The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1863-06-11
The Income Tax.
Important DecisiOn by the C0mmASSO"
er ofIpternal Revenue


Important DecisiOn by the Commission
err OfEpternal Revenue
The commissioner of Internal Revenue has
inst made the following highly important de-
cision, covering the whole ground OF the IN
come tax: :,
The income tax must be assessed and paid
in the district in which the assessed person
resides. The place where person votes, or
10 entitled to vote, is deemed his residence
When not a voter, the place where the tax on
personal property is paid, is held to be the
place of residence.
In cases of limited partnerships, formed
with the condition that no dividend or divls-
ion If nrofits shall be made until the expira-
ton of the partnership, each member OF such
firm will he required to return his share OF
nroft arising from such business tor the year
1862. as. had they so desired, DIVISION OF
the profits could have been made
Gains or profits realized from the sale OF
propertv during the year 1862, which proper
Nv was purchased before the Excise law went
into effect. should be returned as income Tor
the year 1862.
Executors or administrators OF estates OF
persons who have died in the year 1862 should
make a return of the income thereof
A merchants return of income should COW
err the business of the year 1862, excluding
the previous years. uncollected accounts
must be estimated.
Physicians and lawyers should include the
actual receipts for services rendered IN 1907,
together with an estimate of the unreahzed
or contingent income due that year
Dividends and interests payable IN 1867
should be returned as income for that year, no
matter when declared
Dividends derived from gas stock are taxa
BILE as income.
Income derived from coal mines must be
returned, although the tax has been previous
ly paid on coal produced. No deduction can
he made because of diminished value, actual
or supposed, of coal vein or bed, by process
of mining. The rent derived from coal mines
is income
Premiums paid for life insurance are not
allowed as a deduction in the statement OF III
come.
Pensions received from the United States
government must be returned With other IN
come subject to taxation.
Old debts. formerly considered hopelessly
lost, but paid within the time covered by the
return of income should be included IN this
statement. Debts considered lost on the 3lst
of December. 1862, and due to the business
If the wear 1862 may be deducted from the
nrofts of business If subsequently paid, they
must he included in the return for the year
in which they are paid
To rive full effect to the proviso Ill the nine
tv-first section of the act of July |, 1867 re-
snectino, the tax on that portion OF income
derived from L. S. securities, 1t 10 directed
that when income is derived partly from these
and partly from other sources, the 5000 and
other allowances made by law shall be de-
Quoted az far as possible, from that portion
of income derived from other sources, and sub
iect to the three per cent. tax.
No deduction can be allowed from the tax
able income of a merchant for compensation
Maid for the service of q minor son.
A farmer, when making returns OF the to-
tai amount of his farm produce" shall be al.
lowed to deduct therefrom the subsistence OF
horses, mules, oxen and cattle used exclusive
w in carving Oh said farm The term farm
produce" is construed to include all the pro
duction of a farm Of what nature or KIND SO
ever. The account of stock sold by farmer
since Dee J. 1862 should not be lncluueu
in the present assessment, but the proht real
lied thereby must be accounted Ior IN ms
next years return Where he mas lncluoeu
in his return the produce raised by him ana
fed in whole or part to stock subsequently
sold. he must account for the gain realized
by feeding and selling said stock. Where ne
has not included the produce 80 fed, he must
return, as profits, the difference between tue
value of said stock on the 3lst Decemoer'
1862, and the amount realized Tor theih' fer
tilizers purchased by farmers to maintain their
land in its present productive condition WIN
he considered rs 'repairs" i'll estimating IN
come
Interest should lie considered as income on
" when paid, unless it is colectable, and re-
mains unpaid by the consent or agreement Oh
the creditor
Losses incurred in the prosec ution OF bust
ness are fair Offset to gains derived from
business but not from those portions OF income
derived from fixedinvestments, such as oonuS'
mortgages, rents, &c
Pr0ncrty nsed in business, and furnishing
profits, when destroyed by fire. may be re-
stored at the expense of those profits, to the
condition when destroyed. If insured the
difference between the insurance received and
the amount expended in the restoration VIII
be allowed. ..# .,
The increased value given to a new Dullu
ing by permanent improvements VIII DC cilarS-
ed to capital, not income.
Contingent funds of manufacturing corpo--
ratious. made up during the year 1862, ana
not distributed should not be returned az a
part of the income of stockholders.
Undistributcd earnings of corporation
made previous to Sept. /, 1862, whether the
corporation is requested to pay tax on dlVl-
dends or not. is not considered as the income
of the stockholders, nor is the corporation re-
,,uired to make return Of said reserved earn
ings as trustees under section % OF the excise
law
The income Of literary, scientific or other
charitable institutions in the hands OF trus-
tees or others, are not subject to income TAX
When a person boards, or rents room or
rooms, the rent thereof, in lieu OF the rent oil
a house. is deducted from the amount OF IN
come subject to taxation.
Losses sustained in business since Dec. 81,
1862. will not enter into the income assess
ment for 1862
Interest on borrowed capital used in bust
ness may be deducted from income.
If a planter returns all his farm products,he
will be allowed to deduct the actual expense
Of subsisting and clothing the slaves.
Legatees are not required to return their
legacies as income The income tax 10 ASSESS
ed upon the actual income Of individuals
Firms. az such, will not make returns.
The profits Of manufacturer from ms BUS
mess are not exempt from the income tax in
consequence of his having paid the excise
tax by law upon articles manufactured by
him.
AS bridge, express, telegraph, steam and fer
ryboat companies or corporations are not au-
tRorized by law to withhold and pay to t., the
government any tax upon interest paid, or
dividend declared by them, all income OF IN
dividuals derived from these sources is liable
to an income tax. ~ ~
All persons neglecting or refusing to make
return of income, except in case Of sickness,
are brought within the penalties prescribed
| Tv the eleventh section Of the act Of July !,
1862 viz: An addition Of So per cent to the
a,,n,,,,+ oeoertained by the assistant assessor,