### Question
How is the "LIFO recapture amount" defined?


### Answer
The term **LIFO recapture amount** is defined in *26 U.S.C. § 1363* as follows -

> the amount (if any) by which—



(A) the inventory amount of the inventory asset under the first-in, first-out method authorized by section 471, exceeds



(B) the inventory amount of such assets under the LIFO method

#### Citation:
  - *26 U.S.C. § 1363*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter S-Tax Treatment of S Corporations and Their Shareholders > PART I-IN GENERAL**

