Court of Appeals for the Seventh Circuit November 16, 1999, 99-1011 (Exacto Spring Corporation v. Commissioner of Internal Revenue)

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.