Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-15
ABSTRACT OF THE ANNUAL INCOME TAX.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY


s~TATEMENTs.
5. If any person neglects or rcIuses 10 rehueIH
written statement, the Assistant Assessor IN re-
quested to I'LL out "a blank with such persons
name, and taxable income estimated according 70
the best information that can bc ohtainrd' ana
upon this estimated income TO asscsS the tux, ana
then to add % per cent, to such TAX hs a pehHts
for neglect or refusal.
q. An Assistant Assessor may be misled III
making this estimate. by being uisiniormrd as 10
money received, or not iniorheu Us ~ ho..,
paid. He must assrss, however, according TO the
best information within his reach. The only per
son capable Of giving absolutely correct lnioIma,
ton II frequently the one who refuses or neglects
to make u Statements II sucn person WIN not
take the trouble 10 inform the Assistant Assessor'
there Is a 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 GRO
neOus, II L. always troublesome to the party In
terested TO have Il corrected. All persons, there
fore, but ESPECIALLY such a. hduc no TAXABLE Income,
should not fail to render the required statement,
upon the proper blank, 40 IN TO avoid undue TAX
alton and troubled
7. Every statement must be verified by odfh or
sfrma.ion. When this is not done, tho Assistant
Assessor Is required to estimate the income ana
to add IS per cent to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power TO tnerease
the amount In any statement, aites giving que
information to the party Interested. He IN re-
quircd, also. TO add 100 per cent. to the tax when
Y false statement has been rendered and the
party making the false statement becomes laole,
not only for this additional tax. but Hkewise to
two Distinct prosecutions before the United STATES
Courts-one for making false statement with In
tent to defrRud the Government, and the Othcr
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By the 18th section Of tho law, the Commits
sioner Of Internal Revenue IL empowered to pre-
scribe the form and manner in which the state
ment or income must be made up. This he mas
done in u printed blank used by thu Assistant As.
SCISSOR, and In various circulars and rulings Tho
following Ia q summary Of what has been pre-
acribed:
l. Each Of the grca, classes into which the pur.
suits Of life and the Investments Of capital have
been divided must be returned separately Losses
in Que not being allowed to Offset gains In another.
Thus q MERCHANT who engages. in-farm!ng or in
speculations not belonging to his legitimate bust.
ness cAnnot Offset gains In tho ono by losses In
the other.
.. The expenses incident to each business IRE
deductible from the receipts Of that business.
3. Speculations LeStHautely belonging to any
business, and these alone. may be carried into Its
profit and loss account. Thus a broker may spec
ulate in stocks, a dry goods merchant in cotton, a
hardware man In iron, ETC., and such speculation
may affect the gain ind loss of such legitimate
business. A merchant also may make or lose by
exchange or the kind of money paid for his mor.
chandise, and this gain or loss belongs to his mer.
chaudise account. But II be 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.
ton will not be allowed TO affect the profit or loss
from his regular business. A business firm
placed $40, 0O0 In the hands Of u New York bro.
- 1IA a .,- 4 a.. A. 1890 an. u~N
salo Of gold, on their account and having lost
S27, 800 in this venture, they claimed that IL
should be deducted from their profits In business.
Commissioner Lewis dlsallowed the claim, and
said tho uniform ruling had been that when a
loss ia made In any particular business, against
cred a dead loss of capital iHpested 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 II 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 diFtrentcharaetu, nor from
salary, rents, dividends. etc
b)-"Losses incurred in the prosecution Of one
branch of business cannot be deducted from gain
10 another, since an absolute loss incurred in the
prosecution OF a single business IL lndispensably
q loss Of capital
(e)-"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 gair
from stocks may Offset loss or gain from produce
| Speculated in"
Merchants must make return Of theil
profits from merchandise without regard to theil
losses In speculation. or gains from interest. diVi
| dends, rents, or any other source
e)-"Losses In speculation cannot be deducted
| from salaries, nor from gains In merchandise
When losses are sustained In one speculation anC
gains made in another speculation. such lossei
| may be deducted from such gains Losses In ont
| branch of merchandise may be deducted from
| gains In any other branch Of merchandise"
(0-"Where stocks, etc, are bought az a per
| mansnt investment, and sold again merely q
| change the Investment, q loss sustained In Tho
| sale may DO deducted from the dividends from
such stock. But where the purchase Is made fol
the purpose Of selling ngain on speculation, the
loss sustained by the sale cannot be deducted
| from dividends, but may be deducted from gain
derived from tho purchase and sale Of stock etc.
in the same year"
INCOME PROM RENTS OF BUILDINGS.
From the total amount Of such rents received
| within the year for which income Is estimated. OF
| due and collectable on the 3lst day OF Decembel
| ofsaid year, should be deducted:
| LIST. The amount paid or due, by the owner, FOL
repairs made within tho year. not exceeding tbs
| yearly average paid outi Tor SUCH purposes Tor ih'
| preceding five years, and not including any
| amounts paid or d1e for new structures, or fol
| new and permanent improvements.
ID, Insurance for the year paid by the owner
upon the buildings rented or offered for rent, no,
| including insurance 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 remaini