The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1866-05-17

animals Sold the purchase money paid for the same
If animals have been lost during the year by death
or robbery, the purchase-money paid for such ami
mails may be deducted from the gross income of the
farm
8. No deduction can be made by the farmer for the
value of services rendered by his minor children
whether he actually pays for such services or not
Ii his adult children work for him and receive com.
pensaion for their labor they are to be regarded as
other hired laborers in determining his income.
a. Money paid for labor, except such as is used or
employed for domestic service, in the production
OF articles consumed in the family of the producer,
may be deducted.
D. No deduction can be allowed in any case for the
cost of unproductive labor. If house servants are
employed portion of the time in productive labor
such as the making of butter and cheese for sale
a propoltlonate amount of the wages paid them may
be deducted
s. Expenses for ditching and clearing new land are
plainly expenses for permanent Improvements, and
not deductbe. -te. +,
T. The whole amount expended for fertilizers ap-
phed during the year to the farmers lands may be
deducted but no deduction Is allowed for fel tiizes
produced on the farm The cost of seed purchased
for sowing or planting may be deducted.
g. II person sells timber standing, the profits are
to be ascerained by estimating the value of the land
after the removal OF the timber and adding thereto
the amount received for The timber, and from the
sum thus obtained deducting the estimated value of
the land on the first day of January 1862 or on the
day Of purchase, if purchased since that date.
y: When no repairs have been made by the tax
payer upon any building owned by HIM during the
preceding five years nothing can be deducted for re-
pairs made during the year Tor which income is es
timated.
TO- farmer should make return of all his pro-
duce sold within the year. but mere executory con
tract for sale Is not sale delivery either actual
or constructive as essential The criterion by which
TO Judge whether sale is complete or not is to de-
teIm1ne whether the vendor still retains in that
character right over the property if the property
Were loSt or DESTROYED upon which of the parties,
IN the absence OF any other relation between them
than that of vendor and yendee would the loss fall
H. taxpayers frequently claim deductions for
losses from depreciation in the value of stocks or
other OfODertV of like No
In any case be allowed for depreciation of value of
such property until it is actually disposed of and
loss realized
~ Costs of suits and other legal proceedings ars-
ing from ordinary business ere to be treated as 9TH
er expenses Of such business, and may be deducted
from the gross profits thereof.
ID. Money paid for substitute in the army or ma
Wy cannot be deducted from income. Money receiv-
ed oy substitute for acting such must be return
ed by him as income.
IA. Where physicians are obliged to keep horse
for the transaction of business they may deduct so
much OF the expense so incurred as is fairly reerabe
to the business done. 500
Is. Expenses for medical attendance store hills
&c, are not proper subjects for deduction Expenses
OF repairs OF implements is, &c, used in business
IL. Only deduction If 5000 is allowed from the
aggregate incomes of all the members of any family
composed ofparents and minor children even though
one parent only 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 tho ly-
ing separately unless separated by divorce other op
VI break the
II. 1.-THE members ola family have separate incomes
the returns may be made separately by the proper par
ties, and ratable proportion of $500 deducted from
the income ofeach. The parent, the natural guar
dian OF the minor child is required to make return fol
him. But where any other guardian or trustee has
been appointed the return should be made by the lat
ter Ii the minor has guardian or trustee he sho
make return himself If he refuse neglect an indie
pendent assessment must be made as in other cases
emitting penalty
49, If taxpayer has a minor child in the civil ser
vice of the government, receiving salary such par
ent should include in his income return so much O
the salary OF his child as is not subject TO salary tax
H. Voluntary contributions to bounty funds art
not considered as taxes, and cannot be deducted
~ Rent OF homestead actually paid may be de
Quoted, but the rental value of property owned by thu
TAX payer is not subject of deduction. Any person
claiming deduction account of expense for room
rent must satisfy the assessor that the room or room
occupied by him constitute his home and that he hal
no residence elsewhere, and this being shown he nay
be allowed to deduct what he actually pays for rem
Of such rooms. When rent is deducted and deducted
as an expense of business it must not be again de
Quoted as rentnOr should person hiring house ant
subletting portion of it be allowed to deduct more
than the excess of his payments over his receipts
u. Among the national State, county and munich
pal taxes deductjble from income comprised such
internal revenue taxes as have not been included il
expenses of business and such municipal taxes as are
assessed rataby upon all the persons liable to suct
assessment. But assessments made by municipal au
hor1ties upon the inhabitants of particular locality
OF town or city on account of special Improvement
in or upon the streets adjoining the premises of sucf
inhabitants, the same not being assessed ratably are
not considered as taxes deducTible from income.
~ Marriage fees, gifts fro IL members of congre-
CATION to their PASTOR &C., are taxable incomei
when ne gifts or donations in the nature of com.
pepsaon for services render whether in accordance
with an understanding to that effect at the time of set
tlement, or with an annual custom.
23 Gifts of money, when clearly not in the ne ture
OF payment for services rendered other valuable
consideration, not liable to taxation as income
Amounts received on life insurance policies and dam
ages recovered in actions of tort, are exempt from
lncome tax.
actual fees received during the year. without regard
to the time when they accrued the amount due tC
the busines OF the year But when the taxpayer ha,
heretofore adopted one method, he cannot now be al
lowed to make use of the other.
20. II tie manufacturer or dealer has been in the
practice of estimating his annual profits by taking
Venlory OF STOCK he should take the cost value such
stock unless he has taken the merket value ia making
previous returns. Whichever methoo has been adopt
ed by The tax payer should be adhered to uniformly.
70 II interest accrued during the year on notes
bonds, &c. s coed and coilectole at the end of tn,
year. it should be returned income whether actually
collected or not
81 The fac, that income is devoted to the payment
of debts does not release the from liability
come tax.
2S II an inventor sell his invention at once for
gross sum, he should return income the whole amt
less the expenses actually incurred perfectng the in
ventlon or procuring patent right. But allowance
be made for the laboror person expenses of the
inventor II he sci only portion his right during
The year, he may deduct proportienate amount o
such expense
sen in employ does not exceed 5000 per
mum, is made up of fees is uncertain or rresua,
IN the amount or time, and has therefore been sub
Jected to salary tax, it should be returned income
81. Incon es of persons who died after December 81
taxable, and shod be Teturnedby executors or ad
minisratois III also all income which accrued in 1S6.
topersons who died within that year. Incomes which
accrued from the estates of such persons in 1865 after
the date of decease should be returned by the heirs
or other persons who receive the benefit of the same
81. Residents should make returns in the district
where the reside at the time of making return The
residence required under section 116 for the
of taxing income is held to be residence durin the
year for which income is g derived Ifany person
subject to income tax resides abroad his return
should be made in the district where he last resided
A guardian should return the income of his ward
in the district where the ward resides
81. Citizens of the United States residing abroad
are subject to tax on their entire incomes from all
whatever and the is true of foreigners
80. The term real estate" includes all lands, ten.
ements; and Entertainments, coTporeal and incorpo-
real Profits On sales Of real estate purchased in a
previous year need not be returned as income nor
can losses on such sales be deducted therefrom.
a. lease for years or for life is personal estate
and any profits on the sale of such lease are taxable
as income for the year of sale.
35. Where any portion ofa legacy has been trans
erred by the executor to the legatee that the ex
ecutor in his capacity of guardian or trustee has no
longer any control OF the profits arising from such
legacy. the return of such profits income must be
required of the legatee.
a6. The payment of legacy or succession tax on
the bequest of an annuity does not relieve the an
militant from liability to income tax on his annuity
81 Where an income exceeds S. 001, 5000 will be
exempt, 81 400 subject to tax at five per cent and
the remainder at ten per cent.
IS. All expenses for insurance upon property and
all actual losses in business may be deducted from the
gross income of the year. But losses sustained after
Dec ST. 1865 cannot reduce the income for the year
Losses incurred in the prosecution of one kind of bu-
slness may be deducted from gains in another but
not from those portions of income derived from fixed
investments, such as bonds mortgages rents and the
like Assessors should also be careful not to allow the
deduction of amounts claimed to have been lost in
business when in reality they should re regarded as
investments or expenditures as when merchants ex-
pend money in farming or gardening for recreation
or ad0rnment rather than pecuniary profit.
49, Dividends from which the tax of five per cent.
has been withheld should be returned as income in
elusive of the tax withheld and alter the total tax has
been assessed, the amount of tax withheld NAV be
deducted therefrom.
40 Coupons on railroad bonds should be returned
as income for the year in which they mature if they
IRE good anu coectahle.
H. Scrip dividends of companies named in sections
10 and 12 are taxable income at their nominal val
ue: cri dividends of other companies sho'd be re-
turned at their market value at the time when re-
ceved.
Tho A. Acc