Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-14
ABSTRACT 0 fHB ANNUAL INCOME TAX.
--IWUIL INCOMR

of whnt Is required by law In reference to the In.
como Tax, and Of the decisions by the Depart.
ment at Washington upon various questions that
have arisen. we present the whole subject, under
its several distinct heads:
STATEMENT sHoULD BE MADE-wHERE, WHEN,
AND-BY WHOM. .
1. Tho law requires every person oflawful age,
residing In the United States, to render to the
Assistant Assessor ofths sub.dlstrlct in which no
or sho may be residing on the LIST day OF May, o
written statement, according TO q prescribed
form, Of the amount Of bis or her income, gains
and profits during the previous year, from jan
uary lIt TO December 3lst, both days inclusive.
A printed blank containing this form can BIO OBJ
talned from tho Assistant Assessor. A person
having no fixed residence, should mako q state.
meut 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 q second assessment
9. The statement must DO rendered on or be.
fore the LIST day Of May, or within ten days after
q written or printed notice requiring 1t, has been
left nj the place Of residence or Of business, or de.
posted In tho pearest Post Office.
3, Tho annual income tax Is n personal tax,
and Il cannot be assessed against any corporation,
company, or partnership, as such. Every indl'
yIdual member most mako q statement OF bis or
her share Of or interest In the gains and profits OF
such company, etc, whether such gains ana
profits are divided or not, and must also state
separately bis or her Income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS. .r
II any person neglects or refuses to render n
written statement, the Assistant Assessor Is re'
quested to fill out a blank with such persons
name, and taxable income estimated according TO
the best information that can be obtained, and
upon this estimated income TO assess the tax, and
then to add 25 per cent, TO such tax rs a penalty
for neglect or refusal.
G. Au Assistant Assessor may be misled In
making this estimate, by being misinformed as TO
money received, or not informed rs to money
paid. He must assess. however. according to the
best within his reach. The only per.
son capable OF giving absolutely correct informa.
tion Is 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 q 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 tho party In.
torested to have IL corrected. All persons. there.
fore, but especially sueh as hare no tdId6le income,
should not fall to render the required statement,
upon the proper blank, 30 as to avoid undue tax.
| alton and trouble.
7. Every statement must DO verified by oath or
| Affirmation. When this Is not done, tho Assistant
Assessor IL required TO estimate tho income and
to add % per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
.. An Assistant Assessor has power TO increase
the amount In any statement, after giving due
information to the party interested, Ho 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 llkowisc to
two distinct prosecutions before the United States
Courts-one for making q false statement with In.
tent 10 defraud the Government, and the other
for perjury.
MANNER OF GKISa UP STATEMENT OF INCOME.
|. BY the llSth section Of the law, the Commits
IIoner Of Internal Revenue Is empowered TO pre-
scribe tho form and manner In which tho state
ment Of income must DO made up. This he has
done In u printed blank used by the Assistant As
SCISSOR, and In various circulars and rulings. The
following is n summary Of what has been pre-
scribed:
i. Each Of the great classes into which the pur
suits Of life and the investments Of capital have
been divided must be returned sepdrdtely- lossc.
In one not being allowed to offset gains In another
Thus q merchant who engages in farming or In
speculatlons not belonging TO his legitimate bus
ness cannot Offset gains In the one by losses In
the other.
. The expenses incident to each business are
deductIble from tho receipts Of that business.
3. SpeculatIons kSitiMatsly belonging TO any
business, and these alone. may DO carried into Il,
profit and loss account. Thus a broker may spec
i ulhI6 III hpOCkbt " uEy BOOub mCICLlhu u CSltOut "
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 the kind Of money paid for his mer'
chandIse, and this gain or loss belongs TO his mer.
chandlse account. But II he buys gold, uncurreni
money, United States Treasury notes, or any
other thing not ono Of tho articles Of trade belong
ing TO his regular business, for the purpose Of
speculation, the profit or loss from such specula'
uon will not BIO allowed to affect the profit or os'
from his regular business. A business firm
placed $40 900 In tho hands Of n New York bro
ker, lnHtructing him to use II In the purchase and
sale Of gold, on their account and having lSi
S27, 500 In this venture, they claimed that II
should DO deducted from their profits In business
Commissioner Lewis diEallowed the claim, and
said the uniform ruling had been that "vhen Q
loss Is made In any particular business, agalns'
which there are no gains 10 Offset, Il Is eonsid
cred O dead loss of capital inueated In that bust
ness" Again, "loas Of capital cannot be dc
Quoted from income" Return Of income mus
be made on the gdins."
4. How far different kinds Of business must b,
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(a)-"Loss incurred In tho prosecution Of ont
kind Of business cannot be deducted from gain II
business Of an entirely diGereRtehdrdeier, nor from
salary, rents, dividends, etc
(b)-"Losses incurred In the prosecution Of on,
branch Of business cannot be deducted from gair
Il In announcer, hluCo III uuBOlutC lOhb Guilty. III III
prosecution OF q single business ia indlspensably
q loss OF capital"
6)-"Losses In merchandise can be deducted
only from gains In merchandise; but. In this case
particular branches Of merchandise need not b,
separated. So In speculation, the loss or gair
from stocks may offset loss or gain from produc,
specuIated in" ~
(0-"Mcrchants must make return Of thell
profits from merchandise without regard to theii
losses In speculation, or gains from interest. dlvi
dends, rents, or my other source"
H)-"Losses In speculation cannot DO deducted
from salaries, nor from gains in merchandise
When losses arc sustained in one speculation ant
gains made In another speculation, such lossei
may be deducted from such gains, Losses In on,
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
(0-"Whcre stocks, etc., are bought rs u per
manent Investment, and sold again merely tt
change the investment, = loss sustained In thu
sale may DO deducted from the dividends from
sueA stock. But where tho purchase Is made fol
tho purpose Of selling again on speculation, thu
loss TuItained by the sale cannot be deducted
from dividends. but may be deducted from gain
derived from the Prreka's and sale Of stock, etc,
In tho samo year."
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 DO deducted:
lst. 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 FIVE years, and not including amy
amounts paid OF due for new structures, or for
now 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 my other prop
erty, real or personal.
"a Interest which accrued for tho year. on;in'
cumbrances upon the buildings rented or offered
$500 800. a.. laoh. IN -htnh thaV atanh