Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-18
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

EcHlOl0K III IL Oullt " y ANAANA " 49,
Assistant Assessor of the sub-dlstr.ct In which he
or she may be residing on the LIST day OF May, .
written statement, according to q prescribed
form, Of the amount Of his or her income, gains
snd profits during tho previous year, from Jan.
uarS lst 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 mako q state
men, wherever he or she may happen to Do; 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 a second assessment
2. The statement must be rendered on or be-
fore the LIST day Of May, or within ten days after
a written or printed notice requiring II, has been
let at the place ofresidence or OF business or de-
posted In the pearest Post once.
3. Tho annual income tax Is q personal tax,
and Il cannot be assessed against any corporation'
company, or partnership, as such. Every indi'
vidual member must make q statement OF MS or
her share OF or interest In the gains and prohts OF
such company, ETC., whether such gains and
profits are divided or not, and must also state
separately his or her income from all otnef
sources.
EVILS OF HEoLEcT TO MAXI OUT OR VERIFY
STATEMENTS.
5. II any person neglects or refuses to render q
written statement, the Assistant Assessor IL re-
quested to all out a 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, TO such tax as a penalty
for neglect or refusal.
6. An Assistant Assessor may be mlsled In
making this estimate, by being misinformed as TO
money received, or not informed as 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.
tim In fraOuantly thu nm wh0 rafilAa oF peUlRcta
to make u statement. II such person will not
take the trouble to inform the Assistant Assessor,
there IL n bar to all complaint, should the assess.
ment prove Incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made. II erro
neous, II is always troublesome to the party In.
terested TO have II corrected. All persons. there.
fore, but especially such az hdpe no taxable income,
should not fall TO render the required statement,
upon the proper blank, NO as TO avoid undue tax.
alton and troubled
7. Every statement must be verified by oath or
aErna,ion. When this is not done. the Assistant
Assessor Ia 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 increase
the amount In any statement. after giving duo
information to the party interested. He IL re-
quired, 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-onc for making n false statement with In.
tent TO defraud The Government, and the other
for perjury.
GAMER OF MAKING UP STATEMENT OF INCOME
BY the llsth section Of the law, the Commits.
sloner Of Internal Revenue Is empowered TO pro.
scribe the form and manner In which the state
ment Of income must be made up. This he has
-. l., N rlaka klanG r.aA hr tha Aut.NanN a.
SCISSOR. and In various circulars and rulings. The
following Is a summary OF what has beon 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 sepdrately- losses
In one not being allowed to offset gains In another.
Thus . merchant who engages In farming or In
speculations not belonging to his legitimate busi.
ness cannot Offset gains In the one by losses In
the other.
. The expenses incident to each business are
deductible from the receipts Of that business.
3. Speculations k3itimdtely belonging to any
business, and these alone. may be carried Into It's
profit and loss account. Thus a broker may spec.
ulate in stocks, a dry goods merchant In cotton, O
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.
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 ono Of the Articles Of trade belong.
ing 10 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, lnstructing him TO use II in the purchase and
sale Of gold, on their account; and having lost
$27. 500 In this venture, they claimed that IL
should be deducted from their profits In business.
Commissioner Lewis disallowed the claim. and
said the uniform ruling bad been that ~ hen a
loss Is made In any particular business. against
which there arc no gains to Offset. IL Is consid.
cred q dead loss Of capital invested IN thai bust.
Again, "loss Of capital cannot DO dc.
Quoted from income" Return Of income must
be made on the gdins."
1. 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
business Of an entirely dDerenteharaeter, nor from
salary, rents, dividends. etc"
0)-"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 q single business IL 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
Speculated In"
GG-"Merchants must mako return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. divl.
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
Of merchandise may be deducted from
gains in any other branch Of merchandise"
O-"Where stocks, etc, are bought M 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
,ueh stock. But where the purchase Is made for
he purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
rom dividends. but may be deducted from gains
derived from the Parehdss and sale Of stock, etc..
IN the same year."
INCOME IRON RENTS OF BUILDINGS
From the total amount Of such rents received
the year for which income 10 estimated. or
Inc and collectable on the 3lst day Of December
If said year, should be deducted:
LIST. The amount paid or due. by the owner, for
'epairs made within the year. not exceeding the
yearly average paid out for such purposes for the
Eve years, and not including my
mounts paid or due for new structures, or for
lew and permanent improvements.
Cd. Insurance for the year paid by the owner
ipon the buildings rented or offered for rent. not
including insurance paid upon any other prop.
,rty, real or personal.
Sd. Interest which accrued for the year on In.
,umbrances upon the buildings rented or offered
or rent, or upon tbs lands on which they stand.
such interest has boon paid or remains
All buildings offered for rent will DO regarded
n-I