Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1866-05-17

pastor, &C., are taxable as income
when the gifts or denominations
are in the nature Of compensation
| for services rendered, whether in
| accordance with an understand
ing to that effect at the time of
settlement, or with an annual
custom.
%. Gifts Of money, when clear
ly not in nature of payment for
services rendered, or other valua-
BILE consideration, are not liable to
taxation as income. Amounts re-
| ceived on life insurance policies,
and damages recovered in actions
of fort, are exempt from income
tax.
"a. Lawyers and physicians
may return either the actual fees
received during the year. But
when the taxpayer has heretofore
adopted one method he cannot now
be allowed to make use of the 9TH
er.
25. If the manufacturer or
dealer has been in the practice OF
estimating his annual profits by
taking inventories OF stocks, he
should take the cost value of such
stocks, unless he has taken the
market value in making previous
returns. Which ever method has
been adopted by the tax payer,
should be adhered to uniformly.
26. If interest accrued during
the year on notes, bonds, &C., is
good and collectable at the end of
the year, it should be returned as
income, whether actually collec-
ted or not.
81. The fact that income is
devoted to the payment OF debts
does not release the same from re-
liability to income tax.
80. Incomes of persons who
died after December 81 are taxa
Bile, and should be returned by ex-
ecutors or administrators, and also
all income which accrued in 1868
to persons who died in that year.
Income which accrued from the
estate of such persons in 1866, at
ter the date of decease, should be
returned by the heirs or other
persons who receive the benefits
of the same.
81. Residents should make re-
turn in the district where they re-
side at the time of making return.
The residence required under sec
ton 116 for the purpose OF taxing
income is held to be a residence
during the year for which income
is "derived." If any person sub
iect to income tax resides abroad,
his return should be made in the
district where he last resided.
A guardian should return the
income of his ward in the district
where the ward resides.
80. Citizens of the United
States residing abroad are subject
to tax upon their entire incomes
from all sources whatever; and
the same is true of foreigners re-
siding in this country,
33. The term ''real estate"
includes all lands, tenements and
hereditaments, corporeal and in
corporeal. Profits on sales OF
real estate purchased in q previous
year need not be returned as in
come, nor can losses on such sales
be deducted therefrom.
"a. A lease for a year or for q
life is personal estate, and any
profits on the sale of such q lease
are taxable as income for the year
of sale.
S5.- Where any portion of a
Legacy has been transferred by the
executor to the legatee so that the
executor in his capacity of guardl-
an or trustee has no longer any
control of the profits arising from
such legacy. the return of such
profits as income must be required
of the legatee.
SO. The payment of legacy OF
succession tax on the bequest OF
an annuity does not relieve the an
nuitant from liability to income
tax on his annuity.
| 81. Where an income exceeds
$4,000, 5000 will be exempt, o.,
600 subject to tax at 5 per cent,
and the remainder at 10 per cent
3S. All expenses for insurance
upon property and all actual los
ses in business may be deducted
from the gross income Of the year