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purchases and 30 sales in the second year. Moller v. United
States, supra at 813.
In 2002, petitioner’s trading activity consisted of 46
purchases and 14 sales. In 2003, he completed 109 purchases and
103 sales. During the years at issue, petitioner did not trade 5
days a week. Of the years at issue, he traded on more than 10
days in a given month only twice. We also note that petitioner’s
collecting unemployment compensation during 2003 further
undermines his argument that he was engaged in a trade or
business during that year. We conclude that petitioner was not
engaged in a trade or business of trading securities during the
years at issue and thus that his expenses related to his trading
activities are not deductible under section 162. We also agree
with respondent’s determination that none of the expenses, but
for the $200 and $28 expenses allowed in the notice of
deficiency, are deductible by petitioner under section 212, in
that petitioner has failed to demonstrate that the expenses were
incurred for the production of income. We also note in this
regard the applicability of section 274(h)(7), which disallows
any deduction under section 212 for expenses allocable to a
convention, seminar, or similar meeting.
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