2010 Mileage Rates
[Stacie says: If you had any doubt that we are in the midst of a recession, this announcement of the 2010 mileage rates should clear that up for you.]
WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
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. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.
December California News From the Franchise Tax Board
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Here is [an] annual summary of tax-related legislation enacted this session. / more+
Free backup withholding webinar
California conforms to federal backup withholding beginning January 1, 2010. / more+
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Recently enacted California legislation adopted new statutes and amended existing statutes that result in major changes to how corporations are taxed in California. / more+
Find forms faster and easier with our form locator
On December 15, 2009, [the FTB] will have a new search tool on our forms webpage; it is called the Form Locator. / more+
Provisional payment plan pilot program begins December 2009
[The FTB’s] collection response and resolution section will begin to offer a provisional payment plan for personal income taxpayers. Taxpayers who qualify for this pilot program will be allowed to make payments towards their tax liability without involuntary collection action taking place, while they prepare and submit their missing valid tax returns to us. / more+
Top 10 personal income tax errors that delay return processing – 2009
Check to see where [the FTB] found the most common errors on personal income tax returns. / more+
Top 10 business entity errors that delay return processing – 2009
Check to see where [the FTB] found the most common errors on business entity returns. / more+
Small business
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Newly enacted state law, ABX3 15 (Assembly Budget Committee, Stats. 2009 Third Extraordinary Session, Ch. 10) allows a potential income tax credit of $3,000 to a qualified taxpayer for each additional full-time employee hired. / more+
Ask the advocate
Communication guidelines
Quite often [the FTB] receive questions from taxpayers and practitioners on issues relating to the interpretation of provisions of the R&TC as well as policies and procedures of [the FTB’s] department. / more+
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[The FTB] monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+
Big business
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On October 28, [the FTB] attended the CalCPA Committee on Taxation, [the FTB’s] annual liaison meeting. [the FTB] shared legislative updates affecting [the FTB], changes to [their] auditing and collections, and new communication products available to [their] taxpayers and tax professionals. / more+
