Where can I get additional information on the THOR POWER RULING and the IRS regulations?
You should consult your accountant, attorney or other tax adviser before disposing of any excess or obsolete parts and he or she should review the proposed program closely. In doing so, he or she will probably refer to one or more of the following: • Thor Power Tool Co. v. United States, 439 U.S. 522 (1979). • Internal Revenue Code, Sec. 471. • Treasury Regulations, Sec. 1.471-2© and 1.471-4 (b) • Revenue Ruling 80-60. • Revenue Procedure 80-5. • Revenue Ruling 83-59. Your advisor will also review recent interpretations of these authorities by the courts. Conclusion By being knowledgeable and taking proper precautions, a dealer can get tax relief when he is faced with a loss in value of his replacement parts inventory. However, IRS rules and regulations in this area are complicated. The simplest way for a dealer to accomplish this objective is to sell his excess, slow-moving and obsolete inventory to a properly operated specialty firm which buys such inventory. One of the specialty fir
