Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-14
ABSTRACT OF THE ANIMAL INcoAs TAX.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STITHMENTA.

EVILS OF NEGLECT TO MAKE OUT OK FEklfi
STATEMENTS. .
written statement, the Assistant Assessor Ia re-
quested to fill out o blank with such persons
name, and taxable income estimated according 10
the best information that can DO ootaintd' ana
upon this estimated income to assess the tax ana
then to add 25 per cent, TO such tux w a penalty
for neglect or refusal.
q. An Assistant Assessor may be misled IN
making this estimate. by being misinfOrmed Ms TO
money received. or not informed ~ 10 money
paid. lie must assers. however, according to the
best information within bis reach. The only per
son capable Of giving absolutely correct informA'
ton il frequently the one who refuses or neglects
to make a statement. If such person will not
take the trouble to inform the Assistant Assessor,
there Is u bar to all complaint, should the assess.
ment prove incorrect, and a heavier tax be levied
than would otherwise be charged. Moreover,
after an assortment has once beon made. II GRO
neous. II IL always troublesome TO the party In.
tcrested to have Il corrected. All persons, there.
fore, but especially such a. hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 10 as TO avoid undue tax.
alton and troublnt
Z. Every statement must be verified by oath or
a&rmd>-In. When this il not done, the Assistant
Assessor Is required 10 estimate the income and
TO add IS per cent to TO the tax.
EVILS OF MAKING A FALSE STATEMENT
y. An Assistant Assessor has power to tneroass
the amount In any statement, after giving due
information to the party interested. He IL re-
quired, also, to add loo per cent. to the tax when
Y false statement has been rendered and the
party making the false statement becomes liable,
not only for this additional tax. but likewise to
two distinct prosecutions before tho United states
Courts-one for making q false statement with In.
tent to defraud the Government. and the other
for perjury.
MANNER OF MAKING Up STATEMENT OF INCOME.
By the lleth section OF the law, the Commits
sioner 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 Az.
SCISSOR. and In various circulars and rulinga The
following Is q summary Of what has been pre-.
scribed:
l. Each Of ths great classes into which the pur.
suits Of life and the investments Of capital have
been divided must be returned sepdrdtely- losses
In one not being allowed to Offset gains In another.
Thus Y merchant who engages In farming or In
speculations not belonging TO his legitimate busi.
ness cannot offset gains in tho one by losses In
the other.
. The expenses incident to each business re
| deductlble from the receipts Of that business.
3. Speculations lgitimately belonging to any
business, and these alone, may be carried into Its
profit and loss account. Thus q broker may spec.
ulato in stocks, q dry goods merchant In cotton, q
hardware man In iron, etc, and such speculation
may affect the gain and loss Of such legitimate
businesE. A merchant also may make or lose by
exchange or the kind of money paid for his mer.
chaudise, 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 ono Of the articles Of trade belong.
Ing to his regular business, for the purpose Of
speculation. the profit or loss from such speculR.
| ton will not be allowed to affect the profit or loss
from his regular business. A business firm
| placed S40,0O In the hands Of a Now York bro.
ker, instructing him to use II In the purchase and
sale Of gold, on their account and having lost
SEA, 500 in this venture, they claimed that II
should be deducted from their profits in business.
Commissioner Lewis disallOwed the claim, and
said the uniform ruling had been that " hen q
loss IL made In any particular business, against
which there are no gains to offset, II Is consld.
cred u dead loss Of capital inrtsted in that bHsi.
ness" Again, loss Of capital cannot be de-
Quoted from income" Return of income must
be made on tho 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 one
kind Of business cannot be deducted from gain In
business Of an entirely d1erentehdrGeter, nor from
salary, rents, dividends, etc
6)-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
In another, since IN absolute loss incurred In the
prosecution Of u single business is indlspensably
u loss Of capital" .
Ill lHNI IVA w NOAANtSt
only from gains in merchandise; but, in this case,
particular branches Of merchandise need not be
separated. so in speculation, the loss or gain
from stocks may offset loss or gain from produce
speculated In
profits from merchandise without regard TO their
losses in speculation, or gains from Interest. divi'
dends, rents, or any other source"
O)-"Losses in speculation cannot be deducted
from salaries, nor from gains In merchandise.
When losses are sustained In one speculation and
gains made in another speculation. such losses
may be deducted from such gains. Losses In one
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
O-"where stocks, etc, are bought IN a per.
manent investment, and sold again merely TO
change tho Investment, o loss sustained in the
sale may be deducted from the dividends from
sueh stock. But whefs tho purchase Ia made for
the purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends, but may be deducted from gains
derived from the purehdss and sole Of stock, etc,
in the same year"
INCOME FRoM RENTS OF BuILpISas.
From the total amount Of such rents received
within the year for which income is estimated. or
due and collectsble on the 3lst day OF December
Of said year, should DO deducted
lat. The amount paid or due, by the owner, for
repairs made within the year, not exceeding the
yearly average paid out for such purposes for tho
preceding Ave years, and not including any
amounts paid or due for new structures, or for
new and permanent improvements.
Cd. Insurance for the year paid by tho owner
upon the buildings rented or offered for rent, not
including insurance paid upon any other prop
erty. real or personal.
ID. Interest which accrued for the 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,
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 from rents, but
from gross income from all sources.
BY the law OF Juno 30, 1864, in estimating in.
come from rents, no account h taken Of the rental
value Of a homestead 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
/ arnsa lpcn0a