Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-27
ABSTRACT OF THE ANNUAL INCOME TAX.
Evils OF NEGLECT TO MAKE OUT OR vERIIr
~aTITRMRHTA

ENlLo VI NGoLESA ~
~sTATEAEsTa
S. II any person peglects or refuses to render o
written statement, the Assistant Assessor u re-
qussted to fl 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 25 per cent, to such tax IN a penalty
for neglect or refusal, ..r.ra.,
G. An Assistant Assessor may be misled In
making this estimate, by being mismiormed S.to
money received, or not informed as 70 money
paid. He must assess, however, according 10 the
best information within his reach. The only per.
son capable Of giving absolutely correct informa.
ton Is frequently the one who refuses or neglects
to make a statement. II such person Will not
take the trouble to inform the Assistant Assessor,
there Ia a bar to all complaint, should the assess.
ment prove incorrect, and Q heavier tax Do levied
than would otherwise be charged. Moreover,
after an assossment has once been made, II GRO.
neous, II Is always troublesome to the party In
terested 10 have Il corrected. AL persons, there.
fore, but especially such a. hors no taxable income,
should notfa to render tho required statement,
upon the proper blank. so as to avoid undue tax
alton and trouble.t
4, Every statement must be verified by oath or
affirmation. When this Is not done, tho Assistant
Assessor ID required to estimate the Income and
to add Is per cent to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to tnereass
the amount In any statement, after giving due
Information to the party interested. He Ii re-
quired, also, TO add 100 per cent. TO tho tax when
. false tatement has been rendered and tho
party making the false statement becomes liable,
not only for this additional tax, but likewise to
two distinct prosecutions before the United States
C~ourts-one for making a false statement with In
tent TO defraud the Government, and the other
for perjury.
MANNER OF MAKINa UP STATEMENT OF INCOME.
By the 18th section Of the law, the Commits
sioner Of Internal Revenue 10 empowered to pro-
scribe the form and maARer In which tho state
ment Of income must DO made up. This he has
done In a printed blunk used BY the Assistant Az.
SCISSOR, and in VARIOUS circulars and rulings Tho
following In q summary OF what has been pre-.
scribed:
/. Each Of the great classes into which the pur.
suits Of life and the investments Of capital have
been divided must be returned separately losses
In ono not being allowed to Offset gains in another.
Thus q merchant who engages In farming or In
speculations not belonging to bis legitimate bust.
ness cannot offset gains In tho one by losses In
the other.
9. The expenses incident to each business re
deductible from tho receipts Of that business.
3. Speculations LSSitimately belonging to any
business. and these alone, may be carried Into Its
profit and loss account. Thus q broker may spec.
ulate In stocks, a dry goods merchant In cotton, o
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'
chandise account. But II he buys gold, uncurrsnt
money, United States Treasury notes, or any
| other thing not ono Of tho articles of trade belong.
| Ing to 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 S40,O In the hands Of q New York bro.
| L.. t,.tr,ctlop him n a 10 In tha prrnha an and
| sale Of gold, on their account and having lost
S27, 500 In this venture, they claimed that II
| should be deducted from their profits In business.
| Commissioner Lewis dissllowed the claim, and
said the uniform ruling had been that ~ hen a
loss Is made In any particular business, against
cred a dead loss Of capital invested in that bust.
/ ness Again, "loss Of capital cannot be de-
| Quoted from income.' Return Of income must
DO made on the 6ainS."
4. How far different kinds Of business must be
returned separately Is shown by the following
/ rulings Of Commissioner Rollins:
| (a)-"Loss incurred In the prosecution Of one
/ kind Of business cannot be deducted from gain In
business OF an entirely difersnteharocter, nor from
salary, rents, dividends. etc"
(b)-"Lossesi 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 = single business IL indispensably
| 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
speculated In"
(d)-"Msrchants must make return Of thell
profits from merchandise without regard to theil
losses In speculation, or gains from interest. divi
dends, rents, or any other source"
U)-"Losses In speculation cannot BIO deducted
1 -. .la.t.a 80 frnn, ratna In nArnhnndIaa
| Whom losses are sustained In one speculation ant
! gains made In another speculation. such lossei
/ may be deducted from such gains. Losses In ont
branch Of merchandise may be deducted FROM
gains In any other branch Of merchanaise."
O-"Where stocks, etc, are bought as o per
manent Investment, and sold again merely tc
change the investment, q loss sustained in the
sale may be deducted from the dividends from
sueA stock. But where the purchase Is made fol
the purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends, but may DO deducted from gain
derived from the purehoIs and sole Of stock, etc.
In the same year"
INcoME FROM RENTS OF BUILDINGS.
From the total amount Of such rents received
within the year for which income Is estimated. oil
duo and collectable on the 3lst day Of December
ofsald year, should be deducted:
LIST. The amount paid or due. by the owner, fol
repairs made within the year, not exceeding the
yearly average paid ont for such purposes for the
preceding Ave years. and not including any
amounts paid or due for now structures, or fol
new and permanent improvements.
Cd. Insurance for the year paid by me ownei
upon the buildings rented or offered for rent, moi
including insurance paid upon any other prop
erty, real or personal.
Sd. Interest which accrued for the year on in
eumbrances upon the buildings rented or offered
for rent, or upon the lands on which they stand
whether such interest has been paid or remains
due.
All buildings offered for rent will be regarded
together, no segregation being required. Repairs
\ insurance 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 bo deducted from rents, but
from gross income from all sources.
BY the law Of juno 30, 1854, 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 4 homestead. will be considered here
| after, when treating Of general deductions from