Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-20
81 INCOME TAX

THE INCOME TAX
The following, condensed from . circular
Of instruction just issued by the Commits
sioner Of Internal Revenue. contains the
principal rules to be observed by United
States Revenue Assessors in assessing the
income and gold and. silver.plate taxes
for 1866:
Only one deduction Of six hundred dol.
lars is allowed from the aggregate incomes
Of all the members of any family composed
o. parents and minor children, ever though
only n parent may be living. 1t is not
essential that the children live with the
parents. Husband and wife are regarded
as members Of the same family, though
living separately, unless separated by
divorce or other operations Of law, such as
to break up the family relations. II the
members Of a family have separate incomes,
the returns may be made separately by the
proper parties, and a ra,able proportion OF
the six hundred dollars deducted from the
income of each. The parent as the natu-
raj guardian of the minor child, is required
to make return for it; but where any other
guardian or trustee has been appointed
the return should be made BY the latter.
Rent Of homestead actually paid may be
deducted, but the rental value Of the prop
er,y owned by tbs taxpayer is not a sub
ject OF deduction. Any person claiming q
deduction on account OF expense for room
rent must satisfy the Assessor that the
room or rooms occupied by him constitute
his home, and that he has no residence
elsewhere; and this being shown, he may
be allowed to deduct what he actually
pays for rent Of such rooms. When rent
i, included and deducted as an expense,
Of business it u not again be deducted
as rent. Nor should a person hiring a
house and sub-letting q portion of it be
allowed to deduct more than the excess Of
his payments over his receipts. Where
no repairs have been made by the TX
payer upon any building owned by him
during the preceding FIVE years, nothing
can be deducted for repairs made during
the year for which income is estimated.
Taxpayers frequently claim deductions
for losses in depreciation in the value Of
stocks or other property of a like nature.
No deductions can in any case be allowed
for depreciation of value of such property
until i, is actually disposed Of and a loss
realized. Costs Of suits and other legal
proceedings arising from ordinary business
are to be treated as other expenses Of such
business, and may be deducted from the
gross profits thereof. Expenses for medi-
cal attendance, store bills, etc., are not
proper subjects for deduction. Expenses
Of repairs Of implements, tools, etc., used
In business, may be deducted.
Among the National, State, county and
municipal taxes deductable from incomes
are comprised such Internal revenue taxes
as have not been included in expenses Of
business, and such municipal taxes as are
assessed rstably upon all the persons liable
to such assessment ; but assessments made
by municipal authorities upon the inhabi-
tants Of a particular locality Of a town or
city on account Of special improvements in
or upon the streets adjoining the premises
Of such inhabitants, the Same not being
assessed ratably. are not considered as
taxes deduc,able from income. II the
manufacturer or dealer has been in the
practice Of estimating his annual profits BY
taking inventories Of stock, he should take
the cost value of such stock, unless he
has taken the market value in making
previous returns Whichever method has
been adopted by the taxpayer should be
adhered to uniformly.
If interest accrued, during the year on
notes, bonds, etc., is good and collectable
at the end Of the year, it should be returned
as income, whether collected or not. The
fact that income is devoted to the payment
Of debts does not release the same from
liability to income tax. Residents should
make return in the district where they re-
side at the time Of making the return. The
residence required, under section lie, for
the purpose Of taxing income is held to
be a residence during the year for which
income is derived. II any person subject
TO income tax resides abroad, his return
should be made in the district where he
last resided. Citizens Of the United States
residing abroad are subject to tax upon
their entire incomes. from all sources
whatever, and the same is true Of foreign
ers residing in this country. The term
real estate includes all lands, tenements
and Entertainments, corporal and incorpo-
real. Profits on real estate purchased in
a previous year need not be returned as
incomes, nor can losses on such sales be
deducted therefrom. Where an income
exceeds FIVE thousand dollars, six hundred
dollars will be exempt-four thousand
dollars subject to a tax q. Eve per cent,
and the remainder at ten per cent. AL
expenses for insurance upon property, and
all actual losses in business, may be de-
Quoted from the gross income Of the year.
Gold and silver plate is subject to tax if
kept for use, whether actually used or not,
except as provided in Schedule A. II
kept in bank, with no intention to use the
same, such plate Is exempt.
The FIRE IN VIRoINIA.-The telegraph
informs us that Virginia City has been