Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-28
,Rs7R1cT OF rHR ANNUAL INCOME TAX.
EVILS OF NEGLECT 70 MAxr'our OR VERIFY

STATEMENTS
S. II any person negleets or refuses 70 IenaeEA
written statement, the Assistant Assessor ID re-
quested to 6l out q blank with such persons
name, and taxable income estimated accoroing 70
the best information that can be obtained, and
upon this estimated Income TO usess the tar, eud
then to add 25 per cent, to such tax rs q penalty
for neglect or refusal =,
making this estimate, by being misinformed al 10
money received, or not informed as 10 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 Is frequently the one who refuses or neglects
to mike a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there ID a bar to all complaint, should the assess
ment prove incorrect, and a heavier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II GRO
neous, II Ia always troublesome to the party In
terested TO have Il corrected. AL persons, there
fore, but especially snek a. hdre no ta1dok INCOME,
should not fall TO render the required statement,
upon the proper blank, so ~ to avoid UNDUE tax
alton and troubled
4, Every statement must be verified by odA or
affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the income and
to add 25 per cent TO to the tax.
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power to tncrease
t"S oAASAas - eAy
information to the party interested: he Is re-
quired, 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,
not only for this additional tax. but likewise to
two distinct prosecutions before the United States
Courts-ons for making o false statement with in
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKING Up STATEMENT OF INCOME.
By the ll8th section Of the law, the Commits.
lloner Of Internal Revenue 10 empowered to pro-
scribe the form and manner In which tho state
ment OF income must be made up. This he has
done In q printed blank used BY the Assistant As
SCISSOR, and In various circulars and rulings The
following Is a summary Of what has boon pre-.
scribed:
l. 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 ono not being allowed to offset gains In another.
Thur O merchant who engages In farming or In
| speculations not beloneinsto his legitimate bust.
ness cannot offset gains In tho ono by losses In
the other.
.. The expenses incident to each business are
| deductible from the receipts Of that business.
| 3. Speculations xSttimately belonging to any
| business, and these alone. may be carried into Its
| profit and loss account. Thus q broker may spec.
ulate In stocks, q dry goods merchant In cotton, O
| hardware man In iron, etc, and such speculation
may affect the gain and loss Of such legitimate
/ business. a mcrcuhuL hlbO may mako OF lObo ny
| exchange or the kind OF money paid for his mer
chaudise, and this gain or loss belongs to his mer.
ehaudiss account. But II he buys gold, uncurreni
4 nDrcy, United States Treasury notes, or any
other thing not ono 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 o40,0 900 In the hands Of a New York bro
ker, lnstructing him to use II In the purchase and
sale Of gold, on their account; and having lost
SCI. 500 In this venture, they claimed that II
should be deducted from their profits In business
Commissioner Lewis disRllowed the claim, Rnt
said tho uniform ruling had been that when
loss IL made in any particular business, asains
which there are no gains to Offset, II IS consid
cred a dead loss Of capital iHues.ed in that bust
ness" Again, loss Of capital cannot be de
Quoted from income" Return Of income mus
be- made on the gdtns."
a How far different kinds of business must b,
returned separately Is shown by the follorini
rulings Of Commissioner Rollins:
(a)-"LOss Incurred In the prosecution Of on,
kind Of business cannot be deducted from gain II
business Of an entirely different cheroeter, nor from
salary, rents, dividends, etc
()-"Losses incurred In the prosecution OF on,
branch OF business cannot be deducted from gaii
In another, since an absolute loss incurred In th,
prosecution Of q single business Ii indispensable.
. loss Of capital"
(c)-"Losses In merchandise can be deducte'
only from gains In merchandise; but, In this case
particular branches Of merchandise need not b
separated. So In speculation, the loss or gal
from stocks may Offset loss or gain from produc
spoculated in"
(0-"Merchants must make return Of thei
profits from merchandise without regard to thei
losses In speculation, or gains nom interest, div
dends, rents, or any other source"
(e)-"Losses In speculation cannot be deductet
from salaries, nor from gains In merchandise
When losses are sustained In one speculation An,
gains made In another speculation, such losse
may be deducted from such gains Losses in on
branch Of merchandise may be deducted iron
gains In any other branch Of merchandise"
(0-"where stocks, ETC., arc bought a. q per
manent Investment. and sold again merely 4
change the investment, a loss sustained In IN
sale may be deducted from the dividenda fror
such stock. But where the purchase IL made 70
the purpose Of selling again on speculation. tn
loss sustained by the sale cannot be deducte'
nom dividends. but may bs deducted from gain
derived from the P~urekass and sole Of stock, etc.
in the same year"
From the total amount Of such rents receives
within the year for which income Is estimated. o
due and collectable on the 3lst day Of Decembe
ofsaId year, should DO deducted:
LIST. The amount paid or due, by the owner. 70
repairs made within the year, not exceeding tn,
yearly average paid out for such purposes for III,
Il pAONCAAA| ' 49,
amounts paid or due for new structures, or TO
now and permanent improvements.
Cd. Insurance for the year paid by tho owne
upon the buildings rented or offered for rent, no
including insurance paid upon any other prop
erty, real or personal.
Sd Interest which accrued for the year on In
cumbrances upon the buildings rented or oferet
for rent, or upon the lands on which they stand
whether such interest has been paid or remain
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 the total amount Of rents
Taxes will not DO deducted from rents, bu'
from gross income from all sources.
BY the law Of Juno 20. 1854, In estimating In
come from rents, no account Is taken Of the renta
value Of q homestead occupied by tho owner
Payments for repairs, insurance and Interest, or
account of q homestead, will be considered hero
after, when treating of general deductions from
--aa.l,aopna