Chalfont Business Solutions

IRS 2010 Mileage Rates

IRS announced today the new mileage rates that will be in effect starting January 1, 2010. The standard mileage rate 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, and
• 14 cents per mile driven in service of charitable organizations.

The standard mileage rate cannot be used when the taxpayer has more than four vehicles in use simultaneously or for vehicles used for hire.

A reminder for taxpayers that have used any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or claiming a Section 179 deduction  on a vehicle.  You may not use the business standard mileage rate on that same vehicle. You do have the choice to use actual costs for the vehicle once it is fully depreciated.

Tags: business miles, car, charitable, depreciation, federal income tax, medical, moving, panel trucks, pickups, Section 179 deduction, standard mileage rates, taxpayer, van, vehicle