The 2010 standard mileage rates for business purposes, and medical and moving purposes have been reduced from 2009 levels, as anticipated. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be as follows: 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.

In 2009, the standard mileage rates were 55 cents per mile for business purposes, 24 cents per mile for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.

You are not allowed to 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.

Of course, you always have the option of calculating the actual costs of using the vehicle rather than using the standard mileage rates.

IR-2009-111, Revenue Procedure 2009-54 contains additional details regarding standard mileage rates and is available from www.irs.gov.