2009 Standard Mileage Rates Issued by IRS
Near and dear to the hearts of all business owners are the deductible costs of operations. One such expense is an automobile used for business purposes.
The Internal Revenue Service has announced the 2009 optional standard mileage rates used to calculate the deductible costs of operating your vehicle.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.
There are some things to keep in mind.
First, 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. Second, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Lastly, taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Not sure what is right for your situation?
You can find additional information on the IRS standard mileage rates in Revenue Procedure 2008-72 (PDF) or do what any good business owner should- consult your accountant.