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October BLS Price Indexes Accepted.

DEC. 27, 2004

Rev. Rul. 2004-113; 2004-2 C.B. 1024

DATED DEC. 27, 2004
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Citations: Rev. Rul. 2004-113; 2004-2 C.B. 1024

Rev. Rul. 2004-113

The following Department Store Inventory Price Indexes for October 2004 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, October 31, 2004.

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)

 

 

                                                          Percent

 

                                                        Change from

 

                                       Oct.     Oct.   Oct. 2003 to

 

                Groups                 2003     2004     Oct. 20041

 

 _____________________________________________________________________

 

 

  1. Piece Goods                       487.3    491.6         0.9

 

  2. Domestics and Draperies           556.5    539.0        -3.1

 

  3. Women's and Children's Shoes      657.4    665.8         1.3

 

  4. Men's Shoes                       844.9    832.1        -1.5

 

  5. Infants' Wear                     609.1    584.3        -4.1

 

  6. Women's Underwear                 520.2    513.0        -1.4

 

  7. Women's Hosiery                   352.3    337.6        -4.2

 

  8. Women's and Girls' Accessories    578.0    597.3         3.3

 

  9. Women's Outerwear and Girls'

 

     Wear                              387.8    385.5        -0.6

 

 10. Men's Clothing                    552.3    542.7        -1.7

 

 11. Men's Furnishings                 592.1    578.7        -2.3

 

 12. Boys' Clothing and Furnishings    441.9    430.6        -2.6

 

 13. Jewelry                           883.7    892.6         1.0

 

 14. Notions                           786.9    793.7         0.9

 

 15. Toilet Articles and Drugs         984.0    995.6         1.2

 

 16. Furniture and Bedding             618.8    608.5        -1.7

 

 17. Floor Coverings                   589.4    581.7        -1.3

 

 18. Housewares                        714.3    714.6         0.0

 

 19. Major Appliances                  210.2    202.8        -3.5

 

 20. Radio and Television               44.4     41.1        -7.4

 

 21. Recreation and Education2           82.1     79.8        -2.8

 

 22. Home Improvements2                 125.3    131.0         4.5

 

 23. Automotive Accessories2            111.8    113.1         1.2

 

 

 Groups  1 - 15: Soft Goods            574.9    569.0        -0.9

 

 Groups 16 - 20: Durable Goods         390.0    382.5        -1.9

 

 Groups 21 - 23: Misc. Goods2            93.8     93.1        -0.7

 

 

      Store Total3                      507.8    502.4        -1.1

 

 _____________________________________________________________________

 

 

                          FOOTNOTES TO TABLE

 

 

      1 Absence of a minus sign before the percentage change

 

 in this column signifies a price increase.

 

 

      2 Indexes on a January 1986 = 100 base.

 

 

      3 The store total index covers all departments,

 

 including some not listed separately, except for the following:

 

 candy, food, liquor, tobacco and contract departments.

 

 

                       END OF FOOTNOTES TO TABLE

 

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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