Does a taxpayer’s business structure impact its LIFO eligibility?
Generally, no. C-corps, S-corps, Partnerships (LLP’s and LLC’s treated as partnerships) may all elect to use LIFO if they have inventory. Disregarded entities such as Q-subs (S-corps entirely owned by other S-corps) and single-member LLC’s (LLC’s with only one partner) are also eligible to elect LIFO through their regarded parent entity.
