IRS Sets Standard Mileage-Rate Deduction for 2010

The Internal Revenue Service (IRS) has set the standard business-mileage deduction at $.50 a mile for 2010. The rate is below the $.55 cents allowed during 2009, reflecting lower transportation costs during the past year. The mileage calculation includes the cost of fuel along with other vehicle fixed and variable operating expenses, such as depreciation, insurance, tires, etc.

Companies and individuals who use their automobiles (including vans, pickups and panel trucks) for business have the option of using the standard rate in lieu of keeping records of their actual expenses.

Details: Stuart Gosswein.