I own a Jeep Grand Cherokee for which I purchased extended warranty from Chrysler (unlimited years/mileage). Paid about $2,000 for it at the time.
Car is now 10+ years old and the warranty paid for itself several times in covered repairs.
One of the ways warranty can end per their rules is when cost of a repair exceeds the current cost of the vehicle.
My service advisor called me and let me know that Chrysler wants to buy me out since they paid out $3,000 just for the last repair. They are offering $9,400 and I get to keep the car. Yes, sounds crazy but they figured they lost enough money on me 🙂
Are these $9,400 taxable income? If so - can I deduct the amount I paid for the warranty?
