Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-22
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested TO prepare an abstract
of what 10 required by law In reference to the In
come Tax. and Of the decisions oy .ne pspsrt.
have arisen, we present tho whole subject, under
It's several distinct heads;
STATEMENT SHOULD De MADE-.wHERE, wHES'
AND BY WHOM.
/. The law requires every persol oflawful age;
rsidlng In the United States, 10 renoer 70 tns
Assistant Assessor Of the sub.dlItrict IN wnicn ne
or shs may be- residing on tho LIST day 0 fAay, q
written statement, according TO q prescribed
form, Of the amount Of bis or her income, gains
and profits during the previous year, RON Jam
uary lst TO December 3lSt, DO b days inclusive
printed blank containing this form can DO 90.
tained from the Assistant Assessor. A person
having no liked residence, should make q state
nent wherever be or she may happen TO b.; and,
In case OF emova TO another district, should take
q certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make q second assessment. =
2. The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
o written or printed notice requiring II, has been
left Ut the place Of residence or Of business, or do.
posted In tho pearest Post Office. r..s
3. The annual income tax Is q personal tax,
and IL cannot be assessed against any corporation,
company, or partnership, as such Every indi.
vidual member must make q statement Of his or
her share Of or Interest In the gains and profits Of
such company, etc, whether such guins and
PROFITS are divided or not, and mu.t also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5 II any person nrglects or refuses to render o
written statement, the Assistant Assessor II 70.
quested TO hll out q blank with such persons
name, and taxable income estimated according to
tho best information that can be obtained, and
upon this estimated income to assess the tax, and
then to add 25 per cent, to such tax as q penalty
for neglect or refusal.
G. An Assistant Assessor may be misled In
making this estimate, by being misinformed az TO
money received, or not informed as 10 money
paid. He must assess, however, according to tho
b-st information within bis reach. The only per.
son capable Of giving absolutely correct informu.
ton Is frequently the one who refuses or neglects
10 make q statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is o bar to all complaint, should the assess.
ment prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II errO
neous, II Is always troublesome to the party In.
terested 10 have Il corrected. All persons. there.
fore, but especially such dshdrt no tardbLs income,
should not fall to render the required statement,
upon the proper blank, 30 on TO avoid undue tax.
alton and trouble.
7. Every statement must be verified by oath or
affirmation. When this Is not done. the Assistant
Assessor Is required TO estimate the income and
TO add 25 per cent to to the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power TO fHeyedss
the amour. In any statement, after giving duo
information to tho party interested. He - 70.
quired, also, to add 100 per cent. to the tax when
q false statement has been rendered and the
party making tho false statement becomes liable,
not only for this additional tax. but likewise TO
two distinct prosecutions before the United States
Courts-one for making q false statement with In.
tent TO defraud the Government, and the other
for perjury.
MiSSER OF MAKING up STATEMENT OF INCOME.
BY the llSth section Of the law, tho Commits.
sioner OF Internal Revenue 10 empowered 10 pre-
scribe the form and MANNER In which the state.
ment Of Income must 10 made up. This he has
\ done In q printed blank used by the Assistant As.
sdKsor, and In VARIOUS circulars and rulings. Tho
following Is a summary Of what has been pre-.
scribed:
suits OF life and the investments Of capital have
been div ided must DO returned ifpdrdtely- losses
in ono not being allowed 10 offsrt gains in another.
Thus y merchant who engages In farming or In
speeulations not belonging to his legitimate busi.
uess cannot Offset gains In tho one BY losses In
the o.her.
Q The expenses incident TO each business 70
deductlble from the receipts Of that business.
3. Sprculations kSitimaely belonging 10 any
business, and these alone. may DO carried into Its
profit and loss account. Thus q broker may spec.
ulute In stocks, q dry goods merchant In cotton, q
hardware man In iron, ETC.. and such speculation
III. y affect the gain and loss Of such legitimate
business. A merchant also may make or lose W
exchange or the kind Of money paid for his mer.
ehsndist. and this gain or loss belong. TO bis mer.
chaudIre account. But II he buys gold. uncurrrnt
money. United states Treasury notes, or any
other thing not one Of the articles Of trade belong.
Ing 10 his regular business, for the purposs OF
speculation, the profit or loss from such specula.
ton will not be allowed to affect the profit or loss
from his regular business. A business frm
placed Si0,0U In the hands Of o New York bro.
ker, ins,rueting him 10 use II In the purchase and
sale Of gold, on their account and having lost
SCI 500 In this venture, they claimed that IL
should be deducted from their profits In business.
Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that ~ hen a
loss Is made In any particular business, against
which there arc no gains to Offset, It Is consid'
cred q dead loss Of capital invested In that busi'
ness" Again, "loss Of capital cannot be de-
Quoted from income" Return Of income mus,
be made on the sains." !.
4. How far different kinds OF business must b
returned separately Is shown by the followini
rulings OF Commissioner Rollins:
(al-'Loss incurred In the prosecution Of one
kind Of buslness cannot be deducted from gain III
business OF an entirely dGrsntehardesr, nor from
salary, rents, dividends, etc
N)-'Losses Incurred In the prosecution Of ont
branch Of business cannot be deducted from gair
Ia another, since On absolute loss incurred In the
prosecution OF a single business Is indispensably
y loss Of capital
(c)-"Losses In merchandise can be deducted
only from gains In merchandise; but. In this case
particular branches Of merchandise need not bt
separated. so In speculation, the loss or galr
from stocks may offset loss or gain from produce
speculated In"
M-"Merchants must make return Of theli
profits from merchandise without regard to theil
losses In speculation, or gains from interest. divl
dends, rents, or any other source"
e)-"Losses In speculation cannot be deductet
from salaries, nor from gains In merchandise
When losses are sustained In one speculation ant
gains made In another speculation. such losset
may be deducted from such gains Losses In on
branch Of merchandise may be deducted from
gains 10 any other branch Of merchanaise."
CO-"Where stocks, etc., are bought as q per
manent investment, and sold again merely q
change the Investment. q loss sustained In th'
sale may DO deducted from the dividends from
such stock. But where the purchase 10 made FOL
the purpose Of selling again on speculation. the
loss sustained by tho sale cannot be deducted
from dividends, but nay DO deducted from gaini
derived from the pErehass and sale OF stock, etc.,
In the same year."
INCOME FROM RESTs OF BUILDINGS
From tho total amount Of such rents received
within the year for which income Is estimated OF
ofsald year, should be deducted:
LIST. The amount paid or due. by the owner, fol-
repairs made within tho year, not exceeding The
yearly average paid ont for such purposes for the
preceding hvc years, AND not including any
amounts paid or due for new structures, or fol
new and permanent improvements.
Cd. Insurance for the year paid by the owner
upon the buildings rented or offered for rent, moi
including insurance paid upon any other prop
erty, real or personal.
81. Interest which accrued for the year on Ia.
cumbrances upon the buildings rented or offered
for rent, or upon the lands on which they stand,
whether such interest has been paid or remains
due. -, ,
All buildings offered for rent will be regarded
together, no segregation being required. Repairs,
insurance and interest paid on account OF any
and All such buildings. whether occupied or not,
will be deducted from the total amount Of rents.
Taxes will not DO deducted rom rents. but
from gross income from all sources.
BY The law Of June 30. 1854 In estimating In,
come IRON rents, no account IL taken Of the rental
value Of q home,tead occupied by the owner
Payments for repairs, insurance and interest, on
account Of q homestead, will be considered here
after. when treating Of general deductions from
gross income. 10 80
Dissolution.
NOTICE IS HEREBY GIVEN. THAT THE
A. a. n No