IRS Mileage Rate 2010 Standard Mileage Rates Allowances Deductions

The Internal Revenue Service (IRS) has issued the 2010 optional standard mileage rates. The Standard Mileage Rates are often used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

From 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

Compared to 2009 Mileage Rates, The new rates for business, medical and moving purposes are lower. 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. You always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. For more details on IRS Mileage Rates 2010 checkout official IRS bulletin