The Internal Revenue Service has 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.
Source: www.accountingweb.com
Follow us now on TWITTER
www.twitter.com/@LesemannCPA
For questions concerning this article and/or its contents listed herein, contact Lesemann & Associates, PLLC CPAs.
For assistance in tax planning and preparation of your Federal & State Income Tax Returns, please email Lesemann & Associates, PLLC CPAs (Info@LesemannCPA.com) or go to our Contact Us page. We will respond as soon as possible to your questions.
If you are looking for an experienced CPA firm in Charlotte NC, Lake Norman NC, Huntersville NC, Cornelius NC, Davidson NC, Mooresville NC, surrounding cities or even South Carolina, please contact Lesemann & Associates, PLLC CPAs.
CIRCULAR 230 NOTICE:
IRS regulations require us to advise you that, unless otherwise specifically noted, any federal tax advice in this communication (including any attachments, enclosures, or other accompanying materials) was not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties; furthermore, this communication was not intended or written to support the promotion or marketing of any of the transactions or matters it addresses.
