Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-14
ABSTRACT OF THE ANNUAL! INCOME TAX
ANNUAL INCOME TAX.

OAA
-
Having been requested to prepare an apetI1ct
~ what Is required byllBW IN rofelencp tvSue
come TAX, and Of the decisions by the DePMt.
ment al washington upon various qnesnons sIar
have arisen. we presen, tho "hoto su'9'
Ijts saveral Distinct heads;
sr,rruysr SHOULD BE MADE-.wHERE, WHEN
AND BY WHOM. l.r
L Thelav requires eve1 pcrsonoLiaWiul ASe,
r.sIdjnv in the United States, 70 render TO Inv
A%s.istant Assessor Of the sub'diStr.ct In when ne
or she may be residing on the Isl aay Oh aaS,S
written statement, according TO "a prescIgca
sorm' Of the amount of bis or her income, gains
I'D nroats during the previous year, from JAN
uary Lat 10 December 3lst, Dom DAYS lhciusiSe'
A nrinted blank containing this form can 90 oo'
tanned from the Assistant Assessor. pa,al
having no fxed residence, should mako q state
mani wherever he or she may happen 10 DC; and,
IN ca,s of removal to another district, should axe
a Certified eopy Of such statement. TO snow any
o,bar Assistant Assessor, who otherwise might
make q second assessment
: The statement must DO rendered on or he-
tore tbe 1st day df May, or within ten days after
n written or printed notice requiring 1t, has been
ieft nj the place Of residence or Of business, or de-
posted In the pearest Post ONCE. -,
q Tho annual income tax Is q personal tax,
and II cannot be assessed against any corporation,
company, or partnership, rs such. Every indi.
yidual member must make o statement Of bis or
0eT HUhI6 Vi " lukNlVbb II thO 6hNA" NA1
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 OR VERIFY
STATEMENTS.
s If any person neglects or refuses to render
written statement, the Assistant Assessor IL re-
quested TO I'LL 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 25 per cent, to such tax us a penalty
for neglect or refusal.
G. Al Assistant Assessor may be misled In
making this estimate, by being misinformed an to
money received, or not informed az to money
paid. He must assess, however, according TO the
best information within his reach. The only per-
son capable OF giving absolutely correct informa'
ton Is frequently the one who refuses or ncglects
TO make u statement. II such person will not
take the trouble to inform the Assistant Assessor,
there is abRr to all complaint, should the assess.
ment prove incorrect, and a heavier tax DO levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neOus, II tx always troublesome to the party in
terested TO have II 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, 10 IN to avoid undue tax.
alton and trouble. .
7. Every statement must be verified by oath or
Affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the income and
to add 25 per cent, TO to the tar,
EVILS OF MAKING A FALSE STATEMENT.
q. An Assistant Assessor has power to increase
the amount in any statement, after giving due
to the party Interested. He Ii re.
quired, also, to add 100 per cent. to the tax when
y 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
IL. - ala .aNa N A...W nj NntNh In
tent to defraud the Government, and the other
for perjury.
MASSER OF NAMING UP STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits
| sioner Of Internal Revenue Is empowered TO pre-
scribe the form and manner in which the state
mont Of income must be made up. This he has
done In a printed blank used by the Assistant As
SCISSOR, and in various circulars and rulings. The
following Is n summary Of what has been pre-.
seribedI
suits Of life and tho investments OF capital have
been divided must be returned sspdrdteiy- 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.
Q The expenses incident 10 each business re
deductible from the receipts of that business.
3. Speculations Lsgitimaisly belonging to any
business, and these alone, may be carried Into its
profit and loss account. Thus a broker may spec.
ulate In stocks. n dry goods merchant In cotton, a
hardware man In iron, etc. and sueh 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 10 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 10 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 S40,0O In the hands of q New York bro.
ker, instructing him to use 1t In the purchase and
sale of gold, on their account; and having lost
81, 500 In this venture, they claimed that IL
should be deducted from their profits In business.
| Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that when n
loss is made In any particular business, against
which there are no gains to Offset, 1t Is consid.
cred n dead loss Of capital infested 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 Commissioners Rollins:
(d)-"Loss incurred in the prosecution Of one
kind Of business cannot be deducted from gain In
business OF an entirely diFerenteharaeter nor from
salary; rents, dividends, etc"
B)-"Lossca incurred In the prosecution Of one
branch Of business cannot be deducted from gain
In another. since m absolute loss incurred in the
prosecution Of q single business IN indispensably
q loss Of capital.
O-"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 gRir
from stocks may Offset loss or gain from produce
speculated In" ...... .
M-"Merchants must make return Of theii
profits from merchandise without regard TO thcil
losses In speculation, or gains from Interest. divi
\ bends, rents, or any other source"
N-"Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise
When Losses are sustained In one speculation ant
gains made In another speculation, such lossei
may be deducted from such gains Losses In on,
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
(0-"Where stocks, etc, are bought as a per
manent Investment, and sold again merely u
change the investment, q loss sustained In thu
sale NAV be deducted from the dividends from
such stock. But where tho purchase Is made fol
the purpose Of selling again on speculation, thu
loss sustained by the sale cannot be deducted
from dividends, but may be deducted from gain,
derived from the PIreha's and sale Of stock etc.
In the same year"
INCOME PROM RENTS OF uILDIso
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 December
ofsaid year, should be deducted:
LIST. The amount paid or due. by the owner, tor
repairs made within the year, not exceeding ths
yearly average paid ont for such purposes LOT lnc
preceding Ave years, and not including any
amounts paid or due for new structure OF 'or
new and permanent improvements
ID. Insurance for the year paid by the owner
unop ths buildings rented or offered for rent, not
Including insurance paid upon any other prop
erty, real or personal.
.-h-o,ooo unon the hnildInps rented or offered