Yes! Multiply the cost of the extended warranty by your time-space % if you use the appliances for your business and your family. If it’s only used by your business, deduct 100% of the cost. Separate the cost of the warranty from the cost of the appliance when determining if you qualify to use the $2,500 rule that allows you to deduct in one year items that cost less than $2,500. See my article on this rule.