Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-07
ABSTRACT OF THE ANIMAL INCOME TAX:
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS 80 F.l-.

EVILS OF NEGLECT TO MAXI OUT oH
~sTATEMENTa
written statement, the Assistant Assessor y 80
quested TO fill out "a blank with such person.
name, and taxable income estimated aceoIu,hs "
the best information that can De ootnheu' my
upon this estimated income 10 ASSESS Tue y a.u
then TO add 25 per cent, TO such TAX 4" pe""''
for neglect or refusal. .,u., l..
& An Assistant Assessor may Os hIseu w
making this estimate, by being misiniormeu U W
money received, or not informed ss 70 money
paid. He must assess. however, according W u
best information within his reach. ing ohtyPss'
son capable Of, giying absolutely correct iniuIma'
ton il frequently the one who refuses or neglects
to mako a statement. II such person VIM nor
take the trouble to inform the Assistant Assessol'
Their, il IA bar to all complaint, should the assess,
ment prove incorrect, and a heavier TAX oo loSieu
than would otherwise be charged. hoLeoNet'
after an assessment has once been made II efro'
neous, Il Ia always troublesome TO the party IN
terested to havei Il corrected. AL persons. tnere-
fore, but ~espeeially such a. haze no taxable INCOME
should not fall to render the required sIa.ement'
upon the proper blank. so as TO AVOID unduo TAX
alton and troubled Vs.. x
4, Every statement must be verified by oath or
affirmation. When this Is not done. the Assistant
Assessor Is required to estimate the income ana
70 add IS per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
3. An Assistant Assessor has power TO tHeredse
the amount In any statement, after giving quo
information TO the party interested. Ho IL re-
qulred, also. to add 100 per cent. to the tax wnen
y false statemen has been rendered ana tne
party making the false statement becomes ilapic,
not only for this additional tax. but likewise 10
two distinct prosecutions before the UniIeu o!htes
Courts-one for making q false statement with IN.
tent to defraud the Government, and the otner
for perjury.
HAMMER or MAKIs UP STATEMENT OF INCOME.
By the llSth section Of the law, the Commits
sioner Of Internal Revenue Is empowered TO pre-
scribe tho form and manner In which the state
ment of income must be made up. This he mas
done In q printed blank used BY the Assistant AZ
SCISSOR, and In various circulars and rulingA The
following Is q summary Of what has been pre-
scribed: .., 80. "a.
/, Each Of the great classes into which the pur.
suits of life and the Investments Of capital have
been divided must DO returned separdteIy- losses
In one not being allowed to offset gains In another.
Thus a merchant who engages In farming or In
speculatiops not belonging to his legitimate busi'
ness cannot offset gains in tho one by losses In
the other. q. .... ar..- ... 1850 s..
. The expenses incident TO each business re
| deductible from the receipts Of that business.
| 3. Speculations iS4itfmately belonging to any
business and these alone. may be carried into It's
| profit and loss account. Thus a broker may spec
| ulate in stocks, q dry goods merchant In cotton, a
| hardware man In iron, etc, and such speculation
may affect the gain and loss of such legitimate
business. n merchant AlhO mhy mAke VI iOso W
| exchange or the kind Of money paid for bis mer.
chandlse, and this gain or loss belongs TO his mer.
chandise account. But II no buys gold, uncurrent
| money, United States Treasury notes, or any
| other thing not one fthe articles of trade belong.
| ing 10 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 $40, 900 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
S27, 500 In this venture, they claimed that 1t
| should be deducted from their profits In business.
| Commissioners Lewis disallowed the claim, and
said the uniform ruling had been that "vhen u
loss Is made in any particular business, against
which there arc no gains TO offset, 1t Is consid.
cred a dead los, Of capital inrested tn thai bust
ness" Again, floss Of capital cannot be de.
Quoted from income" Return OF income must
be made on the gains"
a How far different kinds Of business must be
| returned separatelyls shown by tho following
| rulings Of Commissioners Rollins:
(a)-"Loss incurred in the prosecution OF one
| Kind of business cannot be deducted from gain In
business Of an entirely digrentchoraeter. nor from
salary, rents, dividends. etc
B)-"Losses 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 II single business Is lndispensably
n loss of capital ,
y" losses in merchandise can be deducted
only from gains In merchandise; but. in this case,
particular branches Of merchandise need not DO
separated. So In speculation, the loss or gain
from stocks may offset loss or gain from produce
specialized in"
d. Merchants must make return Of their
profits from merchandise without regard to their
| losses In speculation, or gains from interest, diVi-
dends, rents. or any other source"
6)-"Losses in speculation cannot be deducted
from salaries, nor from gains in merchandise;
| When losses are sustained In one speculation ana
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 as a per.
manent Investment, and sold again merely 10
change the Investment, 4 loss Sustained In the
sale may be deducted from the dividend from
such 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 DO deducted from gains
derived from the purchase and sals OF stock, ETC.,
In the same year"
From the total amount Of such rents received
within the year for which income Ia estimated. or
due and collectable on tho 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 out for such purposes for the
preceding Ave years, and not including any
amounts paid or due 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 any other prop.
erty, real or personal. .~-.y-Ey-F ....
al Interest which accrued for the yenr on in.
cumbrances 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 Mi such buildings, whether occupied or not,
will BIO deducted from the total amount Of rents.
Taxes will not DO deducted from rents, but
from gross income from all sources.
BY the law Of June 80, 1854, In estimating In;
come from rents, no account Ii taken Of the rental
value of a homestead occupied by tho owner.
Payments for repairs, insurance and interest, on
account Of q homestead, will be considered heFe.
after, when treating of general deductions from