IRSâ€"LIFO New Categories (Trucks)â€"September 2008.doc

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IRSâ€"LIFO New Categories (Trucks)â€"September 2008.doc

  1. 1. Thank you for your interest in the Motor Vehicle Technical Advisor Alternative LIFO for Auto Dealerships New Items Category list. I’ve attached the New Item Categories for quarters ended September 30, 2008 and December 31, 2008. Our preparation of the attached lists included some new information sources for the Technical Advisor program. Rev. Proc. 97-36 provides an Alternative LIFO Method for automobile dealers. Section 4.02(5) defines a new item category and Section 4.02(6) provides that the automobile dealer must use the current-year base vehicle cost of the new item category as the prior-year base vehicle cost of that item category. The result is that there is no inflation or deflation for new item categories. The revenue procedure requires that dealers obtain invoices for each vehicle in ending inventory, group the invoices into item categories and compute an average base cost for each category. Because the Motor Vehicle Technical Advisor program does not have access to all vehicle invoices, the new items list provided by the program uses the best available public information. Dealers however must continue to use actual invoices in their computation. For past lists, one of our primary sources of information was the Kelley Blue Book New Vehicle Guide. We also conducted research using several on-line sources such as Edmunds and Cars.com. Several months ago, Kelly Blue Book determined that it would stop publishing the hard copy books and make the information available on line with frequent updates. Because we need the information as a snapshot in time for the new items categories, the frequent on-line updates meant that Kelley no longer worked as our primary information source. The attached lists were prepared using Black Book as the primary resource. Since each book has its own presentation style, our change may result in some differences in the first lists. We anticipate that any inconsistencies will be eliminated as we continue to use Black Book. Our changes do not mean that any requirements of the Alternative Method have changed for dealerships. Auto dealerships must still use actual invoices to compute Alternative LIFO. This list is similar to the guidance I provide to examiners who audit automobile dealers’ tax returns and is the result of research by my staff of the best information available to us. Since the list is not an “Official List,” it does not reflect “Service Position” and examiners are not required to follow it. If you have any questions on our changes or on specific vehicles, you may contact me at Terri.S.Harris@irs.gov. Thank you. Terri Harris Motor Vehicle Technical Advisor Badge number: 220309 Telephone: 616-365-4601 Fax: 616-365-4595 Terri.S.Harris@irs.gov
  2. 2. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” ACURA RDX TB1829JN 4D Utility TB1859KN 4D Utility w/Tech Pkg 2009 model code available 3rd quarter 2008 CADILLAC Escalade ESV- V8 HO (6.2L) 6C10906 2WD Sport Utility 4D 2008 new model code available 4th quarter 2007 Escalade Platinum 6C10706 4D Utility 2WD 6K10706 4D Utility AWD Escalade Hybrid 6C10706 4D Utility 2WD 6K10706 4D Utility 4WD Escalade ESV Platinum 6C10906 4D Utility 2WD 6K10906 4D Utility AWD 2009 new model codes available 3rd quarter 2008 CHEVROLET Tahoe Hybrid- V8 Hybrid (6.0L) CC10706 2WD Sport Utility 4D CK10706 4WD Sport Utility 4D 2008 new model codes available 2nd quarter 2008 Traverse LS CR14526 4D Utility FWD CV14526 4D Utility AWD Traverse LT CR14526 4D Utility FWD CV14526 4D Utility AWD CAUTION: This list is not intended for pooling purposes. 2
  3. 3. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” CHEVROLET Traverse LTZ CR14526 4D Utility FWD CV14526 4D Utility AWD 2009 new model codes available 3rd quarter 2008 CHRYSLER Aspen Hybrid HG5E74 4D Utility 4WD 2009 new model code available 3rd quarter 2008 DODGE Durango Limited Hybrid HB5E74 4D Utility 4WD 2009 new model code available 3rd quarter 2008 Nitro SE KA1L74 4D Utility 2WD KA5L74 4D Utility 4WD 2009 new model code available 3rd quarter 2008 FORD E150 Cargo- V8 (4.6L) S14/470A Commercial Extended Van 3D 2008 new model code available 1st quarter 2008 Escape Limited Hybrid U49 4D Utility FWD U59 4D Utility 4WD 2009 new model codes available 3rd quarter 2008 CAUTION: This list is not intended for pooling purposes. 3
  4. 4. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” FORD Explorer Eddie Bauer- V6 (4.0L) U84/340A AWD Sport Utility 4D Explorer Eddie Bauer- V8 (4.6L) U84/345A AWD Sport Utility 4D Explorer Limited- V6 (4.0L) U85/360A AWD Sport Utility 4D Explorer Limited- V8 (4.6L) U85/365A AWD Sport Utility 4D 2008 new model codes available 1st quarter 2008 Explorer Sport Trac Limited- V6 (4.0L) U23/330A AWD Sport Utility Pickup 4D Explorer Sport Trac Limited- V8 (4.6L) U23/340A AWD Sport Utility Pickup 4D 2008 new model codes available 1st quarter 2008 F150 Supercrew Cab XLT 60th Anniversary Edition- V8 (4.6L) W12 2WD Styleside Pickup 4D 5 ½ ft. (Limited Edition) W12 2WD Styleside Pickup 4D 6 ½ ft. (Limited Edition) W14 4WD Styleside Pickup 4D 5 ½ ft. (Limited Edition) W14 4WD Styleside Pickup 4D 6 ½ ft. (Limited Edition) 2008 new model codes available 2nd quarter 2008 F150 Super Cab XLT 60th Anniversary Edition- V8 (4.6L) X12 2WD Styleside Pickup 4D 6 ½ ft. (Limited Edition) X14 4WD Styleside Pickup 4D 6 ½ ft. (Limited Edition) 2008 new model codes available 1st quarter 2008 Flex SE K51 4D Utility FWD Flex SEL K52 4D Utility FWD K62 4D Utility AWD Flex Limited K53 4D Utility FWD K63 4D Utility AWD 2009 new model codes available 3rd quarter 2008 CAUTION: This list is not intended for pooling purposes. 4
  5. 5. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” GMC Yukon Denali- V8 (6.2L) TC10706 2WD Sport Utility 4D 2008 new model code available 4th quarter 2007 Yukon Hybrid- V8 Hybrid (6.0L) TC10706 2WD Sport Utility 4D TK10706 4WD Sport Utility 4D 2008 new model codes available 2nd quarter 2008 Yukon XL 1500 Denali- V8 (6.2L) TC10906 2WD Sport Utility 4D 2008 new model code available 4th quarter 2007 HONDA Pilot LX YF3829EW 4D Utility 2WD YF4829EW 4D Utility 4WD Pilot EX YF3849EW 4D Utility 2WD YF4849EW 4D Utility 4WD Pilot EX-L YF3859JNW 4D Utility 2WD YF4859JNW 4D Utility 4WD YF3869JNW 4D Utility 2WD w/DVD YF4869JNW 4D Utility 4WD w/DVD Pilot Touring YF3889KNW 4D Utility 2WD YF4889KNW 4D Utility 4WD YF3899KNW 4D Utility 2WD w/DVD YF4899KNW 4D Utility 4WD w/DVD 2009 new model codes available 3rd quarter 2008 CAUTION: This list is not intended for pooling purposes. 5
  6. 6. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” HUMMER H3T RN15543 4D Utility SUT RN15543 4D Utility SUT Alpha 2009 new model codes available 3rd quarter 2008 INFINITI EX35- V6 (3.5L) 88218 RWD Sport Wagon 4D (Auto) (Special Order Only) 88418 AWD Sport Wagon 4D (Auto) (Special Order Only) EX35 Journey- V6 (3.5L) 88318 RWD Sport Wagon 4D (Auto) 88518 AWD Sport Wagon 4D (Auto) 2008 new model codes available 2nd quarter 2008 LAND ROVER LR2 HSE- 6-CYL. (3.2L) AWD Sport Utility 4D (Auto) 2008 new model code available 1st quarter 2008 LEXUS LX 570- V8 (5.7L) 4WD Sport Utility 4D 2008 new model code available 2nd quarter 2008 MERCEDES-BENZ GL550- V8 (5.5L) 4WD Sport Utility 4D (Auto) 2008 new model code available 1st quarter 2008 CAUTION: This list is not intended for pooling purposes. 6
  7. 7. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” MERCEDES-BENZ ML350 Edition- V6 (3.5L) 4WD Sport Utility 4D (Auto) (Limited Availability) 2008 new model code available 4th quarter 2007 R350- V6 (3.5L) 2WD Sport Wagon 4D (Auto) 2008 new model code available 4th quarter 2007 MERCURY Mariner Base ALM 4D Utility I4 FWD ALN 4D Utility I4 4WD Mariner Premier ALK 4D Utility I4 FWD ALJ 4D Utility I4 4WD 2009 new model codes available 3rd quarter 2008 MITSUBISHI Outlander ES- 4-CYL. (2.4L) OT45-A 2WD Sport Utility 4D (Auto) OT45-B 4WD Sport Utility 4D (Auto) Outlander SE- 4-CYL. (2.4L) OT45-D 2WD Sport Utility 4D (Auto) OT45-E 4WD Sport Utility 4D (Auto) 2008 new model codes available 2nd quarter 2008 NISSAN Frontier King Cab SE- 4-CYL. (2.5L) 13358 2WD Pickup 2D 6 ft. (Manual) 13318 2WD Pickup 2D 6 ft. (Auto) 2008 new model codes available 4th quarter 2007 CAUTION: This list is not intended for pooling purposes. 7
  8. 8. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” NISSAN Rogue S- 4-CYL. (2.5L) 77218 2WD Sport Utility 4D (Auto) 77418 AWD Sport Utility 4D (Auto) Rogue SL- 4-CYL. (2.5L) 77318 2WD Sport Utility 4D (Auto) 77518 AWD Sport Utility 4D (Auto) 2008 new model codes available 4th quarter 2007 Titan King Cab XE- V8 (5.6L) 18518 2WD Pickup 4D 6 ½ ft. (Auto) 57518 2WD Pickup 4D 8 ft. (Auto) 18418 4WD Pickup 4D 6 ½ ft. (Auto) 57418 4WD Pickup 4D 8 ft. (Auto) Titan King Cab SE- V8 (5.6L) 18718 2WD Pickup 4D 6 ½ ft. (Auto) 57718 2WD Pickup 4D 8 ft. (Auto) 18618 4WD Pickup 4D 6 ½ ft. (Auto) 57618 4WD Pickup 4D 8 ft. (Auto) Titan King Cab Pro-4X- V8 (5.6L) 18218 4WD Pickup 4D 6 ½ ft. (Auto) Titan King Cab LE- V8 (5.6L) 18918 2WD Pickup 4D 6 ½ ft. (Auto) 18818 4WD Pickup 4D 6 ½ ft. (Auto) 2008.5 new model codes available 1st quarter 2008 Titan Crew Cab XE- V8 (5.6L) 27518 2WD Pickup 4D 5 ½ ft. (Auto) 68518 2WD Pickup 4D 7 ft. (Auto) 27418 4WD Pickup 4D 5 ½ ft. (Auto) 68418 4WD Pickup 4D 7 ft. (Auto) Titan Crew Cab SE- V8 (5.6L) 27718 2WD Pickup 4D 5 ½ ft. (Auto) 68718 2WD Pickup 4D 7 ft. (Auto) 27618 4WD Pickup 4D 5 ½ ft. (Auto) 68618 4WD Pickup 4D 7 ft. (Auto) Titan Crew Cab Pro-4X- V8 (5.6L) 27218 4WD Pickup 4D 5 ½ ft. (Auto) 68218 4WD Pickup 4D 7 ft. (Auto) CAUTION: This list is not intended for pooling purposes. 8
  9. 9. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” NISSAN Titan Crew Cab LE- V8 (5.6L) 27918 2WD Pickup 4D 5 ½ ft. (Auto) 68918 2WD Pickup 4D 7 ft. (Auto) 27818 4WD Pickup 4D 5 ½ ft. (Auto) 68818 4WD Pickup 4D 7 ft. (Auto) 2008.5 new model codes available 1st quarter 2008 SAAB 9-7X Aero- V8 (6.0L) BT15506 AWD Sport Utility 4D (Auto) 2008 new model code available 1st quarter 2008 SUBARU Forester X 9FA 4D Utility 5sp 9FB 4D Utility at Forester X w/Premium Pkg 9FC 4D Utility 5sp 9FD 4D Utility at Forester X LL Bean 9FE 4D Utility Forester X Limited 9FI 4D Utility at Forester XT 9FM 4D Utility Forester XT Limited 9FN 4D Utility at 2009 new model codes available 3rd quarter 2008 SUZUKI Grand Vitara- V6 (2.7L) LNM8EK8 2WD XSport Sport Utility 4D (Auto) LLM8EK8 4WD XSport Sport Utility 4D (Auto) 2008 new model codes available 4th quarter 2007 CAUTION: This list is not intended for pooling purposes. 9
  10. 10. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” SUZUKI XL7- V6 (3.6L) 6E1C8A8 2WD Base Sport Utility 4D (Auto) 6E1C8B8 2WD Premium Sport Utility 4D (Auto) 6E1CRB8 AWD Premium Sport Utility 4D (Auto) 6E1C838 2WD Luxury Sport Utility 4D (Auto) 6E1CR38 AWD Luxury Sport Utility 4D (Auto) 6E1D8E8 2WD Limited Sport Utility 4D (Auto) (w/DVD) 6E1DRE8 AWD Limited Sport Utility 4D (Auto) (w/DVD) 6E1D8E8 2WD Limited Sport Utility 4D (Auto) (w/Nav) 6E1DRE8 AWD Limited Sport Utility 4D (Auto) (w/Nav) 2008 new model codes available 4th quarter 2007 TOYOTA Highlander Hybrid- V6 Hybrid (3.3L) 6964 4WD Sport Utility 4D (Auto) Highlander Limited Hybrid- V6 Hybrid (3.3L) 6966 4WD Sport Utility 4D (Auto) 2008 new model codes available 4th quarter 2007 Land Cruiser- V8 (5.7L) 6156 4WD Sport Utility 4D (Auto) 2008 new model code available 4th quarter 2007 Sequoia SR5- V8 (5.7L) 7917 2WD Sport Utility 4D (Auto) 7919 4WD Sport Utility 4D (Auto) Sequoia Limited- V8 (5.7L) 7927 2WD Sport Utility 4D (Auto) 7929 4WD Sport Utility 4D (Auto) Sequoia Platinum- V8 (5.7L) 7931 2WD Sport Utility 4D (Auto) 7933 4WD Sport Utility 4D (Auto) 2008 new model codes available 2nd quarter 2008 CAUTION: This list is not intended for pooling purposes. 10
  11. 11. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” TOYOTA Tundra Double Cab- V6 (4.0L) 8215 2WD Pickup 4D 6 ½ ft. (Auto) Tundra Double Cab- V8 (4.7L) 8239 2WD Pickup 4D 6 ½ ft. (Auto) 8339 4WD Pickup 4D 6 ½ ft. (Auto) 8243 2WD Pickup 4D 8 ft. (Auto) 8343 4WD Pickup 4D 8 ft. (Auto) Tundra Double Cab- V8 (5.7L) 8241 2WD Pickup 4D 6 ½ ft. (Auto) 8341 4WD Pickup 4D 6 ½ ft. (Auto) 8245 2WD Pickup 4D 8 ft. (Auto) 8345 4WD Pickup 4D 8 ft. (Auto) 2008 new model codes available 1st quarter 2008 Tundra Crewmax- V8 (4.7L) 8259 2WD Pickup 4D 5 ½ ft. (Auto) 8359 4WD Pickup 4D 5 ½ ft. (Auto) Tundra Crewmax- V8 (5.7L) 8261 2WD Pickup 4D 5 ½ ft. (Auto) 8361 4WD Pickup 4D 5 ½ ft. (Auto) 2008 new model codes available 1st quarter 2008 VOLVO XC90 XC90 4D Utility AWD V8 R XC90 4D Utility FWD 3.2 R 2009 new model codes available 3rd quarter 2008 CAUTION: This list is not intended for pooling purposes. 11
  12. 12. NEW ITEM CATEGORIES FOR SEPTEMBER 2008 FISCAL YEAR TAXPAYERS REVENUE PROCEDURE 97 – 36 “TRUCKS” The following sources were used to compile this list: Edmunds.com Cars.com NADAguides.com Kelley Blue Book New Car Price Manual 4th Edition 2008 Black Book New Car Cost Guide July/August 2008 & October 2008 Editions Automotive News When available: product brochures; manufacturers' price lists; & vehicle order guides CAUTION: This list is not intended for pooling purposes. 12

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