I purchased a home warranty in 2022 for $600 that went from 11/23/22 - 11/22/23. What amounts do I exclude from my '22 and '23 taxable income?
My thought was to base it on the percentage of days in each year. So, there were 39 days in '22, and 326 in '23. Using '23 numbers, 326/365 = 89.3% of the year. 89.3% of $600 is $535.80. So, $535.80 would be in '23 (and $64.20 in '22). Would this be the correct way to do it?
