Sampling for Auto Expenses
You can use the “Sampling Method” for your auto expenses. Here’s how:
You keep track of your business mileage for a sample portion of the year and use your figures for that period to extrapolate your business mileage for the whole year.
You must keep an appointment book showing your business appointments all year long.
- Your sample period must be at least 90 days. For example, the first three months of the year.
- You may sample one week each month.
- You could use any other three-month period.
- You must keep track of the total miles you drove during the year by taking odometer readings on January 1 and December 31 and deducting any not typical mileage before applying your sample results.
