- 9 - term is used in the Internal Revenue Code (I.R.C.) without definition and the legislative history fails to provide any insight or guidance as to the appropriate definition, we will use the ordinary and common usage of the term in applying that provision. Texaco Inc. and Subs. v. Commissioner, 101 T.C. 571, 575 (1993), affd. 98 F.3d 825 (5th Cir. 1996); see Commissioner v. Brown, 380 U.S. 563, 570-571 (1965); Crane v. Commissioner, 331 U.S. 1, 6-7 (1947); Rome I, Ltd. v. Commissioner, 96 T.C. 697, 704 (1991); Union Pac. Corp. v. Commissioner, 91 T.C. 32, 38-40 (1988); First Sav. & Loan Association v. Commissioner, 40 T.C. 474, 482 (1963). We look, therefore, to the ordinary and common usage of the term “net gain” in applying the statute. Neither Black’s Law Dictionary (6th ed. 1990) nor Webster’s Third New International Dictionary (1993) specifically defines the term “net gain”. However, the ordinary and common usage of the term “net gain” connotes the pecuniary gain remaining after offsetting gains against losses. Presumably, a prerequisite to the existence of net gain is that the taxpayer’s gains exceed the taxpayer’s losses. Black’s Law Dictionary 957 (7th ed. 1999) defines the term “net loss” as “The excess of all expenses and losses over all revenues and gains.” By analogy, the natural, ordinary, and familiar meaning of the term “net gain” is the excess of allPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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