The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1867-05-15
- Treasury DEPARTMENT,
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heretofore, from the first day of May or from
the time of commencing the business sub
jeet to tax, to the first day of May following,
although the time of assessment is changed
as above stated.
1t is also provided that the taxes on the
income for the year 1896 shall be levied on
the day this act takes effect
The following instructions should be OBJ
served IN the assessment of the annual taxes
OF 1867. They have been prepared and
printed to answer the questions which have
been most frequently presented by revenue
officers III their letters TO the commissioner
Particular attention is directed to the
modification of the rules observed IN the
last annual assessment.
Assessors should instruct their assistants
to call personally upon those who have not
returned their income as required by Jaw.
If any person is not at home, the notice on
the back Of form twenty four should be filed
ont, and the blank left This being done il
becomes the duty of the tax payer to seek
the assistant assessor and deliver lis return
T.. A. ROLLINS, Commissioner.
INCOME.
] The fsTmer's profits from sales of live
stock are to be found by deductlng from the
gross receipts for animals sold, the purchase
money paid Tor the same.
2 No deduction can be made by the far
mer for the value of services rendered by his
minor children, whether he actually pays
for such services or not. If his adult children
work for him and receive compensation for
their labor, they are to be regarded is other
hiIed laborers in determining his income
3. Money paid for labor, except such as
is used or employed IN domestic service, or
IN the production of articles consumed IN
the family Of the producer may be deduct
ed
4. Deduction can be allowed in any case
for the cost of unproductive labor If house
serva ats are employed a portion OF their
time in productive labor, such as the max
ing of butter and cheese for sale, a proper
Tomato amount of the wages paid them may
be deducted.
5. Expenses for ditching and clearing
new land are plainly expenses for permanent
improvements, and not deductable.
&. The whole amount expended for fer
tillzers, applied during the year to the
farmers land may be deducted but no de
duction is allowed for fertilizers produced
on the farm. The cost of seed purchased for
sowing or planting may be deducted.
Z. Farmers will not be required to make
return of produce consumed in their own
immediate families.
Z. If person sells timber standing the
profits are to be asceTtained by estimating
the value of the land after the removal OF
the timber. and adding thereto the amount
received for the timber and from the sum
thus obtained deducting the estimated value
of the land on the first day of January, 1862,
or on the day ofpurchase, If purchased since
that date.
o farmer should make return of al his
produce sold within the year but mere
executory contract for sale is not sale;
detf very, either actual OF constructive, is
essential The criterion by which to Judge
whether ii sale is complete or not is to deter
mine whether the vendor still retains IN
that character right over the property-if
the property were lost or destroyed, upon
which of the parties, in the absence OF any
other relation between them than that OF
vendor and yendee, would the loss fall
10. Taxpayers frequently claim deduc-
tons for losses from depreciation III the
value of stock or other property OF "A Ike
nature. No deduction can in any case be
allowed for depreciation of value OF such
property until it is actually disposed OF and
a loss realized
H. Costs of suits and other legal proceed
ings, arising from ordinary business are 10
be treated as other expenses OF sueh ousl-
ness and may be deducted from the gross /
profits thereof
PHYSICIANS.
ID Where physicians are obliged to keep
q horse for the transaction OF business, they
NAV deduct so much OF the expense SO
incurred as is fairly referabIs to the business
done. ..,
store bills &c, are not proper subjects tor
deduction. EXPENSES for repairs OF nipple
mepts tools. &c, used IN business may DC
deducted. Eli bo,-,
,,,,a,a+a incomes. the returns may be made
senaratelv by the proper parties, and a rata
I,Ie nroportion of the $1,000 exempted from
the income of each. The parent as 'he
natural Guardian of the MINOR chlId; Is
required to make return loi mn Iut
where any other guardian or trustee has
I,ea,, annointed the return should be made
Nv the latter 1t the minor has no Suardiah or
+rrstae he should make return himself. Ii
he refuse or neglect an independent assess
meut must be made as IN othef cases. omit
ting penalty. .,.,.;,., e
ono Thousand dollars, husband and wife are
tn he REGARDED as members of the same faml-
". though living separate. uhiess sepaiaIeu
bv divorce or other operation OF law so as o
bTeak mn the family relation MINOR emil
a., aId their parents should be counted
members of the same family, whether living
together or not -. o,,;t5 :;
the service of the government receiving
salary, such parent should lnc4ude an ms IT.
come return so much OF the salary OF MS
child as is not subject to salary tax
L Rent of a homestead actually paid
may be deducted, but the rental value OF
property owned by taxpayer Is not a
suliect of deduction; but where the tax
naver rents a furnished house, that portion
oftbe rent paid in consideration of the use
oftbe furniture should not be allowed as n
deduction.
ANY persons claiming deduction on ac-
count of expense for room rent must satisfy
the assessor that the room or rooms oecupl-
ed by him constitute his home. and that he
has no residence elsewhere. and this being
shown he may be allowed to deduct what he
actually paws for rent of such rooms, but
nothing can be allowed for reIit OF furniture
or care ofrooms When rent Is included and
deducted as an expense of business 1t must
L. Hadn as
person hiring a house and sub-lettlng a
portion of il be allowed TO deduct more than
the excess of his payments over his receipts.
Is. Marriage fees. gifts from monitors Of
n CONGREGATION tn their pastoral, are taxa
ble as income when the gifts or donations
are in the nature OF compensation fer servl-
ces rendered, whether in accordance Win an
understanding if that effect at the time of
settlement, or with an annual custom
49, Gifts of money, when clearly not IN
the nature of payment for services rendered
or other valuable consideration, are not Ia
bic to taxation as income. Amounts re
ceived on life insurance policies, and damag-
es recovered in actions of tort are exempt
from income tax.
20 LAWYERS and physicians may return
either the actual fees received during the
wear. without regard to the time when they
accrued, or the amounts due to the business
ofthe year But when the taxpayer has here
tofore adopted one method, he cannot now DC
allowed TO make use OF the otheA.
81. If the manufacturer ordeaieT mas Deen
in the practice of estimating his annual
profits by taking inventories of stock, he
should take the cost value of such stock,
unless he has taken the market value IN ma
king previous returns Whichever method
has been adopted by the taxpayer should be
adhered TO uniforml y.
% If interest accrued during the year on
notes, bonds, &c. is good and colleetable at
the end of the year, it should be returned as
income whether actually collected or not
23 The fact that income is devoted TO the
payment of debts docs not release the same
from liability TO. incometax
81 If an Inventor sell his invention al
once for gross SUN, he should return as in-
come the whole amount, less the expenses
actually incurred in perfeeting the lnven-
ton, or in procuring patent right But no
allowance can be made for the labor or per
sonal expenses of the inventor. If he seh
only portion of his right during the year.