The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1866-06-23
ne of settlement, or with an annual Gus

time OF settlement, or with an annual Gus
tom
%. Gifts of money, when clearly not in
the nature of payment for services rendered,
or other valuable consideration, are not
liable to taxation as is income. Amounts
received on life insurance policies, and
damages recovered In actions Of fort, are
exempt from income tax.
"a. Lawyers and physicians may return
either the actual fees received during the
year But when the tax payer has hereto
fore adopted one method he cannot now be
allowed to make use of the other.
%. If the manufacturer or dealer has
been in the practice of estimating his annual
profits by taking inventories of stock, he
should take the cost value of such stock,
unless he has taken the market value In
making previous returns Whichever method
has been adopted by the taxpayer, should
be adhered to uniformly.
%. If interest accrued during the year on
notes, bonds, ETC., is good and collectable at
the end Of the year 1t should be returned
as income, whether actually collected Or not
q. The fact that income is devoted to the
payment of debts does not release the same
from reliability to income tax.
30. Incomes of persons who died after
December 3lst are taxable, and should be
returned by executors or administrators, and
also all incomes which accrued in 1865 to
persons who died in that year Income
which accrued from the estate of such per
sons in 1866 after the date of decease, should
be returned by the heirs or other persons
who receive the benefits of the same
81. Residents should make return in the
district where they reside at the time Of
making the return The residence required
under section ll6 for the purpose Of taxing
income, is held TO be a residence during the
year for which income is derived" If any
person subject to income tax resides abroad
his return should be made In the district
where he last resided.
guardian should return the income Of
his ward in the district where the ward
resides
30 Citizens of the United States residing
abroad are subject to tax upon their entire
incomes from all sources whatever; and the
same is true Of foreigners residing in this
country.
33. The term "real estate" includes all
lands tenements and hereditaments, corpo-
real and incorporeal Profits on sales of real
estate purchased in a previous year need not
be returned as income, nor can losses on
such sales be deducted therefrom
81. A lease for year or for life is per
sonal estate, and any profits on the sale of
such lease are taxable as income for the
year of SALE
35. Where any portion Of a legacy has
been transferred by the executor to the lega-
tee, so that the executor IN his capacity of
guardian or trustee has no longer any con-
troll of the profits arising from such legacy,
the return of such profits as income must be
required Of the legatee.
36. The payment of legacy or succession
tax on the Sequest of an annuity does not
relieve the annuitant from liability to income
tax on his annuity.
81. Where an income exceeds s., 600,
$500 will be exempt, $4,000 subject to tax
at per cent, and the remainder at 10 per
cent
50. All expenses for insurance upon prop
erty and all actual losses in business may he
deducted from the gross income Of the year.
| But losses sustained after December 81, 1865,
cannot reduce the income for the year. Losses
incurred In the prosecution of one kind Of
business may be deducted from gains in
another, but not from those portions of in
| come derived from fixed Investments, such
as bonds, mortgages, rents and the like. AS
| SCISSORS should also be careful not to allow
| the deduction of amounts claimed to have
| been lost in business, when in reality they
/ should be regarded as investments or expen-
ditures, as when merchants expended money
in farming or gardening for recreation or
adOrnment rather than pecuniary profit
SO. Dividends from which the tax of five
! pet cent has been withheld, should be re-
| turned as income, inclusive of the tax with
| held, and after the total tax has been asses
| sed the amount of tax, withheld may be de-
| Quoted therefrom
40 Coupons on railroad bonds should be
returned as income for the year in which
they mature, if they are good and collecta-
! ble
Al Scrip dividends of companies named
| in sections 100 and I22 are taxable as in
come at their nominal value scrip dividends
Of other companies should be returned at
! their market value when received
SCHEDULE
l. Gold and silver plate is subject to tax if
/ kept for use, whether actually used or not,
except as provided in schedule A. But if
plate is permanently kept in bank or else
where for safety, and with no intention to
use the same, such plate is exempt
2 Pianos organs, etc, used in churches
or public edifces, are not taxable under sec
| ton 100 The term public edifces" is
! held to include town halls, public Libraries,
public halls and the like, also free schools
and academies which are maintained at pub
/ lie expense, or are thrown open to the pub
! lie free of charge. Private schools or acade-
mics, whether incorporated or not, suppOr-
| ted wholly or 10 part by charging tuition
! fee, cannot be considered public edifces
| within the meaning of the act.