Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-23
ABSTRACT OF THE ANNUAL INCOME IA:
ANNUAL INCOME TAX.

-
Having been requested to prepare an abstract
Of what Is required by law In reference to the In.
como Tar, and Of the decisions by the Depart.
ment at Washington upon various questions that
have arisen, we present the whole subject, under
Its several distinct heads:
STATEMENT sHoULD BE MADE--wHERf, WHEN,
AND by WHOM.
]. Tho law requires every person oflawful age,
residing In the United States, to render to tho
Assistant Assessor Of the sub.district In which be
or she may be residing on the LIST day OF Maya
written statement, according to q prescribed
ioiin, OF the amount Of his or her income, gains
uary p e., during the previous year, from jan
printed blank containing this form can be OBJ.
tunnsu rom the Assistant Assessor. A person
Ha,LnB no hked residence, should make q state
u, ,ne an.s wherever he or she may happen to be; and,
sar,fsoa nnU 70 another district, should take
eertiEed copy Of such statement 10 show any
other Assistant Assessor, who othervjse might
mako o second assessment.
:. 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 n. has been
left at the place Of residence or Of bu,,nc.. ~ Ss.
posted In the pearest Post Office.
3. The annual income tax Is q p.,,oro, ,sx
and Il cannot be assessed against any cornora,Ion
company, or partnership, as such. Every ind,
yldual member must make q statement Of hIs or
her share Of or interest In the gains and profits on
such company. ETC., whether such gains and
profits arc divided or not, and must also ,tnto
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5. II any person neglects or refuses to render n
written statement, the Assistant Assessor Is ~.
quested TO ill out q blank with such persons
namc, and taxable income estimated according TO
the best information that can be obtained, and
upon this estimated income to assess the tax, and
Il then IN ah1 OK nOr cant n Nr1rh tiny M n nAnaltV
for neglect or refusal.
@. An Assistant Assessor may be mlsled In
making this estimate, by being mislnformed M 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 Informa.
tion Is frequently the one who refuses or neglects
to make n statement. II such person will not
take the trouble to inform tho Assistant Assessor,
there Is q bar TO all complaint, should the assess.
ment proys incorrect, and n heavier tax be levied
than would otherwise be charged. Moreover,
after IN assessment has once been made. II erro
neOus, II Is always troublesome 10 tho party In.
terested to have Il corrected. All persons, there.
fore, but especially such az haze no ta1dbs income,
should not fail to render the required statement,
upon the proper blank, 80 as 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 IS per cent TO to the Tux
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power to ineredse
tho amount In any statement, after giving due
information to the party interested. He IL re-.
quired, also. TO add 100 per cent. TO the tar when
q 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 prosecuuons6 before the United states
Courts-one for making Il false statement With 10.
tent TO defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
BY tho lleth section OF the law, the Commh'
sioner OF Internal hevenueis empowered 10 pre-
scribe me J0rm ana maHHer IN whicn INC STATE
ment OF income must Do made up. Tnls ne has
done In q printed blank used BY the Assistant A.
SCISSOR, and IN various circulars and rulings Tho
following Ia q summary OF what bus been pre-.
scribed; ~
]. Each OF the great classes Into which the pur.
suits OF life and the Investments Of capital have
been divided must DC returned scpdrdteIy- losses
IN one not being alSwed 70 oh.si gains ~ another.
Tnus . merchant VINO engages I'D farming or III
speculations not belonging 10 Dis legitimate busi'
ness cennot onset gains In the one oy losses In
tho o:her.
Tne expenses incident 70 esen business 're
deduStiole rom the receipts o. tnat business.
5. Speculatons H6iftmdtsty peionslnG 10 any
business, ana tnese nlone. may 90 carried intoi.s
pront and loss account Inusa oroker may spec.
ulate In stocks' dry goods merchant 10 ceIton,
hardware man In iron, etc., and saeh speculation
may affect the gain and loss Of sReh legitimate
business. A merchant also may make or loso by
exchange or the kind Of money paid for bis MGR.
chandise, and this gain or loss belongs 10 bis mer.
chandlso account; But Il no buys gold, uncurrsnt
money, United states Treasury notes, or any
other thing not one ofthe articles Of TRADE belong.
Ing 10 his regular business, for the purpose OF
speculation, the pToht or 1888 nom such speenlA.
ton VIII not DC wed 70 aneet tne pront OF JOSS
IRON MS regular 0usiness' a business nrh
placed S1u,VU IN 'no nanus OF u new lnIk oIo.
ker, nstrueans MN 10 use II In the purchase ana
sale OF gold, on their account; and having 1851
S2I,oOO In This venture, they claimed that u
should be deducted from their profits In business:
Commissioner Lewis disailowed the claim. and
said the nnUorm ruling nad been that ~ hen u
loss 10 MADE IN my particular business, Against
which ,heTe are no gains 10 onset, 1t 10 consid'
cred o dead loss % edpitaI inrt'ted 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
aJ-"Loss incurred in the prosecution Of one
kind Of business cannot be deducted from gain in
business OF an Entirely dDeeatchdrdeer, nor from
salary, rents. dividends, etc
0)-"Losses incurred In the prosecution Of one
branch Of business cannot DO deducted from gain
In another, since an absolute loss incurred In the
prosecution OF o single business IL indispensably
aloss Of capital"
Oh Losses In merchandise can be deducted
only from gains In merchandise; but' In this case
particular branches OF merchandise need not Dc
separated; so In speculation, the loss or gam
rom STOCKS may ohse' ioss or gam from produce
speeulatea IN
@-"Merchants must make return OF their
pronts from merchandise without regard 10 tner
losses In speculation or gains from interest," diVi'
dcnds, rents, or any other source"
losses ~ speculation cannon DC deousteo
from salaries, nor from gains In merchandise.
When losses arc sustained In one speculation and
gains made in another speculation. such losses
may be deducted from such gains Losses In ono
branch OF merchandise may be deducted from
gains In any other branch OF merchandise"
O-"where stocks, ETC., are bought as 9 per-
manent Investment, and sold again merely TO
change tho investment, q loss sustained In the
sale may be deducted from the dividends from
snch stock. But where the purchase Is made for
the purpose of selling again on speculation. the
loss sustained by the sale cannot DO deducted
from diyideuds, but nav DO deducted from gains
astivea from Ine Y1'eAN'' w. 'ae' '0e e'e''
=" YScoSS rRoa Rents or BUILDINGS.
From Inc total amount Of luch rents received
within the year for which income Is estimated. or