The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1863-06-10

Important Decision by ths Commissions
OF Internal Revenue.

imnortant points with reference 90 the assess |
u,eat and collection OF the income tax They |
are embraced ia the following. 10 which the
careful attention Of ali our readers l. directed
The income tax must bc assessed aud PAID IN
the district ia which the assessed person re-
sides. The place where person votes. or Is
entitled to vote. is dccmed his residence. When
not 4 voter the place where TAX on persoAai
property is paid. rs held "a be the place OF
residence In cases ot limited partnerships
formed with the condition that no dividend or
division OF profits shall bee made uutl the eN
oiraliou oi the partnership, each memoer ol
such arm will be required 90 return his share oi
profits arising from such business. Tor the year
| ls62 as had they 50 desired, division oil ne
profits could have been made Cams OF prohts
realized from the sale OF property during the
wear 1902, which property Was purchased be-
/ oIe the Excise law went INTO effect should Ice
returned a. income Tor the year 1862
| The executors or administrator OF The estates
~ persons who died Ia the year lo02 should
make return OF the income thereof for The year
| ls62. 4 merchants return vi income should
cover the business OF the year lSO-. excluding
previous years. UucOllecled accounts must he
estimated Physicians and lawyer should in-
dude actual receipts fer Ts-ecs rendered I'D
| 3d. together with al estimate ui unrcali1ed
Of contingent income due 90 that year. -
|
oe returned as iAcOne Tor that year, 40 matter
when declared
/, Dividends derived from gas stock are taxable
as income. Income derived from coal mines
must be returned. although o. ha- been pre-
vously paid on the coal produced. No dednc
ZION can bee made because OF the diminished
value actual or supposed Of the coal vein OF
bed by the process OF mining. Kent derived
from coal mines is income. Premium paid for
oil a. IA
ton in statement OF income. Pensions received
from the United States Government must bc
returned with other income subject 70 taxation
Old deots. formerly cons dered hopelessly lost
ont paid within the time covered by the return
of the income. should he included in this state
ment. Debts considered hopciessy lost on
% December IA. SOP. and due 90 the business OF
The year 1862, may be deducted from the pro
uts OF business. II subsequently, paid. they
must be included in the return for the year IN
b which paid
r In order to give full effect TO the proviso Il
D.. the nnety-iirsi section OF the act of July Let
1862, respecting the tax on that portion o
income derived from United States securities
d IL is directed that when income is derived
5. partly from these AID partly from other sources
| the 5000, aud ether allowances made by law
shall be deducted, a. far as possible. from tina
portion of income derived from other sources
AID subject L. three per cent. tax. No deduc
ton can be allowed from the taxable income q
, a merchant for compensation paid for The
. services of a minor son.
A farmer, when making return Of the tota
d amount Of his farm produce. shall he allowed e
= deduct thereirOm the subsistence Of horses
D. mules oxen and cattle used exclusively in tn
O. carrying on of said farm The term farm
produce is construed to include all production
:, al a farm of " LAT nature aud kind soeveT. Tn
d account OF stock sold 10y farmer since Dec m
10 Der 81. 1852. should not be- included in tn
= present assessment but the profit realized
thereby must be accounted for In his next year
l. return
j Where he has included in his return produc'
q raised by him and fed in whole OF part 10 stool
~. subsequently sold. he must account for the gan
realized by the feeding and selling OF said stock
u Where be has not included the produce so fed
Il he must return as profits the difference between
e the value OF sdld stock on the Slst of December
, 1851, aud the amount realized for them Ferti
-, lizers purchased by farmers to maintain thei
land IN present productive condition Will b
Il considered as " repairs in estimating income
Int. est should be considered as income Onll
when paid, unless 10 is cOlectable aud remain
7 unpaid by the consent or agreement of Oh,
creditor.
Losses incurred in the prosecution Of bushes
are a fair Offset 10 gains derived from business
but not from those portions OF income derive,
: from fixed investments. such a. bonds. mort
cages rents and the like.
Property used in business and furnishing
profits, when destroyed 10y fire. may be- restored
. al the expense Of those profits 10 the condition
when destroyed. II insured, the difference be-
tween insurance received aud amount expended
+ in restoration will be allowed
The Increased value given new building by
y permanent Improvements will be charged "a
e capital. not income
The contingent fund Of manufacturing cor
porations made up during the year s6Z, and
not distributed. should not he returned as part
Of the Income Of the stockholders.
The uudistrioutrd earnings Of corporation
made previous to sept. J., 1862, whether the
corporation Is required to Paw dividends or not.
should lot be CONSIDERED a. the income of the
stockholders; nor should the corporation be re-
CURED 70 make return Of -aid reserved earnings
az trustees, under section 90 Of the Excise
Laws
The income Of literary scientific. or other
charitable institutions IN the hands oil trustees
or others, IL not subject TO income tax.
/. hen person boards aud rents a room or
rooms the rent thereof, in lieu Of house. should
be deducted from the amount OF income subject
70 taxation.
Losses sustained in business since December
81, le62, will not enter into the income a-sess
meat for 1862.
Interest on borrowed capital used in business
may De deducted from the income
If a planter retarns al his farm products. be
will be allowed TO deduct the actual expenses Of
subs;sting AID clothing his slaves
Legatee- are not required 70 return tLeif ieg.
acies aHd income. There = 4 -r-cial lax o. l-g
acies Of personal property 30 Section H.
The income tax is assessed u.on the actual
income OF individuals. FIrn., a. --.ch. s.l not
maze returns
! Tie profits of manufacture from La bust
ness, are loi exempt from the income tax IT,
consequence Of his nav ng paid the excise tax
imposed by law upon articles manufactured b,
him.
As Bridge, Express Telegraph, Steam and
Ferry Boat Companies or Corporations arr not
authorized by lzw 70 withhold and pay TO Gov
ernmeet any tax upon iuteres; paid or divide M
declared by them, all income Of indivicuals de
rived from these sources i liable "a income tax
All persons neglecting or refusing 70 make re-
turn OF income, except IN case o. sickness. are
brought within the penalties prescribed bv the
ilth section Of the act Of July ], ] So. VIZ
% An addition Of fifty der cent. u the amount
ascertained oy the Assistant Assessor, u3oa
such Information al he can obtain and penal /
y Of 500. TO be recovered for the United States
With costs Of ssit."