SECTION 8. DRAFTING

INFORMATION

The principal author of this revenue procedure is Leo F. Nolan II of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure, contact Leo F. Nolan II at (202) 622–4970 (not a toll-free call).

determining the LIFO value of that pool for the year of change and subsequent taxable years ( i.e., the cumulative index at the beginning of the year of change will be 1.00). The reseller must restate the base-year cost of all layers of increment in a pool at the beginning of the year of change in terms of new base-year cost. For an example of establishing a new base year, see § 1.472–8(e)(3)(iv)(B)( 1 )( ii ).

.02 Method of Pooling for Crossover Vehicles under Rev. Proc. 97–36 and Rev. Proc. 2001–23 .

(1) Description . A reseller of cars and light duty trucks that uses the Alternative LIFO Method under Rev. Proc. 97–36 or the Used Vehicle Alternative LIFO Method under Rev. Proc. 2001–23 and that maintains separate new car and new truck pools or separate used car and used truck pools, or both, (in lieu of the Vehicle Pool Method described in section 4.01(1) of this revenue procedure) must assign new crossover vehicles to either the new car pool or the new truck pool, whichever is more reasonable under all the facts and circumstances, and must assign used crossover vehicles to either the used car pool or the used truck pool, whichever is more reasonable under all the facts and circumstances.

(2) Change to the method of pooling for crossover vehicles under Rev. Proc. 97–36 and Rev. Proc. 2001–23 . A reseller within the scope of this revenue procedure that wants to change to the method of pooling for crossover vehicles under Rev. Proc. 97–36 and Rev. Proc. 2001–23, as provided in section 4.02(1) of this revenue procedure, must use the provisions of Rev. Proc. 97–27, 1997–1 C.B. 680, as modified and amplified by Rev. Proc. 2002–19,

2002–1 C.B. 696, as amplified and clarified by Rev. Proc. 2002–54, 2002–2 C.B. 432, and as modified by Rev. Proc. 2007–67, 2007–48 I.R.B 1072.