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Navigating 1042 Reporting: Extended warranties from foreign vendors
March 20, 2024
Q. We ordered equipment from a foreign vendor, with the equipment we purchased an extended warranty. Do I report the warranty on a 1042? Would I report the full amount of the invoice or just the amount charged for the warranty?
A.
Answered by IOFM's third-party tax experts.
Payments for warranty coverage are considered payments for services, so the amount charged for the warranty is reportable. Do not report the amount charged for the equipment; that amount is excluded from reporting because…
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