The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1863-08-06
Decision Relative TO the Assessment of
the Income Tax.


| Decision Relative TO the Assessment OF
] the gncome Tax.
The income tax must be assessed and paid IN me
district in which the assessed person resides 1he
place there person votes or ls entitleo 10 Fo;e
place where tax on personal property 10 palu ID
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 part
pel ship each member of such firm will berequ'r~
ed to return his share of profits arising from such
business, for the year 1862 as, had they 80 desr>
ed, 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 pur
chased before the Excise Law went into effect
should be returned es income for the year 1862
The execu tors administrators of the estates OF
persons, who died in the year 1862, should make
return of the income thereof for the year 1862,
A merchant return of income should cover the
business of the year 1862, excluding prevlo us
years Uncollected accounts must be estimated
Physicians and lawyers should include actual
receipts for services rendered in 1862, together
with an estimate Of unrealized or contingent IN
come due to that year.
Dividends and interest payable in 1862 should
| be returned income for that year, no matter
when declared.
Dividends derived from gas stock are taxable as
income.
Income derived from coal mines must be return
ed, although tax has been previously PAID on
the coal produce, No DEDUCTION can be made be-
cause of the diminished value, actual or suppos-
ed, of the coal vein bed. by the process OF min"
ing Rent derived from coal mines Is income.
Premiums paid tor life insurance shall not be
allowed as deduction in statement of income.
Pensions received from the United States Gov
ernmen, must be returned with other income subs
ject to taxation.
/ old debts. formerly considered hopeessly lost
but paid within the time covered by the return OF
IL bai ,clt haH in hil SIN
Debts considered hopelessly lost on the 3lst OF
December 1862 and due to the business OF the
year 1852 may be deducted from the profits of bus
mess if subsequently paid, they must be inciudN
ed in the return for the year in which paid
n order give full effect to the provlso to the
9lRt section OF the act of July LIST, 1862, respect
ing the tax on that portion OF Income derived from
United States securities, 1t 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 deducted, as far as possible,
from that portion Of income derived from other
sources and subject to three per cent tax
No deduction can be allowed from the taxable
incomes of a merchant for compensation paid for
the services of a minor son.
A farmer, when making return of the total
amount of his farm pr0dute e. shall be allowed
to deduct thereromthe subsistence of horses mules
oxen, and cattle used exclusively in the carrying
IN OF said farm The term farm produce" Is con-
sIrued to include all productions OF farm, OF
what nature or kind soever.
The account Ct stock sold by farmer since De-
cember 3 ST. 1862 should not be included in the
present assessment, but the profit realized there's
Nv must be accounted for in his next year 8 re- |
turn. Where be has included in his return proc |
duce raised by him, and fed in whole or part TO |
stock subsequently, sold, he must account for the |
Grain realized by the feeding and selling of said |
stock Where he has not included the produce so
fed he must return, as profits, the difference be-
tween the value of said stock on the 3lst OF Dee
cember 1861, and the amount realized for them
hos cod nv faro IN m
their land i'll present productive condition, will be
considered as ''repars" in estimating income.
Interest should be considered as income only
when paid unless it is collectabe and remains I'M
paid by the consent or agreement OF the creditor.
Losses incurred in the prosecution OF business
are fair offset gains derived from business, but
net from those portions of income derived from
fixed investments, such as bonds mortgages, rents,
and the like.
Property used in business and furnishing pro-
fits when destroyed by fire. may be restored at
the expense of those profits to the condition when
destroyed if insured, the difference between in
suranCe received and amount expended In restOr-
alton will be allowed.
The increased value given new building by
permanent improvements will be charged to caps
t4l--not income.
The contingent fund of manufacturing corpora>
ions, made up during the year 1862, and not dis
ributed, should not be returned as part OF the in
come of stockholders.
The undistrbuted earnings of n corporation,
made previous to September LIST, 1867, whether
the corporation is required to pay tax on divl-
lends or NOT. should not be considered as the in
come of the stockholders nor should the corpo-
ration be required to make return Of said leserv-
I'd earnings as trustees, under section 93 OF the
Excise Law.
The income of literary, scientific, or other char
table institutions, in the hands of trustees or 9TH
srs is Il OF subject to income tax.
Whea person boards, and rents q room or
rooms the rent thereof. in lien of rent of house,
should be deducted from the amount of income
subject TO taxation.
Losses sustained in business since December
LIST, 1862 will not enter into the income assess
ment tor 1862
Interest on borrowed capital used in business
may be deducted from income.
Ii planter returns all his farm products, he will
be allowed to deduct the actual expense of subsst-
ing and clothing his slaves
Lega,ees n It required to return their lega>
cies as income There is special tax on legaces
of personal property in section III.
The income tax is assessed upon the actual ln>
come OF iadiuadaais. Firms, as such will not make
returns
The profits of manufacturer from his business
are not exempt from income tax, in consequence
Of his having paid the excise tax imposed bylaw
upon articles manufactured by him.
AS bridge, express telegraph, steam and ferry
BOAT companies or corporations are not authorized
oy law to withhold and pay to Gov eminent any
AK upon interest paid, or dividend declared by
hem all income of individuals derived from these
sources is Liable to income tax.
All persons neglectng refusing to make re-
urn of income, except in case of sickness, are
ought within the penalties prescribed by the
tn section of the act Of July LIST. 1862, viz an
addition of 80 per cent TO the amount ascertain
ID by the Assistant Assessor, upon such informaN
ion as he obtain, and penalty OF 500 to be
recovered tor the United States, with costs of suit.