2010 Standard Mileage Rates Released
The IRS has released the 2010 optional standard mileage rates to be used by employees, self-employed individuals and other taxpayers to compute deductible costs of operating an automobile (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes. The 2010 rates for business, medical and moving purposes are less than the rates for 2009, which were raised in response to a spike in gasoline prices.
Business Mileage Rate
The standard mileage rate for business mileage will be 50 cents per mile. When the standard business mileage rate of 50 cents is used for automobiles owned by the taxpayer, depreciation will be considered to have been allowed at a rate of 23 cents per mile. Such depreciation reduces the taxpayer's basis in the automobile.
The standard business mileage rate may not be used for automobiles used for hire (e.g., taxicabs), or when five or more automobiles are owned or leased and used simultaneously by the taxpayer (e.g., fleet operations). Rules providing for substantiation of an employee's ordinary and necessary expenses for local travel or transportation away from home are also provided. Such expenses will be deemed substantiated when the employer, its agent or a third-party provider provides a mileage allowance under a reimbursement or other expense allowance arrangement.
Medical, Moving Mileage Rate
The standard mileage rate for medical and moving expenses will be 16.5 cents per mile.
Charitable Mileage Rate
The standard mileage rate for charitable purposes will remain at 14 cents per mile.
Mileage Rate Changes
|
Purpose |
2010 Rates |
2009 Rates |
|
Business |
50 |
55 |
|
Medical/Moving |
16.5 |
24 |
|
Charitable |
14 |
14 |
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by law.
