Rev. Proc. 80-32

This revenue procedure modifies Rev. Proc. 80-7, 1980-1 C.B. 590, with respect to the optional standard mileage rates for the business use of an automobile and for use in computing deductions for transportation expenses relating to charitable contributions, medical expenses, and moving expenses.

The first paragraph of subsection 1 of section 3.01 of Rev. Proc. 80-7 is amended to read as follows:

Subject to the conditions and limitations set forth below, with respect to transportation expenses paid or incurred after December 31, 1979, deductions will be accepted if computed at a standard mileage rate of (a) 20 cents per mile for the first 15,000 miles of use each year for business purposes, and (b) 11 cents per mile for use for business purposes in excess of 15,000 miles per year. Computation under this method is optional on a yearly basis.

The sixth paragraph of subsection 2 of section 3.01 of Rev. Proc. 80-7 is amended to read as follows:

With respect to automobiles that have been, or are considered to be, fully depreciated under the straight-line method, based upon their use for business purposes, deductions will be accepted if computed at a standard mileage rate of 11 cents per mile for all miles of use of such automobiles attributable to business purposes.

The first paragraph of section 3.02 of Rev. Proc. 80-7 is amended to read as follows:

A taxpayer who incurs costs of operating an automobile for transportation in connection with rendering gratuitous services to a charitable organization under section 170 of the Code, in connection with medical care under section 213, or for moving expenses under section 217 will be permitted to claim as a deduction the standard mileage rate of nine cents per mile, subject to the conditions and limitations set forth in these sections.

These amendments are effective with respect to transportation expenses paid or incurred after December 31, 1979.

EFFECTS ON OTHER DOCUMENTS

Rev. Proc. 80-7 is modified.