Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-10
ABSTRACT. OF THE ANNUAL INCOME TAI.
ANNUAL INCOME TAX.

-aa-Aah --L .f.y go HHH"r
a, WHAT |. peo1tt ss9g e 70 prepare an abstract
como Tax, md Of the decisions bv ~. nas.L
ment at Warrington upon various on..,,ar. RM.
is several distinct heads: 'e' unoer
STATEMENT SHOULD BE hADE-wHrp, vuv.
Es.L3aAHD Bf4wHoN. ~
!. The law requires avery person Of law ul ana
residing In the United States, to render 10 ~
Assistant Assessor, Of the Bub.district 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
and profits during the previous year, from Jan.
uary lst to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ
tanned from the Assiltant Assessor. "A person
having no fxed residence, should make o state.
ment wherever. he or she may happen to be; aud,
In case Of removal 70 another district, should take
q certified copy OF such statement. to show any
other Assistant AssesSor, who otherwise might
make q second assessment -,zr.tg,r.
g. The statement must be rendered on or be.
fore tho LIST day OF May, or within ten days after
Q written or printed notice requiring It, has been
let at the place Of residence or Of business, or do
posted In the pearegt Post Office. ,HIEa.
3. The annual income tax Is q personal ltax,
and It cannot be assessed against any corporation,
company, or partnsrship, as such. Ivory indl-
yidual member mpst make O statement Of his or
her share Of or Interest In tho gains md profits Of
Shch company, ETC., whether such gains and
profits are divided or not, and must also state
separately his cor her income from all other
sources. T.ly. Esa #.9ihs
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
H. ms s~TATIMINTs. .abyoG I'D
g. II any personneglects or refuses to render o
written statement the Assistant Assessor Ii re-
queSted to all ont nSblRnk with such persons
name, and taxable income estimated according 70
the best information that can be obtained, ind
upon this estimated income to assess the tax, and
then to add IS per cent, TO such tax ns n penalty
for neglect or refusal IL .ge
q An Assistant ASSESSOR may be mlSled in
making this estimate, by being misinformed as 70
money received, or not informed an TO money
paid. He must assess, however, according to the
best information within bis reach Tho only per.
son capable Of giving absolutely correct informe'
tlon Is frequently the one who refuses or neglects
to mako q statement. II such person Will not
take the trouble 70 inform the Assistant Arsessor,
there 10 a bar to all complaint should the assess.
ment prove incorrect, andia heavier tax DO levied
than would otherwise b. charged Moreover,
after IN assessment has once been made, II erro
neOus, II Ia always truublesomerto'thc party In
terested TO have Il corrected. All persons, there.
fore, but especially suck a. haze no taxable income,
should not fail to render the required statement
upon the proper blank, 50 as to avoid unduetax'
7. Every statement must DO verified by oath or
Affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the income and
to add 25 per cont TO to the tax. ,.dioE rrl
EVILS OF MAKING A FALSE STATEMENT. o..
Q. An Assistant Assessor has power to increase
the amount In any statement, after giving duo
information 10 the party Interested. He IL re-
qulred, also, to add 100 per cent. to the tax when
O false statement has been rendered and tho
party making the falso statement becomes liable,
not only for this additional tax. but likewise TO
two distinct prosecutions before the United States
Courts-one for making false statement with In
tent to defraud tho Government. and the other
for perjury.
MANNER OF NAMING UP STATEMENT OF INCOME.
BY tho l18th section Of the law, the Commits
sioner Of Internal Revenue Is empowered to pre-.
scribe the form und manner In which the state.
ment of income must be made up. This he has
done In q printed blank used by the Assistant As.
SCISSOR, and In various circulars and rulings. The
following Ii a summary Of what has been pre-
scribed: ,,I1 a"st 40 ,.H' A.aA -.... D.
l. Each Of the great clauses into which the pur.
suits OF life and the Investments Of capital have
| been divided must be returned separattly- losses
In one not being allowed to offset gains In another.
| Thus y merchant who engages In farming or In
speculstions not belonging to his legitimate buli.
ness cannot Offset gains In the one by losses In
the other.
3 The expenses incident to each business are
deductible from tho receipts Of that business. 3D..
3. Speculatlons kgiiim6tsy belonging TO any
business, and these alone. may DO carried Into us
| profit and loss account. Thus q broker may spec.
| ulate in stocks, O dry goods merchant In cotton, q
hardware man In Iron, etc, and sEsA 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 bis NOR.
chandlsc account But II he buys gold, uncurrent
money, United States Treasury notes, or any
| other thing not one Of tho articles Of trade belong.
ing 10 HIS regular business, for tho purpose Of
speculation, the profit or loss from such specula.
| ton wlllnot be wi to affect the profit or Joss
from his regular business. business firm
placed $4,000 In the hands Of q New York bro.
ker, lnstructpg him to use II 10. the purchase and
sale Of gold, on their account and having lost
| 81, zoo In this venture, they claimed that II
| should be deducted from thefr profits in business.
Commissioner Lewis dlsSlowed the claim. and
said the uniform ruling had been that when q
loss Is made In any particular business, against
which there are no gains to Offset, II Is consid'
cred q dead lotSiof capital tausstsd In thai bust
ness" again, 'loss Of capital cannot DO dc
Quoted from income" Return Of income must
DO made on the gains"
4. How far different kinds OF business must be
returned separately Is shown by tho following
rulings Of Commissioner Rolllns;. ry ..o -
(d)-"Loss Incurred In the prosecution OF one
kind Of business cannot be deducted from gain In
business Of m entrely.dG yent character, nor from
salary, rents, dividends. etc. .3yl-
(6)-"Losses incurred in the prosecution of one
L UTuHCN Va dhlAAG NNAAAO w AASSa D.
In another since an absolute loss incurred In the
prosecution Of o single business Ii indlspensably
a loss of capital" ...frv.F ..r -.rr. .,.-t
()-"Loaes IN merchandise can be deductet
only from gains In merchandise; but, In this case
particular branches Of merchandise need not b,
separated So In speculation, tho loss or gall
from stocks may Offset loss or gain from produc'
speculated In" -H- ''
(6-"Msrchants must make return Of thei
profits from merchandise without regard to thel
losses In speculation, or gains from interest. diyi
bends, rents, or any other source" E
()-"L Losses In speculation cannot be deducte'
from salaries. nor from gains In merchsndh,
When losses orc sustained In one speculation an
gains made In another speculation. such losse
may be deducted from such gains Losses In on
branch OF merchandise may be deducted fror
gains In any other branch Of merchandise. %.
O-"Wbere stocks, etc, arc bought a o per
manent investment, and sold again merely =
change the Investment, \ loss sustained in 'th
sale may DO deducted from the dividends frpu
suek Atock. But where the purchase Is made TO
loss sustained BY tho sale cannot DO deductet
from dividends; but nay DO deducted from gain
doriIstfrom the purchase and sale Of stock, ETC.
iscosi IRON RrSr. OF BUILDINGS.
From the total Amount OF, such rents received
within che year for which income b estimated OF
duo and colleetable on the 3lst day Of Decembel
ofInld year, should be deducted: 90,
Ulst. Tho amount paid or duo, BY the owner, foF
repairs made within thu year, not exceeding the
yearly average paid ont for such purposes for the
preceding Ave years, and mot Including any
amounts paid or duo for now structures, or for
new and permanent improvements. .nsl9Qs
Cd. Insurance for the year paid, by tho owner
upon the buildings rented Or offered tI rent, not
erty, real or persona. IaA'la.
Sd Interest which accrued for tho year on In.
cumbrances upon the buildings rented or offered