Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-11
ABSTRACT OF THB ANNUAL INCOME TAX
ANNT1L INCOME TAX.

ANNUAL INCOME TAX. OLE
Having been requested TO prepare an abstract
Of what Is required by law In reference TO the
como Tax, and Of the decisions BY the depart.
ment at washington upon various questions tnat
have arisen, we present the wnoie supJec1 unu''
It's several distinct heads: "-1rf I'll.
STATEMENT SHOULD BIZ MADE-wHERI, WHEN
'T AND By WHOM. ~,
j. The law requires every person OF lawiul age,
residink. In the United States, to render 10 tne
Assistant Assessor Of the sub-dlstr.ct In wnicn ~
or she may DO residing on the LIST day Of May, q
written statement, according to a prescrioeo
form, of the amount Of his or her Income, gains
snd profits during the previous year, nom Jam
uary LIST 10 December 3lst, both days inclusive
A printed blank containing this form can DO on.
talned from the Assistant Assessor. A person
having no fixed residence. should make q state
ment wherever he or she may happen to DO and
In case Of removal to another district, should take
n certified CODY Of such statement. to snow any
other Assistant Assessor, who otherwise might
make u second assessment
9. The abatement must be rendered on or pc
fore the LIST day Of May, or within ten days after
a written or printed notice requiring 1t, has been
Ieft AT tho place Of residence or Of business, or de-
posted In the pearest Post Office. % nj
q. The annual income tax IL a personal tax,
and It cannot be assessed against any corporaiion'
company, or partnership, rs such. Every indi'
yidual 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 ana
profits are divided or not, and must also state
separately his or her income from all other
sources. .. ..
EVILS OF NEGLECT TO MAK OUT OR VERIFY
STATEMENTS.
s. II any person neglects or refuses to render q
written statement, the Assistant Assessor IL re-
quested to fll out u blank with such persons
name, and taxable income estimated according 10
- -. AhAN m Ia nhtninan nnn
upon this estimated income to assess the tax, ana
then to add 25 per cent, to such tax as n penalty
6. An Assistant Assessor may be misled In
making this estimate, by being mlslnformed as TO
money received, or not informed NJ to money
paid. Ho must assess, however. according 10 the
best information within bis reach. The only per.
son capable OF giving absolutely correct informa.
ton Is frequently the one who refuses or negleets
to make a statement. IL such person Will not
take the trouble to inform the Assistant Assessor,
there IN q bar TO all complaint, should the assess.
ment prove Incorrect, and a heavier tax be levied
than would otherwise be charged. Moreover.
after an assessment has once been made, II rrro
peous, II IL always troublesome to the party In.
terested 10 have II corrected. All persons, there.
fore, but especially such as hdre no tdLdbLe income,
should not fail to render the required statement,
upon the proper blank, no IN 10 avoid UNDUE tax
alton and trouble.
7. 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 increase
the amount in any statement, after giving due
information to the party interested. He Is re-
quired, also, TO add 100 per cent. to the tax when
y false statement has been rendered and the
party making the false statement becomes liable,
got only for this additional tax. but likewise to
~ ftt... n.a ,,t - h.fnrn eha IfpifaH Stataa
Courts-one for making II false statement with In.
tent TO delraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT or INCOME.
By tho llsth section Of the law, the Commits.
sioner Of Internal Revenue is empowered to pre-.
scribe tho form and manner In which tho state.
ment of income must be made up. This he has
done in a printed blank used by the Assistant As.
SCISSOR. and In VARIOUS circulars and rulings. The
following Is a summary Of what has been pro-
scribed:
!. Each Of the great classes into which the pur.
suits Of life and the Investments Of capital have
been divided must be returned separately losses
in one not being allowed TO offset gains In another.
Thus a merchant who engages in farming or In
speculaiions 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
deductiblc from the receipts Of that business.
3. Speculations l&gitimdisiy belonging to any
business, ana these None. may De carried INTO u
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 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.
chandlse 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 $1,000 0 in the hands Of 4 New York bro.
ker, instructing him to use II In the purchase and
sale Of gold, on their account and having lost
s27 800 In this venture, they claimed that IL
should bo deducted from their ProAts In buslnrss.
Commissioner Lewis dlsallowed the claim. and
said tho uniform ruling had been that when a
loss ID made In any particular business, against
which there are no gains TO offset, II IL consid.
cred a dead loss Of capital iHrested in thar bHsf.
ne,s."s Again, "loss Of capital cannot be 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
business Of An entirely diferentcharaeter, nor from
salary, rents, dividends, etc"
(b-"Losses incurred In the prosecution Of one
h.aa.L ~ hnsinass cannot he dehurted from gain
IN an",Ser sInc. an absolute loss incurred In The
n,oss.ntIon ~ a .inpIe business "a Indispensably
p"""os .arS,ai
Aioss 9npia- u.r,hordts. an, In dadro,.d
o. Losses IN eamIae. I ~ 10 ~ ,SH.Ha..
only from gains IN naanuh y na ~ ny, ne -.
particular orsneneS ~ ~" 49, ~ Ge
separated. 80 In specuIa'on, .ne toss y yam
nom stocks may onset iosS or gam Hom produce
spoSuia.Su nrv, mall. r.,ur, NJ THAR
(dl-"Merchants must make return VI .ueE
profits from merchandise without regard 10 tmeir
losses In speculation, or gains from Interest. diri-
dends, rents, or any other source :,
C-" Losses IN sPecui"'lon eanno V eueuusteu
When losses are sustained In one speculation and
gains made In another speculation. such losses
NAV be deducted from such gains Losses in one
branch of merchandise may be deducted from
gains In any other branch Of merchandise"
m-"Where stocks, etc, are bought as a per-
manent Investment. and sold again merely to
change the investment, a loss sustained In the
sale may be deducted from the dividends from
such stock. But whore the purchase IL made for
the purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
nom dividends, out may DC deducted from 8ains
In the same year
VJrAAY ERnA HfHTa OF BUILDINGS,