Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-12
BsrRACT OF THE ANNUAL INCOME TAX.
ANNUAL O o TAX.

Il Oh "nhE - ACdAACo W Jaw 80 ~ N"~ -.
come Tax, and Of tho decisions by the Depart.
ment ut Washington upon various questions that
have arisen, we present the whole subject, under
It's several distinct heads:
| STATEMENT SHOULD BE MADE-wHERE, WHEN,
AND BY WHOM.
/. The law requires every person oflawnl age,
residing In the United States, TO render to the
Assistant Assessor ofthe sub-dlstrict in which he
or she may be residing on the LIST day Of May
written statement, according to O prescribed
form, Of the amount Of his or her income, gains
and profits during the previous year, from Jan.
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ.
talned from tho Assistant Assessor. A person
having no iixed residence, should mako q state.
ment wherever he or she may happen to be; and,
In case Of removal to another district, should take
n certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make O second assessment.
9. The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
q written or printed notice requiring It, has been
left at the place Of residence or Of business, or de.
posted In the pearest Post Office.
3. The annual income tax Is q personal tax,
and 1t cannot be assessed against any corporation,
company, or partnership, as such. Every indi.
vidual member must mako q statement Of his or
her share OF or lnterestin the gains and profits OF
such company, etc, whether such gains and
profits arc divided or not, and must also state
separately his or her income from all other
sources. .r.
EVILS OF NEGLECT TO JAKE OUT OR VERIFY
STATEMENTS.
5. II any person neglects or refuses to render q
written statement, the Assistant Assessor Is re-
quested to fll out o blank with such persons
name, and taxable income estimated according TO
the best information that can DO obtained, ana
upon this estimated income to assess the tax, and
then to add 25 per cent, to such tax rs a penalty
for neglect or refusal.
6. An Assistant Assessor may be mIsled In
making this estimate, by being mlsinformed ns TO
money received, or not informed rs to money
paid. He must assess, however, according TO the
best information within bis reach. The only per-
son capable Of giving absolutely correct informa.
tion IL frequently the one who refuses or neglects
to mako a statement. II such person, will not
take tho trouble to inform the Assistant Assessor,
there ID O bar TO all complaint, should tho assess.
ment prove Incorrect, and o heavier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II erro
ncUus, Il IL always troublesome TO the party In.
torosted to have Il corrected. All persons, there.
fore, but especially such as haze no tdrable income,
should not fall to render the required statement,
upon the proper blank, so rs to avoid undue tax.
alton and trouble.
Z, Every statement must DO verified by oath or
| Affirmation. When this Is not done, tho Assistant
| Assessor Is required to estimate tho income nnd
10 add IS per cent to TO the tax.
EVILS OF hAkIN0 u FALSE STATEhkNT. NJ
Q. An Assistant Assessor hos 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
q 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 the United States
Courts-one for making q false statement with In.
tont to defraud the Government. and tho other
for perjury. H"
MANNER OF MAKING UP STATEMENT OF INCOME.
BY the ll6th section Of the law, the Commls'
sioner Of Internal Revenue Is empowered TO pre-.
scribe the form and manner In which tho state.
ment Of Income must DO made up. This he has
done In q printed blank used by the Assistant Az.
1 SCISSOR. and In various circulars and rulings. The
following Is O summary Of what has been pre-
Ecribed: . 49,.
!. Each OF tho great classes Into which tho pur'
suits Of life and the Investments Of capital have
been divided must be returned separately losses
In one not being allowed to offset gains In another.
Thus Q merchant who engages In farming or In
speculntionS not belonging TO his cgitlmate busi'
ness cannot Offset gains in the one by losses In
the othor. o.
Q The expenses incident to each business ire
deductlble from the receipts Of that business.
3. Speculations kgitimatsly belonging TO any
business, and these alone. may BIO carried into Its
profit and loss account. Thus q broker may spec.
ulate In stocks, a dry goods merchant In cotton, q
hardw are man In iron, etc. and such speculation
may affect the gain and loss Of such legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for his mer.
chandlse, and this gain or loss belongs to his mer'
chandise account. But II no buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one Of the articles OF trade belong.
ing TO his regular business, for the purpose OF
speculation, the profit or loss from such Specula-
tlon will not DO allowed to afect the profit or loss
from his regular business. A business firm
placed $4,000 In the hands Of q New York bro.
ker, lnStructing him TO use It In the purchase and
sale Of gold, on their account ; and having lost
S27, 500 In this venture, they claimed TINT II
should DO deducted from their profits IN business.
Commissioners Lewis dlsallowed the claim, and
said tho uniform ruling had been TINT when a
loss Is made In any particular business, agalns,
which there are no gains TO Offset, It - consid'
cred a dead ioss Of capital inrested In that bust
Quoted 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 one
kind Of business cannot be deducted from gain In
business Of an entirely dGereHtehdrdetsr, nor from
salary, rents, dividends, etc.
(b)-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
In another, since an absolute loss incurred In the
prosecution Of a single business Ia indispensably
q loss Of capital"
(e)-"Losses In merchandise Gun be deducted
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
llpeculated In" @ .. ..- -..
(0-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. dlyi.
dends, rents, or any other source" v.
(e)-"Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise.
When losses arc sustained In one speculation and
gains made In another speculation. such losses
may DO deducted from such gains Losses In ono
branch Of merchandise may be deducted from
gains In anv other branch Of merchandise" O..
O-"Where stocks, ETC., are bought as n per-
msnent investment, and sold again merely to
change tho Investment, q loss sustained In the
sale may DO deducted from the dividend from
sneh stock. But where the purchase Is mado for
the purpose Of selling again on speculation. tho
loss sustained by the sale cannot be deducted
from dividends, but may be deducted from gains
derived from the purehdss and sale Of stock, etc,
In the Same year,"
INCOME TRoA RENTS OF BUILDINGS. .
From the total amount Of such rents received
within the year for which income Is estimated. or
due and collectable on the 3lst day Of December
ofsaid year, should DO deducted: WI
LIST. Tho amount paid or due. by the owner. for
repairs made within the year., not exceeding the
yearly average paid out for such purposes for the
preceding Ave years, and not Including any
amounts paid or due for new structures, or for
now and permanent improvements.
Cd. Insurance for the year paid by the owner
ppon the buildings rented or offered for rent, not
Including insurance paid upon any other prop
erty, real or personal.
Cd. 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, o.. fiEu EI.Fs.. -. TM 80.
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 DO deducted from tho total amount Of rents.
Taxes will not DO deducted from rents, but
from gross income from all sources. g.
BY The law Of June 30, 1864, in estimating In:
come from rents, no account 10 taken OF the rental
| PAYMENT for repairs, insurance and interest, on
account OF q homestead, will be considered here.