Examples of LIFO in a sentence
Except as provided in paragraph (c)(4)(iii) of this section, the lookthrough LIFO recapture amount shall be determined as of the end of the recapture date for transactions de- scribed in paragraph (b)(1) of this sec- tion, and as of the moment before the transfer occurs for transactions de- scribed in paragraph (b)(2) of this sec- tion.
A partnership that applies the alternative method of this paragraph (c)(4)(iii) to calculate the lookthrough LIFO recapture amount must take into account any adjustments to the partnership’s basis in its LIFO inventory that result from transactions occurring after the start of the partnership’s taxable year and before the end of the recapture date.
For example, the lookthrough LIFO re- capture amount must be adjusted to take into account any adjustments to the basis of LIFO inventory during that period under sections 734(b), 737(c), or 751(b).
A partnership interest is a lookthrough partnership interest if the partnership owns (directly or indirectly through one or more partnerships) assets ac- counted for under the last-in, first-out (LIFO) method (LIFO inventory).
For purposes of this section, a corporation’s lookthrough LIFO recapture amount is the amount of income that would be al- located to the corporation, taking into account section 704(c) and § 1.704–3, if the partnership sold all of its LIFO in- ventory for the inventory’s FIFO value.