Business & farm

A professional accountant and attorney drew up all of the paperwork. The partnership is jointly owned by my company and another company, an S-Corp, which is then owned 100% by my business partner.

I may have phrased it poorly, but my business expenses are separate from the partnership. They are not paid by the partnership just like my annual report filing fee for my business is not paid by the partnership.  The only thing I get from the partnership are guaranteed payments. My cell phone, insurance, etc.has always been listed as a deductible business expense on the Schedule C.