Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-18
ABSTRACT OF THE ANNUAL INCOME TAI
1aNGALEINCOMRTTNx.

ANNUAL INC OmRfTAX.
Having been roquSsted 10 prepare an abstract
Of what Is required by law In reference to the In
sams Tnr. and Of the decisions by the Depart
ment at W Warrington upon various questons tnat
have arisen, wo present the whole subject, under
its several distinct heads: .
.r.rryusr SHOULD BE MADE--wHERE, WHEN
AND By WHOM,
The law requires every person OF WI age,
residing In the United States, 70 render 70 ~
hs,jstsnt Assessor of the sub.dlstr.ct in which no
or she may be residing on the LIST day Of May
written statement, according to O preseriDeo
form. Of the amount OF bis or her Income, gains
Md profts during the previous year, rom jan
uary LIST to December 3lst, both days inciusiYe'
A printed blank containing this form can 90 Oh
tanned from the Assistant Assessor. A person
having no ixed residence, should make q state
ment whcreyer he or she may happen TO DO; hnu,
In case of removal to another district, should axe
n certified copy Of such statement to snow any
other Assistant Assessor, who otherwise might
make a second assessment
2. The statement must be rendered on or oe-
fore the LIST day Of May, or within ten days aiter
q written or printed notice requiring 1t, has been
len at the place Of residence or OF business or DE-
posted I'M the pearest Post ONCE.
3. Tho annual income tax Is q personal tax,
and II cannot boassessed against any corporation
company or partnership, as such. Every ihul'
nDA lQU " AhhAO - kusNbhNb ~
her share Of or interest In the gains and profits OF
such company, ETC., whether such gains ana
profits are divided or not, and must also state
separately his or her income from all other
sources.
STATEMENTS.
& II any person neglects or refuses to render q
written statement, the Assistant Assessor IL re-
quested to fill out a blank with such persons
name, and taxable income estimated according 70
the best information that can be obtained, ana
upon this estimated income to assess the tax, ana
then to add % per cent, TO such tax rs a penaty
for neglect or refusal. ,.
6. An Assistant Assessor may be misled In
making this estimate. by being mlsinformed AZ TO
money received, or not informed as to money
paid. lie must assess, however. according 10 the
best information within his reach. The only per.
son capable Of giving absolutely correct informa'
ton Is frequently the one who refuses or neglects
TO mako n statement. If such person will not
take the trouble to inform the Assistant Assessor
there Is O bar TO all complaint, should the assess:
mept prove incorrect, and u heavier tax DO levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neous, Il Is always troublesome to the party In.
tercsted 10 have II corrected. All persons, there
fore, but especially such as hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 30 az 10 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 IS per cent. to to the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power TO increase
the amount In any statement, after giving due
information to the party interested. Ho IL re.
Quired. also. TO add 100 per cent. to tho tax when
y false statement has been rendered ana tue
party making the false statement becomes liable,
not only for this additional tax. but likewise TO
49, Il .., so gn.,a h.fnra Nba IfutfaI Stntna
Courts-one for making u false statement with in
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT of INCOME.
BY the 18th section Of the law, the Commits.
sloner Of Internal Revenue Is empowered to pre-.
scribe the form and manner in which the state
ment Of income must be made up. This he has
done in n printed blank used by the Assistant As
SCISSOR, and in various circulars and rulings. The
following Is II summary Of what has been pre-
scribed:
| suits Of life and the Investments Of capital have
been divided must be returned separately losse,
In one not being allowed TO offset gains In another
Thus a merchant who engages in farming or IL
speculations not belonging TO his legitimate bust
| ness cannot offset gains in the one by losses IN
| the other.
., The expenses incident to each business RI
| deduetIble from the receipts Of that business.
3. Spsculations kgitimately belonging TO any
| business, and these alone. may be carried into III
profit and loss account. Thus q broker may spec
ulate In stocks. n dry goods merchant In cotton, 4
/ hardware man In iron, etc, and such speculation
may affect the gain and loss OF such legitimate
business. A mcrehunt also may make or lose by
| exchange or the kind Of money paid for his mer
| chandise, and this gain or loss belongs TO his mer
| chandise account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one Of the articles Of trade belong
/ - a. A. .a.,lar hnafnnaa for fha nnFnN1A nj
speculation, the profit or loss from such specula
\ tion will not be allowed to affect the profit or losi
/ from his regular business. A business firm
placed $4,000 In the hands Of a New York bro
ker, Instructing him to use 1t in the purchase AND
sale Of gold, on their account and having los
sg7.5 o in this venture, they claimed that u
should BIO deducted from their profits in business
| Commissioner Lewis disallowed the claim, ant
said tho uniform ruling had been that when
loss Is made In any particular business, against
which there are no gains 10 Offset, 1t is consid
cred a dead loss Of capital INFESTED In that bust
ness" Again. "loss Of capital cannot be de
ducted from income" Return Of income must
be made on the gains"
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(a)-"Loss incurred in the prosecution OF on,
kind Of business cannot be deducted from gain In
business Of an entirely diferentehdraeter nor from
salary, rents, dividends, etc
0)-"Losses incurred In the prosecution Of one
branch of buAIness cannot be deducted from gain
10 another, since an absolute loss incurred In the
prosecution Of q single business IL lndlspensably
q loss OF capital"
G)-"Losses In merchandise can be deducted
| oply from gains In merchandise; but, In this case
particular branches OF merchandise need not be
separated. So In speculation. the loss or gair
from stocks may offset loss or gain from produce
speculated In"
(0-"Merchants must make return Of theil
profits from merchandise without regard to theii
losses In speculation, or gains from interest. divi
dends, rents, or any other source"
0)-"Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise
| When losses are sustained In one speculation ant
gains made In another speculation. such lossei
may be deducted from such gains Losses In on'
branch Of merchandise may be deducted from
gains in any other branch Of merchandise
| O-"where stocks, etc, are bought as a per
manent Investment, and sold again merely Il
| change the Investment, q loss sustained In III,
sale may be deducted from the dividends from
such stock. But where the purchase Is made fol
the purpose Of selling again on speculation, TIL
loss sustained by the sale cannot be deducted
| from dividends. but may be deducted from gain
derived from the purehase and sale of stock, etc.
In the same year."
From tho total amount Of such rents received
within the year for which Income Ia estimated. o,
due and colIectable on the Dist day OF December
| ofsaHd year, should be deducted:
LIST. The amount paid or duo, by tho owner, FOL
repairs made within the year, not exceeding th'
yearly average paid ont for such purposes for The
| preceding Ave years, and not including any
| amounts paid or due for new structures, or fol
| now and permanent improvements.
Cd. Insurance for the year paid by the owner
| upon the buildings rented or offered for rent, no,
including insursnce paid upon any other prop
| erty, real or personal.
Cd. Interest which accrued for tho year on In.
| 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
insurauce and interest paid on account OF any
and ali such buildings, whether occupied or not
win be deducted from the total amount OF rents.
Taxes will not be deducted from rents, hui
from gross INCOME from all sources.
By the law Of June 30. 1854, In estimating IN;
como from'rents, no account Ia taken OF tue fenthi
value Of a homestead occupied by the owner.
PAYMENT for repairs, insurance and interest, on
account of a homestead, will be considered here
after. when treating Of general deductions from
gross income.
RedingtOn a. Co.'s