Internal Revenue Bulletin: 2005-30
July 25, 2005
LIFO; price indexes; department stores. The May 2005 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, May 31, 2005.
Disaster relief grants for businesses. This ruling holds that a grant received by a business under a state program to reimburse businesses for losses incurred for damage or destruction of real and personal property on account of a disaster is not excludable from gross income under the general welfare exclusion, as a gift under section 102 of the Code, as a qualified disaster relief payment under section 139, or as a contribution to the capital of a corporation under section 118. The business may elect under section 1033 to defer including in income gain realized from receipt of the grant to the extent the grant proceeds are used to timely purchase property similar or related in service or use to the destroyed or damaged property.
This procedure prescribes the procedure to be followed with respect to the claiming of any setoffs to adjustments proposed by the Commissioner pursuant to section 482 of the Code. Rev. Proc. 70-8 modified.
This document contains a correction to Table 2 of Rev. Rul. 2005-41, 2005-28 I.R.B. 69, relating to Farm Rates 2005. Rev. Rul. 2005-41 corrected.
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