The IRS announced the 2010 standard mileage rates for the use of a car (including a van, pickup, or panel truck) for business purposes. Effective January 1, 2010, the standard mileage rate is 50 cents per mile. This is lower than the standard mileage rate that was in effect for 2009 (55 cents per mile). The rate for January 1, 2008 through June 30, 2008 was 50.5 cents per mile, and for July 1, 2008 through December 31, 2008, it was 58.5 cents per mile.
Self-employed people can deduct their business miles using the standard mileage rate or by calculating actual costs. To use the standard mileage rate, you must use that method the first year you use the vehicle in your business, and you can't have claimed accelerated depreciation deductions or have taken any Section 179 deductions for the vehicle.
Injured workers who are receiving workers' compensation benefits from the State of California also use the IRS mileage rate when they request reimbursement for miles driven to and from medical appointments, pharmacies, and the like.
