Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe August 2000 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, August 31, 2000.
The following Department Store Inventory Price Indexes for August 2000 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under section 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, August 31, 2000.
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, foods, liquor, tobacco, and contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Percent
Change from
Aug. Aug. Aug. 1999 to
Groups 1999 2000 Aug. 2000 /1/
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1. Piece Goods 546.1 509.2 -6.8
2. Domestics and Draperies 630.1 617.9 -1.9
3. Women's and Children's Shoes 635.3 618.3 -2.7
4. Men's Shoes 882.3 913.2 3.5
5. Infants' Wear 623.9 619.8 -0.7
6. Women's Underwear 550.7 570.2 3.5
7. Women's Hosiery 322.1 334.7 3.9
8. Women's and Girls' Accessories 528.1 532.0 0.7
9. Women's Outerwear and Girls'
Wear 377.6 370.5 -1.9
10. Men's Clothing 609.9 605.4 -0.7
11. Men's Furnishings 610.6 612.9 0.4
12. Boys' Clothing and Furnishings 473.3 473.0 -0.1
13. Jewelry 962.0 936.5 -2.7
14. Notions 793.9 785.9 -1.0
15. Toilet Articles and Drugs 971.6 971.0 -0.1
16. Furniture and Bedding 679.3 687.9 1.3
17. Floor Coverings 602.1 603.2 0.2
18. Housewares 788.2 778.5 -1.2
19. Major Appliances 234.8 230.9 -1.7
20. Radio and Television 65.7 58.8 -10.5
21. Recreation and Education /2/ 97.0 92.2 -4.9
22. Home Improvements /2/ 127.6 129.2 1.3
23. Auto Accessories /2/ 106.8 106.2 -0.6
Groups 1 - 15: Soft Goods 589.9 585.3 -0.8
Groups 16 - 20: Durable Goods 447.4 437.2 -2.3
Groups 21 - 23: Misc. Goods /2/ 102.9 99.8 -3.0
Store Total /3/ 536.9 529.7 -1.3
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/1/ Absence of a minus sign before percentage change in this
column signifies a price increase.
/2/ Indexes on a January 1986 = 100 base.
/3/ The store total index covers all departments, including some
not listed separately, except for the following: candy, foods,
liquor, tobacco, and contract departments.
The principal author of this revenue ruling is Alan J. Tomsic of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Tomsic on (202) 622-4970 (not a toll-free call).