IRS sets mileage rates for 2010
Slightly lower rates than 2009
The IRS has issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning January 1, 2010, the standard mileage rates for the use of a vehicle will be:
- 50 cents per mile for business miles driven;
- 16.5 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service to a charitable organization.
The new rate for business miles compares to the previous rate of 55 cents per mile. The new rate for medical and moving purposes compares to 24 cents in 2009. The rate for miles driven in service of charitable organizations has remained the same since 2006.
The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile.
A reminder: Taxpayers may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously. Revenue Procedure 2008-72 contains additional information on these standard mileage rates.