The IRS, generally, in terms of mileage rates, will give back taxpayers in 2010 less than what it did in 2009. The reason is the IRS expects lower transportation costs in 2010. The IRS commissioned a study by an independent contractor to come up with these figures.
- Drive Your Vehicle to Work: This will be 50 cents per mile as opposed to 55 cents per mile in 2009. For additional discussion on deducting job-related expenses read my previous blog.
- Drive Your Vehicle for Moving and Medical Purposes: This will be 16.5 cents a mile in 2010 compared to 24 cents a mile in 2009.
- Drive Your Vehicle for Charitable Purposes: This will stay the same at 14 cents a mile in 2010. The reason is the rate is set by statute. The IRS cannot change it.
Doron Eghbali is a Partner at the Beverly Hills Offices of Law Advocate Group, LLP. He Primarily Practices Business, Real Estate and Entertainment Law. He Could Be Reached at 310-651-3065. For More Information: www.LawAdvocateGroup.com.
If you are wondering what the IRS will give you back in 2010 when you use your vehicle for work, moving or charity purposes, here is a breakdown.