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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 322
Experience:  Tax Accountant at Praxair, Inc.
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Are the following items/costs on a vehicle invoice currently

Customer Question

Are the following items/costs on a vehicle invoice currently deductible ( assuming this is a business use item ) (1) a service contract (2) maintenance plan (3) roadside hazard
Submitted: 1 year ago.
Category: Tax
Expert:  Jonathan Tierney replied 1 year ago.

Hi, my name is ***** ***** I can help. Yes, a service contract, maintenance plan, and roadside hazard costs are deductible, however if the time period that they cover extends longer than the tax year, you can only deduct the portion that applies to the current year. Therefore, if an extended warranty and maintenance plan covers five year then you can only deduct one-fifth of the cost each year.

I hope this answers your question. Please let me know if I can clarify anything or answer any additional questions.

Thanks, Jonathan