Capital allowances: low-cost assets - sampling rule for large business
The sampling rule allows a business to select a sample of business purchases to help estimate how much the business can claim as an immediate deduction, and how much the business must depreciate over time.
The rule is meant to save businesses time because they do not need to decide whether each purchase is of a revenue nature (and so immediately deductible) or of a capital nature (which must be 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: 13 Dec 2005QC 17150