Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-17
ABSTRACT OF THE ANNUAL INCOME TAX.
EVILS OF HEaLEcT TO MAXI OUT OR VERIFY
arArvAHGTS.

~ STATEMENTS .
5. II any person neglects or refuses to render q
statement, the Assistant Assessor IL 70.
to fill out "a blank with such person's
name, and taxable income estimated according TO
the best information that can be obtained, and
upon this estimated Income TO assess the tax, and
then to add % per cent. TO such tax IN q penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being misInforlned as TO
money received, or not Informed a. to money
paid. lie must ASSESS, however, according to the
best information within his reach. The only per.
son capable Of giving absolutely correct informa.
ton In frequently the one who refuses or neglects
to makes statement. If such person will not
take the trouble to ipform 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 DO charged. Moreover,
after an assessment has once been made, II GRO.
neOus. IL Is always troublesome to the party In.
terested to have Il corrected. All persons, there.
fore, but especially such a. hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 80 as TO avoid undue tax.
alton and troubled
.. Every statement must be verified by oath or
atsrmdffon. When this Ia not done, tho Assistant
Assessor Is required to estimate the income and
to add rs per cent to TO the tax.
EVILS OF MAKiS A FALSE STATEMENT.
=. An Assistant Assessor has power to increase
Nv hLiOuut III ANY bthktulentt ~ klNluk VI
information to the party interested. Ho IL 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 n false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF TAKING UP STATEMENT OF INCOME.
By the llsth section Of the law, the Commits.
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 ho has
done In a printed blank used by the Assistant As
SCISSOR, and In various circulars and rulings. The
following Is u summary Of what has been pre-.
scribcd:
l. 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 one not being allowed to offset gains in another.
Thus v n 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. SpeculRtlonS l~s1itimately belonging 10 any
business, and thess alone. may be carried into Its
profit and loss account. Thus q broker may spec
ulate in stocks, a dry goods merchant In cotton, q
hardware man In Iron, ETC.. and such speculation
may affect the gain and loss Of such legitimate
Duklnthk. a mtICuhDk hlFO may MAKE " lose p1
exchange or the kind OF money paid for his mer.
chandise, and this gain or loss belongs TO his mer.
chandise account. But II he buys gold, uucurrent
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 profit or loss from such specula.
ton will not be allowed to affect the profit or loss
from his regular business. A business firm
placed $4,000 In the hands Of q Now York bro.
ker, Iinstructing him to use II In the purchase and
sale Of geld, or their account and having lost
So7, 500 In this venture, they claimed that II
should be deducted from their profits in business.
Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that ~ hen a
loss Is made In any particular business, against
which there are no gains 10 Offset, II IA consid.
rred = dead loss Of capital inrested in that bust.
ness" Again, ''loss Of capital cannot be de.
Quoted from income" Return Of income must
be made on the gains"
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings OF Commissioner Rollins:
(a)-"Loss incurred In the prosecution OF one
kind Of business cannot BIZ deducted from gain In
business Of an entirely digrentehardeter, nor from
salary, rents. dividends, etc"
(6)-"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 u single business Ii indispensably
u loss Of capital"
(c)-"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-"Merchantx must make return Of their
profits from merchandise without regard TO their
losses In speculation, or gains from interest. diVi'
dends, rents. or any other source"
(s)-"Losses In speculation cannot be deducted
fr,,, .aIurias NOR from pninR In merrhnnllsp
When losses are sustained In one speculation and
gains made In another. speculation. such losses
may be deducted from such gains, Losses In one
branch of merchandise may be deducted hom
gains In any other branch Of merchandise
0-"Where stocks, etc, are bought n a per-
manent Investment, and sold again merely 10
change the investment. a 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 from gains
derived from the purehass and saL Of stock, etc,
In the same year.
Income FROM RENTS OF BUILDINGS.
From the total amount Of such rents received
within the year for which income In estimated. or
due and collectable on the Dist 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 ths buildings rented or offered for rent. not
including insurance paid upon any other prop.
crty, real or personal.
81, Interest which accrued for tho year on In.
cumbrances upon the buildings rented or offered
for rent, or upon ths lands on which they stand,
whether such interest has been paid or remains