Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-08
ABSTRACT OF THE ANNUAL INCOME TAX.
EVILS OF HEaLEcr TO MAKE OUT OR VERIFY


STATEMENTS
s II any person neglects or refuses to render q
written statement, the Assistant Assessor Is re-
quested to Ill out a blank with such persons
name, and taxable income estimated according to
the best Information that can be- o obtained, and
upon this estimated income 10 asscss the tax, and
then to add 25 per cent, TO such tax IN n penalty
for neglect or refusal.
G. An Assistant Assessor may be Inisied in
making this estimate. by being misinforned As to
money received. or not informed as 10 money
paid. lie must ASSESS, however. according to the
best Information within his reach. The only per.
son capable Of giving absolutely correct informa.
ton Is frequently the one who refuses or neklects
TO make u abatement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is u bRr to all complaint, should the assess.
ment prove incorrect. and u heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro'
neous, II Is always troublesome to the party In.
tcrested 10 have Ii corrected. AL persons, there
fore, but especially such a. hare no farabk income,
should not fail TO render the required statement,
upon the proper blank, so a. 10 avoid undue tax
alton and trouble.f
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 10 the tax.
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power to increase
the amount In any statement, after giving duo
information to the party Interested: He IL re-
qulred, also, to add 100 per cent, TO the tax when
= 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-one for making q 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 Commis-
sioner Of Internal Revenue Is empowered 10 pre-.
| serbs rhe form and manner In which the state
ment Of income must DO made up. This he has
done In u printed blank used by tho Assistant As
SCISSOR, and in various circulars and rulings. The
following Is a summary Of what has been pre-
Icribed:
/. Each Of the great classes into which the pur.
suits OF life and tho Investments Of capital have
been divided must be returned separately losses
In one not being allowed to offset gains In another.
Thus q 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.
Q The expenses incident to each business nre
deductible from the receipts Of that business.
3. Speculations l~sSitimately belonging to any
business, and these alone, may be carried into Its
profit and loss account. Thus q broker may spec
ulate in stocks, a 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 by
| exchange OT III Nil VI LuOucy phiu u uh luVi
chandlse, and this gain or loss belongs TO his mer.
chandlse account. But II he buys gold, uncurrent
money, United States Treasury notes, or my
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 $4,000 In the hands Of Q New York bro.
ker, instructing him to use II In the purchase and
sale Of gold, on their account; and having lost
S27, 500 in this venture. they claimed that IL
should be deducted from their profits in business.
Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that when u
loss IL made In any particular business, against
which there are no gains to offset, 1t IL consid.
cred a dead loss Of capital iRpested IN that bust.
ness" Again, "loss Of capital cannot DO de.
Quoted from income" Return of income must
be made on the 8ains."
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 diSrtateharaeter, nor from
salary, rents, dividends, etc"
Q)-"Losses incurred In the prosecution OF one
branch Of business cannot be deducted from gain
In another, since an absolute loss incurred In the
prosecution Of u single business Is indispensably
9 loss Of capital
n)-"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, tho loss or gain
from stocks may offset loss or gain from produce
speculated In" 49,,
GJ-"Merchants must make return Of their
profits from merchandise without regard to ,heir
LOSSES in speculation, or gains from interest. diVi'
dcnds, rents, or any other source
6)-"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 lossei
NAV be deducted from such gains, Losses In one
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
(0-"where stocks, etc, arc bought rs a per
manent investment, and sold again merely 10
change the investment, a loss sustained in the
sale may be deducted from the dividends from
such stock. But where the purchase Is made fol-
the purpose of selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends, but may DO deducted from gains
derived from the purchase and sale Of stock, etc,
In the same year"
INCOME IRON RENTS OF BUILDINGS.
From the total amount Of such rents received
within the year for which income Is estimated. OF
due and collectable 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 hvo years, and not including any
amounts paid or due for new structures, or for
new and permanent improvements.
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.
Cd. Interest which accrued for the 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
due.
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 Juno 30, 1864, In estimating In
come from rents, no account Is taken of the rental
yalu, of q homestead occupied by tho owner,
Payments for repairs, insurance and interest, on
account Of a homestead, Will be considered here
after. when treating Of general deductions from