Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-20
sTRAef or rHB ANNUAL 1NcoSsrA1
ANNUAL WCOME ny

" DE6DHrH m abstract
OF what Is required BY law In Reference N ths Tn
come IeI. and OF the decisions by the Depart.
ment a. washington upon VARIOUS Question. th.,
have arisen, we present the whole subject, under
Its several distinct heads:
STATEMENT sHouLp BIZ MAuE--wHyRY wuvs
AND By WHOM.
l. Tho law requires every person of law ul au.
residing In the United States, to render 10 he
Assistant Assessor Of the sub.distr.ct In which ho
or she may be residing on tho LIST day Of May, a
written statement, according to a prescribed
form, Of the amount Of bis or her income, gains
knd PROFITS during the previous year, from Jan.
nary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be oh.
tanned from the Assistant Assessor. A person
having no hKed residence. should make q state
ment wherever he or she may happen to DO; and,
In case Of removal to another district, should take
\ certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
mako u second assessment. .
2. The statement must be rendered on or BE-.
0 written or printed notice requiring Il, has been
let at the place Of residence or Of business, or dc.
posted In the dearest Post Office.
3. The annual income' tax Ia u personal tax,
and 1t cannot be assessed against any corporation,
company, or partnership, "a such. Every ind.
vidual member must make q statement Of bis or
her share Of or interest In the gains and profits Of
such company, ETC., whether such gains aud
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.
5. II any person neglects or refuses to render u
written statement, the Assistant Assessor Is re.
quested to ill ont u blank with such persons
name, and taxable income estimated according to
the best Information that can be obtained, and
uDOu thia aItImatad inr0ma tn QEHaaH the fay and
then to add 25 per cent, to such tax N a penalty
for neglect or refusal. 10
6. An Assistant Assessor may be m!slsd In
making this estimate, by being mlsinformed as to
money received, or not informed a. 70 money
paid. He must ASSESS, however, according TO the
best information within bis reach. The only per.
son capable Of giving absolutely correct luforma.
tlon IL frequently the one who refuses or neglects
to mako a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Ia q bar 10 all complaint, should the assess.
ment prove incorrect, and Q heavier tax DO levied
than would otherwise be charged. Moreover,
after An assessment has once been made. II GRO
neous, II IL always troublesome TO the party In.
torested to have Il corrected. All persons. there
fore, but especially such a. hdre no taxable income,
should not fall TO render the required statement,
upon the proper blank, 80 rs to avoid undue tax
alton and trouble.f
Z. 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 25 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 the 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.
tent TO defraud the Government, and the other
for perjury.
MAsSER OF MAKING UP STATEMENT OF INCOME.
BY the llsth 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 DO made up. This he has
done In q printed blank used by the Assistant As.
SCISSOR. and In VARIOUS circulars and rulings. The
following Lis q summary Of what has been pre-.
scribed:
/, Each OF the great classes into which the pur.
suits Of life and the Investments Of capital have
been divided must DO returned separately losses
In one not being allowed to offset gains In another.
Thus q merchant who engages in farming or In
speculations not belonging TO bis legitimate bust.
ness cannot Offset gains In the one by losses In
tho other.
:. The expenses incident to each business ere
deductible from the receipts Of that business.
3. Speculations Lsgttimateiy belonging to any
business, and these alone. may be carried into Its
profit and loss account. Thus Q 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 and loss Of suek 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 bis mer.
chandIse account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one Of tho articles Of trade belong.
-
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 $4,000 In the bands OF q New York bro.
ker, instructing him to use II In the purchase and
sale Of gold, on their account; and having lost
e27,5 500 In this venture, they claimed that Il
should be deducted from their profits In business.
Commissioner Levi dlsallowed the claim, and
said the uniform ruling had been that "vhen 4
loss Is made In any particular business, against
which there are no gains TO Offset, Il 10 consid.
cred u dead loss Of capital ,iHutsted In that bust.
ness." Again, Toss Of capital cannot be de-
Quoted from income" Return o. income must
DO made on the gains"
4. How far different kinds Of business must be
| returned separately Is shown by the following
rulings Of Commissioners Rollins:
(a)-"Loss Incurred In the prosecution Of one
kind Of business cannot be deducted from gain In
business Of IN entirely dWtrentcharactev. nor from
II bAlh " ICulhIu Nlupuub We
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 0 single business Ii indispensably
. loss Of capital"
O-"Losses In merchandise can BIO deducted
only from gains In merchandise; but, in this case,
particular branches Of merchandise need not bs
separated. So In speculation, the loss or gain
from stocks may Offset loss or gain from produce
Epeculated In"
(G-"Merchants must make return OF their
profits from merchandise without regard TO their
losses In speculation, or gains from interest. divi.
dends, rents, or any other source"
(s)-"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"
| LO-"Where stocks, etc. are bought rs a per.
manent Investment, and sold again merely to
| change tho investment, 0 loss sustained In the
sale may be deducted from the dividends from
such stock. But where the purchase IL made for
the purpose OF selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends, but may DO deducted from gains
derived from the Prrehdss and sale OF stock, ETC.,
In the same year"
INCOME FROM RENTS or BUILDINGS .
From the total amount Of such rents received
| within the year for which Income Is estimated. or
due and coliectable on the 3lst day OF December
ofsaid wear, should be deducted:
LIST, 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 the
preceding Ave years, and not Including any
amounts paid or due for new structures, or for
new and permanent improvements.
Cd. Insurance for the yeaS paid by the owner
upon the buildings rented or offered for rent. not
Including insurance paid upon any other prop.