One other option is to ditch the LIFO method altogether and file for an accounting method change. IPIC inflation rates for 2021 are close to 30% which often has dealers getting a LIFO deduction for 2021, rather than recapturing significant income under the alternative LIFO method. When using the IPIC LIFO method, Form 3115 is filed to change to the IPIC method for all LIFO inventory and to combine LIFO pooling. Thus, with a steep new car inventory decline, expanding the LIFO pool might help offset the new vehicle decreases. Why is that good for dealerships? It combines new and used vehicles plus parts into a single LIFO calculation. The Inventory Price Index Computation (IPIC) method uses consumer or producer price index to determine inflation instead of the actual invoice prices of inventory. With the September 15 tax due date approaching, it’s time to look at other options. With that causing numerous problems up and down the line, LIFO recapture and a potential, significant tax burden in 2021 is just another issue from inventory problems.Īs we reach the middle of July, it appears that unless there is a last-minute addition to a current bill, Congress will not provide auto dealers with LIFO relief for 2021.
The carrier accepts the goods at the container yard located within the port of lading and delivers them to a container yard located within the port of discharge.LIFO Relief Appears Unlikely: Options are available to mitigate tax burdensĭealerships are painfully aware of the lack of new vehicle inventory.
The shipper/consignee will be responsible for any movement, costs or risks before the container is delivered to the carrier at the CY or picked up from the CY.Stands for “container yard to container yard”.
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