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IR-2009-111, Dec. 3, 2009
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.
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