The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-05-04

'''', Treasury DEPARTMENT,
orr,ry or INTERNAL REVENUE,
AsnINGroN, April 26, 1866 )
Tho C,,lowinC instructions should be oh.
-,'nl IL the assessment of the annual
..,n< NJ 1860. They have been prepared
,,5 printed 10 answer the questions whicI
I"rn been most frequently presented ny
,,,,,c officers in their letters TO Inc
Commissioner. A.,
particular attention is directed to the
.'.,,,l;6co,;ons of the rules observed IN
the last annual assessment.
Assessors should instruct their assistant,
"a call personally upon those VINO nave i"'
r,trrucl their income on the first MONDAY
in NAV. Ii any person Is not nj nome, inc
nn,;rr on the back of Form "a should he
,;iIrj ont and the blank left. This being
dome. j, becomes the duty of the tax.
,,,v.r n seek the assistant assessor and
deliver his return.
F. \. ROLLINS, Commissioner.
INCOME.
Farmers will not bc required to make
return of produce consumed IN their OWL
immediate families.
>. The farmers profits from sales OF Nv,
stock are to hc found by dcductinS IRON
the gross receipts for animals sold the pnr'
chase money paid for the same. III am
mails have been lost during the year ny
death or robbery, the purchase money pad
far such animals may be deducted from
the gross income Of the farm.
=. No deduction can he made by the
farmer for the value of services rendered
by his minor children, whether he actually
PAYS for such services or not. III ms aaUit
children work for him and receive compcn-
>l,ion for their labor, they are To be regard
"a rs other hired labOrcrS in determining
lis income.
1. Money paid for labor, except such as
is used or employed in domestic service,
or in the production of articles consumed
in the family of the producer, may be de-
Quoted.
:. No deduction can be allowed i'll any
case for the cost of unproductlve labor. III
house servants are employed portion OF
the time in productive labor, such as the
making of butter and cheese for S0ie, a
pruportiouatc amount OF the wages paid
them may be deducted.
4. EXPENSES for ditching aud clearing
new land are plainly expenses for perma-
urut improvements, and not dednctlhle.
:. The whole amount expended for fer
,ilizrrs applied during the year To the
farmers lands NAV be deducted, but no de-
dur,ion is allowed for fertilizers produced
ON the farm. The cost of seed purchased
for sowing OF planting may be deducted.
:. If person sells timber standing, the
profits are 10 he a>ccrtained 10y 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 dcducting the estimated
value Of the land on the lst day of Janu-
AIRY. l>G2, or on the day Of purchase, If
purchased since that date.
.. Where no repairs have been made by
the TAXPAYER upon any building owned by
him during the preceding five years,
nothing can lac deducted for repairs made
during the year for which incomes is eStl-
mated.
10. \ farmer should make return of all
his produce sold within the year, but
mere cNccutory contract for sale is not a
sale: delivery, either actual or construc-
tive. is essential. The criterion by which
To- Judge whether sale is complete or
not i to determine whether the vendor
still retains in that character Il right over
the property; if the property were lost or
DESTROYED, upon which of the parties, i'll
the absence oi any other relation be-
tween them than that of vendor and VEN
dee. would the loss fall.
II. Taxpayers frequently claim dcduc-
lonS for losses from depreciation in the
value OF stocks or other property OF a like
nature. No deduction can in any case be
allowed for depreciation of valne Of such
property until it is actually disposed of
and loss realized.
u. Costs OF suits and other legal pro-
rrrding> arising from ordinary business are
10 hc treated as other expenses OF such
business, and may be deducted from the
gross profits thereof.
II. Where physicians are obliged to keep
Il horse for the transaction of business,
they may deduct so much of the expense so
incurred as is fairly reierablc to the bust
nc>, done.
H.. Expenses for medical attendance,
store bills, &C., are not proper subjects for
deduction. Expenses Of repairs of imple-
mrnt>, tools, &C., used in business may be
deducted.
III. Only one deduction of 5000 is al
lowed from the aggregate incomes Of all
the members Of any family composed Of
parents 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
,> members Of the same family, though
living separately, unless separated by di-
'orcc, or other operation Of law, such as
10 break up the family relations.
IL. If the members of family have
,oparate incomes, the returns may be made
cparatcly by the proper parties, and
.atable proportion Of the 5000 deducted
rom the income of each. The parent, as
he natural guardian of the minor child, is
equired to make return for him. But
Shcre any other guardian or trustee has
,ccn appointed, the return should be made
~ the latter. If the minor has no guar
liam or trustee, he should make return
himself. II he refuse or neglect, an indie
lendcnt assessment must be made rs in
'ther cases, emitting penalty.
Is. II a taxpayer has minor child IN
he civil service of the Government,
'eceiving salary, such parent should IN
,lude in his income return so much of the
'alary of his child as is not subject to sala-
y tax.
20. Rent of homestead actually paid
nay be deducted, but the rental value of
property owned by the taxpayer is not a
abject Of deduction. Any person claim
NJ deduction on account Of expense for
oom rent must satisfy the assessor that the
oom or rooms occupied by him constitute