- 13 - “Income from investments made in the ordinary course of a trade or business of furnishing insurance or annuity contracts or reinsuring risks underwritten by insurance companies” found in subdivision (ii)(C) of section 1.469-2T(c)(3), Temporary Income Tax Regs., 53 Fed. Reg. 5686, 5713 (Feb. 25, 1988), (subdivision (ii)(C)). Respondent contends that petitioner’s gain was not derived in the ordinary course of a trade or business within the meaning of subdivision (ii)(C). On brief, petitioner does not address the application of this regulation. In light of the restrictive nature of subdivision (ii)(C), we read it narrowly. We look closely at the language contained in the regulation and interpret it according to its ordinary and plain meaning. See FDIC v. Meyer, 510 U.S. 471, 476 (1994); Borregard v. National Transp. Safety Bd., 46 F.3d 944, 945-946 (9th Cir. 1995); ICI Pension Fund v. Commissioner, 112 T.C. 83, 87 (1999). Subdivision (ii)(C) provides that income from investments made in the ordinary course of a trade or business of reinsuring risks underwritten by insurance companies constitutes “gross 5(...continued) patron; and (G) Other income identified by the Commissioner as income derived by the taxpayer in the ordinary course of a trade or business.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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