Taxpayer, a security trader, could deduct his expenses on his Schedule C as business expenses.  However, losses incurred by a security trader are not ordinary losses but capital losses limited to a maximum of $3,000 each year.

Taxpayers, investors in real property, could only deduct their investment expenses on Schedule A as miscellaneous itemized deductions and not as business expenses on Schedule C. Taxpayers could not deduct car and truck expenses based on both standard mileage rates and also on actual car expenses.

Taxpayers, members of a limited liability company (LLC), could not deduct expenses of the LLC as unreimbursed ordinary and necessary partnership (LLC) expenses that they were not required to pay under the LLC agreement.

Interest component of the funds a person receives on the redemption of tax liens they purchased are not exempt from Arizona state income tax as interest on a county obligation.

The method of determining income taxable by Arizona prescribed by ITR 93 20 is equally applicable whether a married couple, one of whom is a part-year Arizona resident, files separate returns or a joint return.

Taxpayers did not establish they abandoned Arizona residency when Husband accepted out-of-state employment.

Taxpayer abandoned Arizona residency for tax year at issue. Taxpayer was not subject to Arizona income tax on income earned from non-Arizona sources.

Gross receipts from Taxpayer’s sale of its assets should be excluded from the sales factor.

Investigatory expenses incurred in looking for potential investments are not deductible. Taxpayers did not meet their burden to substantiate travel expenses.

While a barred refund may be used to offset a tax assessment under certain limited circumstances, Taxpayers were not entitled to a refund of taxes not used to offset the assessment.