Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-20
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

.. .". - 49, Il
Having been requested TO prepare an ~ IN
come Tax, and Of the decisions by the DePai.
mept at Washington upon VARIOUS quesions Inn Ma
a%ffsen, Nc present the whole SubJect, unaer
It's several distinct heads:
ar.rrMySr SHOULD BE MADE-WHERE, WHEN
AND BY WHOM.
L The law requires every person oflawful ago,
reading IN the United States, TO render 70 ~
A s.istant Assessor Of the sub-dlstriet In which no
Sha NAV be residing on the LIST day OF May u
wrItten abatement, according to a preserlDeo
torn Of the amount Of his or her income, gainh
INA nroHts during the previous year, from Jun
lary lst to December 3lst, both days mciusiye'
A printed blank containing this form can DO oo'
famed nom the Assistant Assessor. A peisoh
having no 6xed resldence, should make q state.
mani wherever he or she may happen TO % anu,
n case of removal to another district, snouia tako
q certified copy Of such statement, 70 SNOW any
other Assistant Assessor, who otherwise miBn'
make a second assessment
9. The statement must DO rendered. on r. ~
fore the LIST day Of May, or within ten days ai'eI
n written or printed notice requiring IL, has Deen
al the place OF residence or OF business OF u''
posted In the pearest Post Office.
4 The annual income tax Ia q personal TAX,
And IL cannot be assessed against any corporaton'
company, or psnnersn,P, az suS OF his or
her share Of or interest In tho gains and pronts o.
such company, ETC., whether such gains ana
profits are divided or not, and must also state
separately bis or her income IRON all o'ner
sources.
Evils OF NEGLECT TO MAKE OUT OK VEhiff
x ~ INV ner.on nerlscts or refuses to render d
written statemsnt,t the Assistant Assessor IN re.
ouested to all out q blank with sucn petsons
name, and taxable income estimated according 70
the best information that can Dc oOuhneu, anu
=. Cd. anS IN uuaaaa fhH lax. ana
then to add 25 per cent, TO such TAX IN u penai'y
for neglect or refusal. l..
a An Assistant Assessor may be misled In
making this estimate, by being misinformed AZ 10
money received, or not informed as TO money
paid. He must assess, however, according 10 the
best information within hfs reach. Inc only per
son capable Of giving absolutely correct informa'
ton 10 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 Is a bar to all complaint, should the ASSESS,
ment prove incorrect, and a heavier tax be Levied
than would otherwise be charged. moreover
after nh assessment has once been made, II erro
neous, Il Is always troublesome TO the party in
terested TO have II corrected. All persons, there
fore, but especially such as hare no tdIdoe income,
should not fail to render the required statement.
upon the proper blank, 80 ~ to avoid undue lax
alton and trouble.
7 Every statement must be verified by oath or
QUTW1lIUH. w Y kHih N hOs NShNf
Assessor Is required to estimate the income and
TO add % per cent, to TO the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount In any statement, after giving que
information to the party interested; lie IN re.
quired, also, to add 100 per cent. TO the tax when
q false statement has been rendered and inc
party making the false statement becomes liable
NOT only for this additional tax, but likewise TO
two disiiuct prosecutions before the United States
Courts-one for making a false statement with ill.,
tent to defraud the Government, and the othcr
for perjury.
By the 18th section Of the law, the Commis'
sIoner of Internal Revenue il empowered TO pre-
scribe the form and manner In which the state
ment of income must be made up. This nc mas
done In "a printed blank used by the Assistant A..
SCISSOR, and IN VARIOUS circulars and rulings. Tho
following Ia n summary Of what has been pre-
scrlbed:
/. Each Of the great classes into which the pur.
suits of life and the investments OF capital nave
been divided must be returned separdteiy- losses
in one not being allowed to Offset gains In another.
Thus v merchant who engages In farming or IN
| speculatious not belonging to his legitimate Dusi'
ness cannot Offset gains In the one by losses IN
the other. .
3 The expenses incident to each business rt
| deductible from the receipts OF that business.
4. Speeulatlons SHitimately belonging to any
| business, and these alone. may be carried into it'
profit and loss account. Thus a broker may spec
| ulate In stocks, u dry goods merchant In cotton q
| hardware man In iron, etc, and such speculation
| NAV 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 mrr,
/ chandisc 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 d
AZ. ornlN ~ lnau foam aFtrh anpnnla
| ton will not be allowedto affect the profit or los'
from bis regular business. A business nrn
placed S40,0 900 In the hands of a Now York bro
ker, instructing him to use II In the purchase ant
sale of gold, on their account and having los,
s21. 800 In this venture, they claimed that u
should be deducted from their profits In business
Commissioners Lewis dlsallowed the claim, and
saId this uniform ruling had been that when Q
loss ~ made in any particular business, against
which there are no gains to offset, II ~ consid'
cred n dead loss Of capital fnveIed IN hat onsi
ness" Again, "loss Of capital cannot be de
Quoted from income" Return Of income must
DO made on the Sains."
4. How fnr different kinds Of business must be
returned separately Is shown by the following
rulings of Commissioner Rollins:
(a)-"Loss incurred In the prosecution OF ont
kind Of business cannot be deducted from gain In
business Of an entirely dGerenteharaetT, nor from
salary, rents, dividends. etc
0)-"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 n single business N lnulspensably
q 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 bt
separated. So In speculation, the loss or gair
from stocks may Offset loss or gain from produc,
speculated in"
M-"Merchants must make return OF theiI
profits from merchandise without regard to theil
losses In speculation, or gains from Interest, diri
dends, rents, or any other source"
e)-"Lomes in speculation cannot DO deducted
from salaries, nor from gains In merchandise
When losses ore sustained II In one speculation ant
gains made In another speculation, such lossei
NAV be deducted from such gains Losses In on,
branch of merchandise may be deducted from
gains In any other branch OF merchandise"
(0-"Where stocks, etc, are bought as a per
manent investment, and sold again merely q
change the investment. n loss sustained in tn,
sale may be deducted from the dividends from
such stock. But where the purchase Is mRde FOL
the purpose Of selling again on speculation, tn
loss sustained by the sale cannot be deducted
derived from the purchase and sale Of stock, etc.
In thu same year"
INCOME RON RENTS oP BUILDINGS.
From the total amount Of such rents received
within the year for which income Is estimated. Of
due and collectable on the 3lst day Of DecembeI
| ofaald year, should be Deducted:
LIST. The amount paid or due, by the owner, fol
repairs made within the year, not exceeding tn
yearly average paid out for such purposes for thu
preceding Ayo years, and not including amy
amounts paid or due for new structures, or fol
new and permanent improvements.
Cd. Insurance for the year paid by the owner
upon the buildings rented or offered for rent, moi
Including insurance paid upon any other prop
crty, real or personal,
Cd. Interest which accrued for the 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
due.
All buildings offered for rent will DO 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 deductedS from rents, but
from gross income from all sources.
BY the law of June 30, 1864, In estimating In,
! come from rents, no account Is taken OF the rental
value Of a homestead occupied by the owner.
| Payments for repairs, insurance and interest, on
account of q homestead, will be considered here
after, when treating Of general deductions from
gross incoms.
Redington & Co.'s
~ nsaarn