The Internal Revenue Service has reduced the optional standard mileage rate for 2010 to 50 cents, down from 55 cents in 2009. The rate is used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. It also is the standard used by the majority of organizations to determine the reimbursement rate for travelers who use their personal vehicles for business travel. Beginning on Jan. 1, 2010, the standard mileage rates will be as follows:
• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations
The reduction reflects lower gas prices, among other factors.