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transactions. Petitioner bears the burden of proof. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Section 165(d) provides that an individual may deduct his or
her "Losses from wagering transactions * * * to the extent of the
gains from such transactions". Neither the Code nor the
regulations define the phrase “gains from such transactions”.
We apply the "plain, obvious, and rational meaning." Liddle v.
Commissioner, 103 T.C. 285, 293 n.4 (1994), affd. 65 F.3d 329
(3d Cir. 1995); see also Boyd v. United States, 762 F.2d 1369,
1373 (9th Cir. 1985) (sec. 165(d) interpreted according to its
"ordinary meaning").
According to Webster's New World Dictionary 551 (3d coll.
ed. 1988), the primary meaning of the word “gain” is “an
increase; addition; specif., a) [often pl.] an increase in
wealth, earnings, etc.; profit; winnings”. (Brackets in
original.) A primary meaning of the word “from” is “out of;
derived or coming out of”. Id. at 542. The word “wager” means
“bet”, id. at 1500, which, in turn, connotes "an agreement
between two persons that the one proved wrong about the outcome
of something will do or pay what is stipulated", id. at 133. The
word “transaction” is the noun of the infinitive “to transact”,
which means “to carry on, perform, conduct, or complete
(business, etc.)”. Id. at 1419.
Assuming for purposes of applying section 165(d) that the
comps are gross income, petitioner’s comps fit within the plain
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