New Mileage Rates For 2010

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.

E-File Florida wants to remind you that you must keep a detailed written record (Mileage Log) of all business, medical or charitable mileage to substantiate the mileage deduction. Things to keep track of include: The date, purpose of the trip and the actual miles driven (beginning odometer and ending ododmeter). It helps to have gasoline & maintenance receipts to further prove that you did indeed ‘use’ you car throughout the year and bolster your claim for deduction.

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.

We cannot emphasize enough that GOOD RECORD-KEEPING is an essential must when it comes to claiming deductions on your tax return! If you have any questions or concerns, feel free to contact E-File Florida. We are here as a resource to you. Visit our website at www.efileflorida.com and sign up for our free Tax Tips newsletter. You can send inquiries to: info@efileflorida.com.

IRS CIRCULAR 230 Required Notice – IRS regulations require that we inform you as follows: Any Federal tax advice contained in this communication (including any attachments) is not intended to be used and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction as tax related matter(s).