Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-06
lR;srkAcT OF THB ANNUAL INCOME TAX
ANNUAL INCOME TAX.

of what Il required By law In reference to the In
come Tax, and Of the decisions by the Depart
meut at Washington upon various questions that
have arisen, We present tho whole subject, under
Its several distinct heads:
STATEMENT SHOULD BE MADE--wHERE, WHEN,
AND BY WHOM.
]. The law requires every person Of awn age
r. sidlnE In the United States, TO render to the
Assistant Assessor Of the sub.diStrict In which no
or she may DO residing on tho LIST day Of Nay, o
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 LIST to December 3lst, bob days inclusive.
A printed blank containing this form can be OBJ
tanned from the Assistant Assessor. a person
having no fixed residence, should make q state.
ment wherever he or she may happen to be; 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 q second assessment
Q, The statement must DO rendered on or be.
fore the LIST 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, or de.
posted In the nearest Post Office.
3. The annual income tax is O personal tax,
and II cannot DO assessed against any corporation,
company, or partnership, as such Every lndi-
yldual member must make O statement OF his or
her share Of or interest In the gains and profits OF
such company, ETC., whether such gains and
profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAXI OUT OR VERIFY
STATEMENTS.
5. II any person nrglects or refuses to render a
written statement, the Assistant Assessor IL re.
quested TO fill out u blank with such persons
name, and taxable Income estimnteda according TO
the best information that can be obtained, and
upon this estimated Income to nssess the tax. and
then TO add % per cent, TO such tax rs a penalty
for neglect or refusal.
G. 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.
ton IL frequently the one who refuses or neglccts
TO mako q statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is a bar to all complaint, should tho assess.
ment prove Incorrect, and q heavier tax DO levied
than would otherwise be charged. Moreover,
nfter an assessment has once been made, II erro
neous, II Is always troublesome to the party In.
teresied TO have II corrected. All persons. there.
fore, but especially such as hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 30 rs TO avoid undue tax
alton and trouble.
z, 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 25 per cent. to to the tux.
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
q false statement has been rendered and the
party making tho false statement becomes liable,
not only for this additional tax, but likewise TO
two distinct prosecutions before the United States
Courts-ono for making u false statement with In.
tent to defraud the Government, and the other
for perjury.
BANNER or MAKING UP STATEMENT OF xcoME
BY tho 18th section Of the law, tho Commits.
sIouer Of Internal Revenue Is empowered to 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 As.
SCISSOR, and In various circulars and rulings. The
following Is a summary of what has been pro.
scrlbed:
l. Each Of the great classes into which the pur.
suits OF life and the investments Of capital have
been divided must be returned sepdrdteiy- losses
In one not being allowed to Offset gains In another.
Thus q merchant who engages in farming or In
speculntlons not belonging to his legitimate bust
ness cannot Offset gains In the ono by losses in
the Other.
9. The expenses incident to each business re
deductible from the receipts Of that business.
3. Speculations tegitimdtely belonging 10 any
| business, and these alone. may be carried into It's
| profit and loss account. Thus n broker may spec.
ulate in stocks, n dry goods merchant In cotton, q
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 y
exchange or the kind Of money paid for his mt :.
chandise, and this gain or loss belongs TO his m, :.
| chandise account. But II he buys gold, uncurre It
money, United States Treasury notes, or a y
other thing not one o fthe articles Of trade belon q:
Ing 10 his regular business, for the purpose II
speculation, the profit or loss from such speculL.
ton will not DO allowed to affect the profit or loss
from his regular business. A business firm
placed 10000 In the hands Of n New York bro.
ker, instructlng him TO use IL In the purchase and
sale Of gold, on their account and having lost
SCI 500 In this venture, they claimed that Il
should DO deducted from their profits In business.
Commissioner Lewis disallowed the claim. and
said the uniform ruling had been that ~ hen q
loss Is made In any particular business, against
which there are no gains TO Offset. II Is consid.
cred q dead loss Of capital inuested in that bust.
ness" Again, loss Of capital cannot be dc.
Quoted from income Return Of income must
be made on the saiaI."
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(dI-"Loss Incurred In the prosecution Of onr
kind Of business cannot be deducted from gain In
business Of an entirely diStrentchdraear, nor from
salary, rents. dividends. etc"
(b)-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
In another, since an absolute loss incurred In the
| BAVoCNuhASh W v Aa6 eFAASn IN tbAAoPNhnuOS
q loss Of capital" 81
| C)-"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"
(d)-"Merchants must make return Of their
profits from merchandise without regard TO their
losses In speculation, or gains from interest. diyi.
dends, rents, or any other source"
(e)-"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 rs a per.
manent investment, and sold ngaln merely to
change the Investment, q loss sustained In the
sale may DO deducted from the dividends from
sueh stock. But where the 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 purehase and sale Of stock, etc,
In the Same year"
INCOME o RENTS OF BUILDINGS.
From the total amount OF such rents received
within the year for which income Ia estimated. or
due and collectable on tho .3lSt day Of December
ofsaid year, should DO deducted: a ~
LIST. The amount paid or due, by tho owner, for
ANRAAAo aoa I'VE - Nea 49, y hNN
yearly average paid out for such purposes for the
preceding Ave years, and not including any
amounts paid or due for new structures, or for
now and permanent improvements. H.E
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.
Sd. Interest which accrued for tho year on In.
cumbrances upon the buildings rented or offered
for rent, or upon the lands on which they stand,
whether such interest has been paid or remains
duo,
All buildings offered for rent will be regarded
together, no segregation being required. Repairs,
insurance and interest paid on account Of any
and all such buildings, whether occupied or not.
will be deducted from tho total amount Of rents.
Taxes will not be deducted from rents. but
from gross income from all sources. -
BY the law Of June 30, 1864. In estimating In.
come iron rents, no account Is taken Of the rental
value Of o homestead occupied by the owner.
Payments for repairs, insurance and interest, on
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