Small Business

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, licenses 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.

In general, costs of commuting between your home and workplace are not deductible. Costs for gas for your car, train, bus, tolls and parking fees are not deductible.

You are required to pay self-employment tax on self-employment income after you retire and receive Social Security>

You are subject to self-employment tax on all earnings even though you can exclude from gross income your foreign earned income of up to $92,900 in 2011.

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.