Mileage Rate - 2010  

The Standard Mileage Rate is the maximum per-mile rate allowed by the IRS for calculating the standard mileage deduction for operating a car/truck for business purposes. The rate includes the price of gasoline, maintenance costs, and depreciaiton on the vehicle.

2010 Business Mileage Rates

The IRS-allowed standard mileage rate for 2010 is

• 50 cents per mile for business miles
• 16.5 cents per mile for medical or moving purposes
• 14 cents per mile in service of charitable organizations.

IR-2008-131, Nov. 24, 2008

WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2009, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

• 55 cents per mile for business miles driven;
• 24 cents per mile driven for medical or moving purposes; and
• 14 cents per mile driven in service of charitable organizations.

The new rate for business miles compares to a rate of 50.5 cents per mile for 2008. The new rate for medical and moving purposes compares to 19 cents in 2008. The rate for miles driven in service of charitable organizations has remained the same.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study.

IRS said the new rates for business, medical, and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices.  The rate for charitable purposes is set by law and is unchanged from 2008, IRS said.

A copy of the IRS News Release may be found at the following weblink:  http://www.irs.gov/newsroom/article/0,,id=200505,00.html

A taxpayer 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 2007-70 contains additional information on these standard mileage rates.

As always, we are available to discuss any of these matters with you.

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