Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-20
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOMR TAX.

ANNUAL kAA
Having been requested 70 prepare an abstract
Of what Is REQUIRED by law In reference to the In
come Tax, and Of the decisions by the Depart.
| ment ut Washington upon various quesuons that
have arisen, we present the whole subject, under
Its several distinct heads: 94s
| STATEMENT SHOULD BIZ AkDr-wHERr, wHEN,
AND BY WHOM.
l. The law requires every person oflawfnl age,
residing 70 the Uuited States. TO render TO the
Assistant Assessor ofthe sub-distr ct In which no
or she NAV DO residing on the LIST day Of MAY, 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. both days inclusive,
A printed blank containing thiA form can be OBJ
tanned from the Assistant Assessor. A person
having no fixed residence, should make state
men, wherever he or she may happento be-; and,
I'm case Of removal to another district, should take
n 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 De-
fore the LIST day Of May, or within ten days aHer
a written or printed notice requiring II. has been
len M the place OF resldence or ofbusinsss, or de.
posted In the rearsst Post Office.
3. The annual income tax Is q personal TAX
| and IL cannotb be assessed Againstany corporation'
company, or partnership. as such Every inui.
| vidual member must make . statement OF MS or
her share Of or iu;erestin the gains and profits OF
such company, etc, whether such gains and
| profits are divided or not, and must also state
separately his or her income from all otner
sources
EVILS or NEGLECT TO MAKE U OR VERIFY
STATEMENTS
5 II any person neglects or refusesto render q
written statement, IN. Assistant Assessor 10 re-
quested TO all out a blank with such persons
name, and taxable income estimated according 10
the best information that can be obtained ana
| upon this TINA income TO assessth tax, and
then to add 25 per cent, 10 such tax as a penalty
for neglect or refusal.
s. An Assistant Assessor may be misled In
making this estimate, by being mislnformed rs to
money received, or not informed az 10 money
paid. He must sssess. however, according 70 the
best Information within his reach. The only per
son capable of giving absolutely correct informa'
tion Is 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 Ia q bar to all complaint. should the assess.
ment prove incorrect, and q heavier tax believed
than would otherwise be charged. Moreover,
after an assessment has once been made, IL erro
neSus, Il IL always troublesome TO the party In.
terested to have Il corrected. All persons, there.
fore. but especially sueA as haren no td1doIe income.
should not fall to render tho required statement,
upon the proper blank. 10 as TO avoid undue tax
alton and trouble.
7. Every abatement must be verified by oath or
affirmation. When this ID not done, the Assistant
Assessor Ia required to estimate the income and
to add 25 per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to inereass
the amount In any statement, after giving duo
Information to the party interested. He 10 re.
| quired, also, to add 100 per cent. to the tax when
q false statement has been rendered and the
party making the false statement becomes liable,
not only for this additional tax; but hkewiseto
two distinct prosecutionsbcfor re the United States
| Couyts-one for making a false statement with In.
tent to defrsud the Government, and the other
for perjury. Pr.
MANNER OF MAKING Up STATEMENT OF INCOME.
BY the lleth section Of the law, tho Commits
Iioner 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 Ia printed blank used by the Assistant As
! SCISSOR, and In vanoss circulars and rulings. Tho
following IL a summary OF what has been pro
scribed:
l. Each ofthe great classes into which the pur.
suits Of life and the Investments Of capital have
been divided must DO returned sspardiely- losses
In one not being lowed to Offset gains In another.
| Thus q merchant who engages In farming or In
| speeulstions not belonging to hislegitimate 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. Speculatlons L9itimdtsly belonging TO any
business, and these alone. may be carried into Its
| profit and loss account. Thus a broker may spec
| ulate In stocks. a dry goods merchant In cotton, a
hardware man In iron. etc. and sEcA speculation
may affect the gain and loss Of sreA 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 hismer.
chandise account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one ofthe 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 6rm
placed $4,000 In the hands Of q Now York bro.
ker, ins,ructlng 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 II
should be deducted from their p~roftsin business
Commissioners Lewis dlsallowed the claim, and
said the naiforn ruling had been that "vhen q
loss IL made In any particular business, against
which there are no gains TO Offset, Il 10 consid.
cred a dead loss Of capital inrested In that bust.
ness" Again. .loss Of capital cannot be de-
Quoted from income" Return Of income must
be made on the HdinS." T.
4. How far different kinds Of business must DO
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 gain In
business OF an entpcly dW0eHICAoroc11, 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 q single business Ia indispensably
q loss Of capital"
(e)-"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"
OG-"Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. dlvi.
dends, rents, or any other source"
el-"Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise.
When losses arc 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 nom
gains In any other branch of merchandise"
O-"where stocks, ETC., are bought as a per.
manent investment, and sold again merely 10
change the Investment. q loss sustained'i In the
sale may be deducted from the dividends from
the purpose Of selling again on speculation. the
loss sustained by the sale cannot be deducted
from dividends, but may DO deducted from gains
derived from the parekass and sale OF stock, etc,
In the same year"
INCOME TRoM RENTS OF BUILDINGS.
From the total amount Of such rents received
within the year for which income II estimated. or
due and collectable on the 3lst day Of December
ofsaid year, should DO 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 five years, and not including any
amounts paid or due for new structures, or for
now and permanent improvements.
Cd. Insurance for the year paid by the owner
pnnp ths huItdtn0s rantaA mr. nTarad for rant mt