Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1863-06-02
ReguIatioBa Of the Income Tax.

and paid in the district in which the as
sessed person resides. The place where a
person votes, or is entitled to vote, is
deemed his residence. When not voter,
the place where tax on personal property
is paid, is held to be the place of residence.
In cases Of limited partnerships formed
with the condition that no dividend or di-
vision of profits shall be made until the ex-
piration Of the partnership, each member
Of such firm will be required to return his
share Of profits arising from such BUSINESS
for the year 1862, ss had they so desired
a division of the profits could have been
made Gains or profit realized from the
sale Of property during the year 1862,
which property was purchased before the
Excise law went into effect, should be re-
turned as income for the year 1862.
The executors or administrators Of the
estates Of persons who died in the year
1862 should make return Of the income
thereof for the year 1861. a merchants
return Of income should cover the business
of the year 1862, excluding previous years.
Uncollected accounts must be estimated.
Physicians and lawyers should include
actual receipts for services rendered in
1862, together with an estimate Of unreal
ized or contingent income due to that year.
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
tax has been previously paid on the coal
produced. No deduction can be made be-
cause of the diminished value, actual or
supposed, Of the coal vein or bed by the
process Of mining. Rent derived from
coal mines is income. Premiums paid for
life insurance shall not be allowed as de-
duction in statement of income. Pensions
received from the United States Govern
ment must be returned with other income
subject to taxation. Old debts, formerly
considered hopelessly lost, but paid within
the time covered by the return Of income,
should be included in this statement.
Debts considered hopeIessly lost on De-
cember 81. 1852, and due to the business
of the year 1852, may be deducted from
the profits Of business. If subsequently
paid, they must be included in the return
for the year in which paid.
in order to give full effect to the pro-
viso to the ninety-frst section Of the act
Of July l, 1862, respecting the tax on that
portion Of income derived from United
States securities, it is directed that when
income is derived partly from these and
partly from other sources, the $500, and
other allowances made by law, shall be de-
Quoted, as far as possible, from that por-
ton OF income derived from other sources,
and subject to per cent tax. No deduc-
ton can be allowed from the taxable in
come Of a merchant for compensation paid
for the services of minor son.
"a farmer, when making return Of the
total amount Of his farm produce, shall be
allowed to deduct therefrom the subsist-
ence Of horses, mules, oxen and cattle used
exclusively in the carrying on Of said
farm. The term farm produce is con-
strued to include all productions Of farm,
of what nature and kind soever. The ac-
count Of stock sold by farmer since De-
oember q, 1862, should not be included in
the present assessment but the profit re-
allied thereby must be accounted for in
his next years return.
Where he has included in his return pro-
duce raised by him and fed in whole or
part to stock subsequently sold, he must
account for the gain realized by the feed
ing and selling Of said stock. Where he
had not included the prOinse so fed, he
must return as profits the difference be-
tween the value Of said stock on the 31st
Of December, 1851, and the amount real
lied for them. Fertilizers purchased by
farmers to maintain their land in present
productive condition will be considered as
"repairs in estimating income.
Interest should be considered as income
only when paid, unless it is collectable and
remains unpaid by the consent Of agree
ment Of the creditor.
Losses incurred in the prosecution Of
business is fair offset TO gains derived
from business, but not from those portions
of income derived from fixed investments,
such as bonds, mortgages, rents, and the
like.
Property used in business and furnish
ing profits, when destroyed by fire, may be
restored at the expense Of those profits to
the condition when destroyed. Uninsured,
the difference between insurance, received
and amount expended in restoration will
be allowed:
The increased value given new build
ing by permanent improvements will be
charged to capital, not income.
The contingent fund Of manufacturing
corporations made up during the year 1862,
and not distrib lted, should not be returned
as part of the income Of the stockholders.
The undistributed earnings Of corpor-
alton made previous TO September, l, 1862,
whether the corporation is required to pay
tax on dividends or not, should not be con-
sidered as the income of the stockholders
nor should the corporation be required to
make return of said reserved earnings as
trustees, under section SO Of the Excise
Law.
The income of literary, scientific, or
other charitable institutions in the hands
of trustees or others is not subject to in
come tax.
When person boards and rents a room
or rooms, the rent thereof, in lieu of rent
of house, should be deducted from the
amount Of income, subject TO taxation.
Losses sustained in business since De-
cember 81, 1862, will not enter income as
sessment for 1862.
Interest on borrowed capital used in
business may be deducted from income.
If a planter returns all his farm products
he will be allowed to deduct the actual ex-
pense Of subsisting and clothing his slaves.
Legatees are not required to return their
legacies as income There is a special tax
on legaoies of personal property in Sec
ton Ill
The income tax is assessed upon the ac-
tusl income of individuals. Firms, as
such, will not make returns.
The profits of a manufacturer from his
business are not exempt from income tax
in consequence Of his having paid the ex-
else tax imposed by law upon articles man
ufactured by him.
As Bridge, Express, Telegraph, Steam
and Ferry-bOat Companies or Corpora
tions are not authorized by law to with
hold and pay to Government any tax upon
interest paid or dividend declared by them,
all income of individuals derived from