Standard IRS Mileage Rates Lowered for 2010
Because transportation costs are down compared to last year, the IRS reduced the standard reimbursement rates for business miles driven in 2010. They are effective on January 1.Eligible taxpayers have two choices when it comes to calculating the deductible cost of operating a vehicle for business, charitable, or moving purposes. You can keep your own records on the actual cost or simply use the following standard mileage rates issued by the IRS, which include cars, vans, pickups, or panel trucks:
- 50 cents per business mile
- 16.5 cents per mile for medical or moving purposes
- 14 cents for each mile driven in service of charitable organizations, which is set by law
Taxpayers can’t use the business standard mileage rate if they:
- Use any depreciation under the Modified Accelerated Cost Recovery System (MACRS)
- Claim a Section 179 deduction for the vehicle
- Use the vehicle for hire, such as a taxi
- Use more than four vehicles simultaneously (as in fleet operations)
For additional information on the 2010 standard mileage rates, access IRS Revenue Procedure 2009-54 or contact a LarsonAllen tax advisor in your region.