INCOME TAX

Rev. Rul. 97–52, page 4. LIFO; price indexes; department stores. The October 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, October 31, 1997.

Notice 97–72, page 7. Leased property; substantial modification. Taxpayers are informed of certain conditions under which changes in rental payment terms resulting from a lessor’s refinancing of its indebtedness will not be a substantial modification of the rental agreement for purposes of section 467 of the Code.

Announcement 97–120, page 61. Uniform capitalization; farming exception; nursery growers. The Service confirms that recently issued proposed regulations specifically permit nursery growers to qualify for the “farming exception” to the uniform capitalization rules under section 263A of the Code.