Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-29
srR1or o. rHR ANNUAL INCOME TAX.
1NTU1I

como Tax, and Of the decisions by the Depart.
ment at Washington upon various questions mat
have arisen, We present the whole subject, under
It's several distinct heads:
STATEMENT SHOULD BIZ hkDE-WHERE, WHEN
AND By WHOM.
/. Tho law requires every person oflaWfol age,
resIdIpE 10, the United States, 10 render to inc
or shs may be residing on the LIST day Of May, Q
written statemeut according TO o prescribed
form Of the amount Of his or her income, gains
and profits during tho previous year, nom jan
uary LIST to December 3lst, DO b days inclusive
A printed blank containing this form can be OBJ.
tanned from the Assistant Assessor. a person
having no hxed residence. should make q state.
ment wherever he or she may happen TO be; and
In case of removal to another district, should take
q certified COPY Of such statement. TO show any
other Assistant Assessor, who otherwise might
make q second assessment g
2.iThel statement must be rendered on or De-
fore the LIST day Of May, or within ten days after
4 written or printed notice requiring 1t, has been
left at the place Of residence or OF business, or de-
posted In the pearest Post Once.
. 3, Tho, annual income tax j1sa personal tax,
and Il cannot DO assessed against any corporation,
company, or partnershtpr n. such. Every indi'
vIduRl member must make q statement OF ns or
her share Of or Interest 10 inc gains and Pronts Of
such company, etc, whether such gains and
PROFITS are divided or not, and must also state
separately his or her income from all other
sources.
Evils or NEGLECT TO MAKE OUT OR VERIFY
. STATEMENTS. -.rss
S IL any person neRlects or refuses 10 render q
written statement. the Assistant Assessor Is re-
Quested to Ill out q blank with such persons
name, and taxable Income estimate ACCORDING 10
the best information that can be Obtained 9no
upon this estimated income 10 assess the tax, and
then to add IS per cent. 70 such tax "a o penalty
for neglect or refusal. ,,,,-'
making this estimate. by being misinformed as TO
money received, or not informed as to money
paid. He must assess, however. according 70 the
best information within his reach. The only per-
son capable Of giving absolutely correct informa'
ton Is frequently tho one who refuses or negleets
70 make a statemrnt. II such person will not
take the trouble to inform the Assistant Assessor,
there ia q bar to all complaint, should the assess
ment prove incorrect, and a heavier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once boon made, " erro
neous, II 10 always troublesome TO the party In.
tereated 10 have Il corrected. All. persons, there.
fore, but especially sIeh a. hdps no taxable income,
iihpuld not Eall to render the required statement,
upon the proper blank, 20 as TO avoid undue tax
alton sndtrouhlA !
= Eyery statement must be verified by oath or
Affirmation, Whom this Ia not done. the Assistant
Assessor Is required to estimate the income and
10 add 25 per cent to to the tax
.- EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount in any statement, after giving due
information to the party interested. He In 70
ouIred, also. TO add loo per cent to the tax when
a false Abatement. has been rendered and the
party making the false statement becomes liable,
NOT only for this additional tax, but likewise to
two distinct prosecutions before the United States
Courts-one for making q false statement with In
tent to defraud the Government. and the other
for perjury. 49, .rHs- .-nF.r
MANNER or MAKING UP STATEMENT OF INCOME.
By the llSth section Of the law, the Commits
lioner OF Internal Revenue Ia empowered 10 pre-
scribe the form and manner 10 which the state
ment Of income must BE- made mp. This he has
done In q printed blank used by the Assistant As.
SCISSOR, and In various circulars and rulings. The
following Is a summary Of what has been pre-
scribed: 49,.
!. Each Of the great classes into which the pur'
suits Of life and tho Investments Of capital have
been divided must be returned sepdydtey- losses
In one not being allowed TO offset gains In another
Thus q merchant who engages In farming or In
spoculations 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 re
deductible from the receipts Of that business.
3. SpeculRtlons k9itfmdtely belonging to any
business, and these alone. may be carried Into Its
proat and loss account Thus q broker may spec
ulate In stocks. n dry goods merchant In cotton, a
hardware man In iron, etc, and such speculation
may affect the gain and loss Of such legitimate
b~usiness. A merchant also may mako or lose BY
exchange or the kind Of money paid for his mer
chandise, and this gain or loss belongs TO his mer.
chandisc account. But ifahe 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 specnla'
lion will not be allowed to affect the profit or loss
from his regular business. A business firm
placed $40, 600 In the hands Of q New York bro
ker, lnstructing him to use II IN the purchase and
sale Of gold. on their account and having lost
027, 500 In this venture, they claimed that II
should be deducted from their profits In business.
Commissioner Lewis disallowed the claim. and
said the uniform ruling had been that "vhen,A
loss ID made In any particular business, against
which there are no gains to Offset, II iSconsid'
cred o dead loas Of capital fHrested IN thar ou1'
aess." Again, "loss Of capital cannot be de-
ducted from income" Return OF Income must
be made on the gains."
- A. How far different kinds Of business must be
returned separately Is shown by the following
rulings OF Commissioner Rollins : =.
(dl-"Loss incurred In the prosecution OF one
Had of business cannot be deducted from gain IN
business Of an entirely diFreatehardeter. nor from
salary, rents, dividends. etc r ~ -
(b)-"Losses Incurred In the prosecution Of one
branch Of business cannot DO deducted from gain
10 another, since an absolute loss Incurred In the
pTOuSCuklOu v = bluhINo dbihV ~ aANAsPoe~@etS
q loss Of capital .
(c)-"Losses In merchandise can BIO deducted
only from gains In merchandise; but. In this case,
particular brancheyiof merchandise need not be
separated So In speculation, tho loss or gain
from stocks may offset loss or gain from produce
speculated In"
{G-,Msrchants must make return Of their
profits from merchandise without regard 10 their
losses in speculation, or gains from Interest. divi.
dends, rents, or any other source !,
o." Losses In speculation cannot be deducted
from ~salarisl, nor from gains In merchandise.
When los.es arc sustained p one speculation and
rains 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"
m-"Where stocks, etc, arc bought as a per.
msnent Investment, and sold agaln merely to
change the Investment, . loss Sustained In the
salo may DO deducted from the dividends from
saeh 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 Psreha's and sat OF STOCK etc.,
In the same year" .rrgT
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
Of said year, should DO deducted:
Let. The amount paid or duo, oy the owner, ior
reDhlIl HAQo Wltuiu ho
yearly average paid out for such purposes for the
preceding Ave years, and not including any
amoupts paid or due for new structures, or for
new and permanent improvements.
Cd. Insurance for the year paid by the owner
upou m, buildings rented or offered for ron', not
including Insurance paid upon any o'neF P'oP'
srty, real or personal.
"a Interest which accrued for the year on in:
cumbrances upon the buildings rented or-onerea
for rent. or upon the lands on which they stand,
whether such interest has been paid or remains
due. ~
,oor,b,r' no aggregation being required. Repairs.
insuranee and interest paid on account Of any
and all such buildings, whether occupied or not
rIll Sc deducted from tho total amount Of rents.
TATes viii not DO deducted from rents, but
from gross Income from all sources.
BY the law Of June 30, 1854, In estimating N;
com, from rents, no account 10 taken Of the rental
value OF a homestead occupied BY the owner.
Payments for repairs, insurance and Interest. on
account Of ahomestead. will be considered here.
after, when treating Of general deductions from
gross Income. W -...... .r, ...rr Z