What COST OR MARKET, WHICHEVER IS LOWER means: This phrase is used in reference to inventory valuations. Most taxpayers prefer to use "cost or market, whichever is lower" as a basis for valuing their inventories because this method affords an opportunity to take advantage of a drop in the market so that profits can be reduced accordingly before disposition of the goods. If "cost" only is used, a drop in the market cannot affect the income until the merchandise is sold. Either method is acceptable, but the one adopted must be followed unless the IRS grants permission for a change.
- Definition Capitalize:
- Dictionary To treat the cost of additions and improvements to property as a capital improvement or expenditure cost or market, whichever is lower definition.
- Definition Cash Equivalent Doctrine:
- Dictionary basis taxpayer does not report income until cash is constructively or actually received. Under the cash equivalent doctrine, cash-basis taxpayers are required to report income if the equivalent of cost or market, whichever is lower explain.
- Definition Condemnation:
- Dictionary property by a public authority. The property is condemned as the result of legal action and the owner is compensated by the public authority. The power to condemn property is known as the right of cost or market, whichever is lower what is.
- Definition Cost Of Maintaining A Home:
- Dictionary to maintain a taxpayer's residence. These costs include rent or mortgage interest and real estate taxes, fire and casualty insurance on the dwelling, upkeep and repairs, utilities, paid domestic cost or market, whichever is lower meaning.
How works Cost or Market, Whichever Is meaning in Tax definitions C .
