The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1863-06-06
Important Decision by the Com
missioner Oflnternal Revenue.

has lust made the following highly impor-
tant decision, covering the whole ground
of the income tax.
= The income tax must be assessed and
Maid in the district in which the assessed
person resides. The place where u person
votes or is entitled 10 vote, is deemed his
residence. When not u voter, the place
where the tax on personal property is paid
ia held to be the place of residence.
In cases oflimited partnerships, formed
with the condition that no dividend or di-
vision of profits shall be made until the
expiration Of the partnership, each mem
her of such firm will be required to return
his share of profits arising from such bust
ness for the year 1862, as, had they so des-
ired, a division of the profits could have
been made.
Gains or profits realized from the sale of
property during the year 1862, which prop
erty was purchased before the Excise law
went into effect should be returned as in
come for the year 1862.
Executors or administrators of estates of
persons who died in the year 1862 should
make a return of the income thereof.
merchants return of income should
cover the business of the year 1885,, exclude
ing the previous years. Uncollected ac-
counts must be estimated.
Physicians and lawyers should include
the actual receipts for services rendered IN
1852. together with an estimate of the UNI
realized or contingent income due that
year. 1000
should be returned as income for that year
no matter when declared, II
Dividends derived from gas stock are
taxable as income.
Incomes derived from coal mines mustbe
returned, although the tax has been pre-
viously 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 coal mines is income.
Premiums paid for the insurance are not
allowed as deduction in the statement OF
income.
Pensions received from the United States
Government, must be returned with other
income subject to taxation.
Old debts, formerly considered hopeless
Nv lost, but paid within the time covered
by the return of income, should be includ-
ed in this statement. Debts considered
lost on the 3lst of December, 1852, and due
to the business of the year 1867, may be
deducted from the profits of business. If
subsequently, paid, they must be included
in the return for the year in which they
are paid.
TO give full effect to the proviso to the
sininety-first section of the act of July l,
1862, respecting the tax on that portion OF
income derived from United States securi-
ties, it is directed that when income is de-
rived partly from these and partly from
other sources, the $500 and other allow
ances made by law, shall be deducted rs
far as possible, from that portion of income
derived from other sources, and subject to
the three per cent. tax.
No deduction can be allowed from the
taxable income of a merchant for COM
pensation paid for the services Of minor
son.
SIS A farmer, when making returns of the
total amount of his farm produce" shall
be allowed to deduct therefrom the subslst-
ence of horses, mules, oxen and cattle used
exclusively in carrying on said farm. The
term farm produce is construed to in.
clude all productions of farm, OF what
nature or kind soever. The account o.
stock sold by farmer since December 81
1862. should not be included in the present
assessment, but the profit realized thereby
must be accounted for in the next years
return. Where he has included in his re-
turn the produce raised by him and fed IL
whole or part to stock subsequently sold
he must account for the gain realized by
feeding and selling said stock. Where he
has not included the produce so fed, ne
must return as profits, the difference
between the value Of said stock on the 3ls
ofDecember. 1861, and the amount realized
for them. Fertilizers purchased by farm
ers to maintain their land in its present
productive condition., will be considered as
REPAIRS in estimating income.
Interest should be considered as income
only when paid, unless it is collectable, anG
ment of the creditor.
Losses incurred in the prosecution of bu
sines are a fair offset to gains derived from
business, but not from those portions o
income derived from fixed investments
such as bonds, mortgages, rents, &c.
Property used in business, and furnish
ing profits, when destroyed by fire, may b.
restored, at the expense of those profits, K
the condition when destrosed. If insured
the difference between the insurance re-
ceived and the amount expended in the re
storation will be allowed,
The increased value given to new build
ing by permanent Improvements will b'
charged to capital, not income.
A Contingent funds of manufacturing cor
porations, made up during the year 1862
and not distributed, should not be returned
as a part of the income of stockholders.
III Undistributed earnings of a corporation
made previous to September L, 1862, wheth
er the corporation is required to pay tax
on dividends or not. is not considered as tn
income of the stockholders, nor is the cor
poration required to return of said reserv
ed earnings as trustees, under section 90 Q
the Excise law.
The incomes Ofliterary, scientific, or 9th
er charitable institutions, in the hands o
trustees brothers, are notsubject to lncom
tax.
rooms. the rentthereof, i'm lieu of the rem
of a house is deducted from the amount
income subject to taxation.
Losses sustained in business since De
cember 81, 1852. will not enter into the IN
come assessment for 1862.
Interest on borrowed capital used IL
business may be deducted from income.
fla planter returns all his farm product
he viii be allowed to deduct the actual ex
pense of subssting and clothing bis slaves
Legatees are not required to return thei
legacies as income. The income tax IS as
sessed upon the actual income OF indivld
uals. htsH
Firms, as such, will not make returns.
The profits of u manufacturer from III
business are not exempt from the incom
tax in consequence of his having paid tn
excise tax imposed by law upon article
manufactured by him. ~
AS bridge, express, telegraph, steam an
ferrybSas companies or eorporationds a.