St. Mary's gazette., 1863-10-15
THE; lNcoMEarzm
Decision by the Cpinmis-
siOher Of Internal 1sFeQns

Important Decision by the Cpmmis-
sioAer Of Internal 0sFeRass.
The Commissioner of Intalll1 ne
has just made the following fiekI ~
portant dccision. covering iha whd6
ground of the income tax. -
The income tax must be assessed and
paid in the di.tric. in which the assessed
person resides The place where a person
votes, or is entitled to voc, is deemed bis
residence. Wbea not voter, the place
where the tax on personal property is paid
is held to be the place IF residence.
In cases Of limited partnerships, formed
with the condition that no dividend or
division Of profits shall be made until the
expiration of the partnership. each menu
Der Of such firm will be required to return
bis share of profits arising from such bust
ness for the year 1862, us, had they SO
desired, a division of the profits could
have been. made
Gains or lrofts realized from the sale
of property during til: year 1862, which
property was purchased before the excise
law went into effect, should be returned as
Income for the year 1862.
Exc cutors CT administrators Of estates of
persons who died in the year 1862 should
make return of the income thereof.
\ merchants return Of income should
cover the business of the year 1862, ex-
GLIDING the previous years. Cncollccted
accounts must be estimated.
Physicians aid lawyers should include
the actual receipts for services rendered in
1862, together with au estimate Of the
unrealized or contingent income due to
that year.
Dividends, aud interests payable in
1862, should DC 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 be"n
previously pasd on coal produced No
deduction can be made because of dimin-
i>hcd value, actual or supposed. Of coal
Vein or bed, lE process of mining. Tic
rent derived fir pun coal mines is income.
Premiums paid FIR life Insurance are
not allowed al deduction in the state
mr.t of income.
Pensions RECEIVED from the United
Stats Govern n, Mt must be returned with
other Income suljct to .dxatinn.
Old debts, iurm' rly CONSIDERED hope
l,s>ly lost, Lut puii within the time COW
cred by the return Of income, should Le
t,.l
silered lost on the 3l>t December, 1862,
aud due to thc business of the year 1862,
may be deducted from the profits of bust
ness. If subsequently paid. they must
be included in the return for the year in
which they are paid.
To give full eif,c to the proviso to the
ninety first section of the act If July |,
1852. respecting the tax on that portion
of income derived from Uuited States Sc
curiiics, it is directed that when income
i derived partly fem these aud partly
from other sources. the 5000 aud other
allowances made by law shall be dcduc-
ted, a. far as possible, from that portion
anu subject to- the three per. cent tax.
n" deduction can be allowed from the
tax able income of merchant for compcn-
sation paid forithc services of Il minor son
A farmer, when milking returns OF the
total amount Of his farm produce" shall
lie allowed to deduct ther,from the SUBJ
si.tcncc of herses, uuless, oxen AMI cat
lie used exclusively in carrying on said
farm. The tcfm farm produce is con-
strucd to include all productions ola farm.
Of whatever nature or kind soever. The
account Of stofk sold by farmer since
December 3lsf. 1862, should not be in
cludeG in the brescnt assessment, hut the
profit realized thereby must be accounted
for in hi. ncxtyear's return. Where he
has included in his return the produce
raised by him hnd fed in ~hole or part to
stock subsequently, sold, he must account
for the gain efliz,d by feeding and selling
said stock. Where he has not included
the produce 81 fed, he must return, as
profits, the difference between the value
of said stock Oh the 3lst December, 1861
and the ainoi1t realized for them. Fer
tilz'rs purehaeed by farmers to maintain
their land in itf present productive condi-
tion will be considered as repairs" in
estimating incSme.
Interest should be considered as in.
come only when paii. unless it is col
lectablc aud remains unpaid by The COLI
sent or agrcenfnt Of the creditor.
Losses incurred in the prosecution Of
business are fair off,ctt to gains derived
from business. abut from those porii"ns Of
income DERIVED from fixed investments.
such rs bonds. mortgages. rents. &c.
Property u>fd in business. and fur
ui.hing rr"ftI when destroyed by fire.
ms be rr>torfd at the expense of those
pr..fts, to thca condition when destroyed
If insured, the difference between the
insurance received and the amount ex-
peu.lcd in ,helrrs.oration will be allowed.
The incrcas.d valne given to new
iuildihg BY permanent Improvements will
Ia <b...r..I A-,c.t,l NOT ;r.,,,,n