IRS Mileage rate FAQs

Find out how fast Bizmile can help you catch up on 2010 IRS car mileage logs.

 

What is current mileage rate for 2009 and 2010 tax years?

  IRS mileage rate 2009 IRS mileage rate 2010
IRS Mileage - Business 55 50
IRS Mileage - Medical/Moving 24 16.5
IRS Mileage - Charitable 14 14

 

Why not just guess on your mileage deductions?

Because guessing is no longer the smart thing to do. When our customers found out how far they drove last year, they were mortified by how much money they had left on the table. They guessed low.

Hold on to all the money to which you are entitled, Find out how many miles you drove and how much money you can save. Learn more about Bizmile - an easier and more accurate tool.

 

Which trips are deductible?

IRS mileage may be deducted for trips made for business purposes. Talk to your tax professional about the details but generally speaking, the commute from your work to a business meeting or a related errand is deductible. It also may be deductible from your home to work, if you have a home office. See IRS publication 463 for more information.

http://www.irs.gov/publications/p463/index.html />

Is your commute deductible?

No. Nada and pretty much never. Even if you work out of your home as a consulant or as one of the heroic self-employed, the commute from your bedroom to your living room is still NOT deductible. Talk to your tax pro they are the experts at helping you pay only the taxes that you owe. As Judge Learned Hand famously quoted:

"Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike
and all do right, for nobody owes any public duty to pay more than the law demands."

What travel expenses are deductible?

If you deduct travel, entertainment, gift, or transportation expenses, you must be able to prove certain elements of the expense. For more detailed informaiton see IRS publication 463 below.

http://www.irs.gov/publications/p463/ch05.html#d0e6290

What are adequate records?

A daily record of some kind such as an account book, diary, or similar record is required as well as its documentary evidence such as receipts, canceled checks, or bills. Exceptions: Documentary evidence is not needed if your expense, other than lodging, is less than $75 or for expenses where a receipt is not readily available e.g. like a parking meter.

How to prove expenses Recordkeeping (IRS Publication 463) http://www.irs.gov/publications/p463/ch05.html
Recordkeeping (IRS Topic 305) http://www.irs.gov/taxtopics/tc305.html

Need another IRS mileage rate for 2008 tax year?

Are you being audited? BizMile can help. IRS mileage rate 2008
(Jan to June)		 IRS mileage rate 2008
(July to Dec)
IRS Mileage -Business 50.5 58.5
IRS Mileage -Medical/Moving 19 27
IRS Mileage -Charitable 14 14

 

What is the IRS mileage rate for 2007 and later tax years?

BizMile has all the audit years and rates you need: 2009, 2008, 2007, 2006, 2005 and through 2002.

Historical IRS MIleage rates: http://www.irs.gov/taxpros/article/0,,id=156624,00.html

Best small business tax resource publications:

"Tax Savvy for Small Business" by Tax Attorney Frederick W. Daily is a Nolo Press classic. It is updated every year to be your easy to understand guide to the current tax code. But don't take just OUR word for it the Washington Post says "This book is one of the best plan-language books on small-business taxes" It was also named a "Top Tax Book" by Entrepreneur Magazine. http://www.nolo.com/products/tax-savvy-for-small-business-SAVVY.html

Other IRS reference publications for mileage rate: