Tax Tip for Landlords, Property Managers, and Property Management Companies

The Internal Revenue Service has just issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for managing properties by landlords, property managers and property management companies.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 years. 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. Landlords, Property Managers or Property Management Companies 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. hire or for more than four vehicles used simultaneously.

Landlords, Property Managers or Property Management Companies 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.

See Crucial Tax Tips for Landlords.

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