Tariffs & LIFO Series: Part Three A common concern regarding first-time LIFO adoptions is the risk of having to pay back a material portion of the election year LIFO tax benefit in future periods. This is because during deflationary periods, a certain amount of the LIFO reserve & tax benefit accumulated in previous periods will […]
Tariffs & LIFO Series: Part Two In part one of LIFOPro’s three-part series on tariffs titled How to Use LIFO to Create Tax Benefits from Tariffs, we covered the basics about how LIFO works, why companies use the LIFO method, and why the subject of tariffs will likely drive meaningful, if not historic inflation and […]
Tariffs & LIFO Series: Part One Inflation is now top of mind following the White House’s announcement of tariffs ranging from 10% to 125%. Retailers and wholesalers reselling imported goods will incur increased costs, and manufacturers purchasing raw materials from foreign sources will also face higher input prices. As a result, elevated goods inflation and […]
CPAs should be aware of situations for which their clients are using Specific Goods LIFO. Read the full blog article to see why
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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
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 […]
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 […]
