2009 Standard Mileage Rate 

Effective January 1, 2009, the standard mileage vehicle rate increased to .55 cents per mile, up from .505 for the first half of 2008, but down from .585 in the second half of 2008, for employees, self-employed individuals, or other taxpayers in computing the deductible costs for use of a car (also vans, pickups or panel trucks).

• .24 cents per mile driven for medical or moving purposes
• .14 cents per mile driven in service of charitable organizations

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 bases 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) 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 that four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual cost of using their vehicle than using the standard mileage rates.

2009 Per Diem Rates

The per diem rates may be used by businesses to reimburse employee expenses for business travel and by employees and self-employed individuals to substantiate business travel expense deductions.

The standard rate of $109 ($70 for lodging and $39 for M&IE) applies to all locations within the continental United States (CONUS).  If you need a specific location, please click link below:

To obtain Foreign Per Diem Rates by location, click link below:

• U.S. Department of State

Travel & Entertainment

IRS is really looking at receipts and mileage logs.  If you fail to keep the receipts showing the business reason and fail to keep a mileage log just forget your deduction.

If you are keeping reciepts and fail to get a receipt, record the expense on a seperate piece of paper.  Explain that you simply forgot to get a receipt.  Generally IRS will accept the document as long as you are not habitual and make the recording on or about the time of the exependiture.

Most automobiles have a trip meter and some people use the trip meter as proof.  However, actual odometer reading is what is required.  IRS may choose to allow the trip meter buy are not required to accept such.