Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-10
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL G o TAX.

Having been requested to prepare an abstract
Of what Is required by law In reference to the In
come Tax, and Of the decisions by the Depart.
ment at Washington upon various questions that
have arisen, we present the whole subject, under
It's several distinct heads:
sHoULD BE M~ADE--wHERE, WHEN,
AND BY WHOM.
!. Tho law requires every person OF age,
residing In the United States, to render TO the
Assistant Assessor Of the sub.distr.ct In which he
or she may be residing on the LIST day Of May, q
written statement, according to q prescribed
form, of the amount Of his or her income, gains
knd profits during the previous year, from jan
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ
tanned from the Assistant Assessor. A person
having no fixed residence, should make q state
ment wherever he or she may happen to be; and,
In case Of removal to another district, should AXE
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 tho LIST day Of May, or within ten days after
d written or printed notice requiring it;'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 a personal tax,
and It cannot be assessed against any corporation,
company, or partnership, as such. Every indi.
vidual member must make 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.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5 If any person neglects or refuses to render q
written statement, the Assistant Assessor IN re-
Quested TO fill out a blank with such persons
name, and taxable income estimated according to
tho haot Inflammation that ran he OhtninRl. and
upon this estimated income to assess the tax, and
then TO add 25 per cent, to such tax az a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled in
making this estimate. by being mlsinformed AZ TO
money received, or not informed IN TO money
paid, He must assess, however. according to the
best Information within his reach. The only per.
son capable of giving absolutely correct informa'
ton Is frequently the one who refuses or neglects
to make q 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 OIL assessment has once been made, II erro
neOus. II " always troublesome to the party In.
terested to have 1t corrected. All persons. there
fore, but especially such as haze no taxable income,
should not fail to render the required statement,
upon the proper blank, 40 IN TO avoid undue tax.
alton and troubled
z. Every statement must be- verified by oath or
affirmation. When this il not done. the Assistant
Assessor is required to estimate the income and
to add IS per cent. TO TO the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to iRcredse
the amount In any statement, after giving due
information TO the party Interested. He IL RI.
| quired, also, 10 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
/ ,,,,aJ tsttpot prnunnutiopu hsfnra tho ITpitpd Stniaa
| Courts-one for making u false statement with In
tent to defraud the Government, and the other
for perjury.
| MANNER OF MAKING UP STATEMENT OF INCOME.
BY the 18th section of the law, the Commits
| sioner of Internal Revenue In 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 the Assistant An
| SCISSOR, and In various circulars and rulings. The
following Is u summary OF what has been pre-
scribed:
l. Each of the great classes into which the pur
| suits Of life and the investments OF capital have
| been divided must be returned sepdrateiy- losse'
/ 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 bust
| ness cannot offset gains In the one by losses In
the other.
:. The expenses Incident to each business IRE
| deductIble from the receipts Of that business
3. Speculations k9itimately belonging to any
business, and these alone, may be carried Into its
/ profit and loss account. Thus q broker may spec.
ulate In stocks. a 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'
chnndise, and this gain or loss belongs to his mcr'
| chandise account. But II he buys gold, uncurreni
money, United States Treasury notes, or any
/ other thing not one of the articles of trade belong
Ing to his regular business, for the purpose Of
speculation, the protitOr loss from such specula
| ton will not be allowed to affect the profit or los'
from his regular business. A business firm
placed $4,000 In the hands Of a New York bro
ker, instructlng him 10 use 1t In the purchase ant
sale Of gold, on their account and having los
SCI, 800 In this venture, they claimed that !
should be deducted from their profits In business
Commissioner Lewis dlsallowed the claim, ant
said tho uniform ruling had been that when
loss is made In any particular business. agains
which there arc no gains to Offset, II Is consid
cred a dead loss Of capital INFESTED In that bust
ness" Again, "loss Of capital cannot be de
Quoted from income" Return of income mus
be made on the gains"
4. How far different kinds of business must bt
returned separately Is 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 diFereateharaeta, nor from
salary, rents, dividends, etc
Q)-"Losses incurred in the prosecution of one
branch Of business cannot be deducted from galr
in another, since an absolute loss incurred in the
prosecution Of a single business IL hdispensably
q loss Of capital"
G)-"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 gair
from stocks may offset loss or gain from produce
specialized In"
(D-"Mcrchants must make return Of theil
profits from merchandise without regard TO theil
losses in speculation, or gains from interest. divl
dends, rents, or any other source"
H)-"Losses In 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 lossei
may be deducted from such gains. Losses In one
branch of merchandise may be deducted from
gains In any other branch Of merchandise"
(0-"where stocks, etc, are bought as q per
manent investment, and sold again merely "a
change tho Investment, q loss sustained In the
sale may be deducted from the dividends from
such stock. But where the purchase IL made for
the purpose Of selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends. but may be deducted frem gains
derived from the purchase and sale Of stock etc.
In the same year"
IScoNE PROM RENTS or %BUILDIHGs-
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
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.
81. 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 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, 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 income.
RedingtOn & Co.'s