Blog: IRS Announces 2010 Standard Mileage Rates

Added December 3, 2009 by Ilyce R. Glink

Print Articles

Summary: IRS Announces 2010 Standard Mileage Rates. The IRS issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rates are optional.

IRS Announces 2010 Standard Mileage Rates

WASHINGTON — The Internal Revenue Service today 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 on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

50 cents per mile for business miles driven.

16.5 cents per mile driven for medical or moving purposes.

14 cents per mile driven in service of charitable organizations.

The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.

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

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) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.

If you'd like to help us out, you can contribute to our site and keep the site free of charge. Thanks.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

Previous blog post Next blog post

Rate this article

Average rating of 5 from 2 readers

Comments

Rob E says

December 5, 2009 at 10:12 am

This rate ought to change quarterly, so as to better reflect volatile fuel prices. I can't tell you how much money I've lost over the years, where fuel prices went through the ceiling. Yes, the IRS did adjust the reimbursement rate late in the 4 quarter 2008, but by then, like most folks who use their vehicle for work, I lost a lot of money. Like I always say, the government doesn't do anything well. And some folks want them to do health care...have they lost their minds?

Flag This Comment As Inappropriate