The new IRS Mileage Rate for the Year 2009-2010

Do you know what the new IRS Mileage rate is for the year 2009-2010? Are you searching for the new IRS Mileage rate for the year 2010-2011? Here is provided full information about the new IRS Mileage rate for the year 2009-2010.

To calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes, the IRS (Internal Revenue Service) has issued the standard mileage rates. The standard mileage rates for the use of a car as well as vans, pickups or panel trucks since January 1, 2009 are as follows:

• 14 cents per mile driven in service of charitable organizations
• 24 cents per mile driven for medical or moving purposes
• 55 cents per mile for business miles driven

Note: Do 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. Moreover the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used at the same time.

In 2008, the rate for miles driven in service of charitable organizations was 14 cents per mile and it is same in 2009 also. In the first half of 2008, the medical and moving rate was 19 cents and in the second half 27 cents. The business mileage rate was 50.5 cents in the first half and 58.5 cents in the second half. The new rates for medical or moving purposes and business are slightly less than rates for the second half of 2008.

The standard mileage rate for charitable purposes is set by law and is not changed from 2008. The rate for medical and moving purposes is based on the variable costs and the rate for business is based on an annual study of the fixed and variable costs of operating an automobile.

Standard vs. Actual rate

Taxpayers forever have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. You can choose to take the standard deduction mileage rate or deduct the actual vehicle expenses. This would consist of the subsequent items:

• Tires
• Gas
• Oil Changes
• Insurance & Registration
• Repairs & Maintenance

Your mileage can add up to big savings on your tax return by keeping track. The most significant thing to remember is that you must keep precise records in order for the deductions to be allowed. The records to keep are:

• Business purposes
• Charitable purposes
• Educational purposes
• Medical purposes
• Times and dates
• Place/address
• Total miles for the year
• Mileage for each business use

IRS rate for 2010-2011, will depend on what Obama decides and how federal income tax brackets will look. For new IRS rates for year 2010-2011, stay in touch with IRS Government website : www.irs.gov

Source: irs.gov/newsroom

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1. by Jack Repenning last 11:49 am

   These rates were changed on December 9. New rates:

   * 55 cents per mile for business miles driven
   * 24 cents per mile driven for medical or moving purposes
   * 14 cents per mile driven in service of charitable organizations