2009 Standard Mileage Rates
The Internal Revenue Service has issued the 2009 optional standard mileage
rates used to calculate the deductible costs of operating an automobile for
business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car
(also vans, pickups or panel trucks) will be:
-
55 cents per mile for business miles driven
-
24 cents per mile driven for medical or moving purposes
-
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower
than rates for the second half of 2008 that were raised by a special adjustment
mid-year in response to a spike in gasoline prices. The rate for charitable
purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5
cents in the second half. The medical and moving rate was 19 cents in the first
half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs
compared to a year ago, but the rates also factor in the recent reversal of
rising gasoline prices. While gasoline is a significant factor in the mileage
rate, other fixed and variable costs, such as depreciation, enter the
calculation.
The standard mileage rate for business is based on an annual study of the
fixed and variable costs of operating an automobile. The rate for medical and
moving purposes is based on the variable costs as determined by the same study.
Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after
using any depreciation method under the Modified Accelerated Cost Recovery
System (MACRS) or after claiming a Section 179 deduction for that vehicle. In
addition, the business standard mileage rate cannot be used for any vehicle used
for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using
their vehicle rather than using the standard mileage rates.
|