Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-27
ABSTRACT OF THE ANNUAL INCOME TAI
ANIMAL INCOME TAX.

ANNUAL INCOME TAX. j
Having been requested to prepare an abstract
Of what is required by law In reference to the In
como Tax. and of the decisions by the Depart.
ment at Washington upon various questions that
have arisen, we present the whole subject, under
its several distinct heads: -.
STATEMENT SHOULD BE MADE-wHERE, WHEN,
AND By WHOM. e.
/. The law requires every person Of lawful age,
| residing In the United States, to fender to the
Assistant Assessor of the q b.distr.ct In which no
or she may be residing on the lst day Of May, Q
written statement, according to a prescribed
form, of the amount of his or her income, gains
knd profits during the previous year, from JAN
uary LIST TO December 3lst, both days inclusive.
A printed blank containing this form can DO OBJ.
tanned from the Assistant Assessor. A person
having no fixed residence, should make a state
ment wherever he or she may happen TO BIO; and,
In case of removal 10 another district, should take
a certified copy Of such statement. to show any
other Assistant Assessor, who otherwise might
make u second assessment. -
9, The statement must be rendered on or De-
fore the lst day of May, or within ten days after
a written or printed notice requiring 1t, has been
left at the place of residence or Of business, orSe-
posted in the pearest Post Office. ..
3. The annual income tax Is n personal tax,
and It cannot be assessed against any corporation
company, or partnership, as such. Every indl'
vidual 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 anu
profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO AXE OUT OR VERIFY
STATEMENTS.
S. II any person neglects or refuses TO render
written statement, the Assistant Assessor IL re-
quested to hll out q blank with such persons
name, and taxable income stimate according to
~ l.k Inflammation chat Ruu ha obtained. and
upon this estimated income to assess the tax, and
then to add 25 per cent, to such tax rs a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled in
making this estimate, by being mIsinformed as TO
money received, or not informed an to money
paid. He must assess. however, according to the
best Information within his reach. The only per
son capable Of giving absolutely correct informa-
ton IL frequently the one who refuses or negleets
to make a statement. II such person will not
take the trouble to 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,
nfter m assessment has once been made, IL erro
neous, Il IL always troublesome to the party In
terested to have 1t corrected. All persons, there
fore, but especially such as haze no taxable income,
should not fail to render the required statement,
upon the proper blank, 80 N to avoid undue tax.
alton and trouble.
Z. Every statement must be verified by oath or
affirmation. when this IN not done, the Assistant
Assessor il 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. lie IN re-
uuirod, 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
Courts-one for making u false statement with In.
tent TO defraud the Government, and the other
for perjury.
BY the llSth section of the law, the Commits.
sIoner Of Internal Revenue IN empowered 10 pre-.
scribe the form and manner In which the state.
ment of income must be made up. This he has
done In a printed blank used by the Assistant AZ.
SCISSOR, and In various circulars and rulings. The
following Ia n summary Of what has been pre-.
scribed:
l., Each Of the great classes into which the pur.
suits Of life and the investments OF capital have
been divided must be returned sepdrdtety- LOSSES
In one not being allowed to offset gains In another.
Thus O merchant who engages in farming or.in
speculatIons not belonging to his legitimate bust
ness cannot Offset gains In the one by losses IN
the other.
Q The expenses Incident to each business re
deductible from the receipts Of that business.
3. Speculations Lgitfndtely 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
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.
chandise 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 a New York bro.
ker, instructing him TO use Il in the purchase and
| sale Of gold, on their account and having lost
S27, 500 In this venture, they claimed that II
should be deducted from their profits in business
| Commissioner Lewis dlsallowed the claim, and
said tho uniform ruling had been that when a
loss " made in any particular business, against
which there are no gains to offset, II II consid.
cred a dead loss Of capital iarested in that bust.
ness." Again, loss Of capital cannot be de.
| Quoted from income Return Of income must
be made on the Sdtns."
4. How far different kinds Of business must be
returned separately Is shown by the following
| rulings Of Commissioner Rollins.
d)-"Loss incurred in the prosecution of one
| tiAd Of business cannot be deducted from gain in
business OF an entirely different character, nor from
salary. rents, dividends, etc
b)-"Lossesi 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 a single business ~ indispensably
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 gain
from stocks may offset loss or gain from produce
spcculated in"
N-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. diri.
dends. rents, or any other source"
o." 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 AZ q per.
manent Investment, and sold again merely TO
change the investment, n loss sustained In the
sale may be deducted from the dividends from
such stock. But where tho purchase IL made for
the purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends, but may be deducted from gains
derived from the Purehd's and sale OF stock, etc,
In the same year."
IScoHE PROM 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
ofsaid year, 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 FIVE years, and not including any
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.
IA Interest which accrued for the year on In.
cumbrances upon the buildings rented or offered