Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-07-05
ABSTRACT OF rHB ANNUAL INCOME TAX.
ANNUAL INCOmE TAX.

ANNUAL ANCOmE TAX
Having beon requested 70 prepare an abstract
OF what 10 required BY law In reference to the In
come Tax, and Of the decisions by the Depart
ment at Washington upon various questions that
have arisen. We present the whole subject, under
STATEMENT SHOULD az MApE-wHERr, WHEN,
AND By n
!. TIT law requires every person oflawful age,
n siding IN the United States, to render to the
Assistant Assessor Of the sub.dlStrict In which no
or she may be residing on the LIST day Of May, a
written statement, according 70 a prescribed
form, Of the amount Of bis or her income. gains
and profits during the previous year, from Jan.
usry lst to December 3lst, DO b days inclusive.
A printed blank containing this form can BIO OBJ
talned from tho Assistant Assessor. A person
having no fxed residence. should make a state.
mont wherever he or she may happen to be-; and,
In case of removal to another district, should take
q certified COPY Of such statement. to show any
other Assistant Assessor, who otherwise might
make a second assessment.
9. The statement must be rendered on or be.
fore the lst day Of May, or within ten days after
a written or printed notice requiring 1t, has been
let at the place Of residence or Of business, or de-
posted In the pearest Post Office. r
%. The annual income tax Is q personal tax,
and It cannot bo assessed against any corporation,
company, or partnershlp, as such. Every indi'
yidual member must make q statement Of bis or
leT huhI6 OI UT lulcICBk ~ II Bhllb w plOubbO "
such company, ETC., whether such gains and
profits are divided or not, and must also state
separately his or her pcone from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
5 II any person neglects or refuses to render a
written statement, the Assistant Assessor IL re-
Quested to Ill 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 Rssess the tax, and
then to add IS per cent, TO such tax as q penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being miSinformed AZ TO
money received, or not informed IN TO money
paid. He must ASSESS, however, according to the
best information within bis reach. The only per.
son capable Of giving absolutely correct informa.
ton IL frequently the one who refuses or neglects
TO mike a statement. II such person will not
take the trouble to inform the Assistant Assessor.
thore Is q bar to all complaint, should the asseSs.
ment prove Incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made. II erro
neOus, II Is always troublesome TO the party In
terested to have Il corrected. All persons, there.
fore, but especially such a. hare no tdrdbLe income,
should not fall to render the required statement,
upon the proper blank, 10 an to avoid undue tax
alton and trouble.
I. Every statement must bc verified by oath or
affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the income and
10 add 25 per cent. to to the Tux
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant AsscssOr has power to increase
the amount In any statement, after giving due
information to the party Interested. Ho IN re
qulred, 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
COurts-one for making n false statement with In
tent to defraud the Government, and the other
for perjury.
MANNER or MAKING UP STATEMENT or CON
By the llsth section Of the law, the Commis.
sIoner Of Internal Revenue Is empowered to pre-
scribe the form and manner In which the state
ment of Income must be made up. THIS lie has
done In q printed blank used by the Assistant As.
SCISSOR, and In various circulars and rulings, The
following il u summary Of what has been pro.
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 sepdrdtely- losses
in one not being allowed to offset gains in anoth r.
Thus y merchant who engages In farming or IN
speculaiions not belonging to his legitimate bust
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. Speculations iesitimdteiy belonging to any
business, and these alone. may be carried into its
proht and loss account. Thus u broker may spec.
ulate In stocks, n 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 thc articles OF trade belong.
ing 10 his regular business, for the purpose OF
.--.l..to, y trnd ar N M FrnnN apah aDaaulu.
ton will not be allowed TO affect the profit or loss
from his regular business. A business firm
placed $40, 900 In the hands Of a New York bro.
ker. instrueting him to use 1t in the purchase and
sale Of gold, on their account and having lost
So7. 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 ~ hen n
loss ID made In any particular business. against
which there are no gains to offset, II ~ consid'
red a dead loss Of capital iaresed in that bust
ness" Again, "loss Of capital cannot BE- de.
Quoted from income" Return OF income must
he 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 gRin in
business Of an entirely difrentchdrdcter. nor from
.alary, 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 indispensably
= loss Of capital
(el-i1ossss In merchandise can be deducted
only from gains In merchandise; but. In this case,
particular branches Of merchandise need not b"
separated. So in speculation. the loss or gain
from stocks may Offset loss or gain from produce
apeculated In"
(d)-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation. or gains from interest. divi
lends, rents, or any other source"
x)-"Losses 10 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 frnm
gains In any other branch Of merchandise"
d." where stocks. ETC., are bought Us a per-
,nSneut investment, and sold again merely 10
change the investment. a loss sustained In the
.alc may be deducted from the dividends from
such stock. But where the purchase II made for
the purpose Of selling again on speculation, the
lois sustained by :he sale cannot be deducted
from dividends. but ray be deducted from gains
derived from the purchase and sale Of stock, etc,
in the same year"
INCOME R Rents OF BUILDINGS.
From the total amount Of such rents received
within the year for which income IL estimated. or
due and coliectable on the 3lst day Of Desember
,fsaid year. should be deducted:
lst. 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 thr
preceding Ave years, and not including any
amounts paid or due for new structures, or tor
now and permanent improvements.
ed. Insurance for the year paid by the owner
upon III. buildings rented or offered for rent, not
Including insurance paid upon any other prop
-rty, real or personal.
IA Interest which accrued for tho year on In:
cumbrances upon the buildings rented or offered
Tor rent. or upon the lands on which they stand.
whether such interest has been paid or remains
due.
All buildings offered for rent will be regarded
together, no segregation being required. Repairs
and interest paid on account OF any
and ali such buildings. whether occupied or not.
will be deducted from the total amount Of repts.
Taxes will not be deducted from rents, but
from gross income from all sources.
By the law of June 30. 1864, in estimating In.
come IRON rents, no account Is taken OF tho rental
value 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
gross income. .
Alias Summons.
CTATE OF NEVADA-C0UNTY OF STO.