Profit

1.

Advantage realized in money by sale of property at a price exceeding the cost; or receipts of any enterprise or business, exceeding the expenses incident to it.

2.

The advantage which land procures to the owner, by way of compensation for its use. The phrase " rents, issues, and profits of lands " does not import that the land has been sold, and an advance in price realized. Offices of profit are necessarily offices of trust, and the latter term includes the former.

Doty v. State, 6 Blackf. 529.

A mutual benefit society formed by several persons, being partners or shareholders, who subscribe money, and carry on business substantially for the benefit of the individual members among themselves, and not for the benefit of the society as such, is not a partnership or company established "for any purpose of profit," within the meaning of section 2 of Stat. 7 & 8 Vict. ch. 110, so as to require registration.

Bear v. Bromley, 11 Eng. Law Sf E. 414; 16 Jur. 450.

The usual, ordinary, and correct meaning of the word profits is the excess of receipts over expenditures; that is, net earnings.

Connolly v. Davidson, 15 Minn. 519.

The expression, profits of a business, means the receipts, deducting current expenses, and is equivalent to net receipts. Depredation of buildings in which the business is carried on, though they were erected by expenditure of the capital invested, is not ordinarily or necessarily considered in estimating the profits.

Eyster v. Centennial Board of Finance, 94 U. S. 500.

Moneys used by a railroad company to replace an old and worn-out bridge by another of like materials and dimension are not liable to internal revenue tax, as being "profits used for construction." Hartford, &c.

R. R. Co. V. Grant, 9 Blatchf. 542.

Where a wooden bridge is replaced by a much more costly stone bridge, the earnings adequate to pay for the latter, beyond the expense of building anew a like wooden bridge, are to be deemed " profits used for construction." But if the cost of such stone bridge is charged to the expense account of the company, and the whole amount of such account for the year, including such cost, is not more than a proper percentage of the gross receipts of the company to such cost is not to be deemed "profits used for construction."

76.

Profits ^ prendre. These, which are also called rights of common, are rights exercised by one man in the soil of another, accompanied with participation in the profits of the soil thereof, as rights of pasture, or of digging sand. Profits a prendre differ from easements, in that the former are rights of profit, and the latter are mere rights of convenience without profit.

Gale Easem. 1; Hall Profits d Prendre, 1.