A taxpayer may choose to use either a standard meal allowance (per diem) or actual meal expenses to calculate the cost of daily meals and incidentals, but cannot claim both. A taxpayer using a standard meal allowance does not have to keep records of actual costs but must still establish the time, place and business purpose of the travel. Meal expenses, whether based on actual expenses or on a standard allowance, are limited to one-half of the allowable amount.

Arizona income tax law did not conform to the federal provision that excluded up to $2,400 of unemployment compensation from federal gross income for tax year 2009. Taxpayers were thus required to add back to Arizona gross income the unemployment compensation that was excluded from federal adjusted gross income.

Taxpayer cannot claim a deduction under A.R.S. § 43-1029 (restoration of amount held under claim of right) for wages he received but not repaid. Federal reserve notes are not non-taxable obligations of the United States under 31 U.S.C. § 3124.

Taxpayers did not establish they were real estate professionals entitled to an exception to the passive activity loss rule under I.R.C. § 469(c)(7).

A Taxpayer who has to repay in a later year amounts he had received and held under a claim of right that was reportable in previous years may deduct the repayment in the year in which it is made and cannot reduce a proposed assessment for 2009 for repayments made in 2011 and 2012, citing Income Tax Procedure (ITP) 95 1.

Taxpayers could not deduct as Schedule C business expenses amounts they paid for their adult children’s racing activity

Arizona income tax law did not conform to the federal provision that excluded up to $2,400 of unemployment compensation from federal gross income for tax year 2009. The definition of Arizona gross income for tax year 2009 did not allow the federal exclusion for unemployment compensation. The fact Taxpayers were not aware of the non-conformance is not a basis to abate an otherwise proper assessment.

Taxpayer is not entitled to a refund of taxes withheld by his employer because Taxpayer did not file a return within four years after the due date of the original return.

Taxpayer, an Arizona resident, cannot claim a credit for income taxes paid to California because California allows a credit for residents of Arizona for income taxes paid to Arizona. Taxpayer might still be able to claim a credit in California under Cal. Rev. & Tax. Code § 19311.5 after the Arizona income tax has been paid.

Taxpayer is not entitled to deduct as alimony payments representing a division of the retirement accounts of Taxpayer and his ex-spouse. The payments constituted property settlement.