Rev. Proc. 70-24

In line with the adoption of an increase in the standard mileage rate for computing the allowable deduction for the cost of transportation by automobile under section 162 of the Internal Revenue Code 1954 (see Revenue Procedure 70-25, page 506, this Bulletin) it is deemed appropriate to increase the standard mileage rate for computing the cost of operating an automobile for transportation in connection with rendering gratuitous services to a charitable organization under section 170 of the Code, and for transportation for medical care under section 213 of the Code with respect to returns filed for taxable years beginning after December 31, 1969.

Certain items relating to the use of an automobile may not be taken into account in computing the amount paid for transportation with respect to the rendering of gratuitous services to charitable organizations or with respect to medical care, for example, depreciation. See Revenue Ruling 58-279, C.B. 1958-1, 145, and Maurice S. Gordon et ux. v. Commissioner, 37 T.C. 986 (1962). Accordingly, an individual may not use the same standard mileage rate as is permitted by Revenue Procedure 70-25, below, for an automobile used in a trade or business. Therefore, for taxable years beginning after December 31, 1969, it has been determined that six cents a mile is a reasonable rate which may be used to compute the cost of operating an automobile where such transportation expenses are deductible as a charitable contribution under section 170 of the Code or as a medical expense under section 213 of the Code. However, parking fees and tolls attributable to such transportation may be deducted as separate items.

The use of this rate shall be in lieu of any amounts otherwise allowable under sections 170 and 213 of the Code by reason of the use of a taxpayer's automobile for transportation. However, the rate prescribed herein does not affect deductions for any expenses relating to the automobile which are allowable under section 163 of the Code (interest) or section 164 of the Code (taxes other than those included in the cost of gasoline). Similarly, since depreciation may not be taken into account in determining the deduction for contributions or medical expenses, no adjustment to the basis of the automobile is required because of the use of this rate.

The standard mileage rate prescribed herein will be accepted by the Internal Revenue Service as being representative of the cost of operating an automobile for purposes of sections 170 and 213 of the Code regardless of the method used to compute depreciation for business use of the automobile, and regardless of the number of automobiles that the taxpayer may have in operation. Use of this standard mileage rate, however, is not mandatory and where a taxpayer's allowable nonreimbursed transportation expenses for charitable and medical purposes exceed this rate, the taxpayer may deduct such actual expenses.

With respect to returns filed for taxable years beginning after December 31, 1969, this Revenue Procedure supersedes Revenue Procedure 64-15, C.B. 1964-1 (Part 1) 676, and Revenue Procedure 70-12, C.B. 1970-1, 438, which relate to periods after December 31, 1962.