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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (379)	1/3/1998 11:49:00 PM
From: Peter Singleton	Read Replies (2) \| Respond to of 5810

Colin, your answer to cj prompted me to ask about my personal situation. I invest for a living. I have a single margin account, and run a substantial margin debt (I know, margin debt is risky, and probably unwise ... if I were starting again, I'd do without the debt). When I buy securities, I either add to the margin debt, or sell offsetting securities. For living expenses, I periodically make cash withdrawals out of the margin account, and deposit those funds in my checking account. Whenever I take money out for living expenses, I always sell securities of equivalent or greater value, and note on the check withdrawing the funds "sale of xxx security yyy date". My question: have I adequately protected myself by only withdrawing funds for my personal use when I sell securities of equivalent or greater value? I've assumed that by doing so I avoid the concern of commingling personal and investment debt ... and also am assuming all the margin interest on the account is investment interest, and hence is all deductible. I hope you'll answer that you agree. My standard practice has been to be conservative in claiming deductions ... I haven't been audited to date, but if and when I am, I'd like to be above reproach on what I've claimed. Thanks, Peter