Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-26
ABSTRACT OF THE ANNUAL INCOME TAX.
wis OF NreLxcr TO MAKE obr OR fyxaIYT


STATEMENTS.
& II any person negIects or refuses TO render a
written statement, the Assistant Assessor is re.
ouested TO all out q blank with such persons
name, and taxable income estimated according to
the best information that can be obtained, and
upon this estimated income TO assess the tax, and
then to add 25 per cent, 70 such tax as q penalty
for neglect or refusal. .~...ra
6. An Assistant Assessor may be mlsled in
making this estimate. by being misinformed an 70
money received, or not informed a. to money
paid. He must asscss, however. according to the
best information within his reach. The only per-
son capable Of giving absolutely correct informa.
Uon ID frequently the one who refuses or neglects
to mako o statement. II such person will not
take the trouble to inform the Assistant Assessor,
there In a bar to all complaint, should the assess
ment prove incorrect, and o heavier tax DO levied
than would otherwise be charged. Moreover,
after an assessment has once been made. II erro.
neous, Il IL always troublesome to the party In
terested TO have II corrected. AL persons, there.
fore, but especially such a. hdre no taxable income,
should not fal 70 render tho required statement,
upon the proper blank, 80 as to avoid undue tax.
4. 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 IS per cent to TO the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to tneredst
the amount In any statement, after giving duo
information to the party Interested: He Ii 70.
Qulred, also, 10 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
C~ourts-one for making o false statement with In.
tent to defraud the Government, and the other
for perjury.
MlNKiK OF MAKING UP STATEMENT OF INCOME.
By tho ll8th section Of the law, the Commits
sloner Of Internal Revenue 10 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 As.
SCISSOR, and In various circulars and rulings. Tho
following Is q summary Of what has boon pre-.
Icribcd:
l. 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
gpeculatlons not belonging to his legitimate busi.
ness cannot offset gains In tho ono By losses In
the other.
Q The expenses incident to each business re
deductlble from the receipts Of that business.
3. Speculations hSiHmately belonging to any
business, and these alone, may DO carried into Its
| profit and loss account. Thus q broker may spec.
ulato in stocks. q dry goods merchant In cotton, q
hArdware man In Iron, etc, and such speculation
| may affect the gain and loss Of such legitimate
i DQblucNb- "CICuh1lk hlhO uhI VT D Wy
exchange or the kind Of money paid for his mer.
| chandise, and this gain or loss belongs to his mer.
| chandise account. But II he buys gold, uncurront
| 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 DO allowed to affect the profit or loss
from his regular business. A business firm
| placed $4,000 In the hands Of a New York bro.
ker, lnstructing him to use 1t in the purchase and
| sale Of gold, on their account; and having lost
| S27, 800 In this venture, they claimed that It
should DO deducted from their profits in business.
| Commissioners Lewis dlsallowed the claim. and
| said the uniform ruling had been that "vhen q
| loss II made In any particular business, against
| which there are NO gains TO Offset, Ii IL consid.
| cred a dead loss Of capital iHuested IN that bust.
/ ness." Again, "loss Of capital cannot be dc.
/ Quoted from income" Return Of Income must
DO made on the SaiHs."
4. How far different kinds Of business must DO
/ returned separately Is shown by the following
rulings Of Commissioner Rollins:
(e)-"Loss incurred In the prosecution Of one
| kind Of business cannot be deducted from gain In
i business Of an entirely dferenteharoeter, nor from
salary, rents, dividends, etc
1)-"Lossesi incurred In the prosecution Of one
i branch Of business cannot be deducted from gain
In another, since m absolute loss incurred In the
prosecution Of o single buSiness Is indispensabiy
. loss Of capital"
G0-"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
speculated In"
f6-"Merchants must mako 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 ono 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 merchandiso.""
CO-"Where stocks, etc, are bought ~ 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 whore tho purchase Is made 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 purehs'' and 'als Of stock, ETC.,
In the same year"
INCOME IRON RENTS OF Id
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 year, should be deducted
LIST. Tho amount paid or due. by the owner, for
repairs made within the year, not exceeding the
yearly average paid outfo such purposes for the
/ pI0CeuluK v yuAiht w NV ihNioAlhk 49,
amounts paid or due for new structures, or for
new 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.
| 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.
| An buildings offered for rent will DO 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 the total amount Of rents.
Taxes will not be deducted from rents, but
| from gross income from all sources.
BY tho law Of Juno 80, 1854, In estimating In.
| come from rents, no account 10 taken of the rental
value Of q homestead occupied BY the owner.
| Payments for repairs. insurance and interest, on
account Of q homestesd, will DO considered here
| AFTER, when treating Of general deductions from
1roas t0ronA