFO users to compare the risks and rewards of LIFO against their company’s overall risk appetite profile. It also allows potential LIFO users to forecast the long-term tax benefits & weigh them against the perceived costs. Furthermore, LIFO is an accounting method, meaning preferability must be established over the existing method & it should be assumed that LIFO will be used in perpetuity. Knowing this, it’s important to assess the long-term implications of LIFO rather than primarily focusing on the election year tax benefits.

    LIFOPro performs a series of pro forma LIFO calculations using a company’s current period product mix to determine whether a company is a good LIFO candidate, if a LIFO election should be made this year (or deferred to a future period), and to identify the most beneficial and practical submethods that should be used (if a current year LIFO election is recommended). The calculations made are as follows:

    • 20 year pro forma IPIC calculation using current period’s product mix & inventory balances
    • Current year external index calculation using Bureau of Labor Statistics Consumer/Producer Price Indexes (BLS CPI/PPI; also known as IPIC method)
    • Current year internal index calculation using company’s actual costs (if applicable)

    Good LIFO Candidate & LIFO Election Recommendation Criteria/Scoring

    Using the pro forma LIFO calculation results, the following criteria are tested and scored to determine if a company is a good LIFO candidate and/or if a LIFO election is recommended:

    • Good LIFO Candidate
      • Criteria: The following criteria are used to measure whether a company is a good LIFO candidate or not:
        • 20 Year Average Annual Inflation Rate: The 20 year average annual inflation rate is measured by assigning BLS CPI/PPI categories to the current period’s product mix and calculating a weighted average current year inflation index for this product mix for each of the last 20 years. For example, if a benefit analysis is performed for the 2023 year end, the 20 year average annual inflation rate will be calculated for the ‘04 – ‘23 year ends.
        • 20 Year Average Inflation Frequency: Inflation frequency is measured using the results of the 20 year pro forma IPIC LIFO calculation. For example, if the pro forma 20 year calculations were made for the ’04 – ‘23 year ends and there was inflation calculated in all but 3 years (meaning deflation was calculated in 3 periods), then the 20 year inflation frequency rate would be 85% (17 out of 20 years).
      • Scoring: A company is a good LIFO candidate if the following criteria are met:
        • 20 Year Average Annual Inflation Rate: The 20 year average annual inflation rate must be greater than or equal to 1%. Although this is a general rule of thumb, it’s important to confirm that a company’s product mix has a long-term history of at least a certain amount of inflation. LIFOPro has set this criterion at 1% because auto dealers & supermarkets both have around a 1% long-term average annual inflation rates (auto dealers & supermarkets are likely the two largest users of LIFO)
        • 20 Year Average Inflation Frequency: Inflation must be measured in at least 11 or more of the past 20 years. In LIFOPro’s experience, companies are much more likely to remain on LIFO if their long-term inflation frequency rate is greater than 50%. For example, if inflation is measured in 18 of the past 20 years, it’s a reasonable assumption that LIFO could create a tax benefit in 9 out of the next 10 years.
    • LIFO Election Recommendation
      • Criteria: The following criteria are used to measure whether a company should elect LIFO for the current year end or not:
        • Good LIFO candidate
        • Current vs. 20 Year Average Annual Inflation Rate Multiplier: The election year inflation rate multiplier is calculated by dividing the current year (or year to date) internal and external index inflation rates against the 20 year pro forma external index (IPIC method) average annual inflation rate.
      • Scoring
        • All Good LIFO candidate criteria met: A LIFO election will only be made if both the 20 year average annual inflation rate was 1% or more and the 20 year average inflation frequency was greater than 50%.
        • Current vs. 20 Year Average Annual Inflation Rate Multiplier is greater than or equal to 1: This ensures that the election year inflation rate is as much or more than the 20 year average annual inflation rate & that the benefits of LIFO outweigh the costs in the election year. For example, if the multiplier is 3 in the election year, there will be three years’ worth of tax benefits from LIFO when compared to the long-term averages. LIFOPro will recommend deferring adopting LIFO to a later period if the current vs. 20 year inflation rate multiplier is a negative value or less than 1.
  • Sample LIFO Election Benefit Analysis Excerpts

    Figure 1. 20 Year Pro Forma External Index LIFO Calculation Summary (IPIC Method)

    Figure 2. Current Year LIFO Calculation Estimate & Inflation Measurement Comparison

    Figure 3. Good LIFO Candidate & LIFO Election Recommendations

    All criteria have been met for Sample Company to be considered a good LIFO candidate & for a LIFO election to be recommended for the 2023 year end.

    Figure 4. LIFO Submethods Recommendations

    Figure 5. 20 Year Pro Forma IPIC LIFO Taxable Income & Tax Liability Reduction Schedule

    Figure 6. Bureau of Labor Statistics Historical Inflation Rates: Most Predominant Categories Applicable to Product Mix

  • LIFO Election Benefit Analysis Document Requirements

    Companies other than dealerships:

    • Current & prior period’s item detail reports – Also known as perpetual detail or stock status report. Should be readily available within accounting system and include the following fields (see document request list & sample templates contained in above file):
      • Unique identifier – Examples include item/part/tag number/code, SKU or UPC
      • Item description
      • Current period quantity on hand or weight
      • Current period unit cost
    • Completed LIFO election benefit analysis questionnaire
    • Download our LIFO Election Benefit Analysis Request List containing the questionnaire, document request list and sample item detail report template Excel sheets
    LIFO Election Benefit Analysis Document Request List


    Auto Dealer LIFO Election Benefit Analysis Questionnaire Other Dealers LIFO Election Benefit Analysis Questionnaire

    Document Delivery Options

    • Email the required document(s) listed above to & include LIFO election benefit analysis request in the subject line (20MB total file attachment limit)
    • File share portal

    LIFO Election Benefit Analysis Report Delivery Method & Timing

    • LIFOPro will email the complimentary LIFO Election Benefit Analysis PDF report package & fee quote within one week of receiving above documents (expedited delivery available upon request)
    • LIFOPro will also offer to schedule free discovery call/online meeting to discuss report findings, recommendations & fee quote
  • Learn More or Schedule a Free LIFO Discovery Call

    Want to learn more about LIFO, obtaining a free LIFO election benefit analysis & LIFOPro’s turnkey outsourcing solutions prior to obtaining your complimentary LIFO Election Benefit Analysis? Schedule a free LIFO discovery call or Teams meeting with LIFOPro by calling 402-330-8573, emailing or using our online scheduling tool

    Schedule Free LIFO Discovery Call LIFO Discovery Call Presentation Slide Deck Sample LIFO Election Benefit Analysis Report LIFOPro's Offerings CPA Firm Offerings
  • Request Your Free LIFO Election Benefit Analysis Now!

    Request your complimentary benefit analysis report by completing & submitting the form below. You’ll receive your complimentary analysis PDF report & fee quote within one week of submitting this form.

    Click or drag files to this area to upload. You can upload up to 15 files.
    To obtain a complimentary LIFO election benefit analysis report & fee quote, please upload an item detail report (aka stock status, perpetual inventory listing or inventory valuation report) containing the following data fields: 1. Product number/code/ID (or SKU/UPC) 2. Product description 3. current period quantity on hand 4-5. current & prior period item/unit/standard costs. 6. Product hierarchies (if available, such as category, class, group, line, segment, department, type or stage of production) NOTE 1: You may send separate current period & prior period item detail reports. NOTE 2: Assuming your year end has yet to occur, use the latest available data to provide the current period documentation. For example, if you have a December year end & documentation is sent on November 15th, the current period data should be as of or close to the submittal date & the prior period data should be as of the last year closed. NOTE 3: Prior period item/unit/standard costs are not required to obtain analysis & fee quote, but your analysis will only be ran using an external inflation measurement source. NOTE 4: Provide current & prior period extended costs if quantities and/or item/unit/standard costs are unavailable.
  • LIFO Tax Savings Calculator


    • 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.

    BLS PPI Annual Inflation Rate Averages Table for Selected Commodities Through September 2022

     PPI CodeBLS PPI Category Description1M 09/22YTD 09/221Y 09/223Y 09/225Y 09/2210Y 09/2220Y 09/22
    01FARM PRODUCTS-0.7%16.9%25.6%18.0%9.7%2.1%4.6%
    011Fruits & melons, fresh/dry vegs. & nuts6.0%13.1%26.6%11.3%5.6%5.2%4.6%
    013Slaughter livestock-8.2%13.9%12.9%13.5%6.7%2.1%4.4%
    014Slaughter poultry-5.1%4.6%19.9%20.9%8.4%4.8%5.3%
    015Raw cotton-0.2%3.8%20.9%24.9%9.4%3.9%5.2%
    016Raw milk-6.6%22.4%41.4%9.5%6.5%2.3%3.7%
    017Chicken eggs12.1%83.6%120.3%44.1%19.9%7.8%8.0%
    018Hay, hayseeds and oilseeds-0.8%20.5%18.3%20.9%10.8%-0.2%4.8%
    02PROCESSED FOODS AND FEEDS-0.5%10.2%9.7%7.6%5.0%2.3%3.3%
    021Cereal and bakery products1.4%12.9%15.6%7.5%5.1%2.4%3.3%
    022Meats, poultry, and fish-3.1%3.8%-2.3%8.3%5.3%2.7%3.7%
    023Dairy products-1.3%13.2%18.0%6.2%4.2%2.2%3.1%
    024Processed fruits and vegetables2.2%14.3%16.3%7.0%4.9%3.0%3.4%
    025Sugar and confectionery0.3%8.6%9.4%3.6%3.0%1.4%2.8%
    026Beverages and beverage materials0.4%8.6%10.4%4.9%3.5%2.1%2.4%
    027Fats and oils-0.4%10.5%11.8%20.7%10.2%3.1%6.1%
    028Miscellaneous processed foods1.1%14.6%16.9%7.3%4.8%2.7%2.8%
    029Prepared animal feeds0.1%17.1%15.9%11.9%7.5%0.6%4.4%
    03TEXTILE PRODUCTS AND APPAREL0.3%8.7%12.9%7.6%5.2%2.8%2.3%
    031Synthetic fibers0.9%4.0%7.5%6.8%5.6%2.8%2.1%
    032Processed yarns and threads-0.5%17.9%27.1%13.7%8.9%3.9%3.6%
    033Greige fabrics0.1%11.7%15.3%7.6%4.8%2.1%2.2%
    034Finished fabrics0.1%9.1%12.1%8.3%5.8%3.2%2.7%
    038Apparel & other fabricated textile prods0.4%4.2%7.3%3.7%2.7%2.1%1.6%
    039Miscellaneous textile products/services2.0%26.1%37.5%16.7%8.0%3.7%3.0%
    04HIDES, SKINS, LEATHER, AND RELATED PRODUCTS0.0%2.5%-8.4%1.7%-1.1%-1.5%0.4%
    041Hides and skins, incl. cattle0.0%5.7%-35.1%-4.7%-9.4%-8.5%-2.6%
    044Other leather and related products0.0%4.0%5.0%2.7%2.3%2.3%1.8%
    05FUELS AND RELATED PRODUCTS AND POWER1.8%33.8%36.6%20.2%11.4%2.8%5.7%
    053Gas fuels5.2%72.8%93.5%67.2%24.6%9.3%6.3%
    055Utility natural gas2.3%8.7%33.7%21.9%11.2%6.2%4.8%
    056Crude petroleum (domestic production)-2.8%33.0%31.1%16.7%13.3%-1.2%6.1%
    057Petroleum products, refined2.8%39.5%40.6%23.4%13.8%1.0%7.3%
    058Asphalt and other petroleum and coal products, n.e.c.-4.3%19.4%44.1%18.1%16.3%2.4%9.2%
    06CHEMICALS AND ALLIED PRODUCTS-0.5%5.5%6.4%9.3%5.9%3.0%4.5%
    061Industrial chemicals-1.5%5.7%4.1%14.4%7.6%1.8%5.2%
    062Paints and allied products0.1%17.9%21.4%11.0%8.6%3.6%4.4%
    063Drugs and pharmaceuticals-0.3%1.7%2.4%2.1%2.8%4.4%4.5%
    064Fats and oils, inedible-1.2%16.0%8.0%26.9%11.2%1.2%7.1%
    065Agricultural chemicals and chemical products2.8%14.6%30.8%20.6%13.2%4.2%5.6%
    066Plastic resins and materials-0.8%-2.1%-3.1%11.1%6.1%2.7%4.1%
    067Other chemicals and allied products-0.1%9.7%13.4%6.1%4.4%2.7%2.9%
    07RUBBER AND PLASTIC PRODUCTS-0.2%9.2%14.3%9.8%6.5%3.4%3.6%
    071Rubber and rubber products0.1%11.3%12.7%7.2%4.8%1.7%3.2%
    072Plastic products-0.3%8.6%14.8%10.6%6.9%3.9%3.7%
    08LUMBER AND WOOD PRODUCTS-2.5%1.5%10.3%11.1%6.9%4.7%3.2%
    084Other wood products-0.3%9.9%7.7%9.8%7.6%4.7%3.1%
    085Logs, bolts, timber, pulpwood, woodchips and other roundwood products-0.4%4.8%3.0%5.0%3.2%1.8%2.2%
    086Prefabricated wood buildings & components-3.9%8.5%13.8%13.1%9.1%5.7%3.9%
    087Treated wood and contract wood preserving-1.6%10.5%22.1%9.5%7.3%4.4%3.2%
    09PULP,PAPER, AND ALLIED PRODUCTS0.1%9.4%12.8%9.2%5.5%3.3%3.0%
    091Pulp, paper, and prod., ex. bldg. paper-0.1%9.2%12.5%9.4%5.3%3.4%3.2%
    092Building paper & building board mill prods.2.9%-4.6%-6.5%22.1%9.5%5.9%5.1%
    094Publications, printed matter & printing material0.5%12.6%17.4%7.7%5.6%3.0%
    10METALS AND METAL PRODUCTS-2.3%-4.6%0.0%13.0%8.4%3.8%4.7%
    101Iron and steel-5.1%-18.1%-12.2%18.1%10.4%4.2%5.6%
    102Nonferrous metals-1.7%-1.8%-1.3%10.0%6.2%2.6%5.1%
    103Metal containers0.3%19.1%27.0%12.3%9.6%4.5%4.0%
    105Plumbing fixtures and fittings0.6%8.7%11.1%5.3%4.8%3.2%3.0%
    106Heating equipment1.2%7.1%14.5%9.7%7.6%4.6%4.4%
    107Fabricated structural metal products-0.8%7.7%14.2%15.9%11.0%5.7%4.8%
    108Miscellaneous metal products-0.2%6.6%10.9%6.9%5.5%2.7%2.7%
    11MACHINERY AND EQUIPMENT0.3%7.8%10.1%5.3%4.0%2.2%1.6%
    111Agricultural machinery and equipment0.7%10.1%16.2%9.0%6.3%3.7%3.4%
    112Construction machinery and equipment0.1%8.5%13.4%6.6%5.1%3.2%3.2%
    113Metalworking machinery and equipment0.2%6.7%9.5%4.8%3.8%2.4%2.1%
    114General purpose machinery and equipment0.5%12.2%15.3%7.9%6.1%3.8%3.6%
    115Electronic computers and computer equipment-0.6%3.8%3.7%3.0%-0.2%-1.7%-4.4%
    116Special industry machinery and equipment-0.1%8.4%10.0%7.4%5.3%3.1%2.4%
    117Electrical machinery and equipment0.2%6.2%7.8%3.9%3.0%1.5%0.6%
    118Miscellaneous instruments0.2%7.6%9.2%4.2%3.3%2.4%2.1%
    119Miscellaneous machinery0.3%4.9%6.6%3.1%2.8%1.5%2.0%
    12FURNITURE AND HOUSEHOLD DURABLES0.5%7.1%9.3%6.7%5.1%2.9%2.4%
    121Household furniture0.0%7.1%10.0%7.5%5.5%3.3%2.8%
    122Commercial furniture-0.5%10.0%12.0%8.2%6.4%3.8%3.2%
    123Floor coverings2.6%-0.32.0%2.5%2.5%1.6%2.4%
    124Household appliances-0.2%8.5%10.5%6.6%5.0%2.3%1.8%
    125Home electronic equipment2.5%6.8%9.0%5.4%3.6%1.7%-0.6%
    126Other household durable goods2.1%5.0%6.6%5.9%4.1%2.5%2.0%
    13NONMETALIC MINERAL PRODUCTS0.3%12.2%13.8%7.1%5.5%4.0%3.9%
    132Concrete ingredients and related products0.5%11.9%11.9%6.5%5.3%4.6%4.3%
    133Concrete products0.4%12.5%15.4%7.5%6.0%4.7%4.1%
    134Clay construction products ex. refractories1.9%5.8%7.2%4.4%3.3%2.3%1.7%
    136Asphalt felts and coatings0.6%16.4%14.9%10.5%8.0%3.4%5.6%
    137Gypsum products0.2%16.5%18.6%13.4%7.5%7.1%5.1%
    138Glass containers0.0%10.9%12.4%6.5%4.8%3.0%3.1%
    139Other nonmetallic minerals0.1%13.3%15.1%6.5%5.0%2.8%3.8%
    14TRANSPORTATION EQUIPMENT0.1%3.7%5.1%3.1%2.3%1.7%1.7%
    141Motor vehicles and equipment0.1%3.7%5.3%3.4%2.4%1.7%1.4%
    142Aircraft and aircraft equipment0.3%3.7%4.3%2.3%1.9%1.6%2.4%
    143Ships and boats-0.4%4.6%6.1%3.8%3.1%2.2%2.8%
    144Railroad equipment0.4%-1.0%3.1%1.5%0.8%1.1%2.3%
    149Transportation equipment, n.e.c.0.0%5.7%9.9%5.4%4.1%2.5%1.9%
    15MISCELLANEOUS PRODUCTS0.3%7.4%9.0%5.7%4.7%3.3%2.9%
    151Toys, sporting goods, small arms, etc.-1.3%7.7%9.7%6.3%4.5%2.6%2.0%
    152Tobacco products, incl. stemmed & redried0.7%9.1%10.7%8.4%7.7%6.1%4.7%
    154Photographic equipment and supplies0.0%8.5%10.3%5.1%4.6%2.5%2.2%
    155Mobile homes0.9%8.3%15.0%15.3%11.7%7.3%5.6%
    156Medical, surgical & personal aid devices0.0%3.3%3.8%2.1%1.7%1.2%1.3%
    157Other industrial safety equipment0.0%7.4%9.2%5.8%4.1%2.6%2.0%
    159Other miscellaneous products1.3%12.0%14.9%7.4%6.0%3.3%2.8%

    BLS CPI Historical Annual Inflation Rate Averages Through September 2022 Table For Selected Categories

    BLS CPI CodeBLS CPI Category Description1MYTD1Y 09/223Y 09/225Y 09/2210Y 09/2220Y 09/22
    SAFFOOD & BEVERAGES0.7%8.8%10.8%6.3%4.4%2.9%2.9%
    SAF11Food at home0.6%10.9%13.0%7.1%4.5%2.5%2.7%
    SAF114Nonalcoholic beverages & beverage materials0.8%11.6%12.9%6.9%4.6%2.1%2.0%
    SEFNJuices & nonalcoholic drinks1.2%11.0%12.7%7.3%5.2%2.5%2.1%
    SEFN01Carbonated drinks1.3%11.5%12.4%7.9%6.3%2.8%2.7%
    SEFN03Nonfrozen noncarbonated juices & drinks1.1%10.7%13.0%6.9%4.5%2.3%1.5%
    SEFPBeverage materials including coffee & tea-0.2%13.0%13.5%5.8%3.3%1.2%1.8%
    SEFP02Other beverage materials including tea0.4%11.5%9.5%4.5%2.9%1.7%1.4%
    SAF115Other food at home0.2%12.9%15.7%7.2%4.5%2.4%2.4%
    SEFT06Other miscellaneous foods-0.2%11.2%15.1%7.3%4.2%2.4%2.0%
    SEFWAlcoholic beverages at home-0.1%3.6%2.9%2.3%1.8%1.3%1.5%
    SEFW01Beer, ale & other malt beverages at home-0.1%4.8%4.5%3.7%2.6%2.1%2.2%
    SEFW02Distilled spirits at home-0.8%0.4%0.3%1.6%1.5%0.8%0.9%
    SEFW03Wine at home0.1%4.0%2.7%1.3%1.3%0.7%0.8%
    SEHEFUEL OIL & OTHER FUELS-2.0%24.0%39.9%16.2%9.0%2.6%6.8%
    SAH3HOUSEHOLD FURNISHINGS & OPERATIONS0.6%6.7%9.3%5.5%4.0%1.5%0.7%
    SAM1MEDICAL CARE COMMODITIES-0.1%2.9%3.7%1.0%0.6%1.5%2.1%
    SEMFMedicinal drugs-0.2%2.7%3.5%1.0%0.5%1.6%
    SEMF01Prescription drugs-0.1%2.0%2.7%0.8%0.4%1.9%8.4%
    SEMF02Nonprescription drugs-0.4%4.7%5.6%1.0%0.8%0.2%
    SEMGMedical equipment and supplies0.9%5.7%6.0%0.5%0.8%0.3%
    SEEAEDUCATIONAL BOOKS & SUPPLIES-0.4%4.8%4.6%1.7%0.8%2.2%4.1%
    SEGATOBACCO & SMOKING PRODUCTS0.2%4.5%8.2%6.6%5.5%4.8%5.3%
    SEGBPERSONAL CARE PRODUCTS0.4%7.0%6.5%1.9%1.1%0.4%0.5%
    SEGEMISCELLANEOUS PERSONAL GOODS1.0%6.4%10.7%4.4%1.8%0.0%-0.5%
    SAGOTHER GOODS AND SERVICES0.3%5.2%6.9%4.2%3.3%2.6%2.8%
    SEREOther recreational goods0.7%3.9%4.7%0.1%-2.1%-4.1%-4.0%
    SERGRecreational reading materials-1.3%6.3%5.6%4.5%3.8%2.6%1.9%


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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!

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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!

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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.

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LIFO Methods, Rules & Regulations

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

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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.

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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.

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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.

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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.

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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!

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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.

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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.

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BLS CPI & PPI Inflation History

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

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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.

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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.

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LIFOPro Videos

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

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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!

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

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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.

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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.

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How LIFO Works

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

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Make the decision to elect LIFO with the utmost confidence, fully understand the risks/rewards of LIFO, and simplify the LIFO due diligence process with our complimentary LIFO Election Benefit Analysis Report. This comprehensive case study uses proprietary inflation metrics to forecast your client’s election year and long-term tax benefits of LIFO and includes recommendations regarding whether a LIFO election should be made or deferred, and recommendations on the most practical and beneficial methods to use.

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