Mileage Rates Down Again for 2010

The IRS has announced lower mileage rates for 2010, citing lesser transportation costs for its determination. Beginning January 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, down from 55 during 2009. Rates also decreased from 24 cents per mile to 16.5 for medical or moving purposes, while the charitable organization rate of 14 cents per mile continues to remain the same. 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.