New revenue procedure on LIFO recapture yields unexpected result.: An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on January 1, 1995. The length of the article is 1046 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: S corporations that have changed inventory accounting methods from FIFO to LIFO in the process of converting from C corporation status will find that the LIFO recapture required under IRC section 1363(d) will result in lower values and increased income. An IRS revenue procedure requires the use of an allocation method that yields lower cost of goods calculations when there is a LIFO decrement. The recapture provisions were enacted so that C corporations would not change to S corporation status to avoid recognizing built-in gain.

Citation Details
Title: New revenue procedure on LIFO recapture yields unexpected result.
Author: David H. Helmer
Publication:The Tax Adviser (Magazine/Journal)
Date: January 1, 1995
Publisher: American Institute of CPA's
Volume: 26 Issue: n1 Page: 27(2)

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