Mineral Point weekly tribune. (Mineral Point, Wis.) 1859-1868, 1863-06-17
THE INCOME TAX.
Important Decision by the Commissions
of Internal Rcueaue.

The Commi, sioner of Internal Revenue
has lust made the following highly lmpor-
tant decision, covering the whole ground
of the income tax:
The income tax must be assessed and
pal in the district in which the assessed
| person resides Tie place where per
son votes, or is entitled TO vote, Is deemed
his residence When not voter, the
place where the tax on personal property
is paid is held to be the place of resi-
dence.
In cases oflimited partnerships. formed
with the condition that no Dividend or
division of profits shall be made until the
expiration of the partnership, each mem
Der of such firm will be required to return
his share of profit arising from such bus
mess for the year 1903 as had they so
desired division Of the profits could
have been made
Gains or profits realized from the sale
of property during the year 1867, which
property was purchased before the Excise
law went into effect should be returned
! as income for the year 1867
| Executors or administrators of estates
of persons who died in the year 1862
/ should M Ike q return OF the income there
Of
4 merchants return of income should
cover the business of the year 1862, ex-
GLIDING the previous years. uncoileeted
| accounts must be estimated.
| PHYSICIANS and lawyers should include
/ the actual receipts for the service rendel-
/ cd in 1862. together with an estimate OF
the unrealized or contingent income due
/ to that wear.
Dividends and interest payable in 1862,
should be returned as income for that
year, no matter when declared
Dividends derived from gas stock are
/ taxable as income
Income derived from coal mines must
!! be returned, although the tax has been
/ previously paid on coal produced. No de-
! duction can be made because of diminish
/ ed value actual Or supposed, of q coal
vein or bed, by process of mining. The
rent derived from Goa mines is income.
Premiums paid for life insurance are
not allowed as deduction in the state
ment of income.
Pensions received from the United
States Government must be returned with
/ other income subject to taxation.
Old debts, formerly considered hope
Icsslv lost, but paid within the time Gov
cred by return Of income, sh Id be in
cludcd In this statement Debus consid-
cred lost ON the 3lst of December, 1862,
and due to the business of the year 1862,
NAV be deducted from the profits Of bust
ne : If subsequently paid, they must e
included in the return for the year IN
which they are paid.
To give fall effect to the proviso in the
ninety first section Of the act of July /,
1862, respecting the tax of that portion OF
income derived from L. : securities, it is
directed that when the income is derived
partly from these and partly from other
sources the 5000 and other allowances
made by law shall be deducted, as far as
possible. from that portion Of income de
rived from other sources, and subject to
the three per cent tax.
No deduction can be allowed from the
taxable income Of "a merchant for compen-
sation paid for the service OF n minor son,
4 farmer when making returns of the
total amount Of his farm produce shall
be allowed to deduct therefrom the sub
/ sistcnce Of horses, mules, oxen and cattle
used exclusively in carrying on said farm.
The term Of farm produce is construed
/ to include all the productions of farm
Of what nature or kind soever The &C
count Of stock sold By a farmer since Dec.
! 81. 1862. should not be included in the
pr sent assessment, but the profit real
lied thereby must be accounted for in his
next wear ; return. Where he has inclu-
ded in his return the produce raised by
him and fed in whole or part to stock sub
/ sequcntlv sold. he must account for the
/ grain realized by feeding and selling said
/ stock. Where he has not included the
produce so fed, he must return, as profits
[ the difference between the value of said
stock. on the 3lst Of December. 1861, and
the amount realized for them. Fertilizer
purchased by farmers to maintain their
land in its present productive condition
will be considered as repairs" in estI
mating income.
Interest should be considered as income
ONLY when paid. unless it is collectable
and remains unpaid by the consent or "a
sreement Of the creditor.
Losses incurred in the prosecution o
business are {, fair offset TO gains derived
from business, but not from those portion:
of income derived from fixed investments
such as bonds, mortgages, rents, DC.
Properly used in business, and furnish
ing profits. when DESTROYED by fire, may
be restored ut the expense of those profits
TO the condition when destroyed If in
sured, the difference between the insu
rance received and the amount expended
in the restoration will be allowed
he increased value gwen 10 new
building by permanent improvements vii
be charged TO capital, not income
Contingent funds of manufacturing cor
porations, made up during the year 1862
and not distributed, should not be return
Ell as part of the income of stockhold
ers
Undistributed earnings of corporation
made previous to Sept. !, 1862, whether
the corporation is requiJed TO pay a tau
on dividends or not, Is not considered as
the income Of the stockholders, nor is the
corporation required TO make return oil
SAID reserved earnings as trustees, under
section q3 Of the excise law
The income Of literary, scientific, OF
other charitable institutions, in the hands
Of trustees or others, are not subject &c
income tax
When a person boards, or rents a room
or rooms, the rent thereof, In lieu of the
rent of a house, is deducted from the a
mount Of income subject to taxation.
Losses sustained in business since Dec
/ 81, 1862, will not enter into the income
assessment for 1862
Interest on borrowed capital used in