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dfsheeba
Returning Member

Depreciation basis for Used Vehicle purchase with warranty and other add ons

I recently purchased a used vehicle with add ons - 3 year warranty, GAP insurance and lifetime oil change.  I'm trying to determine what the vehicle basis amount will be for depreciation.  Of course I am adding the license and other fees to the purchase price, but what about these add ons. Can I separate out these items in their own assets, or at lease the 3 year warranty since the life of the vehicle is 5 years.

Thank you

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2 Replies

Depreciation basis for Used Vehicle purchase with warranty and other add ons

Everything EXCEPT the GAP ins is totaled together and comprises the cost  basis for depreciation.   The GAP ins is insurance.  

dfsheeba
Returning Member

Depreciation basis for Used Vehicle purchase with warranty and other add ons

Thank you

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