This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
Update to Last-in First-Out (LIFO) Tax Relief
U.S. Senator Sherrod Brown introduced bipartisan legislation on Thursday, April 28, 2022, that appears to mirror the legislation introduced in the House of Representatives on April 4, 2022. For dealers of new motor vehicles that have elected to utilize the LIFO accounting method to value their new vehicle inventory, both pieces of legislation would generally allow the dealership to not recognize income related to the qualified liquidation of inventory if the inventory is fully replenished no later than the end of 2025.
We will continue to monitor these pieces of legislation and provide updates as they move through the legislative process.
