2 December 2004 External T.I. 2004-0083931E5 F - Frais relatifs à une garantie prolongée -- summary under Subsection 18(9)

Regarding the deductibility of the cost of an extended warranty on an automobile paid by a self-employed individual, CRA stated:

[T]he costs would not be fully deductible in the year of payment because subsection 18(9) would apply to such costs. This is because we consider that those expenses are paid for services to be rendered after the end of the year or for insurance covering a period after the end of the year.