Yes, if you use actual costs. No if you use the mileage method, as it is already included.
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.
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.
Can you elaborate more how to add it to the cost of auto depreciation. Maybe give us an example or screen shot? Thank you.
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?
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)
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.