Book author who had some of his books published showed that his writing activity was engaged in with a profit motive.

Taxpayer, a security investor, could only deduct his expenses on his Schedule A, not as business expenses on Schedule C.  Losses incurred by security investors and security traders are not ordinary losses but capital losses limited to a maximum of $3,000 each year.

The IRS has specific rules regarding the level of substantiation required for charitable contributions depending on the amount contributed and the nature of the contribution.  Taxpayers failed to adequately substantiate most of their claimed charitable deductions.

Wildlife photographers who had some pictures published in magazines showed that photography activity was engaged in with a profit motive.

Payments received by a spouse pursuant to a temporary family support order that did not provide a fixed sum for child support are considered alimony payments subject to income tax.

Equitable recoupment, even if available as a defense in an Arizona tax case, could only be used as a defense and cannot be used to recover erroneously paid tax for which a timely claim for refund was not filed.

Distributions from a tribe located in another state received by a member of the tribe who was an Arizona resident was subject to Arizona income tax.

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.