Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-07-10
GBsfR4or 81 4Hf ANNUAL INCOME TAX |
HNNO1L NCOmE TAX.

0ANEN VAIL ANSOhAO AA<A
- a.ta,a..u II
Having been. requested 70 prepare an abstract
of what II required by law IN reference TO the In
como Tag, and Of the DECISIONS by the Depart.
ment at washington upon various questions that
hays arisen, We present the whole subject, under
IT. several distinct heads;
srATEMENT HouLn BE MADE-wHERE, wHEF,
AND BY WHOM.
1, The law requires every person oflawful age,
reading In the United States, TO render TO the
IasstSnt Assessor Of tho sub.distr.ct In which he
or she msy be residing on the LIST day Of May, Q
written staement, according TO Q prescribed
form. Of the amount Of bis or her income, gains
and profits during the previous year, nom Jan.
nary LIST to Deccmber 3lst, DO days inclusive.
A printed blank containing tnil form can % on,
hsvina 40 axed residences, should make Q state.
Mani wherever he or she may happen 70 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
3 III. sts,cneut must be rendered on or be-
fora Tho LAT day Of May, or within ten days after
4 written or printed notice requiring II, has been
Ian Al the place Of residence or Of business, or do
posted In tho pearest Post Once.
q Thb annual Income tax is;a personal tax,
and Il cannot DO assessed against any corporation,
company, or partnership, rs such Every indi'
yidual member must make o statement OF bis or
her share Of or interest In the gains and profits OF
such company, etc, whether such gains and.
| profits arc divided or NOT, and must also state
separately bis or her income from all other
sources.
TyILs OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENT
5. II any person neglects or refuses TO render
written statement, the Assistant Assessor Is re-
| ouested 10 All out o blank With such persons
nnsma. and taxable income estimated according to
the best information that can be obtained, aud
upon this estimated income 10 axsess the tax, and
then TO add IS per cent, 10 such tax o. q penalty
for neglect or refusal .g.gi4sH iaTul
Q. An Assistant Assessor may % misled IN
making this estimate, by being mlsinformed a. 10
| money received, or not informed as 10 money
| paid He must assess, however, according TO the
best information within his reach. The only per.
sonscapable Of, giving absolutely correct iniorma.
| ton ID frequently the one who refuses or neslects
10 mako a statement. II such person Will not
| take the trouble to Inform tho Assistant Assessor,
| there Ii o bar to all conplalnt, should the assess.
/ ment provo incorrect, and q hesvier tax DO levied
than would otherwise DO charged. Moreover,
menus, Il Is always troublesome to the party 10.
torested to have it corrected. All parsons, there.
fore, but especially sueh a. hape 40 taxable income,
should not fdl to render the required statement,
upon the proper blank, 80 as 10 avoid undue tax
alton and trouble.
= Every statement must be verified by odth or
Affirmation. When this Is not done, the Assistant
| Assessor Il required to estimate the income and
TO add Is per cent TO TO the tax t..sl-
EVILS OF MAKING A FALSE STATEMENT.
Q. An Assistant Assessor has power 10 tHeTedss
the amount In any statement, after giving due
Information 70 the party interested. He IL re
oulred, Also, TO add 100 per cent to the tax when
q false statement has been rendered and the
party making the false statement becomes liable,
not only for this additional tax, but likewise 70
two dlsiinct prosecutions before the United States
Courts-one for making u false statement with In.
tent TO dsfraud the Government, and the other
for perjury.
MANNER on MAKING UP STATEMENT ~ INCOME.
BY the Il8th section OF. the law, the Commir.
sioner Of Internal Revenue IL empowered 10 pre-.
scribe the form and MANNER In which the state
mcnt Of Income must BE- made up. This he has
done In o printed blank Used by the Assistant Az.
adssor, and In vanous circulars and rulings. The
following Is summary Of what'has been pre-
scribed;
IL Each Of the great classes into which the pur
suits Of life and the Investments Of capital have
been divided must DO returned sepdrdtely- losses
In one not being allowed 70 Offset gains 10 another.
specula,ions not belonging to bis legitimate busi'
ness cannot Offset gains IN the one by losses In
3 The expenses incident to each business re
dsduetbe from the receipts Of that business
business, and these alone, may be carried into Its
profit and loss account. Thus broker may spec.
ulate In stocks, o dry goods merchant In cotton, a
hardware man In Iron, etc. and tteA speculation
may affect the gain and lo' Of sleA 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 bis mer'
chandIse account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one OF the articles Of trade belong.
Ing 70 bis regular b~ukinels, for the purpose oil
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 frm
placed $4,000 In the hands Of o New York bro.
kpr, lnstructing him TO use II In the purchase and
s6le Of gold, on their account; and having lost
o27, 500 In this venture, they claimed that II
should DO deducted from their profits In business.
Commissioner Lewis dlsallowed the claim. and
said the .gntorn, ruling bad been that ~ hen a
loss IL made In any particular business, against
which there are. no. gains to Offset, It Is consid.
cred q dead loss Of capital invested In that oEsf.
nsta.n Again, 'loss Of capital cannot be de-
Quoted from Income" Return Of income must
be made on the Satns"
4 How far different kinds Of business must b.
returned separately Is shown by the following
rulings Of Commissioner Rolllnh Tt-rs-g
| (a)-"Loss Incurred In the prosecution OF ont
Hind Of business cannot DO deducted from gain 10
business Of an entirely different character. nor from
salary, rents, dividends. ETC. -.y r.s,. LE
B)-"Losses incurred IN the prosecution OF one
braseA OF business cannot be deducted from gain
In another, since an absolute loss incurred In the
prosecution Of n single business Is indispensably
. loss Of capital: .gygBs
only from gains In merchandise; but, In this case,
particular branches Of merchandise need not br
separated, So In speculation, the loss or gain
nom stocks may Offset loss or gain from produce
spcculated In"
d." Merchants must make return Of their
pronts from merchandise without regard TO their
4 loses IN, speculation, or gains from interest. divi.
dsndI, rents, or any other source" ~
=, s)-uLosses In speculation cannot DO deducted
from salaries, nor from gains In merchandise.
When losses arc sustained In one speculation and
gains made In another speculation. such losses
may DO deducted from such gains Losses In one
braach Of merchandise may be deducted from
gains In any other branch OF merchandise"
I0-"Where stocks, ETC., are bought as o per.
manent investment, and sold again merely TO
change the Investment q loss. sustained In the
sale may be deducted from the dividends from
speA stoci, But where the purchase 10 made for
the purpose Of selling again, on Speculation, the
loss sustained by The sale cannot be deducted
nom dividends, but may DO deducted from gains
derived from the purchase and Gale OF stock, etc,
INCOME FROM RENTS OF BUILDINGS.
From the total amounrof such rents received
within the year for which income is estimated or
duo and collectsble on the 3lst day Of December
ofsald year, should be deducted:
repairs made within the year, not exceeding the
yearly average paid out for such purposes for the
preceding ave years, and not including an,
amounts paid or due for new structures, or Tor
new and permanent improvements
ID. Insurance for the year paid by tho owner
upon the buildings rented or offered for rent, not
including Insurance paid upon any otner prop
u. int,5s,t rhies ass5rsS soF q. year ca o SS In;
IN rant or upon tbs lands on which they stand,
whether such Interest has been paid or remains
due,
,ogsih.r' no aggregation being required. Repairs
Insurance and interest paid on accoph, Of any
and all such buildings. whether ocenpiea OF not
Taxes viii not DO deducted nom rents, but
from gross Income from all sources lL
Nv lie law Of June 30, 1854, In estimating In;
coma from rents, no account Ltaken OF the rental
value Of homestead occupied oy me owner.
Payments for repairs. Insurance and interest,", on
sccount Of . homestead. will be considered here
after, when treating Of general deductions from
gross incoma
AIfas SSnmmona.