, 1863-06-03
Ql)ifago Urtbn11e.
WEDNESDAY, JUNE 3, 1868
HE INCOME TAX.
Important Decision by the ComnIs-
sloner Of Internal Revenue,

- WAsHS0ToE, D. c., Friday, May %.
The Commissioner of Internal Revenue has
Just made the following highly important de-
c:slon; covering the whole ground Of the In
The Income Tax must be assessed and paid
In the district in which the assessed person
resides: The place where person yotes, or
u entitled to yote, is deemed his residence.
When not yoter, the place wherr the tax on
personal property is paid is held to be the
| place Of residence.
In caecs of limited partnerships, formed
| will, tic condition that no dividend or dlgis-
| ion Of pr.'dts shn]l Ge made until the expira-
| tion Of the pai tncrship, each member of susl.
| firm will be required to return his share Of
profits aris ng from snch business for the year
1sGs, as, had they SO desired, division Of the
pr,t1fs could have been made. -
Gains or profits realized from the sale Of
property during tie year 1862, which prop
cry YVES purchased before The Excise Law
vent let" ttlset, should be returned asiucome
Executors OF administrators Of estates of
| persons Who died iu the year 1862 should
make rctuln Of the income thereof.
A:n!erthant's return If income should cny-
Ct the business Of the year 1862, excluding
the prrvious years. Uncolectcd accounts
| ntust he eetimated. :
Physicians and lawyers should Include the
actual receipts for services rendered in 1862
! together with an estimate Of the uurealIzcd
| or contDgtn mt income due to That year.
Dividends, and interests payable in 1862,
Should be returned as income for that year,
| no matter VIII. declared.
| Dividends derived from gus stock are TAXA
biz IS income.
Income derived from coal mines must be
returned, although The tax las beeu previous
| y Iatd on coal produced No deduction can
BE- 1'l::de bccausc Of diminished value, actual
or supposed, of a coa1 vein or bed, by process
of1ninipg. The rent derived from coal mines
| is income.
Premiums paid for life insurance are not al
lowed as deduction in the statement of in
come.
Pensions received from the United States
Government must be returned with other in
come subject to taxation.
Old dtbts, formerly considered hopclessly
lost, bur paid within the time covered by the
return Of income, should be included ii this
statement Debts considered lost on the 3lst
The year 1862, may BE- deducted from the prof:
lis Of business, If subsequently paid, they
must be Included in the return for the year III
which they are paid.
TO give tull effect to tho proyiso to the
Dinets-drst section Of the act Of July l, 1852,
respecting the tax On that portion Of income
derived from United States securities, it is d.
lccted rhat when income is derived partly
from these and partly from other sources, the
5000 and other allowances made by law shall
lie deducted, as far as possible, from that por-
tion Of income derived from other sources,
and subject to the three per cent. tax.
No deduction can he allowed from the taxa
blc ipcome Of a merchant far comncnsot;on
paid for the services Of minor son.
4 farmer. when making returns ofthe total
amount OF his - farm pruduce,n shall be ul-
lowed to deduct tliereffom the sub.istence nf
horses, mules, oxen and cattle used cxclu
siyely in cnrryinu mn mid farm The form
"farm 1,roduse il s construed % % to inclpc MM al II
| productions Of a farm, Of What nature or
| kind sneyer. The aerouut IF strrlS sotd hr n
| cluded in the present asseSsmrnt. Int the
1rof1t realized thereby r.nst l,c arcnnnte1 lar
in llis Guyt ,ear's ret1ru. Where he las In.
| cludci in Tia refurr, 11,n urotlnce ro;scd hv
| lim and fed in whole o. 1art to stock subss-
| oucutly sold, be must accouat for the gain
Where be las not Included th. produce 40 fed.
he 1lust return. as profits. the difference be.
tween the raue Of sud said stock, onthc s!st
| Dtcemper. lSoi, anc Inc amount ftanzed Tor
them. Fertilizers purcha a:ed BY farmers to
An1nsaln thtif iahd IN us present pr0dactlyc
condition Will bc considertd ~ repairs In
estnnaf1ng income
Interest Should be considered us income
ob'y Whtn l'ad, un!ess It Is conectable, and
remains unpaid by The consent or agreement
ufthe creditor.
Losses incurred IN the prosecution OF busi-
| ness are 1a1r ouset 10 Galns derived from ou-
slnces, bnt mol from those portions Of income
| derived from liked Investments, such as bonds,
mortgages, rents, &c.
lroref7! useo IN business, aud furnishing
p1ohts, when destroyed " IRE, may be re-
stofea u Int expense OF those prom 8, to the
eoGaltson "nen destroyed. insured. the
1Ineience oet"eeh t1e insurance fecelsed and
me amount expended III tne restoration will
oG alo"ea:
Ihe increased ra!ne e.sen to ,l't; n9T : buildings
~ permanent improvements Will be charged
70 Sapatol, MOI income.
CouIngen1 1unos OF 1nanu1actnflns corpo'
fatons' MADE up during the Year let55, and not
distributed, should not be returned as part
Of the income Of stockholders.
Undittributed earnings Of corporation,
| made previous to September /, 1862, whether
tie corporation is required TO pay tax on
dividends or not, Is rot considered s the In.
come Of the stockholders, nor Is the corpora
tion required to make return Of said reserved
farpipg; fA,ts;s5- so7on,;a. - 80
c1o1;t.1i" tnst,snt;"ns ~ ~ i,ands - ut u.usr
ees ~ nthars are nv sr1,;aat ~ . ;no ~ nuet-
Wh.n ncrsnn hn.-Ss ~ -. .ants - roc,-a 49, -.
7onms the ~ ,hcTeof T., 1;ar - ~ ..,t - -
na s;ect f ilUm INC amount OF in
Losses sustained in business since Decem.