What is the sampling rule?

The sampling rule allows you to use a sample of your business purchases to estimate how much you can claim as an immediate deduction, and how much you must depreciate over time.

The rule is meant to help you save time because you do not need to decide whether each purchase is of a revenue nature (and so immediately deductible) or of a capital nature (usually written-off over time).

Purchases of a revenue nature normally mean that you expect the item to be consumed, damaged or lost within a short period of time, while purchases of a capital nature generally result in the item or asset being used over a longer period.

    Last modified: 24 Feb 2012QC 17147