Small Business

Guaranteed payments are made to individual partners for services rendered or for use of capital, and are not based on a partner's share of partnership income. The guaranteed payments are deducted from partnership income before determining the partnership's profit or loss.

Yes. You are required to pay self-employment tax on Self employment income even after you retire and receive Social Security benefits.

The Self-employment (SE) Tax of 15.3% consists of 12.4% for Social Security and 2.9% for Medicare.
After multiplying your Sole Proprietorship’s Net Earnings by .9235, the combined 15.3% rate applies to the maximum taxable earnings base of $113,700 or less and the 2.9% rate applies to all taxable earnings exceeding $113,700.

When services are performed in the parents’ home according to instructions by the parents, you are considered an employee of the parents and do not have self-employment earnings.

If you are a ordained minister, priest, rabbi or member of a religious order who has not taken a vow of poverty of a Christian Science practitioner then you are subject to SE Tax unless you elect not to be covered on the grounds of conscientious or religious objection to Social Security benefits. A application for exemption Filed on Form 4361 must be filed with the IRS.

If you give a business gift in the course of your trade or business, you can deduct the cost subject to special limits and rules.
Generally you cannot deduct more than $25 for business gifts that you give directly or indirectly to any one person during the tax year.
Keep receipts for all gifts you give for business purposes. These receipts will help you to prove your deductions if you are ever audited. Track your business gifts throughout the year so you don't have to go through all of your receipts individually at tax time. You should record who the gift was given to, what that person's relationship is to your business and how much the gift cost.

The actual expense method allows a individual to deduct all out of pocket costs for operating the auto plus depreciation if you own the auto. Some of those costs are Gas, insurance, repairs & maintenance garage rent, lease fees, licenses, loan interest, oil changes, parking fees, tires, tolls, towing and registration fees.

Yes. If you use a car entirely for business the cost of leasing is deductible. You cannot depreciate a car you lease. You can choose to deduct the standard mileage rate in lieu of actual expenses including lease payments.

You should maintain a log or diary of your auto expenses. If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, lices and taxes. If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.