IRS Announces New Mileage Rates


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The IRS recently 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

If you use your vehicle for business, you may instead choose to deduct a percentage of all costs. For example, if you use your auto 60% for business, you can then take 60% of gas, oil, maintenance, tires, and the like. You can’t take both the mileage rate and the percentage. It’s one or the other.

You might note the rates are lower. Supposedly that’s to reflect the lower costs of operating a vehicle.


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