Business Standard Mileage Has Dropped for 2010
For 2010, the optional mileage allowance for owned or leased autos (including vans, pickups, or panel trucks) is 50¢ per mile for business travel, down 5¢ from the 2009 allowance of 55¢ per mile. The depreciation component of the mileage rate is 23¢ per mile (up from 21¢ per mile for 2009).
Employers who require employees to supply their own autos (whether owned or leased) may reimburse them at a rate that doesn’t exceed 50¢ per mile for employment-connected business mileage during 2010. The reimbursement is treated as a tax-free accountable-plan reimbursement if the employee substantiates the time, place, business purpose, and mileage of each trip. Additionally, an employee’s personal use of lower-priced company autos during 2010 may be valued at 50¢ per mile if the qualifying requirements are met.
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Disclaimer: The tax advice included in this newsletter is an overview of some complex tax rules and is not intended as a thorough in-depth analysis of the tax issues discussed. Do not act on the information included in this newsletter without first determining how these issues apply to your particular set of circumstances and if there are any special tax laws or regulations that might apply to your situation.
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