IRS Cuts Auto Reimbursement Rate By 10%
The Internal Revenue Service has reduced the mileage rate to 50 cents per mile in 2010 from a 55 cent rate of 2009. The new lower rate is a result of the lower transportation costs compared to the prior year.
This rate is that standard that many businesses use to calculate how it will reimburse employees who drive on company business using their personal vehicles.
According to the IRS, taxpayers have the option of determining the actual costs of their vehicle rather than using IRS standard mileage rates.
Gas prices continue to be a major factor in determining the IRS rate, but other factors, including depreciation are also considered.
Given the lower rate, its make more sense than ever to compare the cost of cheap air tickets or cheap car rentals in deciding which mode of travel is most economical.