LIFO Rules

Discussion in 'Tax' started by Bill Lentz, Mar 23, 2007.

  1. Bill Lentz

    Bill Lentz Guest

    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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    Bill Lentz, Mar 23, 2007
    #1
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  2. Bill Lentz

    Giulio Guest

    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. >>
    << ======================================================= >>
     
    Giulio, Mar 28, 2007
    #2
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