DANIEL SCHULMANN, ET AL. VS. DIRECTOR, NEW JERSEY DIVISION, NEW JERSEY DIVISION OF TAXATION A-2089-10T3 The taxpayer used his personal funds to pay commissions owed by two S corporations. He and his wife then deducted the commission expenses from the S corporation income that they reported on their personal income tax returns. Affirming the reported opinion of the Tax Court, we held that the taxpayer could not disregard the corporate form by taking personal deductions for paying corporate obligations. The attempted deductions also violated the rule against "cross-netting" of losses, as set forth in N.J.S.A. 54A:5-2. 12-06-11
