INSIGHTS
2025 PPI
The Producer Price Index (PPI) has been updated for 2025. This index can be used to calculate your partial disposition, provided it is determined to be a reasonable method.
The PPI method should only be used when the replacement item meets the following criteria:
- It is being capitalized
- It is similar in quality
- It is not a betterment or adaptation (i.e., it is similar to the item being disposed of)
- It was not purchased at a significant premium or discount, as that may render the method unreasonable
Reminder: If you take a partial disposition, you may also be able to write off removal costs.
*April, May, June, and July 2025 are preliminary – meaning all indexes are subject to monthly revisions up to four months after original publication
