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 Rev. Rul. 77-64

1977-1 C.B. 136

Section 471 -- Inventories

Full Text

Rev. Rul. 77-64 /1/

Rev. Rul. 76-242, 1976-1 C.B. 132, provides that for the purpose of computing gross income: (1) farmers using an accrual method of accounting must inventory growing crops; (2) a taxpayer operating a nursery using an accrual method of accounting must inventory growing trees; and (3) florists using an accrual method of accounting must inventory growing plants, unless such taxpayer uses the crop method.

Because Rev. Rul. 76-242 revoked I.T. 1368, I-1 C.B. 72 (1922) and O.D. 995, 5 C.B. 63 (1921), it further provides that under the authority contained in section 7805(b) of the Internal Revenue Code of 1954, the provisions of Rev. Rul. 76-242 would not be applied to taxable years beginning before June 28, 1976.

The effective date of Rev. Rul. 76-242 is changed so that the provisions set forth therein will not be applied to taxable years beginning before January 1, 1978.

Rev. Rul. 76-242 is modified.

/1/ Also released as IR-1762, dated February 25, 1977.