Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-22
ABsrRAcr o. rHB ANNUAL INCOME. TAX.
INNU1I MO0ME TAX.

Having been requested 10 prepare an abstract
of what Il required by law In reference to tho In
como Tax, and Of the decisions by the Depart.
ment at Washington upon various quesnons tnat
have arisen, We present the whole subject, under
It's several distinct heads:
STATEMENT SHOULD Be MADE-wHERE, WHEN,
AND BY WHOM.
]. The law requires every person Of age,
residing In tho United States, 10 render to the
Assistant Assessor ofthe sub.dlstrict In which no
or she may be residing on the LIST day OF May, q
| written Statement, according to o 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 b days inclusive.
A printed blank containing this form can DO oh.
tanned from the Assistant Assessor. A person
having no fixed residence, should make o state
ment wherever he or she may happen TO boz and,
In case Of removal to another district, should tahe
n certified copy Of such statement. to show any
| other Assistant Assessor, who otherwise might
make o second assessment.
9. The statement must DO rendered on or be.
fore tho LIST day Of May, or within ten days after
q written or printed notice requiring 1t, has been
left at the place Of residence or Of business, or dc.
posted In the pearest Post Office.
3. Tho annual income tax Ia a personal tax,
and II cannot bc assessed against any corporation,
company, or partnership, as such. livery lndl.
vldual member must make q statement OF his or
her share of or interest In the gains and profits Of
I HuCu CIV "hSN"N "SNss oSA'' 49,
| profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
s. II any person neglects or refuses 70 rcnaera
written statement, the Assistant Assessor Is re-
| auested 10 all out O blank with such persons
| name, and taxable income estimated according 10
the best information that can DO obtained, una
upon this estimated income to assess the tax, anu
then to add IS per cent, TO such tax rs q penalty
for neglect or refusal.
6. An Assistant Assessor may be misled IN
making this estimate, by being mislnformed rs to
money received, or not Informed as 10 money
paid. He must assess. however, according TO the
best information within his reach. TIL only per-
son capable Of giving absolutely correct informa.
tlOn Is ( frequently the ono who refuses or neglects
TO make a statement. II such person will not
fake the trouble 10 inform the Assistant Assessor,
there Is q bar to all complaint, should the assess.
ment prove incorrect, and q heavier tax DO levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II GRO
neOus, II Is always troublesome TO the party In.
terested 10 have Il corrected. All persons, there.
fore, but especially such as hare no taxable income,
should not fail to render the required statement,
upon the proper blank, 80 az TO avoid undue tax.
alton and trouble,
Affirmation. When this Is not done, tho Assistant
Assessor Is required to estimate tho income and
to add IS per cent to TO tho tax.
EVILS OF TAKING 4 FALSE STATEMENT. q,
0. An Assistant Assessor has power to tHeredse
the amount In any statement, after giving duo
Information TO the party Interested. lilo IL re-.
quIred, also, to add 100 per cent. to the tax when
u false statement has been rendered and the
party making the false statement becomes liable,
not only for this additional tax. but likewise 10
two distinct prosecutions before the United States
Courts-one for making q false statement with In.
liant % .lafraud tha l0yarnmaut nnu the other
for perjury.
MANNER or MARISa UP STATEMENT or INCOME.
BY the lleth section Of the law, the Commits.
sioner OF Internal Revenue 10 empowered TO pre-.
scribe tho form and manner In which tho state.
ment Of income must be made up. This he has
done IN a printed blank used by the Assistant Az.
SCISSOR, and In various circulars and rulings. The
following IL q summary OF what has been pre-
scribed:
!. Each Of the great classes into which the pur
quits Of life and the investments OF capital nave
been divided must DO returned sepdrdtely- losses
IN one not being allowed TO offset gains In another
Thus n merchant who engages In farming or In
speculatIons not belonging TO his legitimate busl
ness cannot Offset gains In the one by losses ID
the other.
deductIble from the receipts Of that business.
3, Speculatlons lSgitimdtely belonging TO any
business, and these llonc. may DO carried Into III
profit and loss account. Thus a broker may spec
| ulnto In Stocks, q dry ROOub mcrcnunt IN CottOu,
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
other thing not ono Of the articles Of trade belong
Ing 10 his regular business, for tho purpose o
speculation, the profit or loss from such speculR
tion will not DO allowed 10 affect the profit or los
from bis regular business. A business frn
placed S40, 900 In the hands Of q New York bro
ker, lnstructing blu 10 use Il In tho 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 dlsallowed the claim. anC
said the uniform ruling had been that ~ hen
loss 10 made In any particular business, agains
which there are no gains 10 Offset. II IS consid
cred q dead loss Of capital infested IN that bust
neAs." Again, Toss Of capital cannot be de
ducted from income" Return Of income mus
DO made on the SdinS."
returned separately Is shown by the following
rulings Of Commissioner Rollins;
(a)-"LosA Incurred Ia tho prosecution Of ont
kind Of business cannot be deducted from gain In
business OF an entirely dGereHtchdrdeter, nor from
salary, rents, dividends. etc.
(b)-"LosseS incurred In the prosecution Of one
branch Of business cannot DO deducted from gain
Ia smother, since q absolute loss incurred In the
prosecution Of o single business In indlspensably
Q loss 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
Ipeculated In"
(6-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. dlvi.
bends, rents, or any other source"
(E-"Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise.
When losses arc sustained In one speculation and
gains made In another speculation. such losses
may be deducted from such gains Losses In one
branch Of merchandise may be deducted from
gains In any other branch OF merchandise"
O-"Where stocks, etc, arc bought az q per.
mancnt investment, and sold again merely TO
change the investment, a loss sustained In the
sale may DO deducted from tho dividends from
sueh stock. But where tho purchase Is made for
the purpose Of selling ngain on speculation, the
loss sustained by the sale cannot be deducted
from dividends, but may be deducted from gains
derived from tho Purehass and sale Of stock, etc,
In the ame year"
INCOME RoM RENTS OF BUILDINGS.
From tho total amount Of such rents received
within the year for which income 10 estimated. or
due and collectsble 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 ont for such purposes for the
presiding Eve years, and not Including any
amounts paid or duo 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 my other prop.
erty, real or personal.
Cd, Interest which accrued for the year on in.
cumbrances upon the buildings rented'or offered
for rent, or upon the lands on which they stand.
TT - a-.a.a -. h.aa natA - EaFNa IN a