Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-23
OF THE ANNUAL INCOME TAX
ANNUAL INCOmR TAX.

Of what is required by law In reference to tho In.
come tag, and Of the decisions by the Depart.
have arisen. We present the whole subject, under
its several distinct heads;
STATEMENT SHOULD BIZ ~MApE--wHERr, WHEN,
AND By WHOM.
j. The law requires every person oflawful age,
residing In the United States, to render 10 he
Assistant ASSESSOR ofthe sub.district In which he
or she may be residing on the LIST day of Nav, q
written statement, according to q prescribed
form, Of the amount Of his or her income, gains
and prohts during the previous year, from Jan.
uary LIST TO December 3lst, boih days Inclusive.
A printed blank containing this form can be- OBJ.
talned from the Assistant Assessor. A person
having no fxed residence, should mako q state.
ment wherever he or she may happen to DO; 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 q second assessment.
9. The statement must be rendered on or be.
fore tho LIST day Of May, or within ten days after
a written or printed notice requiring II, has been
let at the place Of residence or Of business, or dc.
posted In the nearest Post Office.
3, Tho annual income tax is a personal tax,
and Il cannot be assessed against any corporation,
company, or partnership, as-such. Every indl.
yIdual member must mako q statement Of his or
her share Of or interest in the gains and profits Of
inch company, etc., whether such gains and
profits are divided or not, and must also state
separately his or her income from all other
Evils OF L TO JAKE OUT OR VERIFY
STATEMENTS.
s II any person neglects or refuses to render q
written statement, the Assistant Assessor Is re.
oues,ed TO fill out u 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 ~ q penalty
for neglect or refusal.
&, An Assistant Assessor may be mlsled In
making this estimate, by being mlsinformed as 10
money received, or not informed as to money
paid. He must assess, however, according 10 the
best information within his reach. The only per.
son capable Of giving absolutely correct informa'
tIon Ia frequently the one who refuses or neglects
10 mike u statement. II such person will not
take the trouble TO inform the Assistant Assessor,
there Is q bar to all complaint, should the assess.
msnt prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neous, Il Is always troublesome TO the party In.
terested 10 have Il corrected. All persons, there.
fore, but e~ypeeiaLy such as hare no taxable income,
| should not fall to render the required statement,
upon the proper blank, so rs to avoid undue tax
alton and trouble.
i. Every statement must be verified by oath or
Affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the Income and
10 add IS per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power 10 increase
the amount In any statement, after giving duo
information TO the party interested. He Is re.
qulred, also, to add 100 per cent. TO tho 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 q false statement with In.
tent TO dsfraud the Government, and the other
for perjury.
MiSsER OF aAKIyo UP STATEMENT OF INCOME.
By the llsth section Of tho law, the Commits.
sIoncr Of Internal Revenue 10 empowered TO pre-
scribe the form and ndantr in which tho state
ment Of Income must be made up. This he has
done In q printed blank Used BY tho Assistant As
SCISSOR, and In various circulars and rulings The
following Is u summary Of what has been pre-
scribed:
i. Each Of the great classes into which the pur
suits Of life and tho Investments Of capital have
been divided must DO returned stparaiely- lossei
In one not being allowed to offset gains In another
Thus q merchant who engages In farming or ID
speculations not belonging TO his legitimate bust
ness cannot Offset gains In the one by losses In
the other.
3 INC expenses incident to each business It,
deductible frori the receipts OF that business.
SpeculatIons lsSitimately belonging TO any
business, and these alone. may be carried Into III
profit and loss account. Thus a broker may spec
ulaie In stocks, & dry goods merchant 10 cotton, {
hardware man In Iron, etc. and such speculator
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
chandlse, and this gain or loss belongs 10 bis mer
chandIse account. But II he buys gold, uncurren
money, United States Treasury notes, or any
other thing not one Of the articles Of trade belong
ing to bis regular business, for the purpose Q
tion will not be allowed to affect the profit or los
from bis regular business. A business fir
placed $4,000 in the hands Of q New York bro
ker, instructing him TO use II In the purchase an,
sale Of gold. on their account; and having 10,
s27. 500 In this venture, they claimed that
should DO deducted from their profits in business
Commissioner Lewis dlsallowed the claim. an,
said the uniform ruling had been that :" y hen
loss 10 made In any particular business, ngnins
which there are no gains 10 Offset, II IS consid
cred a dead loss Of capital inrssted In that busi
ness" Again, loss Of capital cannot DO de
ducted from income" Return Of Income mus
be made on the HdiHs."
4. How far different kinds Of business must b
returned separately Is shown by the followln
rulings Of Commissioner Rollins:
(a)-"Loss incurred In the prosecution Of on
Kind Of business cannot be deducted from gain II
business Of an entirely dDerenfehdrdeter, nor from
salary, rents. dividends. etc
b)-"Losscs incurred In the prosecution Of on
branch Of business cannot be deducted from gall
In another, since an absolute loss incurred In tn
prosecution Of q single business IL indispensable,
q loss Of capital" ...s' A. .
G-"Losses In merchandise can be deducte
only from gains In merchandise; but, In this case
particular branches Of merchandise need not b
separated. So In speculation, tho loss or gall
from stocks may Offset loss or gain from produc
speculated In"
G0-"Merchants must make return Of theI
profits from merchandise without regard to thcl
losses In speculation, or gains from Interest. div
dends, rents, or any other source"
e)-"Losses In speculation cannot be deducte,
from salaries, nor from gains In merchandise
When losses arc sustained In one speculation an
I gains made In another speculation, such losse
may be deducted from such gains Losses In on
branch Of merchandise may be deducted fror
gains In any other branch Of merchandise"
(0-"Where stocks, ETC., are bought as a per
msnent In Sestment, and sold again merely /
change the investment, q loss Sustained In III
sale may be deducted from the dividends fror
: such stock. But where tho purchase is made 70
tho purpose Of selling again on speculation, tn
loss sustained by the sale cannot DO deduete
nom dividends, but may DO deducted from gain
derived from the purchase and sale Of stock. etc
in'the same year"
INCOME PROM RENTS OF BuILDISos.
From the total amount OF such rents receives
within the year for which income Is estimated. o
due and collectable on the 3lst day Of Decembe
|, ofsaId year, should be deducted:
!, lst, The amount paid or due. by the owner, 70
= repairs made within the year. not exceeding th
yearly average paid out for such purposes Tor tn
preceding Ave years. and mot including an.
II amounts paid or due for now structures, or 70
now and permanent improvements.
Cd Insurance for tho year paid by the owne
upon the buildings rented or offered for rent, no
, including insurance paid upon any other prop
erty, real or personal.
Sd. Interest which accrued for the year on In
cumbrances upon the buildings rented or ofere
Il for rent, or upon ths, lands on ,which,they stand
whether such Interest has been paid or remain
due.
An buildings offered for rent viii be regarde
together, no segregation being required. Repairs
insurance and Interest paid on account OF an.
and all such buildings, whether occupied or no
will be deducted from the total amount Of rents
Taxes VIII not be deducted from rents, bu
from eross income from all sources.
ID BY the law Of Juno 30, 1854, In estimating In
come from rents, no account Is taken Of the renta
value Of a homestead occupied BY the owner
Payments for repair, insurance and interest, o.
account Of q homestead, Will be considered here
after, when treating OF general deductions iror
-raas lnannA