Internal Revenue Bulletin:  2004-48 

November 29, 2004 

Rev. Rul. 2004-105


Table of Contents

LIFO; price indexes; department stores. The September 2004 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, September 30, 2004.

The following Department Store Inventory Price Indexes for September 2004 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, September 30, 2004.

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 Sept. 2003 Sept. 2004 Percent Change from Sept. 2003 to Sept. 20041
1. Piece Goods 482.6 488.9 1.3
2. Domestics and Draperies 559.7 526.6 -5.9
3. Women’s and Children’s Shoes 651.9 657.4 0.8
4. Men’s Shoes 847.3 842.8 -0.5
5. Infants’ Wear 611.8 582.8 -4.7
6. Women’s Underwear 517.8 509.6 -1.6
7. Women’s Hosiery 355.5 336.6 -5.3
8. Women’s and Girls’ Accessories 584.6 576.2 -1.4
9. Women’s Outerwear and Girls’ Wear 377.3 371.0 -1.7
10. Men’s Clothing 542.3 531.2 -2.0
11. Men’s Furnishings 579.8 567.1 -2.2
12. Boys’ Clothing and Furnishings 448.2 425.7 -5.0
13. Jewelry 875.9 886.2 1.2
14. Notions 788.2 797.8 1.2
15. Toilet Articles and Drugs 980.4 993.2 1.3
16. Furniture and Bedding 620.7 608.0 -2.0
17. Floor Coverings 588.6 584.0 -0.8
18. Housewares 717.2 711.7 -0.8
19. Major Appliances 210.3 197.4 -6.1
20. Radio and Television 44.7 41.1 -8.1
21. Recreation and Education2 81.9 79.9 -2.4
22. Home Improvements2 123.9 128.9 4.0
23. Automotive Accessories2 111.7 113.0 1.2
         
Groups 1-15: Soft Goods 568.8 559.8 -1.6
Groups 16-20: Durable Goods 391.4 379.8 -3.0
Groups 21-23: Misc. Goods2 93.5 93.0 -0.5
       
  Store Total3 504.3 495.4 -1.8
         
1Absence of a minus sign before the percentage change in this column signifies a price increase.
2Indexes on a January 1986 = 100 base.
3The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco and contract departments.
         

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622-7924 (not a toll-free call).


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