Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-17
OF rHp ANNUAL INeOaB TAX
ANNUAL INCOME TAX.

j. The law requires every person o flawful age,
residing In tho United States, to render to the
Assistant Assessor Of the sub.dls,r.ct In which he
or she may be residing on the LIST day Of May, u
written statement, according TO u prescribed
form, of the amount Of his or her income, gains
and profits during the previous year, from Jan.
uary lst 10 December 3lst, both days inclusive.
A printed blank containing this form can be OBJ
tanned from the Assistant Assessor. A person
having 20 fixed residence, should make q state.
ment wherever he or she may happen to be; and,
In case Of removal to another district, should take
q certified copy Of such statement. to show any
other Assistant Assessor, who otherwise might
make d second assessment.
2. The statement must be rendered on or be.
fore the lat day Of May, or within ten days after
= written or printed notice requiring 1t, 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 a personal tax,
and It cannot be assessed against any corporation,
company, or partnership, as such. Every ind.
vldual member must make q statement Of his or
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 oT NEGLECT r MAXI OUT OR VERIFY
STATEMENTS
S. II any person neglects or refuses to render a
written statement, the Assistant Assessor Is re.
4ucbtVu W iii " u DlhlA III Y ptihoh y
nameI and taxable income estimated according 10
the best that can be obtained, and
upon this estimated income to ASSESS the tax, and
then to add 25 per cent, 70 such tax as a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled in
making this estimate. by being mlsinformed IN TO
money received, or not informed as to money
paid. He must ASSESS, however, according TO the
best Information within bis reach. The only per
son capable Of giving absolutely correct informi'
tion IL frequently the one who refuses or neglccts
to make a statement. II such person will not
take the trouble 10 inform the Assistant Assessor,
there Is q bar to all complaint, should the ASSESS.
ment prove incorrect, and O heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made. " erro
ne0us, II Ia always troublesome to the party In.
terested to have It corrected. All persons. there.
fore, but especially sueh as hare no taxable income,
! should not fail to render the required statement,
upon the proper blank, so az to avoid undue tax.
| alton and troubled
Z. Every tatement must be verified by oath or
Affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the income and
to add IS per cent. to 10 the tax.
Wis OF MAKING kTALsE STATEMENT.
8. An Assistant Assessor has power to ~fncrlass
the amount In any statement, after giving duo
information to the party interested. He IL re-
quircd, also, to add 100 per cent. TO the tax when
y false statement has been rendered and the
party making the fhlse statement becomes liable,
not only for this additional tax. but likewise to
two distinct prosecutions before the United States
Courts-one for making a false statement with In.
tent TO defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
by the 18th section OF the law, the Commits.
sloner of Internal Revenue il empowered TO pre-.
scribe the form and manner In which the state.
ment Of income must be made up. This he has
done in Il printed blank used by tho Assistant Az.
SCISSOR, and In VARIOUS circulars and rulings. The
following Ia q summary Of what has been pre-
| Icribed:
LEACH Of the great classes into which the pur.
suits Of life and the investments OF capital have
been divided must be returned sepdyatsly- losses
In one not being allowed to offset gains In another.
| Thus u merchant who engages in farming or In
spcculations not belonging to bis legitimate bust.
ness cannot Offset gains In the one by losses in
the other.
9. The expenses incident 10 each business -re
deductlble from the receipts Of that business.
3. Speculatlons l~eSftfmdsely 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 Hdin 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.
4 Clh1Qlht kCCOunIs Duk II ut UuyB ROlu, uQCuTT6ut
/ 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, tho profit or loss from such Speeula.
| ton will not be allowed 10 affect the profit or loss
from his regular business. 4 business firm
placed 10000 In the hands Of q New York bro.
kcr, lnstructing him to use It In the purchase and
sale Of gold, on their account and having lost
ST. 500 In this venture. they claimed that Il
should be deducted from their profits In business
| Commissioner Lewis dlsallowed the claim, and
said the uniform ruling had been that "vhen a
which there are no gains 10 Offset, Il Is consid.
cred a dead loss Of capital inserted In that bust.
ness." Again, Toss Of capital cannot DO de-
Quoted from income" Return Of income must
be made on the sdins."
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
busJness Of IN entirely dtFerent ehdraeter. 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 an absolute loss incurred In the
prosecution Of @ single business ia indispensably
4 loss Of capital"
(G-"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
Ipeculated In"
@-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from Interest. dlvi.
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"
| O-"Where stocks, ETC., are bought "a q per.
manent Investment, and sold again merely to
change the Investment, q loss sustained In the
sale may be deducted from the dividends from
such stock. But where the purchase Ia made for
tho purpose Of selling again on speculation, the
loss sustained by tho sale cannot DO deducted
from dividends, but may be deducted from gains
derived from the Purekdss and saL Of stock, ETC.,
In the same year"
INCOME 1Roa RENTS or %BUILDrNos
From the total amount Of such rents received
within the year for which income Is ESTIMATED. or
due and coilectable on the 3lst day of December
ofsaid year, should be DEDUCTED:
lst The amount paid or due. by the owner, for
repairs made within the year, not exceeding tho
yearly average paid ont for such purposes for the
preceding 1--WE years, and not Including any
amounts paid or due for now 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
including insurance paid upon any other prop.
erty, real or personal.
Sd. Interest which accrued for tho year on In.
cumbrsnces upon the buildings rented or offered
for rent, or upon the lands on which they stand,
whether such interest has been paid or remains
duo.
All buildings offered for rent will be regarded
together, no segregation being required. Repairs,
insurance and interest paid on account Of any
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