You can deduct, not depreciate the cost of the extended warranties and gap insurance in proportion to the percent of usage of your vehicle for work.
You would need TurboTax Home & Business CD/Download or TurboTax Self-Employed Online to enter your business expenses in your Schedule C.
For Home & Business
Sign into TurboTax
Go to search box and enter schedule c and click find
- Click on Jump to schedule c
- Click Edit on your business
- Scroll down to Business Expenses
- Click on Vehicle Expenses for vehicle information and other expenses
- Click Other Common Expenses for warranty and insurance under Other Miscellaneous Expenses
For Self-Employed
Sign into TurboTax
- Click on Take me to my return
- Click on Search at top right and enter schedule c
- Click on Jump to schedule c
- Click on Edit for your business
- Scroll down to Add expenses for this work and click
- Click on Less common expenses
- Scroll down to vehicle and click on button and Continue
- Follow instructions