Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-21
ABSTRACT or rHE ANNUAL INCOME IA,
" ANNUAL o A

Having boon requested to prepare an abstract
Of what Is required by law In reference to the In.
come Tax, and Of tho decisions by the Depart.
ment At Washington upon various questions that
have arisen, we present the whole subject, under
It's several distinct heads: 20"
STATEMENT SHOULD BE MADE-wHERE, WHEN,
.-.- AND By WHOM. ..l
l. The law requires every person OF Lawful age,
reading In the United States, to render TO tho
Assistant Assessor Of the sub-dlstr:cti In which he
or abe may be residing on the LIST day Of May, a
written statement, according to q prescribed
VIII mr Of The amour. Of his or her income, gains
and profts during the previous year, from Jan.
uary lst TO December 3lst, both days inclusive.
A prInted blink containing this form can be OBJ.
talned from the Assistant Assessor. A person
having no fixed reside Go. should mako q state.
ment wherever no or she may happen to DO; and,
in case of removal to another district, should take
a certified copy Of such statement. to show any
other Assistant Assessor, who otherwise might
make q second assessment.
. The abatement must DO rendered on or be-
fore the LIST day Of May, or within ten days after
4 written or printed notice requiring II, has been
let at the place Of residence or of business, or de.
posted In the pearcst Post Office. "H'
3, Tho annual income tax Is q personal tax,
and II cannot BIO assessed against any corporation,
company, or partnership, Us such. Every indi.
vidual member must make q statement OF his or
her share Of or interest In the gains and profits Of
NuCu COMPANY, FIC.N UuCbnVl ~ baAho eaN
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.
S. II any person nsglects or refuses to render a
written statement, the Assistant Assessor Is re-
quested to ill out q blank with such persons
name, and taxable income estimated according TO
the best information that can be obtained, and
upon this estimated income to assess the tax, ana
then 10 add IS per cent, TO such tax ~ n penalty
for neglect or refusal.
9. An Assistant Assessor may be misled In
making this estimate, by being misinformed IN 10
money received, or not informed M to money
paid. He must nssess, however, according TO the
best information within his reach. The only per
son capable Of giving absolutely correct informa'
ton Ia frequently the one who refuses or ncglects
to make a statement. If such person will not
take the trouble to inform the Assistant Assessor,
there Ii n 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 the party In
terested to have u corrected. AN persphs; mere
fore, but especially such as hare no taxable income,
should not fail to render the 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. When this il not done, the Assistant
AASebHOT is TcuulTeu W Hblunh thS ihNOhiN aSN
to add 25 per cent to TO the tax.
EVILS ~ MAKING A FALSE STATEMENT.
9. Ar Assistant Assessor has power to incredse
the amount In any statement, utter giving duo
information to the party Interested. Ho IL re-
quIred, also, 10 add 100 per cent. to the tax when
o false statement has been rendered ana 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 II false statement with in
tent to defraud the Government, and the other
for perjury.
BY the llSth section Of the law, the Commits.
| sioner Of Internal Revenue Is empowered TO pre-.
scribe the form and manner In which the state
mcnt of income must be made up. This he has
done In Il printed blank used by the Assistant As
SCISSOR, and In varions circulars and rulings. The
following Is a 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 stpdrately- 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.
9, The expenses incident TO each business re
deductible from the receipts Of that business.
3. SpeculatIons legiiimateiy belonging to any
business. and these alone, may be carried Into its
profit and loss account. Thus a broker may spec.
ulate In stocks, IL dry goods merchant In cotton, n
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.
chandise, and this gain or loss belongs to his mer.
| chandise account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one ofthe articles Of trade belong.
ing TO his regular business, for the purpose oil
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 $40, 900 In the hands of n New York bro.
ker, InstructIng him to use IL In the purchase and
sale Of gold, on their account and having losi
s27,5 500 in this venture, they claimed that II
should be deducted from their profits In business.
Commissioner Lewis disallOwed the claim, and
saId tho uniform ruling had been that when a
loss IL made In any particular business, against
which there are no gains to offset, 1t Is consid'
cred a dead loss Of capital infested IN thar busi.
ness." Again, floss Of capital cannot bc de.
ducted 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:
0-"Loss incurred In the prosecution Of one
kind of business cannot be deducted from gain In
business Of AN entirely difsrentehdrdeter, nor from
salary, rents, dividends. etc
N-"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 IL ndispensably
q loss of capital g.,
n1-"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"
profits from merchandise without regard TO thcir
losses in speculation, or gains from interest diTi
-.-Ns Ar anU nAhRF nOnfra"
H-"Loss In speculation cannot be deducted
from salaries, nor from gains In merchandise
When losses arc sustained In one speculation ant
gains made In another speculation, such losse'
NAV be deducted from such gains, Losses In on'
branch of merchandise may be deducted IRON
gains In any other branch Of merchandlse."
(0-"where stocks, etc, are bought ms n per
mSnent investment, and sold again merely e
change tho investment, a loss sustained In th'
sale may be deducted from the dividends IRON
such stock. But where tho purchase IL made iol
tho purpose Of selling again on speculation, tn,
loss sustained by .he sale cannot be deducted
from dividends. but may be deducted from gain
derived from the Plrehd's aud sale OF stock, etc.
In the same year"
INCOME FROM RENTS OF
From the total amount Of such rents received
within the year for which income Is estimated. oil
due and collectable on the 3lst day Of Decembel
Of said year, should be deducted: L
LIST, Tho amount paid or due. by tho owner, ioi
repairs made within the year, not exceeding th'
yearly average paid out for such purposes for tht
preceding Ave years. and not including any
amounts paid or due Tor new siuc'ufe'' U 'o'
new and permanent improvements.
Cd. Insurance for the year paid by the owner
uoon the buildings rented or offered for rent not
Including insurance paid upon any other prop
erty, real or personal 4.
oumbrances upon the buildings rented or offered
for rent. or upon the lands on which they stand.