Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-28
,ssrsAcr or rHR4ySuAr INCOME TAX.
Q o TAX.

ANNUAL INCOME TAX.
Having been requestedto prepare an abstract
ofwhatfs required % tar m reference 70 tne In
coma Tax, and Of the decisions by the Depart.
m.nt At washington upon various questions that
have arisen, We present the whole subject under
its several distinct heads Va"
STATEMENT SHOULD BIZ MADE-wHERE, wHEN'
AND By WHOM.
/ The law requires every person oflaWfuI age,
residing In the United States, to render to the
Assistsnt Assessor Oft sub.dlstriet In which no
or shs may BE- residing on tho LIST day OF May, q
written statement, according 70 2 preser,y Sr
and profits during the previous year, from jan
nary LIST 10 December 3lst, DO b days Inclusive
A'Urintsd blank containing this bfm can DO OBJ
taIned from the Assistant Assessor. A perion
having no Axed residence. should mako q state
ment wherever he or she may happen TO DO; and,
In case Of removal to another district, should tAks
q certified copy Of such statement. to show any
bthsf Assistant Assessor, who otherwise might
make q second assessment
2. Tho statement must be rendered on or be-
fore the LIST day Of May. or within ten days after
. written or printed notice requiring It, has been
left at the place Of resldence or Of business, or De.
poslted In the pearest Post ONCE.
3. The annual income tax 10 q personal tax,
and II cannot DO assessed against any corporation,
company, or partnsrship, a. such. Every lndi.
yidual member must make q statement Of bis or
her share Of or interest In the gains and profits Of
such company, etc, whether such gains and
profits are divided or not, and must also state
separately bis or her Income from all other
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS. 81
s II any person neglects or refuses to render q
written statement, the Assistant Assessor "a 70:
oueyted 10 ali out q 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 Is per cent, TO such tar as o penalty
for neglect or refusal. ,,
6. An Assistant Assessor may DO misled IN
making this estimate, by being mislnformed al 20
money received, or not informed as to money
paid. He must assess, however, according TO the
best information within his reach. The only per-
son capable Of giving absolutely correct informa-
tIon 10 frequently the one who refuses or negiects
to make o statement. II such person will not
take the trouble to inform the Assistant Assessor,
there is a bar to all complaint, should the assess.
msnt prove incorrect, and q heavier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II GRO
neOus, Il IL always troublesome to the party 10.
teresied TO have Il corrected All parsons, thnre.
fore, but especially sueh a. haze no taxable income,
should not fall to render the required statement,
upon the proper blank, 20 rs 10 avoid undue tax
alton and trouble.
4. Every statement must be verified by oath or
affirmation. When this Is not done, the Assistant
Assessor 10 required to estimate the income and
to ndd IS per cent to 70 the tax : -L,i1--
EVILS oP MAXIM A FALSE STATEMENT.
8. An Assistant Assessor has power TO tneTedte
the amount In any statement, after giving due
information 10 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,
:. - f.. All. additInnal Inv hnf kaUfae In
two dlstinct prosecutions before the United States
Courts-one for making q false statement with In
tent to dsfraud tho Government, and the otheI
for perjury. "..
MANNER OF MAKING UP STATEMENT OF INCOME.
By the 18th section Of the law, the Commits.
lioner OF Internal Revenue 10 empowered TO pre-
scribe the form and mdRner In which the state
ment Of income must be made up. This he han
done In a printed blank used by the Assistant As
SCISSOR, and In yanona circulars and rulings TIKI
following 10 q summary Of what has been Pre-
scribed; ~.
suits Of life and the Investments Of capital hav'
been divided must be returned sepGrdtely- losse,
in one not being allowed a. TO Offset gains In another
Thus q merchant who engages In farming or IL
speculations not belonging to his legitimate busi
ness cannot offset gains In the one by losses In
the other.
2. The expenses Incident TO each business RI
| deductIble from the receipts Of that business
8 Specuiatlons k9itimatsly belonging TO any
business, and these alone. may be carried Into III
| profit and loss account. Thus q broker may spec
ulate in stocks, q dry goods merchant In cotton, Z
| 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
| chandlse, and this gain or loss belongs TO his mer
chandise account. But II he buys gold, uncurren'
| money, United States Treasury notes, or any
a - 20. ~ 1hn ar.Iclaa NJ trada hAlnn0
ing 70 bis regular business, for the purpose o
| speculation, the profit or lossfrom such spccula
| tion will not be allowed to affect the profit or los
| from bis regular business. A business firm
| placed Oi0,0 900 In the hands Of Q New York bro
ker, instructIng him to use II In the purchase ANT
sale Of gold, on their account; and having los
s27, 500 In this venture, they claimed that |
| should be deducted from their profits In business
| Commissioner Lewis disallowed the. claim, ant
said the uniform ruling had been that whom
loss-iy madc'in any particular business, agans
which there are no gains to onset, It 70 eonsid
cred a dead loss Of capital inuested In that busi
ness" Again, "loSs Of capital cannot be de
| dueted from Income" Return Of income mus
be made on the SaiHs."
4. HOW FAR different kinds Of business must b,
| returned separately IL shown by tho following
rulings Of Commissioner Rollins;
|. (al-"LoxI Incurred In the prosecution Of ONT
kiHdo 4 business, cannotlb be deducted from gain ir
| business Of an entirely dDntntehdrdee, nor from
salary, rents, dividends. etc."
B-"Losses incurred Il In the prosecution Of on,
branch Of business cannot DO deducted from gair
Ia another, since an absolute loss incurred In th,
| prosecution Of Q single business Is Indlspensably
q loss Of capital"
G)-"LoIses In merchandise can be deducted
| only from gains In merchandise; but. In this case
partIoular, branches Of, merchandise need, not b.
| separated. SO In speculation. the lossi or gair
from stocks may offset loss or gain from produce
Ipeculated In"
(G-"Merchants must make return Of theil
| profits from merchandise without regard to theii
losses In speculation, or gains from interest. dlvi
| dendI, rents, or any other source"
G)-"Losses In speculation cannot DO deducted
from salaries, nor from gains In merchandise
when Losses are sultained 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"
m-"Whers stocks, ETC., are bought as q per
| manent Investment, and sold again merely Il
| change the investment, loss sustained In tn
| sale may be deducted from the dividends from
sueh stoci. But whore the purchase Is made fol
the purpose Of selling again on speculation, tn,
loss sustained by the sale cannot be deducted
| from dividends, but may DO deducted from gain
derived from the Pureha'' and 'al' Of stock, etc.
In the Same year"
From the total amount Of such rents received
| within the year for which Income is estimated. OF
| due and collectable on the 3lHt day Of December
ofsaid year, should be deducted:
Ii. The amount paid or due. by the owner, fol
repairs made within the year. not exceeding tht
yearly average paid out for such purposes for tn
precudInr Ave years, and not Including any
| amounts paid or due for new structures, or FOL
| new and permanent Improvement
Cd. insurance for the year paid by the owne,
upon the buildings rented or offered for rent, moi