Finanse publiczne · 07/10/1994

Recapture of LIFO Benefits

This document contains final regulations that describe the events that trigger the recapture of LIFO benefits under section 1363(d) when a C corporation elects to become an S corporation or transfers LIFO inventory to an S corporation in a tax-free reorganization. The final regulations reflect changes made to the law by the Revenue Act of 1987 and affect corporations that use the last- in, first-out (LIFO) method of accounting.