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Transaction entered into for profit

A broad meaning is accorded the phrase transaction entered into for profit, losses from which are deductible. It includes the acquisition of any income-producing property or investment property, as distinguished from property for one's personal use or enjoyment. The acquisition may be by gift or inheritance if the property is investment or income-producing property. In some cases, the term can include a transaction entered into simply to avoid ot cut down a loss on another transaction.