Instead of using the business portion of the actual expenses of operating a vehicle, the IRS permits taxpayers to use a standard mileage rate. (But don't forget...you STILL have to keep track of the different KIND of mileages...business, charitable, medical, personal etc.
IRS has issued new standard mileage rates effective for travel on or after January 1, 2010.
Business mileage rate is 50 cents per mile (down from the 55 cents per mile for 2009); 23 cents per mile is the depreciation component (up from 21 cents per mile for 2009).
Charitable rate is 14 cents per mile and is set by Congress therefore does not change until Congress makes such a change.
Medical and moving rate is 16.5 (down from the 24 cents per mile for 2009).
From the downward drop of the mileage rates, you would think that IRS is planning on the gas prices and the vehicle prices to drop. THAT would be great!!!!....but don't hold your breath!
We hope you have a wonderful Christmas!
Tax season is coming soon, can't wait to visit with you!!
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I love your Blog! Thanks for incorporating Web 2.0 Tools in your business!
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