Internal Revenue Bulletin:  2004-52 

December 27, 2004 

Rev. Rul. 2004-113


Table of Contents

LIFO; price indexes; department stores. The October 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, October 31, 2004.

The following Department Store Inventory Price Indexes for October 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, October 31, 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 Oct. 2003 Oct. 2004 Percent Change from Oct. 2003 to Oct. 2004¹
1. Piece Goods 487.3 491.6 0.9
2. Domestics and Draperies 556.5 539.0 -3.1
3. Women’s and Children’s Shoes 657.4 665.8 1.3
4. Men’s Shoes 844.9 832.1 -1.5
5. Infants’ Wear 609.1 584.3 -4.1
6. Women’s Underwear 520.2 513.0 -1.4
7. Women’s Hosiery 352.3 337.6 -4.2
8. Women’s and Girls’ Accessories 578.0 597.3 3.3
9. Women’s Outerwear and Girls’ Wear 387.8 385.5 -0.6
10. Men’s Clothing 552.3 542.7 -1.7
11. Men’s Furnishings 592.1 578.7 -2.3
12. Boys’ Clothing and Furnishings 441.9 430.6 -2.6
13. Jewelry 883.7 892.6 1.0
14. Notions 786.9 793.7 0.9
15. Toilet Articles and Drugs 984.0 995.6 1.2
16. Furniture and Bedding 618.8 608.5 -1.7
17. Floor Coverings 589.4 581.7 -1.3
18. Housewares 714.3 714.6 0.0
19. Major Appliances 210.2 202.8 -3.5
20. Radio and Television 44.4 41.1 -7.4
21. Recreation and Education2 82.1 79.8 -2.8
22. Home Improvements2 125.3 131.0 4.5
23. Automotive Accessories2 111.8 113.1 1.2
         
Groups 1-15: Soft Goods 574.9 569.9 -0.9
Groups 16-20: Durable Goods 390.0 382.5 -1.9
Groups 21-23: Misc. Goods2 93.8 93.1 -0.7
       
  Store Total3 507.8 502.4 -1.1
         
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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