Decisions

Sourcing of slot machine owner’s receipts for sales factor purposes.  Whether placing machines in casinos was rental of personal property.

Taxpayer did not use its investment account in its regular trade or business so its investment income was not business income. Reimbursement of shared business expenses from a co-tenant was business income.

Calculation of the enterprise zone credit amount

Taxpayer not allowed research and development credit, under A.R.S. 43-1168, where the Taxpayer relies on unsubstantiated estimates of research expenditures from an acquired company in years preceding the acquisition of such company to calculate the credit.

Gain from the sale of stock in a foreign subsidiary owned by a holding company was apportionable business income.

Whether Arizona has sufficient nexus to tax income from an out-of-state franchisor that receives license and royalty fees from Arizona franchisees.

Are gains arising from certain transactions business or nonbusiness income?

Do gains arising from sales of common stock of a majority -owned overseas subsidiary constitute busness income apportionable to Arizona?

Does the construction of storm water retention areas and sewer systems qualify for credit as pollution control equipment.

Whether a merger termination fee is business or non-business income; A.R.S. 42-2076

Arizona consolidated group was required to include in the numerator of the Arizona sales factor a portion of the sales made by a partnership, in which some members of the group had an interest, to another member of the group doing business in Arizona.

While a taxpayer using the standard meal allowance (per diem) method does not have to keep records of actual costs, the taxpayer must still establish the time, place and business purpose of the travel. Only one-half of the per diem allowed for meals and incidental expenses may be deducted.