Rev. Rul. 98-29, 1998-24 I.R.B. 4.

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 15, 1998

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The April 1998 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 1998.

The following Department Store Inventory Price Indexes for April 1998 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, April 30, 1998.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups--soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)

Groups April 1997/April 1998/Percent Change from April 1997 to April 1998 [Fn1]
1. Piece Goods 533.0 547.3 2.7
2. Domestics and Draperies 653.6 642.9 -1.6
3. Women's and Children's Shoes 661.3 663.6 0.3
4. Men's Shoes 904.8 902.5 -0.3
5. Infants' Wear 640.6 628.1 -2.0
6. Women's Underwear 546.3 586.1 7.3
7. Women's Hosiery 294.4 305.5 3.8
8. Women's and Girls' Accessories 561.0 550.1 -1.9
9. Women's Outerwear and Girls' Wear 439.8 431.7 -1.8
10. Men's Clothing 622.2 633.6 1.8
11. Men's Furnishings 598.9 609.6 1.8
12. Boys' Clothing and Furnishings 498.6 498.8 0.0
13. Jewelry 1026.2 1001.8 -2.4
14. Notions 799.2 793.7 -0.7
15. Toilet Articles and Drugs 912.5 936.7 2.7
16. Furniture and Bedding 667.5 675.9 1.3
17. Floor Coverings 586.9 603.7 2.9
18. Housewares 815.9 821.4 0.7
19. Major Appliances 241.9 239.4 -1.0
20. Radio and Television 76.6 73.0 -4.7
21. Recreation and Education [fn2] 110.2 105.7 -4.1
22. Home Improvements [fn2] 131.4 134.0 2.0
23. Auto Accessories [fn2] 107.3 106.8 -0.5
Groups 1 - 15: Soft Goods 614.6 615.3 0.1
Groups 16 - 20: Durable Goods 466.9 464.9 -0.4
Groups 21 - 23: Misc. Goods [fn2] 112.4 109.5 -2.6
Store Total [fn3] 562.6 560.8 -0.3

FN1 Absence of a minus sign before percentage change in this column signifies price increase.
FN2 Indexes on a January 1986=100 base.
FN3 The store total index covers all departments, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Stan Michaels of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Michaels on (202) 622- 4970 (not a toll-free call).

Rev. Rul. 98-29, 1998-24 I.R.B. 4.