Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-14
OF THE ANNUAL 1ycosR.rAy,
ANNUAL INCOME TAX.

I'm |
h9vlng Deen requested to prepare nm abstract |
Of what Is required by law In reference ~ ,bo IN
come Tax, and Of the decision. bv ~ W n,anDoia
ment at Washington upon various anss,,onI a.
have arisen. We present the whole sub;sct 49,
It's several distinct heads: ""uef
STATEMENT sHoULD De MADE-.wHERH. WHY
AND DY WHOM,
/. The law requires every person OF lawful nue,
residing In tho United States, to render TO III.
Assistant Assessor Of the sub.dlstrict In which he
or she may DO residing on the LIST day Of May, a
written statement, according 10 O prescribed
form, Of the amount Of bis or her Income, gains
and profits during the previous year, from jan.
uary LIST to December 3lst, DO h days inclusive.
A printed blank containing this form can be OBJ.
tanned from tho Assistant Assessor. A person
having no fxed residence, should mako q state.
mcnt wherever he or she may happen to 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
make q second assessment. .#'
9. The statement must be rendered on or be-
fore the 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.
posted In the pearest Post Office.
3. The annual income tax Is O personal tax,
and Il cannot be assessed against any corporation,
company, or partnership, rs such. Every lndi.
viduai member must mako a statement of his or
her share Of or interest In the gains and profits of
such company, etc, whether such gains and
profits are divided or not, and must also state
separately his or her income from all other
sources. ..g "A.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
D. II any person neglects or refuses TO render O
written statement, the Assistant Assessor Is re.
quested to fill out q blank with such persons
name, and taxable income estimated according to
the best Information that can DO obtained, and
upon this estimated Income to assess the tax, and
then to add 25 per cent, TO such tax rs q penalty
for neglect or refusal.
9. An Assistant Assessor may be mIsled In
making this estimate, by being mlsinformed as to
money received, or not Informed as to money
paid. Ho must assess, however, according to tho
best Information within his reach. The only per.
son capable OF giving absolutely correct inforna.
ton Is frequently the one who refuses or ncglccts
to make q statement. II such person will not
take the trouble 10 inform the Assistant Assessor,
there Is a bar to all complaint, should tho assess.
ment prove incorrect, and a heavier tax DO levied
than would otherwise be charged. Moreover,
after IN assessment has once been made, II erro
neOus, II IL always troublesome to the party In.
terested to have IL corrected. All persons, there.
fore, but especially such as hare no tdnd6Le income,
should not fail to render tho required statement,
upon the proper blank, so as TO avoid undue tax
alton and trouble.
4. Every statement must be verified by oath or
affirmation. When this Is not done. tho Assistant
AhohNbboA IN tVuuhVu " ina nv luCOuiO ~
to add IS per cent. to to the tax.
EVILS OF MAKING a FALSE STATEMENT.
y. An Assistant Assessor has power to increase
the amount In any statement, after giving due
information to the party interested. Ho IL re.
CURED, also, to add 100 per cent. to the tax when
a 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 deiraud tho Government, and the other
for perjury.
MANNER Oh, MAKISG UP STATEMENT OF INCOME.
BY tho 18th section Of tho law, the Commits.
sioner Of Internal Revenue is empowered TO pre-.
scribe the form and manner In which the state.
ment Of Income must be made up. This he has
done In a printed blank used by tho Assistant As.
SCISSOR, and in yarlous circulars and rulings. The
following Is u 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 sepdrdtely- losses
in ono not being allowed TO Offset gains In another.
Thus q merchant who engages IN farming or In
spcculatlons not belonging to his legitimate bust.
ness cannot Offset gains In the one by losses In
the other.
Q The expenses Incident to each business re
deductlble from the receipts of that business.
3. Speeulatlons lSgitimately belonging to any
business, md these alone. may DO carried into Its
profit and loss account. Thus a broker may spec.
ulhtc IN STOCKS, q ury Boods merchant IN cottoni u
hardware man In iron, etc. and sueh speculation
may affect the gain and loss Of sach legitimate
business. A merchant MISC may make or lose by
exchange or the kind Of money paid for his mer
chandise, and this gain or loss belongs 10 his 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 10 his regular business, for the purpose Of
speculation, the profit or loss from such specula.
ton will not be allowedto affect the profit or loss
-. ---I. I. -. A..
placed $4,000 In the hands Of q New York bro.
ker, instructipg him TO use 1t In the purchase 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 disallowed the claim, and
said the IN iGorm ruling had been that when a
loss Is nude In any particular business, against
which there are no gaius to Offset, II Is consid.
cred q dead loss Of capital infested IN that bust.
ness" Again, loss Of capital cannot be- do.
ducted from income" Return OF income must
be made on the gains"
4. How far different kinds of business must be
returned separately IL shown by the following
rulings Of Commissioner Rollins:
(d)-"Loss incurred In the prosecution Of one
kind Of business cannot be deducted from gain In
business Of an entirely dGereRtchdrdete, nor from
salary, rents, dividends, etc" ...a
O)-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
in another, since IN absolute loss incurred In the
Il plOrCSuNlOh "a bilklNu ubiiVh IN ll1lbpChhhbig
u loss Of capital"
(e)-"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
specialized In"
d. Merchants must make return Of their
profits from merchandise without regard TO their
losses In speculation, or gains from interest. dlvi.
bends, rents, or any other source"
0)-"Losses In speculation cannot DO deducted
from salaries, nor from gains In merchandise.
When losses aro sustained In one speculation and
gains made In another speculation. such losses
may DO deducted from such gains Losses In one
branch Of merchandise may be deducted from
gains In any other branch Of mcrchandise."
O-"Whcrc stocks, etc, are bought as a per.
mancnt Investment, and sold aguin merely to
change tho investment, a loss sustained in the
sale may DO deducted from the divldends 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 purehass aud sale Of stock, etc,
In the same year"
INCOME FROM RENTS or BUILDINGS.
From the total amount Of such rents received
within the year for which income Il estimated. or
duo and collectable on the 3lst day OF December
ofsald year, should be deducted;
LIST. The amount paid or due, by tho owner, for
repairs made within tho year, not exceeding the
yearly average paid out Tor such purposes for tho
preceding five years, and not including any
amounts paid or due for new structures, or for
new and permanent improvements.
Cd. Insurance for the year pnid by tho owner
upon the buildings rented or offered for rent, not
including insurance paid upon any other prop.
erty, real or personal. r.w
Sd. 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
duo.
All buildings offered for rent will be regarded
together, no segregation being required. Repairs,
insurance and interest paid on account Of my
and Nil such buildings, whether occupied or not,
will DO deducted from the total amount Of rents.
Taxes will not DO deducted from rents, but
from gross income from all sources.
By tho law Of Juno 30. 1864, In estimating In.
come IRON rents. no account is taken Of tho 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 income. LEEEGy
Dissolution.
NOTICE IS HEREBY GIVEN, THAT THE
IN Association known ns the PIONEER
FOUNDRY ASSOCIATION" at Gold Hill. Is
this day dissolved by mutual consent. All debts
due tho Association will be paid 10 BOOTH e.
PRESCOTT, who have this day purchased all
the right, title and Interest Of said Association In