Internal Revenue Bulletin:  2005-30 

July 25, 2005 

Rev. Rul. 2005-45


Table of Contents

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.

The following Department Store Inventory Price Indexes for May 2005 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, May 31, 2005.

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 May 2004 May 2005 Percent Change from May 2004 to May 20051
1. Piece Goods 483.5 487.9 0.9
2. Domestics and Draperies 542.2 533.8 -1.5
3. Women’s and Children’s Shoes 645.0 666.7 3.4
4. Men’s Shoes 868.4 878.3 1.1
5. Infants’ Wear 575.6 572.5 -0.5
6. Women’s Underwear 512.2 544.1 6.2
7. Women’s Hosiery 338.2 343.1 1.4
8. Women’s and Girls’ Accessories 567.5 594.1 4.7
9. Women’s Outerwear and Girls’ Wear 377.2 366.8 -2.8
10. Men’s Clothing 548.4 563.9 2.8
11. Men’s Furnishings 594.3 585.5 -1.5
12. Boys’ Clothing and Furnishings 445.2 431.0 -3.2
13. Jewelry 905.2 892.1 -1.4
14. Notions 797.5 811.0 1.7
15. Toilet Articles and Drugs 1001.4 999.7 -0.2
16. Furniture and Bedding 613.8 606.8 -1.1
17. Floor Coverings 587.9 599.4 2.0
18. Housewares 714.8 716.6 0.3
19. Major Appliances 201.6 204.5 1.4
20. Radio and Television 42.4 39.5 -6.8
21. Recreation and Education2 80.8 78.5 -2.8
22. Home Improvements2 129.1 136.5 5.7
23. Automotive Accessories2 112.1 114.6 2.2
         
Groups 1-15: Soft Goods 570.1 568.3 -0.3
Groups 16-20: Durable Goods 384.2 382.3 -0.5
Groups 21-23: Misc. Goods2 93.4 93.2 -0.2
       
  Store Total3 503.2 501.5 -0.3
         
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).


More Internal Revenue Bulletins