Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1863-06-04
THE INCOME TAX.
Important Decision of the Commits
sioner of Internal Revenue.

The Commissioner of Internal Revenue has
just made the following highly important de-
eis'en, covering the whole ground of the in
come tax: "'
me income tax must be assessed and paid
IN the district in which the assessed person
resides. The place where person votes. or is
entitled to vote, is deemed his residence, -
hen not voter, the place where The tax on
personal property is paid is held to be the
place of residence. .....
In cases of limited partnerships, form ed
win The condition that no dividend or ,div-
, sion iprofts shall be made until the expira-
ilon OF the partnership, each member of such
hrm VIII be required to return his share of
profits arising from snch business Tor the year
jl862, as, had they so desired, Il division OF the
profits could have been made. ..i4 F.
2 Gains OF. profits realized from the sale of
property during the year l862. which proper.
'ty was purchased before the excise law wen,
into effect, should be returned as incomr for
the year 1862. .-ar -. ....-.. .t
Executors or administrators of esiates Of
persons who died in the year 1862 should
make q return of the income thereof
A merchants return of income should GOV.
er the business of the year 1862, excluding
the previous years. Uncolectcd accounts
must be estimated -. E..t.H'.
Physicians and lawyers should include the
actual receipts for services rendered in S62
together with an estimate of the unrealized or
l,,, .,t..,. q.
E Dividends, and interests payable in 1862,
should he returned MS income for that year,
no matter when declared ...
81 Div idends derived from gas stock are taxi
Bile as income. -'-. .... ....H. .t
Income derived from coal mines must he
returned, although the tax has been previous
ly paid on coal produced No deduction can
be made because of diminished value actual
or supposed, or a coal vein or bed, by process
of mining The rent derived from coal mines
is income.
Premiums paid for life insurance are not
allowed as deduction in the statement OF
income. .r 81. go. Ne.. .s. rH. b. '."s.
Pensions received from the United States
Government must be returned with other in.
come subject to taxation. r., . '.f .i
Old debts, formerly considered hopclessIt
lost, but paid within the time covered hy The
return otincome, should be included in ihis
statement. Debts considered lost on the 81 ST
December, 1862, and due to the business of the
year 1862 may h, deducted fron the Profits of
business. II subsequently Imid, they must lie
included i" the return for the year in which
they are paid. "rN ". A.. ..
To give full effect to the proviso to the
ninety-first section Of the act Of July /.
1862, respecting the tax on that portion of
income derived ftum United States securi-
ties. it is directed that when income is de-
rived partly from, these aud partly from 9TH
or sources, the 5000 and other allowances
made by law shall be deducted, as far as
possible, from that portion of income deri
we'd from other sources, and subject to the
three per cent tax .l5 '.dr " r.
No deduction can be allowed from the
taxable income of a merchant foI compen-
sation paid for the services of minor SON
A farmer, when making returns of the
total amount of his farm produce" shall
be allowed to teduct thercfrom the subss-
lance OF horses, mules, oxen and cattle used
exclusively in carrying on said farm. The
term farm, produce" is construed to include
all PRODUCTIONS of farm, of whatever ma
t,re or L nd soever. The account of stock
sold bv a larm,r since December 3lst, 1862,
should not be incuG.,1 in the present assess
ment, but the profit realized thereby must
be accounted for in his next years return
Where he has included in his return the
produce raised by him and fed in whole or
part to stock subsequently sold, he must ac-
count for the gain realized by feeding and
selling said stock Where lie has not inclu-
ded the produce so fed, he must return, as
profits, the difference between the value of
said sto * on the 31st December, 1861, and
the amount realized for them, Fertilizers
purchased by farmers to maintain their land
10 its present productive condition will be
considered asdcrepairsHy in estimating in
come 2sf'~if ''.s.iF ~