The Producer Price Index (PPI) data from this search tool is provided by the US Department of Labor. KBKG is providing access to this information as a convenience to our clients and is not responsible for its misapplication.
CAUTION: Using a PPI discounting method to establish tax basis for a retired building component may grossly overstate the taxpayer’s retirement loss deduction. For further information, please read the following Article – “IRS Restricts Use of Discount Value Approach” (published by the Bureau of National Affairs (Bloomberg BNA).
Please also note that Sec. 168 (T.D. 9689) does not allow the PPI Discounting method for Betterments or Adaptations.
Helpful hints using this PPI search tool
You can search for a building component by typing in the keyword and scrolling through the options by clicking FIND multiple times. For example, if you are replacing a roof, you would type in “roof” and find “Roofing Contractors”. If you are replacing a sink, you would type in “plumbing”. Do not make the item description plural (search for “window” and not “windows”). In some cases, the data is listed with a broad description (“plumbing”) and in other cases, the data is listed with a very specific description (“asphalt shingle”).
If the specific component cannot be found, you can use the construction index that matches closest to the building type. Type in the word “construction” and click FIND multiple times. You will find choices for warehouses, schools, offices, healthcare, residential, etc. If the building type cannot be found, you can use one of the general construction indexes available such as “Non-residential construction”.
Java player and a compatible web browser are required to use this tool (Google Chrome is not compatible with Java). Visit Java.com to download Java.