Daniel "Tiger" Schulmann runs a chain of corporate owned and franchised karate schools.  His management company pays a commission to any instructor whose student opens a Tiger Schulmann school.

In 2000, 2001 and 2002, Schulmann paid the commissions himself, and deducted them on his New Jersey income tax return against his S Corporation income from the schools and management company.  The New Jersey Tax Court ruled that the commissions were corporate expenses that Schulmann could not claim personally.  Even if he could claim them personally, New Jersey law doesn't let him deduct his expenses against his S Corporation income.

Sculmann v. Dir., Div. of Taxation (NJ Tax Ct., 11/9/2010)