The IRS issued the 2010 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.  The new rates which went into effect January 1, 2010 are as follows:

·         50 cents per mile for business miles driven  ( 55 cents in 2009)
·         16.5 cents per mile driven for medical or moving purposes ( 24 cents in 2009)
·         14 cents per mile driven in service of charitable organizations ( 14 cents in 2009)

The mileage rates for 2010 reflect lower transportation costs compared to 2009. The standard mileage rates are based on an annual study of the fixed and variable costs of operating an automobile.  Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

If you have any questions regarding this issue, please contact the DZH Phillips Tax Department at (415) 781-2500 or email cpas@dzhphillips.com. 

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• To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained herein (including any enclosures or attachments) was not intended or written to be used, and cannot be used, by the taxpayer for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions.