Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-06
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Having been requested TO prepare an abstract
Of what Is required. by law In reference 70 the In
Tax, aud Of the decisions by dis Depart.r
ment at Washington upon various ducsaons that
have arisen, We present the whole subject, under
It's several distinctheads: FlI'TI' |'r~T =.
STATEMENT SHOULD BE MADEl.wHERI. WHEN,
ga- N BY WHOM. .naEL y
!. Tho law requires every person oflassful age,
residing In the United States, to render'tor the
Assistant Assessor Of the sub.distr:ct In which no
or she may be residing on the LIST day Of May, a
statement, according to q prescribed
form, Of the amount Of bis or her income, gains
and profits during the previous year, from Jan.
LIST 10 December 3lst, both daysinclusive.
A printed blank containing this form can be OBJ.
tained from the Assistant ASSESSOR. A person
having no fixed residence, should make q state.
ment wherever he or she may happento be; and,
In Gaze Of 30 another district, should take
4 certified copy Of such statement to show my
other Assistant Assessor, who'otherwis might
make O second assessment.
.. The abatement must DO 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 the place of residence or Of business, or de.
posted In the pearest Post Office.
3, The annual Income tax Is a personal tax,
and II cannot be assessed against any corporation,
or partnership, as such. Every indi.
yidual member must make n statement Of his or
her share of or Interest In tho 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.
S. II any person neglects or refuses 10 render q
written statement, the Assistant Assessor Is re.
quested TO All out n blank with such persons
name, and taxable income estimated according to
the best that can be obtained, and
upon this estimated income to assess the tax, and
then to add 25 per cent. to such tax M a penalty
for neglect or refusal.
6. An Assistant Assessor may be mlsled In
making this estimate, by being misinformed rs 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 Ii frequently the one who refuses or neglects
to make q statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is q bar to all complaint, should the assess.
ment prove incorrect, and a heavier tax be levied
than would otherwise be charged. Moreover,
after IN assessment has once been made, If erro
neous, Il IL always troublesome to the party In
tcrested to have Il corrected. All persons: there
fore, but especially snch a. hape no taxable income,
should not fall to render the required statement,
upon the proper blank, no IN to avoid undue tax
alton and trouble.t
Z. Every statement must DO verified by oath or
affirmation. When this is not done, the Assistant
Assessor IL required to estimate the income and
TO add IS per cent to to the tax.
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. Ho IL re.
qulred, also, TO add 100 per cent. to the tax when
q false statement has been rendered and the
party making the false statement becomes liable,
80, nnI,, for thtus a46fffnpal tax lint lkepyiae 10
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 or MAKING UP STATEMENT OF INCOME
BY the llSth section Of the law, the Commits.
sioner Of Internal Revenue " empowered to pre-
scribe tho form and manner In which the state
ment Of income must BIO made up. This he has
done In n printed blank used by The Assistant An.
SCISSOR, and Ia VARIOUS circulars and rulings. The
following Is a summary of what has been pre-.
scribed;
/. Each Of the great classes into which the pur.
suits Of life and the 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
speculstions not belonging to his legitimate busi.
ness cannot Offset gains In the one by losses In
the other.
. The expenses incident TO each business nre
deductible from the receipts Of that business.
3, Speculations Ls1itimdtely 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, a
hardware man In iron, etc, and sueh 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 his mer.
chandise account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one Of the articles Of trade belong.
ing TO his regular business, for the purpose oil
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
s27, 800 In this venture, they claimed that II
should be deducted from their profits IN business.
Commissioner Lewis disallowed the claim, and
said tho uniform ruling had been that "vhen q
loss IL made In any particular business, against
which there are no gains to Offset, It Is consld-
cred a dead loss Of capital inrested In thar bust
n.ss." Again, 'loss Of capital cannot be de.
Quoted from income" Return of income must
be made on the gaiHs."
4, How far different kinds Of business must DO
returned separately Is shown by the following
rulings OF Commissioner Rollins:
(a)-"Loss incurred In the prosecution OF one
Kind of business cannot DO deducted from gain in
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salary, rents, dlvidends, etc.'
Bl-"Losses 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 u single business IL indlspensably
q loss Of capital"
Tc1-"Losses In merchandise can be deducted
only from gains In merchandise but, In this case,
particular branches Of merchandise need not DO
separated. So In speculation, the loss or gain
from stocks may Offset loss or gain from produce
speeulated In"
(6-"Merchants must make return Of their
profits from merchandise without regard TO their
losses In speculation, or gains from interest, divi.
bends, 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 US a per.
manent investment, and sold again merely TO
change the investment, u loss sustained In the
sale may be deducted from the dividends from
such 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 pHrehdss and sale Of stock, etc,
In the same year"
INcoaE FROM RENTS OF
From tho total amount OF such rents received
within the year for which income Is estimated. or
due and collectable 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 tho
yearly average paid out for such purposes for the
preceding Ave years, and not including my
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.
I'd. 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 VIII be regarded
together, no segregation being required. Repairs,
insurance and interest paid on account Of my
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 from rents, no account IL taken Of the rental
value of a 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.
RedingtOn 4 Co.'s
ESSENCE OF JAMAICA GINGER.