The good news these past few months is that gas has stayed at a reasonable level which helps lower costs for your business. The bad news is that the IRS has just released new mileage rates effective January 1, 2010 and they are lower than 2009 rates.
Accoording to an IRS news release, the new 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.
You can find more information on standard mileage rates in the IRS Revenue Procedure (pdf).