Legal Opinion
Exacto Spring Corporation v. Commissioner of Internal Revenue
Court of Appeals for the Seventh Circuit
Decided November 16, 1999No. 99-1011PublishedCited by 37 opinions
1Opinion of the Court
POSNER, Chief Judge.
This appeal from a judgment by the Tax Court, 75 T.C.M. (CCH) 2522 (June 24, 1998), requires us to interpret and apply 26 U.S.C. § 162(a)(1), which allows a business to deduct from its income its “ordinary and necessary” business expenses, including a “reasonable allowance for salaries or other compensation for personal services actually rendered.” In 1993 and 1994, Exacto Spring Corporation, a closely held corporation engaged in the manufacture of precision springs, paid its cofounder, chief executive, and principal owner, William Heitz, $1.3 and $1.0 million,…
2Cases cited16 opinions
- American Nurses' Association v. State of IllinoisCourt of Appeals for the Seventh Circuit · 1986
- Mayson Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
- Pens. Plan Guide (Cch) P 23954p Roy A. Jackson and Carlos E. Serment v. E.J. Brach CorporationCourt of Appeals for the Seventh Circuit · 1999
- Reuben Palmer v. City of ChicagoCourt of Appeals for the Seventh Circuit · 1987
- Elliotts, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
11 more not listed; retrieve them via the Exa API.
3Cited by37 opinions
- Chai v. CommissionerCourt of Appeals for the Second Circuit · 2017
- Boyer v. Crown Stock Distribution, Inc.Court of Appeals for the Seventh Circuit · 2009
- Elizabeth N. Callaway v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 2000
- Sullivan v. William A. Randolph, Inc.Court of Appeals for the Seventh Circuit · 2007
- Menard, Inc. v. CommissionerCourt of Appeals for the Seventh Circuit · 2009
32 more not listed; retrieve them via the Exa API.