Internal Revenue Service
Revenue Ruling
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smThe 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, September 30, 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
Sep. Sep. Sep. 1999 to
Groups 1999 2000 Sep. 2000 /1/
______________________________________________________________________
1. Piece Goods 543.6 496.1 -8.7
2. Domestics and Draperies 629.3 609.3 -3.2
3. Women's and Children's Shoes 645.4 660.6 2.4
4. Men's Shoes 883.1 913.6 3.5
5. Infants' Wear 633.6 633.7 0.0
6. Women's Underwear 566.1 584.9 3.3
7. Women's Hosiery 326.7 342.9 5.0
8. Women's and Girls' Accessories 536.2 540.0 0.7
9. Women's Outerwear and Girls'
Wear 408.9 400.2 -2.1
10. Men's Clothing 619.3 606.3 -2.1
11. Men's Furnishings 618.4 624.8 1.0
12. Boys' Clothing and Furnishings 498.5 481.7 -3.4
13. Jewelry 960.4 933.7 -2.8
14. Notions 767.0 788.0 2.7
15. Toilet Articles and Drugs 982.5 969.9 -1.3
16. Furniture and Bedding 696.6 707.2 1.5
17. Floor Coverings 602.8 614.8 2.0
18. Housewares 796.1 777.5 -2.3
19. Major Appliances 235.7 230.6 -2.2
20. Radio and Television 64.6 58.3 -9.8
21. Recreation and Education /2/ 96.4 92.3 -4.3
22. Home Improvements /2/ 127.8 128.3 0.4
23. Auto Accessories /2/ 107.1 106.5 -0.6
Groups 1 - 15: Soft Goods 605.2 600.3 -0.8
Groups 16 - 20: Durable Goods 450.6 438.9 -2.6
Groups 21 - 23: Misc. Goods /2/ 102.7 99.8 -2.8
Store Total /3/ 547.0 539.4 -1.4
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/1/ Absence of a minus sign before percentage change in this
column signifies 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 Associate 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).