Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-07-14
IasTRa1stGaFs56sg54jHftk ANaA INCOME TAI
1NNOM5INCOmR TAX.

Having been Eequestbdto prepared a rsbstfacti
piwhatis re4nlfed.by larHin references 70 theln
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 o.. 90 2t--lA &
STATEMENT SHOULD BE MADE-!wHERE, wHEs'
~H,p y BY WHon,R s-sFe1,E
: i. ThSigwrequlres every psrsonofiawfdla ge,
reading In. the United States, to render 70 tne
Assistant ABsessor ofthe snb-dlstrlctn wncn NC
or she may be residing on the lst day Oh May,S
written statements according to- prescri1eu
form, Of the amount Of, his OF. 'her income. gains
snd PROFITS during the previous year, from Jun
uarv lat 10 December 3lst, DO b days meiusiVe'
A printed blank containing this form can DO oo.
tanned nom tho Assistant Assessof., a person
having no fixed residence, should make u sta's'
ment wherever he or she may happen to %; ana,
In case OF remoyal 10 another dAtr1ct should take
a certified copy OF such statement to snow any
other Assistant Assessor, who otherwise might
make a second assessment -
The stAtetnentt must % rendprea on or pc
:fYrn tb6 LIT day of May, or within ten DAYS ater
a written or printed notice requiring itrhRs been
an a. the place or residence or Of busIness, or de.
posted In tho . eareAt Post OttceGN
8. The annual income tax Is q personal tax,
and II cannot DO assessed against any corporation,
company, or partnership, as such. Every lndi'
vIdual member must-mnke a statement OF his or
her share Of or. interest In tho gains and protts 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 GAxr OUT OR VERIFY
STATEMENTS.
5. II any person N glscts or refuses to render q
written statement. the Assistant Assessor, 10 re-
quested 70 all out q blank with such persons
name, and taxable income, estimated according TO
the best information that can BIO obtained, and
upon this estimated income to assess the tax, and
then to add 25 per cent, TO such tax rs a penalty
for neglect or refusal. hi4i i! y.uL .iItt BOD
6. An Assistant Assessor may be misled In
making this estlmate, By being mislnformed as TO
money received, or not Informed as to money
paid. lie must assess, however, according 70 the
best information within his reach. The only per
son capable Of giving absolutely correct iniorma.
ton Is frequently the one who refuses or neglects
TO, mako, q statement II such person will not
take the trouble to inform the Assistant Assessor,
there 10 n bar TO all complaint, should the assess.
ment prove incorrect and o heavier tax be levied
than would Otherwise be- charged. : Narrower,
after an assessment has once been made. II erro
neous, It Is always troublesome to the party In
terested TO have It corrected. All persons: there
fore, but especially sEeh a. hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 70 a. to avoid undue tax.
alton and trouble.
- a. Every statement must be verified by oath or
affirmation. When this Is not done, the Assistant
Assessor Is required 10 ebtlWhto ~ mcoHc hhu
TO add 25 per cent TO TO the tax
l., EVILS OF MAKING A FALSE STATEMENT. fT 4
Q. An Assistant Assessor has power to increase
thu amount In any statement, after giving due
information to the party Interested. He Is re-
quired, also, to add 100 per cent TO the tax when
q false tatement has been rendered and the
party making the false statement becomes liable,
NOT only for this, additional tax. but likewise 10
two distinct prosecutions before the United States
Courts-one for making false statement with In
tent TO defraud the Government, and the other
for perjury 49, ~ 80.
MANNER OF MAKING UP STATEMENT OF INCOME.
By theglleth section OF, the law the Commits
sloner Of Internal Revenue IL empowered to pre-
scribe the form and manaer In which the state.
ment Of income must be made up. This he has
done In q printed blank ussd by ths Assistant AS
SCISSOR, and In various circulars and rulings The
following Is a summary OF what has been pre-
scribed:
l. Each ofthe great classes Into which the pur
suits Of life and the investments Of capital have
been divided must be returned stparditly- losses
In one not being allowed to Offset gains In another.
Thus a merchant who engages In farming or In
speculations not belonging to his legitimate busi.
ness cannot offset gains In the one by losses in
g. The expenses incident to each business re
deductlble from the receipts Of that business.
3. SpcculatioDs Lesitimdtely belonging to any
buslnesS, and these alone. may be carried. Into its
profit and loss account. Thus a 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
businesA5 "A merchant also may mako or lose by
| exchange or the kind Of money paid for his mer
chaudise, andthis gain or loss belongs TO his mer.
| chandi.e account. But II no buys gold, uncurrent
money!, United Staies Treasury notes. or any
other thing not one Of the articles Of trade belong.
| Ing. 10 bis regular business, for the purpose OF
SPECULATION, the profit or loss from such specula.
-. a. l. - n. 49,.
! from his-regulRr business A business firm
placed 10000 In the hands Of u New York bro
ker, Lnsiructing him to use II In the purchase and
sale Of gold, on their account; and having lost
or, 500 In this venture, they claimed that IL
| should be deducted from their profits In business.
| Commissioprr Lewis dlsallowed the claim, and
| said tho uniform ruling had been that ~ hen u
loss IL made In any particular business, against
| which there arc no gains to Offset, 1t ID cOnsid'
| cred a dead loss Of capital Invested In that bust.
ness" Again, ''loss Of capital cannot be de.
Quoted from income !" Return OF income must
| be made on the gains"
HOW far different kinds Of business must be
| returned: separateIy Is shown by the following
| rulings OF Commissioner Rollins:
(a)-.LosA Incurred in the prosecution of one
| kind OF busIness cannot be deducted from gain In
| business OF an entirely diferentcAdrdcttr, nor from
salary, rents, dividends, etc
lybS"Losses incurred In the prosecution OF one
| branch Of business cannot be deducted from gain
10 another, since an absolute loss incurred in the
prosecutioniof asingle business Is indispensably
q loss Of capital" N.si ". y.JS $50 20.
0-nLosses. In merchandise can be deducted
| only from Eains,in merchandise but in this case,
| particular branches Of merchandise need not br
| separated. .Sorin speculation, the loss or gain
from stocks may Offset loss or gain from produce
Epeculated. IN I'.Et. ~"uGsisaf 7lipggLsg,
| (dl-"Merchants must make return Of their
| profits from merchandise without regard TO their
fosses In speculation, or gains from interest, diyi.
dondh, rents, or any other source" -slern'
E-"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 losses
| NAV be- deducted from such gains Losses In one
| branch of merchandise may be deducted from
gains In any other branch Of merchanolse."
n-"Where stocks, etc, are bought Us n per.
| manent Investment and sold again merely. to
| change tho investment, a loss sustained in the
sale may be deducted from the dividends from
| sueA stoci. But where the purchase Is made for
the purpose Of selling again on speculation, the
loss sustained by The Sae cannot be deducted
from dividends. but may be deducted from gains
derived from the purchass and sale Of stock, etc,
In tho same year,. y go f4FAsqg-hE
INCOME FROM RENTS OF BUILDINGS.
From tho total amount Of such rents received
within the year for which income Ia estimated. or
due and collectRble on the 3lst day Of December
ofssid year, should DO deducted: tS..
lat Tho amount paid or duo. 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 net including any
amounts paid or due Tor new .I,uc'ureS' OF 'or
new and permanent Improvements
Cd, Insurance for the year paid by the owner
upon the buildingg rented or offered for rent, not
including insurance paid upon any other prop
erty, real or personal. s,.
Sd. Interest. which accrued for the year on In,
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