Metro Leasing and Development Corporation East Bay Chevrolet Company, a Corporation v. Commissioner of Internal Revenue

TALLMAN, Circuit Judge.

This appeal involves the 1995 federal tax return filed by the Metro Leasing and Development Corporation and the East Bay Chevrolet Company (collectively “Metro Leasing”), two small, closely-held California corporations. We must decide whether the United States Tax Court properly determined the amount of a corporate officer’s salary that Metro Leasing may deduct as a reasonable business expense under 26 U.S.C. § 162(a)(1). We affirm because the Tax Court did not clearly err when it adjusted the amount of this deduction. See Elliotts, Inc. v. Comm’r, 716 F.2d 1241, 1245…