Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-03
OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

having e Acquchkou y plcphlo hh nv
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 that
have arisen, we present the whole subject, under
It's several distinct heads:
STATEMENT SHOULD BE MADE-wHERI, WHEN,
AND BY WHOM.
]. The law requires every person Of lAwful age,
residing In the United States, to render to the
Assistant Assessor of the sub.distr,ct in which no
or she may be residing on the LIST day Of May, a
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, both days inclusive.
A printed blank containing this form can be OBJ.
tanned from the Assistant Assessor. A person
having no fixed residence. should make a state.
ment wherever he or she may happen to be; and,
in case of removal to another district, should lake
n certified copy Of such statomen to show any
other Assistant Assessor, who otherwise might
make q second assessment.
9. The statement must be rendered on or be-
fore the LIST day Of May, or within ten days after
left at the place ofresidence or Of business, or de-
posted In the peArest Post Office.
3. The annual income tax Is O personal tax,
and It cannot BIO assessed against any corporation,
company, or partnership, as such. Every indl.
vidual member must make a statement Of his or
her share Of or interest in the gains and profits OF
such company, etc., whether such gains and
profits are divided or not, and must also state
separately bis or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENT.
5. II any person neglects or refuses to render q
written statement, the Assistant Assessor Ii re.
quested to ill out q blank with such persons
name, and taxable income timated according TO
tho 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 az a penalty
for neglect or refusal.
6. An Assistant Assessor may be mlsled In
making this estimate, by being mlslnformed as 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 a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is q 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, 1t Is always troublesome to the party In.
terested to have It corrected. All persons, there.
fore, but especially such as haze no taxable income,
should not fall to render the required statement,
upon the proper blank, 10 a. to avoid undue tax.
alton and troubled
T.. 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 23 per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power 10 increase
the amount in any statement, after giving duo
information to the party interested. He IL 70.
quired, also, to add 100 per cent. to the tax when
u 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 a false statement with In.
tent to detraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By the 18th section Of the law, the Commits.
sioner Of Internal Revenue Is empowered TO pre-
scribe tho form and manner In which the state
ment of income must be made up. This he has
done In Il printed blank used by the Assistant A.
SCISSOR. and In VARIOUS circulars and rulings. The
following is a 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 stpdrdteiy- losses
In one not being allowed TO offset gains in another.
| Thus U 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 are
| deductible from the receipts Of that business.
3. Speculations LsSitfmateiy belonging to any
| business, and these alone. may be carried into Its
| profit and loss account. Thus Il broker may spec.
ulate In stocks, a 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 TO his regular business, for the purpose OF
speculation, the profit or loss from such specula.
| ton will not be ALLOWED to affect the profit or loss
from his regular business. A business firm
placed $4,000 In the hands Of q New York bro.
| ker, Instructing him TO use II In the purchase and
sale OF gold, on their account and having lost
s27. 500 In this venture, they claimed that Il
should be deducted from their profits In business.
Commissioners Lewis disallowed the claim, and
said the uniform ruling had been that when a
loss is made In any particular business, against
which there are no gains to Offset, It Is consid.
cred a dead loss Of capital iRrested In that 6Hsi.
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
rulings Of Commissioner Rollins:
(d)-"Loss incurred In the prosecution of one
kind Of business cannot be deducted from gain In
business Of an entirely diferentehdrdet1, 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
prosecution Of O single business IL lndispensably
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"
(D-"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"
IN "a naaAa In a. apla oaA ha IAl NVa NA1
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-"Where stocks, ETC., are bought as a per.
manent investment, and sold again merely to
change the Investment, q loss sustained in the
sale may be deducted from the dividends from
such stock. But where the purchase Ia made for
the purpose OF selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends. but may be deducted from gains
derived from the purchase and sale Of stock, etc.
In the same year."
INCOME FROM RENTS OF BUILDINGS .
From the total amount Of such rents received
within the year for which income is estimated. or
due and collectable on the 3lst day OF December
Of said 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 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.
3d. 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,
yhether such interest has been paid or remains