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LIFO Rules

 
 
Bill Lentz
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      03-23-2007, 10:12 AM
I seem to recall that if a company uses LIFO accounting for
tax purposes, they are not allowed to write off obsolete
inventory unless the inventory is physically disposed of.
Is this still true (or was it ever true?)

What if the Company has certain inventory that is not going
to be sold in the ordinary course of business, but may be
held and given away as good will items (i.e. to schools or
other charitable organizations that use them for raffles,
student incentives, etc.). Could these items be removed
from inventoru=y if the company was under LIFO accounting?

Thanks
Bill

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Giulio
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      03-28-2007, 09:34 PM
Bill Lentz ha scritto:

> I seem to recall that if a company uses LIFO accounting for
> tax purposes, they are not allowed to write off obsolete
> inventory unless the inventory is physically disposed of.
> Is this still true (or was it ever true?)


I think you have to discharge goods from your inventory. In
not you are obliged to use the same valuation rules for all
the inventory.

<< ================================================== ===== >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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