The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-05-04
prr1rE OF INTERNAL REvENrE,
WASHINGTON, April 26, 1866. !

4 p,rrry OF INTERNAL. REVENUE, ;
WASHINGTON, April 26, 1866. !
Tho following instructions should I've OBJ
.,J in the assessment of the annual
.nx nc IsGe. They have been prepared
Y rr;rtcd To answer the questions which
T,yc bcrn most frequently presented 10y
,vra officers in their letters 10 the
Commissioner.
particular attention is directed to the
r.,y notifications of the rules observed IN
the last annual assessment.
Assessors should instruct their assistants
al rrr<ouallv upon those who have not
r.t,,r,,rl their income on the first Monday
;n NAV. If any person is not at home, the
no,icc ON the back of Form "a should he
fnrd ont. and the blank left. This being
d,oc. il becomes the duty of the tan
pavcr To seek the assistant assessor ana
deliver his return.
f. \. ROLLINS, Commissioner.
INCOME.
|. Farmers will not be required To make
return of produce consumed in their own
immediate families.
,. The farmers profits from sales OF live
stock are to bc found by dcducting from
the gross receipts for animals sold the pur-
chase money paid for the same. II ami
mails have been lost during the year 10y
death OF robbery, the purchase money PAID
for such animals may be deducted from
the gross income Of the farm.
>. No deduction can be made by the
farmer for the value of services rendered
hv his minor children, whether he actually
,avS Tor such services or not. If his adult
children work for him and receive compcn-
>ation for their labor, they are To tie regard
Il as other hired laborers in determining
lis income.
(. Money paid for labor, except such as
is used or employed in domestic service,
or in the production of articles consumed
in the family of the producer, may be de-
ductcd.
;. No deduction can be allowed in any
cas-, for the cost of unproductivc labor. If
hou>c servants are employed portion of
the time in productive labor, such as the
making OF butter and cheese for safe,
proportionatc amount of the wages paid
Them may be deducted.
{. Expenses for ditching and clearing
new land are pl3 inly expenses for perma-
prnt improvements, and not dcductiblc.
:. The whole amount expended for fer
tilizcrs applied during the year to the
farmers lands may he deducted, but no de-
lgction is allowed for fertilizers produced
an the farm. The cost of seed purchased
,or sowing or planting may be deducted.
:. Ira person sells timber standing, the
profits are to he ascertaincd by estimating
the value of the land after the removal OF
the timber, and adding thereto the amount
received for the timber, and from the sum
III, hn tod
value of the land on the lst day of Janu-
arv. 1852. or on the day Of purchase, II
purchased since that date.
>. Where no repairs have been made by
the taxpayer upon any building owned by
him during tho preceding five years,
nothing can he deducted for repairs made
during the year for which incomes is esti-
mated.
10. \ farmer should make return Of all
hi, produce Sod within the year, but
mere cNccutory contract for sale Is not
sale: delivery, either actual or cOnStruc-
tive, is essential. The criterion 10y which
To- udgc whether a sale is complete or
not, is 10 determine whether the vendor
still retains in that character IL right over
the property; if the property were lost or
DESTROYED, upon which of the parties, III
Inc absence bl any oiH'i w
tween them than that of vendor and ven
dee. would the loss fall.
IL. Taxpayers frequently claim dcduc-
tiuns for losses from depreciation in the
value of stocks or other property OF Il like
nature. No deduction can III any case he
allowed for depreciation of valne of such
property until it is actually disposed Of
and loss realized.
,tL
cccdiugs arising from ordinary business are
10 bc treated as other expenses OF such
business, and may be deducted from the
gross profits thereof.
II. Where physicians are obliged to keep
horse for the transaction OF business,
they may deduct so much of the expense so
incurred as is fairly relerable to the busi-
hess done.
L.. Expenses for medical attendance,
store bills, &C., are not proper subjects for
deduction. Expenses of repairs of implc-
mcnts, tools, &C., used in business may be
deducted.
IL. Only one deduction Of 5000 is al
lowed from the aggregate incomes OF all
the members of any family composed of
parents and minor children, even though
one parent only may be living. 1t is not
essential that the children live with the
parents. Husband and wife are regarded
as members of the same family, though
living separately, unless separated by di-
yorce, or other operation OF law, such as
10 break up the family relations.
IL. II the members of family have
separate incomes, the returns may be made
separately by the proper parties, and
ratable proportion Of the 5000 deducted
from the income of each. The parent, as
the natural guardian of the minor child, is
required to make return for him. But
where any other guardian or trustee has
been appointed, the return should be made
10y the latter. If the minor has no guar
dian or trustee, he should make return
himself. Ii he refuse or neglect, an inde-
pendent assessment must be made as IN
other cases, emitting penalty.
ls. Ii a taxpayer has minor child IN
the civil service of the Government,
receiving salary, such parent should in
Ciudc in his income return so much of the
salary Of his child as is not subject to sala-
~ tax.
20. Rent of a homestead actually paid
may be deducted, but the rental value of
property owned by the taxpayer is not
subject of deduction. Any person claim
Ing deduction on account of expense for
room rent must satisfy the assessor that the
room or rooms occupied by him constitute
his home, and that he has no residence
elsewhere and this being shown he may