LIFO, LKE Could Be On The Chopping Block In Tax Reform Legislation

House and Senate tax committee members are finally putting pen to paper and drafting comprehensive reform legislation. Industry groups are getting nervous as lawmakers have warned that key parts of the Internal Revenue Code are on track for major changes or outright repeal.

Of particular concern to our dealer friends at NAEDA is the fact that “last in, first out” (LIFO) tax accounting method and like-kind exchanges (LKE) are apparently both in the crosshairs. Lawmakers are looking for revenues everywhere and LIFO in particular is a big target.

Because Senate Finance and Ways & Means Committee meetings have been private, Mike Williams at NAEDA says they don’t have certain information on what has been discussed or decided at this point. However Williams says he has heard that LIFO and LKE are in danger and action is needed to inform Ways & Means Committee Republicans about the importance of both.