Internal Revenue Bulletin:  2005-39 

September 26, 2005 

Rev. Rul. 2005-63


Table of Contents

LIFO; price indexes; department stores. The July 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, July 31, 2005.

The following Department Store Inventory Price Indexes for July 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, July 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 July 2004 July 2005 Percent Change from July 2004 to July 20051
1. Piece Goods 507.8 495.0 -2.5
2. Domestics and Draperies 525.0 517.7 -1.4
3. Women’s and Children’s Shoes 608.5 629.0 3.4
4. Men’s Shoes 831.7 867.0 4.2
5. Infants’ Wear 560.5 548.0 -2.2
6. Women’s Underwear 508.0 541.2 6.5
7. Women’s Hosiery 330.4 339.7 2.8
8. Women’s and Girls’ Accessories 565.8 580.5 2.6
9. Women’s Outerwear and Girls’ Wear 335.9 321.7 -4.2
10. Men’s Clothing 532.7 520.6 -2.3
11. Men’s Furnishings 567.0 552.6 -2.5
12. Boys’ Clothing and Furnishings 420.9 386.1 -8.3
13. Jewelry 907.8 870.2 -4.1
14. Notions 798.6 809.2 1.3
15. Toilet Articles and Drugs 993.3 997.1 0.4
16. Furniture and Bedding 616.3 599.1 -2.8
17. Floor Coverings 587.7 609.8 3.8
18. Housewares 712.1 712.2 0.0
19. Major Appliances 199.6 203.5 2.0
20. Radio and Television 41.6 38.9 -6.5
21. Recreation and Education2 80.3 77.9 -3.0
22. Home Improvements2 129.8 137.6 6.0
23. Automotive Accessories2 112.7 115.1 2.1
         
Groups 1-15: Soft Goods 545.1 537.3 -1.4
Groups 16-20: Durable Goods 382.3 379.6 -0.7
Groups 21-23: Misc. Goods2 93.3 93.0 -0.3
       
  Store Total3 487.2 481.6 -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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