IRS Mileage Rate for 2010
Do you use your personal vehicle for business-related travel? If so, you’ll want to make sure you claim the mileage you put on your car on your tax return. The IRS mileage rate changes every year, so you will want to keep updated on the rate.
Since 2009, the standard mileage rate has decreased by $.04 per mile, setting the standard at $.50 per mile for business miles driven.The standard rates are for the use of a car, van, pickup or panel truck. The standard rate per mile driven for medical or moving purposes is $.165 and you may claim $.14 per mile driven in service of charitable organizations.
The mileage rate was reduced slightly to reflect lower transportation costs last year. With the effects of the economy many consumers are buying lower price vehicles that will use less gas. This decrease in fuel usage causes demand to lower thus reducing the price of gas.
If you use your personal vehicle for business, you need to weigh your options for your tax deduction. You have the option to claim the standard mileage rate times the number of miles you have driven or you may deduct actual costs of the vehicle and driving expenses. You may not claim mileage if you use the depreciation method under the Modified Accelerated Cost Recovery System.
Whether you choose to claim your actual vehicle expenses or claim the standard IRS mileage rate, you must keep accurate records of your expenses and mileage. Receipts are the easiest way to keep record of your actual costs for repairs, fuel, etc… and at the end of the year when your ready to total your expenses into your tax form, you’re all ready.
For more information and answers to all your tax-related questions and to claim your mileage this year, visit TurboTax Online.