Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-11
OF THE ANNUAL INCOME TAI
ANNUAL O TAX.

Having been requested to prepare an abstract
Of what Is required by law in reference 10 the In
come Tax. and Of tho decisions by tho Depart.
ment at Washington upon various questions TINT
have arisen. we present the whole subject, under
Its several distinct heads:
STATEMENT SHOULD BE MADE-wHERg, WHEN,
AND BY WHOM. r
/. The law requires every person Of lawful age,
residing In the United States, to render to the
Assistant Assessor Of the sub.distr.ct In which no
or shs NAV DO residing on the LIST day Of May, q
written statement, according to u prescribed
form. of the amount OF his or her income, gains
snd profits during the previous year, from Jan.
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can DO OBJ
tanned from the Assistant Assessor. a person
having mo axed residence, should make a 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 a second assessment
. The statement must be rendered on or be-
fore the lar day Of May, or within ten days after
A written or printed notice requiring II, has been
left at the place Of residence or OF business, or de-
posted In the pearest Post Office.
q Tho annual income tax Is u personal tax,
and II cannot be assessed against any corporation,
company, or partnership, AZ such. Every indi'
vidual member must make q statement OF ms OF
her share of or interest In the gains and profits OF
such company, etc, whether such gains and
profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
i. II any person neglects or refuses to render u
written statement, the Assistant Assessor IL re-
quested to fill out IL 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 tux IN a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being misinformed an TO
money received, or not informed M TO money
paid. He must asscss, however, according 10 the
| best information within his reach. The only per.
| son capable Of giving absolutely correct informa'
ton IL frequently the one who refuses or ncglects
to mako q statement. II such person will not
| take the trouble to inform the Assistant Assessor,
there Is a bar to all complaint, should the assess.
| ment prove Incorrect, and Il heavier tax be levied
| than would otherwise be charged. Moreover,
after an assessment has once been made. II erro
[ neous, II IL always troublesome to the purity In
terested to have Il corrected. All persons, there
| foro, but especially such as haze no taxable income,
should not fail to render the required statement,
upon the proper blank, 10 rs TO avoid undue tax
alton and troubled
Z. Every statement must be verified by oath or
| Affirmation. When this Is not done, the Assistant
4 EhHbtHHN ~
10 add 25 per cent, to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
| 3. An Assistant Assessor has power to increase
the amount In any statement, after giving duc
information to the party Interested. lie IL re-
/ auired, also, to add 100 per cent. to the tax when
/ y false statement has beer 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-ons for making u false statement with In.
i ...N 10 1,frat,1 Nha nnpnFnmanf and the other
for perjury.
| MANNER OF MAKING VI STATEMENT OF INCOME.
BY the llsth section Of the law, the Commits.
| sioner Of Internal Revenue ia empowered TO pre-.
| scribe tho form and manner In which the state.
mrnt of income must be made up. This he has
| done In IL printed blank used by tho Assistant A..
| SCISSOR, and in various circulars and rulings. The
| following is u summary of what has been pre-.
scribcd:
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 q merchant who engages In farming or IN
| speculntions not belonging to his Legitimate bust
ness cannot offset gains In the one by losses In
| the other.
., The expenses incident to each business IRE
/ d-ductible from the receipts of that business.
3. Speculations kgitimately belonging to any
business. and these alone. INDY be carried into It's
profit and loss account. Thus n broker may spec.
Il ulate In htOcKS, Is ury HOOuh tTCuhll III oNNbu u
hardware 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.
| chandise, and this gain or loss belongs to his mer.
| chandise account. But II lie buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one of the articles Of trade belong.
ing 10 his regular business, for the purpose 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 firm
| placed $40, 900 in the hands Of a New York bro.
ker, instructing him to use II In the purchase and
sale Of gold. on their account; and having lost
SGT, 500 In this venture, they claimed that II
should be deducted from their PROFITS In business
Commissioner Lewis disnllowed the claim, and
said the uniform ruling had been that when q
loss IL made In ANY particular business, against
which there are no gains TO offset, II Is consId'
cred q dead loss Of capital inrested in that bHs''
ness" Again, "loss of capital cannot be de
Quoted from Income" Return Of income must
be made on the gains"
4. How far different kinds Of business must be
returned separately IL shown by the following
rulings Of Commissioner Rollins: &.
(d)-"Loss incurred In the prosecution OF one
kind of business cannot be deducted from gain in
business of an entirely dTveHteharHeter nor from
salary, rents, dividends. etc
U)-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
In another, since m absolute loss incurred In the
prosecution Of O single business IL indlspensably
q loss of capital"
n)-"Losses In merchandise can 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
specialized in" ,
(n-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. diVi
Il l-.l. .nN nv anv nthar annFCn"
N-"Losses In speculation cannot DO deducted
from salaries, nor from gains In merchandise.
When losses are sustained In one speculation and
gains made In another speculation, such losses
NAV be deducted from such gains. Losses In one
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
(0-"Where stocks, etc., are bought as q per
mSnent Investment, and sold aguln merely to
change the investment, n loss sustained In the
sale may BE- deducted from the dividends from
,uch stock. But where the purchase IL made for
tho purpose of selling again on speculation, the
loss sustained by the sale cannot DO deducted
from dividends, but may be deducted from gains
derived from the purchase and sale Of stock etc.
In the same year"
INCOME FROM RENTS or BUILDINGS.
From tho total amount Of such rents received
within the year for which income Is estimated. OF
due and collectable on the Dist day OF December
Of said year, should be deducted:
lst, The amount paid or due, by the owner, tor
repRIrs 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
now and permanent improvements.
Cd, Insurance for the year paid by the owner
upon the buildings rented or offered for rent, NOT
4 including insurance paid upon any other prop
erty, real or personal.
Sd. Interest which accrued for the year on IN.
cumbrances upon the buildings rented or offered
o. 80, n y ,pon tina lands on which they stand,