Sec. 802. Repeal of lower of cost or market method of inventory
178 words·~1 min read·
/bill/113/s/277/is/section-802·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 471 is amended by redesignating subsection
(c)as subsection
(d)and by inserting after subsection
(b)the following new subsection: A method of determining inventories shall not be treated as clearly reflecting income unless such method provides that inventories shall be taken into account at cost. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after the date of the enactment of this Act— such change shall be treated as initiated by the taxpayer, such change shall be treated as made with the consent of the Secretary of the Treasury, and if the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 is positive, such amount shall be taken into account over a period of 8 years beginning with such first taxable year.