Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-30
OF THB ANNUAL INCOME TAX
ANNUAL INCOME TAX.

-Ht1 SNN- wi ~ ptSpeAV tA "
Of what is required by law In reference to the In
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 DE MADE-wHERE, WHEN, |
AND BY WHOM.
1. The law requires overy person OF flaw full nge.
reading in the United States, to render to the
Assistant Assessor Of the sub.distr:ct In which no
or shc may be residing on the LIST day of May, u
statement, according to d prescribed
form. of the amount Of his or her income. gains
md profits during the previous year, from Jan.
nary lst to December 3lst, both days inclusive.
A printed blank containing this form Gun DO oh.
tanned from the Assistant Assessor. A person
having no fxed residence, should make a state.
ment wherever he or she may happen to be; and,
I'm 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
o The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
a written or printed notice requiring 1t, bus been
LEFT at the place of residence or Of business, or de-
nosIted In the pearest Post Office.
q The annual income tax IL u personal tax,
and Il cannot be assessed against any corporation,
company, or partnership, an such. Every indi.
yIdual 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 OF VERIFY
STATEMENTS.
S. II any person neglects or refuses to render q
written statement, the Assistant Assessor Is re.
Quested to oil 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, and
then to add 25 per cent, to such tax as a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being misinformed as TO
money received, or not informed as to money
paid. He must assess, however, according TO the
best information within his reach. the only per
son capable Of giving absolutely correct iniorna'
ton liz frequently the one who refuses or neglec,s
TO make u statement. II such person Will not
take the trouble to inform the Assistant Assessor,
there is a bar to oil complaint, should the assess:
ment prove incorrect, and a heavier tax be LEVIED
than would otherwise be charged. Moreover
inter an assessment has once been made, II erro
neous, II Is always troublesome to tho party ill.,
teresied TO have Il corrected. All persons, there
fore, but especially such as hare no taxable income,
should not fail to render the required statement
upon the proper blank, 30 IN to avoid undue tax.
alton and trouble.E
7. Every statement must be verified by oath or
affirmation. When this IL not done, tho Assistant
Assessor Is required TO estimate the income and
to add 25 per cent. to to the tax,
EVILS OF MAKING a FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the 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
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 defraud tho Government, and tho other
for perjury.
MANNER OF MAKING UP STATEMENT or INCOME.
BY the 18th section Of the law, the Commis'
sioner OF Internal Revenue Ia empowered to pre-
scribe tho form and manner in which the state.
ment Of Income must DO made up. This he has
done In n printed blank used by the Assistant As
SCISSOR. and In various circulars and rulings the
following Ia q summary Of what has been pre-
scTlbcd:
I. Each Of the great classes into which the pur.
suits Of life and the investments OF capital have
been divided must be returned separdteiy- losses
In one not being allowed TO offset gains In another.
Thus O 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.
. The expenses incident TO each business re
deductIble from the receipts Of that business.
3, Spcculations ie9itimdteiy belonging to any
business, and these alone. may be carried into lis
profit and loss account. Thus u broker may spec
ulate in stocks, u 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-
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 of the articles Of trade belong.
ing to his regular business, for the purpose OF
speculation, the profit or loss from such speculn.
tion will not be allowed TO affect the profit or loss
t-o,a hta raOt,laF huainnsA a businpHH firm
| placed $4,000 In the hands of a New York bro:
ker, lnstructIng him TO use II In the purchase and
| sale Of gold, on their account and having lost
sT,5O0 In this venture, they claimed that II
should be deducted from their profits In business.
Commissioner Lewis dlsallowed 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, II IL consid.
cred a dead loss Of capital fnrssted in thar bust.
ness" Again, loss Of capital cannot DO de.
| Quoted from income" Return Of income must
BIO 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 be deducted from gain In
| business Of m entirely diterentehdrdcteT, nor from
salary, rents, dividends, etc
(B)-"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 q single business IL indlspensably
q loss Of capital
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
Speculated In"
(G-"Merchants must make return OF their
profits from merchandise without regard to their
losses In speculation, or gains from interest, divi.
dands. rents, or any other source"
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
may be deducted from such gains Losses in one
branch Of merchandise may be deducted from
| gains In any other branch of merchandise"
O-"Where stocks, etc. arc bought rs a per-
| manent investment, and sold again merely to
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 DO deducted from gains
derived from the purchase and sale Of stock, etc,
In the same year." ......
IScoAE FROM Rents OF BUILDINGS.
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:
lst. The amount paid or due, by the owner, for
repairs made within the year, not excey1ing the
yearly average paid ont for such purposes for the
preceding Ave years, Ind not including any
amounts paid or due for new structures, or for
new and permanent improvements.
I'd, 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.
Sd. Interest which accrued for the year on In.
oumbrances upon the buildings rented or offered
t.. .aat or nnon tha lanhA 0n which tlnV stln0.