Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-13
ABSTRACT OF THE ANNUAL INCOME TAX.
Evils OF HEoLrcr TO MAKE OUT OR VERIFY
-., STATEMENTS .--

STAIEAENIS
If any person neklects or refuses 10 render a
written statement, the Assistant Assessor Is re
quested to Ill out O blank with such person.
name, and taxable income estimated according 10
the best information that can BE- obi"in"d' anu
upon this estimated income 10 assess the TAX hhu
then to add % per cent, 10 snch tax nv Il penai'y
for neglect or refusal.
6. An Assistant, Asss s.Ur may Oc uIlslsd IN
making this estimate. by being mlsinformrd IN 10
money received, or not informed ~ 10 inphey
paid. He must Assess, however, according 70 the
Test Information within bis reach. The only per
son capable of giving absolutely correct iniorna'
ton Is frequently the one who refuses or neglrcts
TO make d statement. If such parson will not
take the trouble to inform the Assistant Assessor
there IL IA bar TO all complaint. should the assess.
ment prove Incorrect, and a heavier tax DC leVieu
than would otherwise be charged. Moreover
after an assessment has once been MADE, u orro'
neous, II is always troublesome to the party In
terested to have Il corrected. AL persons, there.
fore, but especially sneh a. hare no TAXABLE iHcone'
should not fail to render the required statement
upon the proper blank, 40 as 10 avoid undue tax
alton and troubled
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 tax.
EVILS OF MAKING A FALSE STATEMENT.
y. An Assistant Assessor has power TO increase
the amount In any statement, after giving quo
information to the party Interested. do ID re-
quired, Also. 10 add 100 per cent TO the tax when
. false statement has been rendered and the
party making tho false statement becomes liable,
not only for this additional tax. but likewise to
two distinct prosecutonsb before the United States
Courts-One fol. making u false statement with In
tent to detraud the Government, and the other
for perjury.
MANSER OF MAKING Up STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits
aiOnpr nf Tnt.rpul Pnyanfa In amDoNyareu fD DrS.
scribe the form and MANNER in which tho state
ment of income must be made up. This he has
done In u printed blank used by the Assistant As.
SCISSOR, and In Various circulars and rulings. The
following Ia u summary OF what has been pre-
Scribed:
l. Each Of the great classes into which the pur.
suits Of life and the investments Of capital have
been divided must be returned sepaTdtely- 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 bust.
ness cannot offset gains In the ono by losses In
the other.
!. The expenses incident TO each business re
deductible from the receipts Of that business.
3. Speculations kSitimately belonging to any
business, and these alone. may be carried into Its
profit and loss account. Thus a broker may spec.
ulate In stocks, a dry goods merchsnt 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.
chaudise, and this gain or loss belongs TO his mer-
chaudise account. But khebuys gold, uncurrent
money, United States Treasury notes, or any
other thing not ono Of the articles Of trade belong.
ing TO his regular business, for the purpose OF
speculation, the profit or loss from such ~speculs-
ton will not be allowedt to affect the profit or loss
from his regular business. A business firm
placed SO, 900 in the hands Of Y New York bro.
ker, lnstructing him to use It in the purchase and
salo Of gold, on their account; and having lost
SCI, 500 in this venture, they claimed that II
should be deducted from their profits in business.
Commissioners Lewis dishllowed the claim. and
said tho uniform ruling had been that "v hen n
loss is made In any particular business, against
which there arc no gains TO offset, 1t IL consid.
cred a dead loss Of capital iHcested in that bnsi.
ness" Again, loss OF capital cannot be de.
Quoted from income" Return OF income must
DO made on the Sains."
4. How far different kinds Of business must be
returned separately IL 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 IN entirely dGerentehdrdeter, nor from
salary, rents, dividends, etc
(b)-'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 a single business 10 indispensa6ly
a loss Of capital"
NJ- al hltlN lAAA Nuu w hhNA
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
spcculated In"
(dJ-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. divi'
dends, rents, or any other source"
()-'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 losseI
may be deducted from such gains Losses in one
branch of merchandise may be deducted from
gains In any other branch OF merchandise"
n-"whero stocks, ETC.. are bought a. q per.
manent investment, and sold again merely to
change the investment, u loss sustained in the
sale may be deducted from the dividends from
sueh stock. But where the purchase is made for
tho 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 sols of stock, ETC..
In the SAINT year
IScoAE FROM RENTS OF BUILDINGS.
From tho 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:
LIST. The amount paid or due. BY the owner, for
repairs made within the year, not exceeding the
yearly average paid out for such purposes for tho
preceding Ave years, and not including any
amounts paid or due for new structures, or Tor
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.
IA Interest which accrued for the year on in.
cumbrances upon the buildings rented or offered
for rent, or upon the lands on which they stand,
whether such interest has been paid or remains
due. ,,
An buildings offered for rent will be regarded
together, no segregation being required. Repairs.
Insurance and interest paid on account Of my
and all such buildings. whether occupied or not,
will be deducted from tho total amount Of rents.
TnIe, will not be deducted from rents, but
from gross income from all sources.
By the law of June 30, 1864, In estimating In.
com. from rents, no account is taken Of tho rental
vain, of a homestead occupied by the owner.
payments for repairs, insurance and interest, on
account Of q homestead, will be considered here.
after, when treating Of general deductions from