Tax Advisor - New Standard Mileage Rates for 2010

Beginning on Jan. 1, 2010, the standard mileage rates for business, medical and moving use of a vehicle (i.e. car, van, pickup or panel truck) will decrease from this year's rates.  The rate for charitable use will stay the same.  According to the IRS, the decreases are due to generally lower transportation costs compared to a year ago.

2010 rates are as follows:

  • 50 cents per mile for business miles driven (55 cents for 2009)
  • 16.5 cents per mile driven for medical or moving purposes (24 cents for 2009)
  • 14 cents per mile driven in service of charitable organizations

Of course, taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Deductible expenses include:

  • Depreciation*
  • Gas
  • Oil
  • Tolls
  • Lease payments
  • Insurance
  • Garage rent
  • Parking fees
  • Repairs

*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.

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Contact:
Cindy Mitchell, CPA
Tax Senior Manager
Direct: 330.255.2454
Email

 

Additional information:

Tax Advisor - Maximum Contribution Limits Stay Same in 2010

Tax Advisor - Take Advantage of 2009 Tax Incentives Before It's Too Late