The West Virginia journal. [volume] (Charleston, W. Va.) 1864-1877, 1866-05-30
The Income Tax.

missioner Of Internal Revenue, contains
the principal rules to bo observed by
United States Revenue Assessors, in as.
sessiug the income and gold and silver
plate tax for 1866
Only one deduction Of six hundred
doIlurs is allowed from the aggregate in.
comes Of oil the members Of any family
composed Of parents and minor children,
even though only oue parent may DC
living. 1t Is not essential that the
children live with the parents. Illus.
band md wife arc regarded us members
of the same family, though living scpa'
rutely, unless separated by divorce or
other operations Of law, such as to break
up the family relations. IF the mem.
bers Of family have separate incomes,
the returns may be made separately by
the proper parties, and a ratablc proper
ton Of the six hundred dollars deducted
from tho Income Of each. The parent,
as the natural guardian Of tho minor
child, is required TO make return for
it; but whore any other guardian or
trustee has been appointed, the return
should be madc by the latter Rent Of
homestead actually paid may be deduct
ed, but the rental value Of the property
owned BY the ux.paycr is not u subject
Of deduction. Any person claiming Il
deduction on account OF expense for
roomrent must satisfy the assessor that
the room or rooms occupied by him con.
sti,utc his home, and that he has no res.
idencc elsewhere; and this being shown,
he may be allowed to deduct what he
actually pays for rent Of such rooms
When rent is included and deducted as
an expense Of business. it must not again
DC deducted us rent. Nor should per.
sou hiring house and sub.lr,tins por.
ton Of it be allowed to deduct more
than tho excess If his payments over
his receipts. Where no repairs have
: been made by the tax payer upon any
building owned by him during tho pre-
ccding five years, nothing can be deduct
cd for repairs made during tho year for
which income is estimated. Tax payers
frequently claim deductions for losses in
depreciation 10 value Of stocks or other
property of like nature. No deduc.
tions can in any case be allowed for dc.
probation Of valuo Of such property
until i. is actually disposed Of and \ loss
realized. Costs Of suits aud other legal
proceedings arising from ordinary bust
ness arc 10 bc treated MS other expenses
Gf such business, and msy be deducted
from tho gross profits thereof Expenses
for medical attendance, store bills. Ne,
arc not proper subjects for deduction.
Expenses of repairs Of implements, tools,
&C., used in business, may tc deducted.
Amou. the National, State, County,
and municipal taxes dcductablc from in
comes ure comprised such internal rev
cnue taxes as have not been included in
expenses Of business. aud such municl.
pal taxes ,as are assessed rataIly upon
all the persons liable to such assessment; /;
but assessments made by the municipal
authorities upon the inhabitants Of a
particular locality Of town or city on
account Ct special improvements in or
upon the streets adjoining the premises
Of such inhabitants, the ssme not being
assessed ratably, arc not considered as
taxes dcductablc from Income. If the
J manufacturer or dealer has been in tho
practice Of estimating his annual profits
by taking inventories ofntock, he should
,akc tho cost value Of such stock, unless
he has taken the market value in making
previous returns. Whichever method
has been adopted BY tho tax payer
should be adhered to uniformly.
If in,ercs. accrued during the year
on notes, bonds, &c., is good and colee.
table at tho end Of the year, it should
no returned, whether collected or not,
The fact tha. Income is devoted to The
payucnt of debts docs not release the
same from liability to income tax. Res
idcn,s should make return in the dis.
,rict where they reside at the time OF
making The return. The residence re-
uuired, under section JIG, for tho pur'
pose Of taxing income is held to be a
residence during the year for which H.
como is derived. If any person suHloc:'
to iucomc tux resides abroad, his return
should bc made in tho district where he
last resided. Citizens Of the the United
States reading abroad ore subject to tax a.;
upou their .n,iro incomes, from nIl
sources whatever, and the same is true
Of foreigners residing in this country
Tho term real estate includes all lands,
teuctncnts, and hcroditamcnts, corporeaI
and iucorporeal. Profits on real estate
purchased in a previous year neca not
be returned as incomes, nor can losses
on such sales be deducted tacrctrom:
Where an income exceeds five thousand
dollars, six hundred dollars will be ex'
emp.-four thousand dollars subject to
n tax at Eve per ccu., and the remainder
a. ten per cent. All expenses for in,
,uranco upon property, aod oil octnn'
> Losses in business, may bo deducted from
,hc eros, Income Of tho year. Gold and
silver plate is subject to tax if kept 'o'
u.o whether actually used or not, ex,
can, @ us provided in Schedule A. IL
+ tep. in bank, with no intention to use
tho same, such plate is exempt. -.
Il