The IRS has announced the 2010 standard mileage rates for business use of a personal vehicle. For 2010, the rates have been lowered to reflect a slight decrease in the cost of gasoline compared to a year ago.
Beginning Jan 1, 2010, the standard mileage rates for the business use of a car (including vans, pickups or panel trucks) will be:

• 50 cents per mile for business miles driven;
• 16.5 cents per mile driven for medical or moving purposes; and
• 14 cents per mile driven in service of charitable organizations.

This decreases the rate for business miles by 5 cents from 2009. For miles driven for medical and moving purposes, the rate was reduced by 7.5 cents. The rate for charitable organization-related driving remains unchanged. Annual rate changes are based on an annual study of the fixed and variable costs of operating an automobile, conducted by Runzheimer International, an independent contractor.

Revenue Procedure 2009-54 (http://www.irs.gov/pub/irs-drop/rp-09-54.pdf) contains additional information and limitations on the use of the standard mileage rates.

During 2009, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) were:

• 55 cents per mile for all business miles driven;
• 24 cents per mile when computing deductible medical or moving expenses; and
• 14 cents a mile when giving services to a charitable organization.