The  Last-In,  First-Out  (LIFO)  Inventory  Method

A  Specialized  Survey  Course  Emphasizing  the  Application  for  Automobile  Dealerships

Date:  October 13, 2011 …   1 p.m. Eastern; 12 p.m. Central; 11 a.m. Mountain; 10 a.m. Pacific. 

     Since the early 1970s, the LIFO method has been especially advantageous for automobile dealerships.  Over the past 40 years, the IRS has come to accept its application to dealerships and provided significant clarification about what it will accept … and what it will not accept … when dealerships use the LIFO method.  This seminar, LIFO for Auto Dealerships, covered - in depth - planning strategies, pitfalls and the specialized application techniques for automobile dealerships using this Method. 

Topics included …

        ·    How much of a dealership’s inventory should be on LIFO? … New vehicles, used vehicles, and/or parts & accessories?

        ·    Compliance with the cost eligibility requirement … Special considerations for dealerships.

        ·    Compliance with the financial statement conformity requirements … Special considerations for dealerships.

        ·    Initial LIFO elections & Form 970 filing … Special considerations for dealerships.

        ·    IRS safe harbor methods for LIFO computations … Why they should be elected and their special requirements.

        ·    Alternative LIFO Method for New Vehicles (Rev. Proc. 97-36) and Vehicle-Pool Method (Rev. Proc. 2008-23).

        ·    Understanding and reconciling LIFO reserves so you can strategically plan for year-end events.

        ·    LIFO reserve recapture, S-corporation election consequences and other special problems.