Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-13
TRACT OF THR ANNUAL INCOME TAI
ANNUAL INCOME TAX.

ANNUAL INCOME TAX.
Having been requested to prepare an abstract
~ what il required by law In reference TO the In
come Tax, and Of the decisions by the Depart.
msnt Al washington upon VARIOUS questions that
have arisen. we present the whole HupJect' unaeri
Its several distinct heads:
TEN SHOULD BE MADE--wHERE, WHEN,
AND BIZ WHOM.
The law requires every person OF laWful age
,asidinV In the United States, to render to the
Assistant Assessor Of the sub.dlstr.ct In which he
or sho may bs residing on the LIST day OF May, 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
nary LIST TO December 3lst, both days inclusive.
A priuted blank containing this form can be OBJ
famed from the Assistant Assessor. A person
having no fixed residence, should q q state
ment wherever he or she may happen to be; and,
In case Of removal to another district, should take
A certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make a second assessment
Q The statement must be rendered on or be.
fore the LIST day Of May, or within ten days AFTER
a written or printed notice requiring II. has been
left at tho place Of residence or of business, or de.
posted In the pearest Post Office.
3. Tho annual income tax Is a personal tax,
and It cannot be assessed against any corporation,
company, or partnership, rs such. Every lndi'
yidual member must mako 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 state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5. II any person neglects or refuses to render q
written statement, the Assistant Assessor IL re-
quested to gil out q blank with such persons
name, and taxable income estimated according 10
the best information that can be obtained, and
upon this estimated income to assess the tax, and
then to add 2J per cent, to such tax M a penalty
for neglect or refusal.
G.. An Assistant Assessor may be misled In
making this estimate, by being misinformed ~ TO
money received, or not informed AZ to money
paid. He must assess. however, according to the
best information within his reach. The only per
son capable Of giving absolutely correct lnforma'
tIon IN frequently the one who refuses or neglects
to mako a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Ia n bar to all complaint, should the assess.
ment prove Incorrect, and u heavier tax oe levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II Gro
neous, II IN always troublesome to the party In
terested 10 have II corrected. All persons, there
fore, but especially such as hdue no taxable income,
should not fall to render the required statement,
upon the proper blank, 30 Us TO avoid undue tax
alton and troubled
Z. Every abatement must be verified by oath or
Affirmation. when this IL not done, tho Assistant
Assessor IL required to estimate the income and
to add IS per cent TO 10 the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount In anyGtatcment, after giving due
information to the party interested. He IL re-
quired, also, TO add 100 per cent. to the tax when
u false tatement 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
C~ourts-0ne for making a false statement with In.
tent to defraud the Government, and the other
for perjury.
MASSER OF MAKING UP STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits
sioner of Internal Revenue Ia empowered TO pre-
scribe the form and manner In which the state.
ment OF income must be made up. This he has
done In n printed blank used by the Assistant As.
SCISSOR, and In VARIOUS circulars and rulings. The
following Ia q summary Of what has been pre-
scribcd:
/. Each Of the great classes into which the pur.
suits of life and the Investments Of capital have
been divided must be returned separdtely- losses
in one not being allowed to Offset gains In another.
Thus q merchant who engages In farming or In
speculations not belonging TO bis legitimate busl.
ness cannot offset gains In the ono by losses In
tho other.
. The expenses incident to each business are
deductible from the receipts Of that business
3. Speculations le9itimdtely belonging TO any
business, and these alone, may be carried into Its
profit and loss account. Thus u broker may spec
ulate In stocks, a dry goods merchant In cotton, u
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 or tho kind Of money paid for his mer.
chandise, and this gain or loss belongs to his mer.
chandise account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
= a - a N..Ia IL RI
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 a New York bro.
ker, instructing him to use II In the purchase and
sale OF gold, on their account and having lost
1880 In this venture, they claimed that 1t
should be deducted from their profits in business.
Commissioner Lewis disallowed the claim. and
| said the uniform ruling bad been that when a
loss In made In any particular business, against
which there are no gains to offset, 1t Is consid'
cred a dead ioss Of capital invested in that bnsi.
ness" Again, loss Of capital cannot be de-
ducted from income,' Return of income must
be made on the Rdins."
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 di5erentehdraeter. nor from
| salary, rents, dividends. etc
H)-"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 a single business IL indlspensably
| & 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, the loss or gain
from stocks may Offset loss or gain from produce
speculated In"
M-"Merchants must make return Of their
| profits from merchandise without regard to their
losses In speculation, or gains from Interest. diVi.
| 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 ono 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 as a per.
manent investment, and sold again merely TO
| change the Investment. q loss sustained In the
| sale may DO deducted from the dividends from
such stock. But where the purchase Is 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 purchase and sale Of stock, etc,
In the same year"
INCOME FROM RENTS OF HIDING
From the total amount Of such rents received
within the year for which income Ii estimated. or
| due and collect8ble on the 3lst day OF December
ofsald 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 ont for such purposes for the
preceding Ave 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.
Sd. Interest which accrued for the year on In.
cumbrances upon tho buildings rented or offered
for rent, or upon the lands on which they stand,
whether such interest has been paid or remains
due. -
together, no segregation being required. Repairs,
insurance and interest paid on account OF any
and all such buildings, whether occupied or NOT
viii 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 from rents, no account Ia taken OF the rental
value Of q homestead occupied by the owner.
PAYMENTS for repairs, insurance and interest, on
account Of q homestead. will be considered here
after, when treating Of general deductions from
gross income.
DnGir,Utnn CnSG