Rev. Proc. 77-40

This Revenue Procedure modifies Rev. Proc. 74-23, 1974-2 C.B. 476, with respect to the optional standard mileage rate for the first 15,000 miles of business use of an automobile.

The first paragraph of section 3 of Rev. Proc. 74-23 is amended to read as follows:

Subject to the conditions and limitations set forth below, with respect to returns filed for taxable years beginning after December 31, 1976, deductions will be accepted if computed at a standard mileage rate of (a) seventeen cents per mile for the first 15,000 miles of use each year for business purposes and (b) ten 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 amended paragraph of Rev. Proc. 74-23 applies for taxable years beginning after December 31, 1976.

Rev. Proc. 74-23 is modified.

¹ Also released as News Release IR-1893, dated October 7, 1977.