The Internal Revenue Service recently issued the 2010 optional standard mileage rates used to calculate the tax 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, pick-ups or panel trucks) will be:
- 50 cents per mile for business miles driven by a self-employed individual or employee
- 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 lower than rates for
2009. The rate for charitable purposes is set by law and is unchanged from 2009.
The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
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 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.