Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-15
ABSTRACT or THE ANNUAL INCOME TAX
tax

Of h ~ requlrod by law inrrefsrence oIha In
come Ts1, and oflthe decisions BY the Depart.
have arisen, we present the whole subject. under
Its several distinct heads:
STATEMENT SHOULD BE aADE--wHERE, WHEN.
AND BY WHOM.
l. The law requires every person of laufu age.
residing In the United States, to render TO the
Assistant Assessor Of the sub-dlstr.ct In which he
or she may be residing on the LIST day OF May, a
written statement, according to u prescribed
form; Of tho amount Of his or~her income, gains
and profits during the previous year, from Jan.
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ.
tanned from the AssIstant Assessor. A person
having nofiIed residence, should ma&e'a state.
ment 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
9, The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
q written or printed notice requiring II, has been
left at the place Of residence or OF business, or de.
posted In the pearest Post Office.
3. The annual income tax Ia a personal tax,
and Il cannot be assessed against any corporation,
company, or partnership, IN such. Every indi-
vldual member must make a statement OF bis 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 stnte
separately his or her income from all other
sources. 'tf..
EVILS OF NEGLECT TO MAKE OUT Oh VERIFY
. STATEMENTS.
5. II any person negiects or refuses to render q
written statement, the Assistant Assessor Is re-
quested to fill out u blank with such persons
name, and taxable income estimated according 10
the best Information that can be obtained, and
upon this stimate income TO assess the tax, and
then Il. add q, per cent, TO such tax ~ n penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate by being plslnformed az to
money received, or not informed ~ to money
paid. He must assess. however, according TO the
best within his reach. The only per.
son capable Of giving absolutely correct informa'
tlon IL frequently the one who refuses or neglects
to make n statement. II such person Will not
take the trouble 10 inform the Assistant Assessor,
there IL u bar to all complaint. should the, assess:
mpnt prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, IT erro
neous, II il always troublesome TO the party in
tercsied to have itcorrected. All persons, there.
fore, but especially such as hare no tardbls income,
should not fall TO render this required statement
upon the proper blank, no ~ to avoid undue tax
alton and trouble.
I. Every statement must be- verified by oath or
Affirmation. When this IL not done, the Assistant
Assessor Is required TO estimate the income and
10 huu - per cent. 10 W u u .
EVILS OF MAKING APAL.sE STATEMENT.
9. An Assistant Assessor has power to increase
the amount in any statement, after giving due
information TO the party Interested. lie iSre-
quircd, also. TO add 100 per cent. to the tax when
u 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 a false statement with In.
tent to defraud the Government. and the other
for perjury.
MANNER or MAKING UP STATEMENT OF INCOME.
BY the 18th section Of the law. the Commits.
sioner Of Internal Revenue Is empowered to pre-.
scribe the form and manner In which the state.
ment Of income Imust 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 II summary Of what has been pre-.
scribed:
1. 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 10 offset gains in another.
Thus a merchant who engages In farming or In
speculations not belonging to his legitimate bust
ness cannot Offset gains In the one by losses In
the other.
=. The expenses incident. to each business re
deductible from the receipts Of TINT business.
3. Speculations legaimately belonging to any
business, pnd these alone. may be carried into Its
profit and loss account. : Tins n broker may spec.
ulhIc IN ktDCkh, " uTy BOOub IlcECudLt ~ All IN
hardware man In iron, etc, and such speculation
may affect the gain and loss Of sneh 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 mer.
chandise account. But II he buys gold, uncurrent
money, United States Treasury notes. or any
other thing not one Of the articlesof 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 $40, 600 in the hands OF a New York bro.
ker, instructing him TO use Tin the purchase and
sale Of gold, on their account; and having lost
E27, 600 In this venture, they claimed that II
should be deducted from their profits In business.
Commissioner Lewis dlsaIlowed the claim. and
said the uniform ruling had been tAt"vhen,o
loss Is made In any particular business, against
which there are no gains to offset, II N consld.
cred a dead loss Of capital inuested in that bust.
aAS.". Again. "loss Of capital cannot be de-
Quoted from iueome." Return Of income must
be made on the gains"
4. How far different kinds of business must DO
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(d)-"Loss incurred In the prosecution of one
kind Of business cannot be deducted from gain In
business Of an entirely dGerentehorde,r, nor from
salary, rents, dividends. etc"
(b)-"Lossos incurred in the prosecution Of one
branch Of business cannot be deducted from gain
In another, since IN absolute loss incurred In the
prosecution OF n single business IL indispensably
n loss Of capital" ,r..,...sr on
c)-"Losses In merchandise can be deducted
only from gains In merchandise; but. In this case,
particular branches Of merchandise need not be
separated. 20 In speculation, the loss or gain
from stocks may offset loss or gain from produce
speculated In"
(O-"Msrchants must make return Of their
profits from merchandise without regard to their
losses 10 speculation, or gains from interest. diri.
dends, rents, or any other source"
U)-"Losses In speculation cannot be deducted
from salaries, nor, from gnins 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 ono
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
(0-"Where stocks, etc., are bought Rs a per.
msnent Investment, and sold again merely TO
change tho Investment, q loss sustained In the
sale NAV be deducted from the dividends from
such stock. But where the purchase IL made for
the purpose Of selling agsin on speculation. the
loss sustained by the sale cannot be deducted
from dividends, but may be deducted from gains
derived from the purchass and sale Of stock. ETC.,
In tho same year."
INCOME FROM RENTS. or BUILDINGS.
From the total amount Of such rents received
within the year for which income IL estimated>o or
due md eollectable on the 3lst day Of December
ofsaid year, should be deducted:
LIST. The amount paid or due. by the owner, for
repairs made within the year, not exceeding the
yearly average paid out for such purposes for the
preceding Eve years, and not including any
amounts paid or due for new structures, or TOT
new and permanent improvement ~.
Cd. Insurance for the year paid ny the owner
upon tho buildings rented or offered for rent, not
including insurance paid upon any other prop
crty, real or personal.
IA Interest which accrued for the year on In.
cumbrances upon tho buildings. rented or offered
f...-... ~ aaohN fha alanda Hu which they HtAnu,