Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-30
BsrRlcr0f FHE ANNUAL INCOME TAX.
1NNUM INCOME TAX,

Of what Is required by law IN reverence 10 tne IN
com Tax, and Of the decisions by the Depart.
ment at Washington upon various questions that
have arisen, we present the whole subject, under
its seTsral distinct heads: T CT
sr~ArrsrRr SHOULD III AADE-wHERf, WHEN,
- AND By WHOM.
L. The law requires every person OF m age,
residing in Tho United States. to render to tho
Assistant Assessor Of the sub-district In which no
or she may be residing on the LIST day OF Maya
written statement, according To- prescribed
form, Of the amount Of his or her income, gains
and profits during the 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 ixed residence, should mako O state
ment wherever he or she may happen 70 90; ana,
In case of removal to another district, should take
q certified copy Of such statement, to show any
other Asilstsnt Aisessof, who otherwise might
make q second assessment
2. The statement must be rendered on or DO.
fore tho LIST day Of May, or within ten days after
Q written or printed notice requiring 1t, has been
left at the place Of residence or OF business, or de-
poSitedi In The pearest Post Office. I" NIB
~ B. The annual income tax 10 a personal tax,
and Il cannot DO assessed against any corporation,
company, or partnership, as such Every indi'
vidual member must make a 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 his or her income from all other
sources. -
EVILS OF NEGLECT TO Make OUT OR vERIFY
STATEMENTS.
II any person neglects or refuses 10 render q
written statement, the Assistant Assessor Ia re-
quested to all out q blank with such persons
name, and taxable income estimated according TO
the best that can be obtained, ana
upon this estimated income TO assess tht tax, and
then 70 add Is per cent, 70 such tax as u penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being mislnformed as 10
money received, or not informed as to money
paid. He must assess, however, according to the
best Information within his reach. The only per-
son capable Of giving absolutely correct lnforma'
ton 10 frequently the one who refuses or neglects
TO make u statement. II such person will not
take the trouble 10 inform the Assistant Assessor,
there Is q bar to all complaint, should the assess.
ment prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made. II erro
neOus, II is always troublesome to tho party In.
terested TO have Il corrected. All psrSons, there.
fore, but especially such as hare no taxable income,
should not fall to render tha required statement,
upon the proper blank, SO AZ to avoid undue tax
alton and trouble
7. Every statement must be verified by oath or
| Affirmation. Whom this Is not done. the Assistant
| Assessor Is required to estimate the income and
TO add IS per cent, TO to :e tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to tncrease
| the amount In any statement, after giving due
information to the party interested. He Is re-
| quired, 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 to
two distinct prosecutions before the United States
Courts-one for making a false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By tho llsth section Of the law, the Commits
sioner Of Internal Revenue Ii empowered TO pre-
scribe the form and manner In which the state
| ment Of income must be made up. This he has
| done In u 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:
suits OF life and the investments Of capital have
been divided must DO returned stpdrdtely- losses
In one not being allowed TO offset gains In another.
| Thus q merchant who engages In farming or In
speculations not belonging TO his legitimate busi'
ness cannot Offset gains In the one by losses In
the other.
. The expenses Incident to each business re
deductIbIe from the receipts of that business.
3. Speculatlons l~Sgitimaiely belonging TO any
business, and these alone. may be carried into Its
| profit and loss account. Thus O broker may spec.
ulate In stocks, dry goods merchant In cotton. a
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'
| chandlse, and this gain or loss belongs to his mer.
chaudise 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 20 his regular business. for the purpose OF
speculation, the profit or loss from such specula'
| tlon will not be allowed to affect the proht or loss
from his regular business. A business hrm
t---l an nm In tha hapda NJ n Nav YnPk hFn.
ker, instructipg him to use 1t In the purchase and
sale OF gold, on their account and having lost
I S27, 500 In this venture, they claimed that II
| should be deducted from their profits In business.
%CommIssioner Lewis dlsallowed the claim, and
said the uniform ruling had been that ~ hen a
loss " made IN my particular business, against
which there are no sans.to offset, It Is consid.
cred a dead loss Of capital inrested in that bust
ness" Again, "loss Of capital cannot be de.
ducted from income" Return Of income must
be made on the gains"
4. How far different kinds Of business must be
lreturned separately Is shown by the following
rulings Of Commissioner Rolllns;
.IaNaLoss incurredin the prosecution OF one
kind Of business cannot be deducted from gain In
lbusiness Of an entirely difrentcharaeter, nor from
salary, rents, dividends, ETC.
6)-"Losses incurred In the prosecution OF one
branch Of business cannot be deducted from gain
10 ANOTHER. since IN absolute loss Incurred In the
prosecution Of o single business Ia indispensably
a loss Of capital
n)-" 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-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from Interest. diyi.
| dends, rents, or any other source"
.t)-'rLosses Ia speculation cannot be deducted
| from salaries, nor from gains In merchandise.
When losses are sustained In one speculation and
| gains made In another speculation. such losses
| NAV be deducted from such gains Losses In enc
branch Of merchandise may, be deducted from
gains In any other branch Of merchandise"
| -{0-"Where stocks, etc, are bought as a per.
| mRnent investment, and sold again merely to
change the Investment. o loss sustained In the
sale may be deducted from the dividends 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 be deducted from gains
derived from' the plrekass and sale Of stock, ETC.,
In tho same year" ~ 49,
INCOME FROM RENTS OF BUILDINGS.
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
| ufsaid year, should be deducted:
'lst. The amount psid or due, by the owner for
repairs made within the year, not exceeding the
yearly average paid OUT LOT tucn purposes ior tue
| preceding Ave years, and not including any
| amounts paid or due for new structures, or for
| new and permanent improvements.
Cd, Insurance for tho 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.
I'd. Interest which accrued for tho year 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
dina ggrtNrrvOEgrTH EpwpFg.Evr@
|. An buildings offered for rent win 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 be deducted from rents, but
from gross income from all sources.
\ By the law Of June 30, 1854, In estimating In.
come from rents. no account ID taken Of the rental
| value Of O homestead occupied by the owner.
PAYMENTS for repairs, insurance and interest, on
account Of = homestead. will be considered here.
after, when treating Of general deductions from
gross income. rr'frr EFHTr
,rEs Alias Summons. -