Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1863-06-05

The Commissioner Of Internal Revenue,
made hast week the following highly impor-
tant decision, covering the whole ground Of
the income tax
The 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. When not vo-
ter, the place where the 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 division Of pro
fits shall be made until the expiration Of the
partnership, each member Of such firm will be
required to return his share Of profits arising
from such business for the year 1867, as, mad
they so desired, division Of the profits could
have been made.
Gains or profits realized from the sale Of prop
erty during the year 1862, which property was
purchased before the Excise law went into effect,
should be returned as income for the year
1862.
Executors or administrators OF estates oil per
sons who died in the year 1862 should make a
return Of the income thereof
4 merchants return Of income should cover
the business Of the year 1862, excluding the
previous years. Uncollected accounts must be
estimated.
PHYSICIANS and lawyers should include the ac-
tual receipts for services rendered in 1867, to
gether with an estimate Of the unreslizcd or con-
tingent income due to that year.
Dividends, and interests payable in 1857,
should be returned as income for that year, no
matter when declared.
Dividends derived fron g.s stock are isHable
ss income.
Income derived from coal niin must be re-
turned. although the tax has been previously
paid on coal produced. No deduction can be
made because Of diminished value, actual OF sup
poscl, Of a coal vein or bel, by process OF
mining. The rent derived from coal mines i
income.
Premiums paid for life insurance are not al
Lowell az deduction in the statement Of n
come.
Pensions received from the United States Gov
eminent must be returned with other income
subject % taxation.
on debts, formerly considered h0pelsssly lost,
hut nail within the time covered by the return
OF income, should be iucluied N this statement.
Debts considered lost On the olz' December, So,
ami due 90 the business Of the year 1852. may
o. I.Il.rel from the profits o.: business. II
sut.-4 ueutly plid. they mus; he iucluied in the
lctrl r the year iu which they are pad
Do give fun eioc, 90 the proys0 TO the ninety
first section q the act of July /, ls62, respect
ing tle TAX cu that portion O. income derived
tom United State, securities, IL is directed that
when income is derived partly from these and
partly from other sources, the 5000 and other
allowances made by law shall be deducted, a.
flras POSSIBLE, from that portion Of income de-
rived from other sources, AMI subject 90 tie
three per cent. tax
No deduction can be allowed from the taxable
income Of a merchant FIR compensation paii f.'
the services q q minor son.
A farmer, when making returns 81 the t1ta.
amount Of his &" farm prlduce.' shall be- a.
lowed % deduct theretrom the subsistence oi
horses. mules. oxen and cattle used exclusively
in carrying on said farm The term farm
produce " is construed % include al pr0duc-
tons Of a farm, Of what nature or kind Sever.
The account Of stock sold BY farmer since Dec.
81, 1862, should not be included in the present
assessment. but the profit realized thereby must
be accounted Cor in his next years return
Where he has included in his return the produce
raised by him and fed in whole or part % stock
subsequently sold, he must account for the gain
realilsl by feeding and selling sad stock. Where
be has not included the produce so fei, be must
return as profits the difference between the value
Of said stock, on the 6lst December, 1851, and
the amount realized for them Fertilizers pur-
chased BY farmers 20 maintain their land IN its
present productive condition viii Re considered
is ~ repairs IN tetlmdlln- LuCn-Nt-
Interest should be considered as income only
when paid. unless it is collectable. and remains
unpaid by the consent or agreement Of the cred
itor.
Losses incurred in the prosecution q business
are a fair offset to gains derived from business,
but not from those portions OF income derived
from fixed investments, such as bonds, mort
cages, rents, SC.
Property used in business. and furnishing
profits, when destroyed ~ fire, may be restored
At the expense Of tho-e prodt-, TO the condition
when destroyed. II insured, the difference be-
tween the insurance received and the amount eX-
pended in restoration viii he allowed.
The increased value given 10 4 new building
by permanent improvements will be charged to
capital, not income.
Contingent funds Of manufacturing corpora
tons made up during the year 1852, and not
distributed should not be returned ~ a part Of
the income Of stockholders.
Uudstributei earnings Of corporation. made
previous to Sept J.. 1852, whether the corpora
ton IS required to pay tax on dividends or not.
is not considered as the income Of the st0ckh9li-
ors, nor is the corporation required 10 make re-
turn Of said reserved earnings az Trustees, IN
der section % Of the Excise LAW.
The income Of literary, scientific, or other char
liable institutions, in the hands of trustees or
others, are not subject to income tax.
When person boards, OF rents a room or
MONS, the rent thereof, in lieu Of the rent of a
house, Is deducted from the amount Of income
subject 70 taxation.
Losses sustained in business since Dee. 81,
1852, viii not enter into the income assessments
for 1867
Interest on borrowed capital used IN business
may be deducted from income.
Ii planter returns al his farm products, be
VIII be allowed 20 deduct the actual expense q
subsistng apd clothing his slave.
Legltces are not required TO r,turn their lcga-
c.es 3s income. The income tax Is assessed upon
the actual income Of individuals.
Firms, as such, viii not make returns.
The profits Of a manufacturer from his bust
ness are not exempt from the Income tax in con-
sequence ofhs having paid the excise tx imposed
by law upon ARTICLES manufactured by him.
As bridge, express, telegraph, steam and
ierry-boat companies or corporations are not
authorized by law to withhold and pay to the
Government any tax upon interes, paid, or divi-
dend declared by them, all income Of iudividu-
ais derived from these sources Is liable 10 the In
come tax.
Al persons neglecting or refusing to make IL
turn Of income, except in case Of sickness. are .
brought within the penalties prescribed by the I
eleventh section Of the act Of July l, 1862, VIZ;
an addition Of 80 per cent TO the amount ascer-
taInei by the Assistant Assessor, upon such in I
formation as he can obtain, and the penalty Of I
5 100, 10 be recovered for the United States with
costs Of suit.
Obituary.
WHEREAS. 1t has pleased God to recently take
away from amongst US three Of our number,