Rev. Proc. 74-25

To relieve individuals from the necessity of maintaining certain detailed travel expense records, the Internal Revenue Service will accept the use of the simplified method set forth herein for determining deductible costs of operating a passenger automobile for moving expenses allowable under section 217 of the Internal Revenue Code of 1954 with respect to returns filed for taxable years beginning after December 31, 1973.

Subject to the conditions and limitations set forth in section 217 of the Code, an employee or a self-employed individual may choose to compute the deductible costs of operating his passenger automobile in connection with the commencement of work at a new principal place of work by use of a standard mileage rate of seven cents per mile.

The use of this rate shall be in lieu of any amounts otherwise allowable under section 217 of the Code by reason of the use of a taxpayer's automobile for such travel. However, parking fees and tolls attributable to such travel may be deducted as separate items. The rate prescribed herein does not affect a deduction for any expenses relating to the automobile which are allowable under section 163 (interest) or section 164 (taxes other than those included in the cost of gasoline). Since depreciation may not be taken into account in determining the deduction for moving expenses, no adjustment to the basis of the automobile is required because of the use of this rate.

With respect to returns filed for taxable years beginning after December 31, 1973, this Revenue Procedure supersedes Rev. Proc. 71-2, 1971-1 C.B. 659, which relates to periods after December 31, 1969.

¹ Also released as Technical Information Release 1299, dated August 12, 1974.