NADA Supports Preservation of the LIFO Method of Accounting

LIFO Repeal: LIFO (which stands for “Last In, First Out”) is an inventory accounting method used by companies throughout the U.S. economy to help mitigate the impact of inflation. The accounting practice allows companies to show smaller incomes by basing sales on the newest inventory.

Repealing LIFO would mean potentially higher future tax bills and would make it harder for dealers to manage inventory inflation, particularly during this difficult economic time.