Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe October 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, October 31, 2000.
The following Department Store Inventory Price Indexes for October 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, October 31, 1999.
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)
_____________________________________________________________________
Percent
Change
from
Oct.
Oct. Oct. 1999 to
Groups
1999 2000 Oct. 2000 /1/
_____________________________________________________________________
1. Piece Goods
545.8 502.4 -8.0
2. Domestics and Draperies
625.6 608.5 -2.7
3. Women's and Children's Shoes 653.3 661.5
1.3
4. Men's Shoes
881.2 915.5
3.9
5. Infants' Wear
645.2 649.0
0.6
6. Women's Underwear
571.7 579.6
1.4
7. Women's Hosiery
328.9 346.2
5.3
8. Women's and Girls' Accessories 536.7 555.6
3.5
9. Women's Outerwear and Girls'
Wear 416.9 414.1 -0.7
10. Men's Clothing 627.5 601.0 -4.2
11. Men's Furnishings
631.1 632.7
0.3
12. Boys' Clothing and
Furnishings 508.8 494.4 -2.8
13. Jewelry
969.2 937.1 -3.3
14. Notions
771.7 792.8
2.7
15. Toilet Articles and
Drugs 985.6 971.1 -1.5
16. Furniture and Bedding
692.3 704.3
1.7
17. Floor Coverings
603.3 627.7
4.0
18. Housewares 792.9 778.0 -1.9
19. Major Appliances 234.8 228.6 -2.6
20. Radio and Television
64.2 57.9 -9.8
21. Recreation and
Education /2/ 96.5
92.6 -4.0
22. Home Improvements /2/
128.8 128.9
0.1
23. Auto Accessories /2/ 106.8 106.7 -0.1
Groups 1 - 15:
Soft Goods 612.3 607.3 -0.8
Groups 16 - 20: Durable
Goods 448.6 437.8 -2.4
Groups 21 - 23: Misc.
Goods /2/ 102.7 100.1 -2.5
Store Total /3/ 550.9 543.6 -1.3
_____________________________________________________________________
/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, food, 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).