LIFO Inventory Considerations When Making a C-to-S Conversion
A taxpayer valuing its inventory under the last-in, first-out (LIFO) method should consider two significant implications for taxable income when converting from a C corporation to an S corporation
Published on July 01, 2013
IRS Issues Prop. Regs. on Retail-Inventory Method
Taxpayers using the retail-inventory method should review their calculations to determine if they are currently reducing both the numerator of the cost-complement ratio and the retail selling price of ending inventory for...
Published on April 01, 2012
Proposed Regs. Relating to the Retail-Inventory Method
The IRS issued proposed regulations relating to the retail-inventory method of accounting
Published on February 01, 2012
A Little-Known Tax Benefit The Gift of Inventory
Tax incentives are available for contributions of inventory for the care of the ill, needy, or infants, but many taxpayers may be unaware of them. This item outlines the current rules for an increased deduction and analyzes...
Published on June 01, 2010
Final Sales-Based Vendor Allowance and Markdown Rules Are Issued
Recent regulations restate and clarify retailers' computation of ending inventory value, including the application of common vendor discounts
Published on November 01, 2014
Must LIFO Go to Make Way for IFRS
Currently, IFRS do not allow for the use of the LIFO inventory method, jeopardizing its use for U.S. tax purposes due to the LIFO conformity requirement in Sec. 472. The disallowance of the use of LIFO for tax purposes would...
Published on March 01, 2009
Prop. Regs. Address Carryover of Accounting Methods Under Sec. 381
In order to resolve confusion with respect to accounting and inventory methods to be used after corporate reorganizations or liquidations, the IRS issued proposed regulations in November 2007 (REG-151884-03
Published on May 01, 2008
The Challenge of Contributing Off-Spec Food to Charity
Donations of “off-spec” food may not result in a charitable contribution deduction greater than the tax basis of the food inventory because of the difficulty of determining the proper tax basis and FMV for the food
Published on March 01, 2013
IRS Issues Fifth Directive on the Allocation of Mixed Service Costs
The IRS has been scrutinizing how taxpayers have allocated mixed service costs to self-constructed assets under Sec. 263A.
Published on June 01, 2010
Final Regulations for Sales-Based Royalties and Sales-Based Vendor Allowances
Treasury and the IRS in January issued final regulations addressing the capitalization and allocation of certain sales-based royalties and adjustments to inventory for certain sales-based vendor allowances
Published on June 01, 2014