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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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