Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-12
ABSTRACT OF THB ANNUAL INCOME TAX
ANNUAL INCOME TAX.

of what Is required by law In reference to the In
come Tax, and of the decisions by the Depart.
ment at Washington upon various questions ina
have arisen, we present the whole subject, under
Its several distinct heads:
SHOULD BE MADE-!wHERE, WHEN
. H.E n BY WHOM.
/. The law requires every person oflawful age,
residing In the United States, to render TO the
Assistant Assessor Of the sub.dlstr.ct In which he
or she may be residing on the LIST day OF Nay q
written statement, according to q prescribed
form, Of the amount Of his or her income. gains
and profits during the previous year, from jan
uary LIST TO December 3lst, boih days inclusive.
A printed blank containing this form can DO oh.
tanned from the Assistant Assessor. A person
having no fixed residence. should mako a state
ment wherever he or she may happen to DO; and
In case Of removal TO another district, should taks
n certified copy of such statement. to show any
other Assistant Assessor, who otherwise might
make q second assessment
9, The statement must be rendered on or De-
fore the LIST day Of May, or within ten days AFTER
q written or printed notice requiring IT, has been
left at the place Of residence or OF business, or de-
posted In the rearest Post Office.
3. The annual Income tax Is n personal tax,
and It cannot be assessed against any corporation,
company, or partnership, as such. Every indi'
vidual member must make q statement OF bis or
her share Of or interest In the gains and profits OF
such company, ETC., whether such gains and
profits arc divided or not, and must also state
separately bis or her income from all other
sources.
EVILS OF NEGLECT TO MAXI OUT OR VERIFY
STATEMENTS. ....rrr
5. II any person neglects or refuses to render n
written statement, the Assistant Assessor IN re.
quested TO fill out a 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, and
then to add 25 per cent, TO such tax IN u penalty
for neglect or refusal.
7 6. An Assistant Assessor may be misled In
making this estimate. by being mislnformed w 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 IL frequently the one who refuses or neglects
to make II statement. II such person Will not
take the trouble TO inform the Assistant Assessor,
there Is o bar to all complaint, should the assess.
ment prove incorrect, and a heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neOus, Il IL always troublesome TO the pnrty In.
terested to have Il corrected. All persons. there
fore. but especially sleh as hare no TAXABLE income,
should not fail to render the required statement,
upon the proper blank, 80 us to avoid undue tax.
alton and troubled
2. Every statement must BIO verified by odfh or
Affirmation. When this In not done, the Assistant
Assessor Ia required to estimate the income and
to add IS per cent TO TO the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power TO increase
the amount In any statement. after giving due
information TO the party interested. He IN re-
quired, also, TO add 100 per cent. to the tax when
q. false statement haa been rendered and the
party making the false statcmrnt becomes liable,
not only for this additional tax. but likewise to
two distinct prosecutions before tho United States
Courts-one for making u false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER or MAKING UP STATEMENT OF INCOME.
BY the llsth section Of the law, the Commits.
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 he has
done In u printed blank used by the Assistant As.
SCISSOR, and In various circulars and rulings. The
following is Il summary Of what has been pre-.
scribcd:
/. Each Of the grent classes into which the pur.
| suits OF life and the investments Of capital have
been divided must be returned separdtsly- 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 one by losses In
the other.
. The expenses incident TO each business re
deductible from the receipts Of that b~usiness.
3. Speculations kgitimdtely belonging to any
business. and these alone. may be carried Into Its
profit and loss account. Thus a broker may spec.
| ulate In stocks, u 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 the articles Of trade belong.
| Ing 10 his regular business, for the purpose Of
| speculation, the profit or loss from such spccula.
| 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, instructing him to use II 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 thu uniform ruling had been that when q
loss IL made IN any particular business, against
| which there are no gains 10 Offset, Il II consid.
cred a dead loss Of capital invs,tsd in hd, bust
ness Again, Toss Of capital cannot be de.
| Quoted from income" Return Of income must
be made on the 1dinS."
4. How fur different kinds Of business must be
returned separately Is shown by the following
| rulings Of Commissioner Rollins:
l (d)-"Loss incurred In the prosecution Of one
kind OF business cannot be deducted from gain In
business Of IN entirely digrentcharaetev, nor from
salary, 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
/ pEOHtCullOh VI u MINI NiL'N N AhtAblNhNtfotJ
q loss OF capital"
(c)-"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 gain
| from stocks may Offset loss or gain from produce
| speculated In"
Merchants must make return Of their
| profits from merchandise without regard to their
losses In speculation, or gains from interest. diyi.
dends, rents, or any other source"
| (e)-"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 losses
| may be deducted from such gains Losses In one
branch Of merchandise may be deducted from
| gains In any other branch Of merchandise"
| O-"Whcrc stocks, etc, are bought aS a per.
manent Investment, and sold again merely to
| change the investment, a loss sustained In the
| sale may be deducted from the dividends from
such 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 dividends, but may be deducted from gains
derived from the purehdss and sale Of stock, etc,
In the same year."
INCOME PROM RENTS OF BuILDIsas.
From tho total amount Of such rents received
within the year for which income Ia estimated. or
| due and collectable on the 3lst day Of December
ofsaid year, should be deducted:
LIST. The amount paid OF due. by the owner, for
repairs made within the year, not exceeding the
yearly average paid out for such purposes for the
preceding Ave years, and not Including any
amounts paid or due for new structures, or for
new and permanent improvements.
Cd. 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.
Sd. Interest which accrued for the year on In,
cumbranees upon tho buildings rented or offered
for rent, or upon the lands on which they stand,
whether such interest has been paid or remains
due.
,ocsiber' mo seprcgation being required. Repairs.
Insurance and interest paid on account OF any
and ali such buildings, whether occupied or not,
will be deducted from the total amount OF rents.
Taxes will not be deducted from rents. but
from gross income from nil sources.
BY the law OF Juno 30, 1864, In estimating In;
come from rents, no account IL taken OF the rental
value of q 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.