Standard Mileage Deduction Rules

Some expenses are deductible when driving a vehicle for qualified uses.

Each year, the Internal Revenue Service allows you to deduct either the actual use of a vehicle or a standard amount per mile driven if you use your vehicle for specific reasons, including business, charity, or medical purposes. The standard mileage rates change each year.

Business Miles Driven

You can either own or lease a vehicle for business deductions. The deduction applies to use in the course of business. For 2010, the deduction is 50 cents per mile.

Medical and Moving Miles Driven

Expenses for driving to receive medical care are deductible. The same rate applies to miles driven for qualified moving expenses. Usually, you must move at least 50 miles away from your home or old place of business. In 2010, the standard mileage rate for medical and moving miles driven is 16 1/2 cents per mile.

Charitable Miles Driven

If you use your automobile to gratuitously help a charity, you may deduct the expenses. For 2010, the standard mileage rate is 14 cents per mile.

References

• IRS: Rev. Proc. 2009-54
• IRS: Standard Mileage Rates
• IRS: IRS Announces 2010 Standard Mileage Rates