Can I write off the extended warranty I purchased for a vehicle used for business?

[bwa]

Yes, if you use actual costs.  No if you use the mileage method, as it is already included.

[snowy8]

Thank you for your response! What would this go under if I do the actual costs? Would it go under other expenses? It is not listed as their examples. Thank you for your help.

[bwa]

I would add it to the cost of the auto for depreciation, as that is the most correct way.  Otherwise, use other expenses because (as you note) it's not listed elsewhere.

[ychanane]

Can you elaborate more how to add it to the cost of auto depreciation. Maybe give us an example or screen shot? Thank you.

[ceg2]

I file a schedule C. I have taken actual cost thru 5 years on the vehicle and just purchased an extended warrarty for 3 years. Can I deduct that?

[KrisD15]

Yes.

You enter the amount of that expense and the program will allocate the portion attributed as Business use (if the vehicle is less than 100% used for business) 

More Info

[Becky55963]

Since the question is for a separate 3 year warranty, is it considered a prepaid - subject to amortization over 3 years or is it a period expense, since there is no certainty that any claims will ever be made under the warranty?  I have found a lot of information about the tax reporting by the issuer of the warranty/service contract, but little guidance on the tax treatment for the buyer.  What guidance I have found is pretty much evenly split between a prepaid or a period expense.  Don't you love income taxes?

Thanks in advance.

[AmeliesUncle]

It would be amortized over 3 years.  The fact there is no certainty that claims will ever by made does not change that.