Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-15
ABSTRACT OF THE ANNUAL INCONg TAX
ANNUAL INCOME TAX.

IN /
Haying peen requested to prepare an abstract
OF what Is required by law In reference 10 In In
coms :, W ah% = !, sne decisions by the Depart
ment NJ washington upon various Questions mat
have arisen, we present the whole ,,sI.s. -.
Its several distinct heads: Nnu'
STATEMENT MOULD DE MADE-wHypr ,vyyv
AND BY WHOM.
!. The law requires every person of Lawful M.
residing in the United States, to render to he
Assistant Assessor of the sub.district In which he
or she may be residing on tho LIST day OF May, a
written statement, according to q prescribed
form, of the amount Of his or her income, gains
and profits during the previous year, from jan
uary LIST TO December 3lst, DO h days inclusive.
A printed blank containing this form can be OBJ.
talned from the Assistant Assessor. A person
having no fixed residence, should . a state.
ment wherever he or she may happen to DO; and,
Id case of removal to another district, should take
q certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make a second assessment.
Q. The statement must be rendered on or be-
fore tho LIST day Of May, or within ten days after
a written or printed notice requiring 1t, has been
left at tho place Of residenco or Of buslness, or de-
posted In the pearest Post Office.
3. The annual income tax Ia a personal tax,
and It cannot be assessed against any corporation,
company, or partnership, as such. Every indi'
yldual member must make a statement OF his or
uGl Enul VI VI utCANh AZ t"S baAuD ehoN
such company, etc., whether such gains and
profits arc divided or not, and must also state
separately his or her income from all other
sources. at-H .r
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
...f
5. II any person neglects or refuses to render q
written statement, the Assistant Assessor Is re.
quested to I'LL out q blank with such persons
name, and taxable income estimated according TO
the best Information that can be obtained, and
upon this estimatedi income TO assess the tax, and
then to add % per cent, to such tax rs n penalty
for neglect or refusal. 100.
6. An Assistant Assessor may be mlsled In
making this estimate, by being mlslnformed as to
money received. or not informed as 10 money
paid. He must assess, however, according to the
best Information within bis reach. The only per.
son capable Of giving absolutely correct informa.
ton Is frequently the one who refuses or ncglects
10 mako u statement. II such person will not
take the trouble to inform the Assistant Assessor,
there is n bar to oil complaint, should the assess.
ment prove Incorrect, and n heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has onco been made. II erro
neous, It Is always troublesome 10 the party In.
terested TO hive It corrected. All persons. there.
fore, but especially SUCH a. hare no taxable income,
should not fail to render the required statement,
upon the proper blank, 30 as to avoid undue tax
alton and trouble.
Z. Every statement must be verified by oath or
GUEHbottOHs /. w ncu tul - uok uOue, IuC AbhlbtHnt
Assessor Ia required to estimate tho income and
TO add IS per cent, to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power to inersdse
the amount in any statement, after giving due
information TO the party interested. Ho ~ re.
quired, also, to add 100 per cent. to the tax when
o false statement has been rendered and the
party making the false statemen becomes liable,
not only for this additional tax. but likewise to
two distinct prosecutlonsb before the United States
Courts-one for making a false statement with In.
tont to defraud the Government, and the other
for perjury.
| MANNER OF MAKING UP STATEMENT op IscoME.
By the l1sth section Of tho law, the Commits.
| sioner of Internal Revenue Ia empowered to pre-
scribe the form and manner In which the state.
ment Of income must be made up. This he has
done In O 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: .
j. Each Of the great classes into which the pur.
suits Of life and the Investments Of capital have
been divided must DO returned Sepdrately- losses
In one not being allowed to offset gains In another.
Thus @ merchant who engages In farming or In
spcculations not belonging to his legitimate bust.
ness cannot offset gains In the ono by losses In
the other.
Q. The expenses incident to each business IRE
deductIble from the receipts Of that business.
3. Speculstlons legitimately belonging TO any
| Duhlucbbt uuu tucho ulOuc, uhy DO ChTTlcu lHtO ltb
profit and loss account. Thus O broker may spec.
ulate In stocks, n dry goods merchant ip cotton, a
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, uncurrent
money, United States Treasury notes, or any
| other thing not one Of the articles OF trade belong.
Ing 10 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 $40,0W In the hands Of O New York bro.
ker, instructing him to use 1t In the purchase and
sale Of gold, on their account and having lost
S27, 800 In this venture, they claimed that II
should be deducted from their profits In business
Commissioner Lewis disallowcd the claim, and
said tho uniform ruling had been that ~ when n
loss IL made In any particular business, against
which there arc no gains 10 Offset, IL Is consid.
cred a dead loss Of capital iHresied in that bust.
ness" Again. "loss Of capital cannot be de-
Quoted from income" Return Of income must
be made on the gains"
(. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(al-"Loss incurred In the prosecution Of one
kind of business cannot be deducted from gain In
business Of IN entirely diferen.e character, nor from
salary. rents, dividends, etc
N-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
In another, since an absolute loss incurred In the
prosecution Of n single business Is indispensably
aloss of capital
(c)-"Losses In merchandise can be deducted
only from gains In merchandise; but, In this case,
particular branches Of merchandise need not be
separated. So In speculation, the loss or gain
from stocks may offset loss or gain from produce
specialized in"
d. Merchants must make return n their
profits from merchandise without regard TO their
losses In speculation, or gains from interest, diyi.
dends, rents, or any other source"
o." Losses in speculation cannot DO deducted
from salaries, nor from gains In merchandise.
When losses are sustained In one speculation and
gains made In another speculation. such losses
may be deducted from such gains Losses In ono
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
TO-"Where stocks, ETC., are bought rs a per.
manent investment, and sold again merely TO
change the investment, O loss sustained In the
sale may DO deducted from the dividends from
such stock. But where the purchase Is made for
the purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends. but may be deducted from gains
derived from the Pareha's and sale of stock, etc.
In the same year."
INCOME IRON RENTS OF BUILDINGS.
From the total amount Of such rents received
within the year for which Income Is estimated. or
due and collectable on the 3lst day OF December
ofsaId year, should be deducted:
LIST. 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 Ave years, and not including any
amounts paid or due for new structures, or for
new 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 any other prop.
erty, real or personal sr
Sd. Interest which accrued for the year on In.
cumbrances upon the buildings rented or offered
for rent, or upon tho lands on which they stand,
whether such interest has beon paid or remains
duo
All buildings offered for rent will DO regarded
together, no segregation being required. Repairs,
Insura6ee 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 be deducted from rents, but
from gross income from all sources.
BY the law Of June 30, 1864, in estimating In.
come from rents, no account Is taken Of the rental
value Of q homestead occupied by the owner.
Payments for repairs, Insurance and interest, on
account Of a Homestead, will be considered hero.
after, when treating Of general deductions from
gross income.
Dissolution.
NOTICE IS HEREBY GIVEN, THAT THE
IN Association known as the PIONEER
Y SPECULATION - NJ nnld UUI a.,