Richard Gorkes, Jr. and Susan Gorkes - Page 11

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                    (ii)(I)) as the taxpayer elects to take into                      
                    account under this clause.  [Emphasis added.]                     
          At issue in the instant case is the calculation of section                  
          163(d)(4)(B)(ii)(I).  To that end, the meaning of the term “net             
          gain” is integral to our analysis.                                          
                    2.  Net Gain                                                      
               Neither section 163, the regulations, the case law, nor the            
          statute’s legislative history defines the term “net gain”.  If a            
          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 use the            
          ordinary and common usage of the term in applying that provision.           
          Texaco Inc. & 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, 957 (7th ed. 1999) 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             





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