Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-22
ABSTRACT OF THE ANNUAL INCOME TAX
wis OF TO MAKE OUT OR VERIFY

STATEMENTS.
5 II any person neglects or refuses to render n
written statement, the Assistant Assessor Is re-
quested to Ill out u blank with suen persons
the best information that can be obtained, and
upon this estimated income " asBoss the tax, and
then TO add o5 per cent, 10 such tax ~ a penalty
for neglect or refusal.
6, An Assistant Assessor may be inisled In
making this estimate, by being misiniormed as to
money received, or not informed IA 10 money
paid. He must assess, however. according to the
best information within his reach. The only per.
son capable Of giving absolutely correct informa.
tion IA 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 IL u bar to all complaint, should the assess.
ment prove incorrect, and a heavier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II GRO
neous, Il Is always troublesome to the party In.
terested to have Il corrected. All persons, there.
fore, but especially sueh as hare no fd1doh income,
should not fail 10 render tho required statement,
upon the proper blank, so as to avoid undue tax
alton and trouble.f
4. Every statement must be verified by oath or
Affirmation. When this Ia not done. the Assistant
Assessor Is required TO estimate the income and
to add IS per cent to to the tax.
EVILS OF MAKIso A FALSE STATEMENT.
9. An Assistant Assessor has power TO fnoreass
hbV hLiOuhh IL Ahg
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 ana 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 n false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By the llsth section Of the law, the Commits
slouer Of Internal Revenue Ia empowered to pre-
scribe tho form and manner in which the state
mont Of income must DO made up. This ho has
done In q printed blank used BY the Assistant As.
SCISSOR. and In vanous circulars and rulings. Tho
following Is a summary Of what has been pre-.
Icribed:
/. Each of the great classes into which the pur.
suits Of life and the investments Of capital have
been divided must DO returned sepdrdtely- losses
In one not being allowed to offset gains In another.
Thus Y merchant who engages In farming or In
speculations not belonging 10 his legitimate busi.
ness cannot Offset gains In tho one by losses In
the other.
=. The expenses incident to each business are
deductible from the receipts Of that business.
| 3. Speculations LsgiHmateiy belonging to any
business, and these alone. may be carried into Its
| profit and loss account. Thus a broker may spec
ulste in stocks, II dry goods merchant In cotton, a
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.
chand!se account. But II he 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 $4,000 In the hands Of q New York bro
ker, iustructing him to use 1t in tho purchase and
sale Of gold, on their account; and having lost
S27, 500 In this venture, they claimed that II
should be deducted from thor profits In business.
Commissioner Lewis dlsallowed the claim, and
| said the uniform ruling had been that when a
loss Is made In any particular business, against
which there are no gains TO Offset, II N consid.
cred u dead loss Of capital fHrested In that bust.
ness Again. loss Of capital cannot DO de.
| Quoted from income" Return Of income must
be made on the Saia'."
4. How far different kinds Of business must DO
| returned separately Is shown by the following
| rulings Of Commissioner Rollins:
(Gl-"Loss incurred In the prosecution OF one
kind Of business cannot be deducted from gnin in
business Of an entirely dterentcharaeter, 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 O single business IL Indispensably
= loss OF capital"
! 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"
(6-"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"
()-"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 az q per
/ mRnent Investment, and sold again merely TO
| change the Investment, n loss sustained In the
| sale NAV DO deducted from the dividends from
sueA stock. But where the purchase Is made for
tho purpose OF selling again on speculation, the
loss sustained by .he sale cannot be deducted
| from dividends. but may DO deducted from gains
derived from the pureaass and sale Of stock, etc,
In the same year"
INCOME IRON RENTS OF BUILDINGS.
From the total amount Of such rents received
! within the year for which income Is estimated. or
due and collectable on the 3lst day Of December
ofsuid ycnr, should be deducted:
LIST. The amount paid or due, by tie owner, for
repairs made within the year, not exceeding the
yearly average paid ont for such purposes for the
preceding five years, and not including any
amounts paid or due for new structures, or for
new and permanent improvements.
I'd. 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 persOnRl.
Sd. Interest which accrued for the 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.
All buildings offered for rent will be regarded
together, no segregation being required. Repairs,
insurance and interest paid on account Of any
and all such buildings, whether occupied or not,
| will be deducted from the total amount Of rents.
Taxes will not be deducted from rents, but
| from gross income from all sources.
BY the law Of June 30, 1864. In estimating In.
come from rents, no account Is taken Of the rental
value of n homestead occupied by the owner.
Payments for repairs, insurance and interest, on
account Of a homestead, will be considered here.
after, when treating Of general deductions from
gross income.