The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1867-05-16
TKEAbUkY DEPARTMENT.,
OFFICE OF INTERNAL REVENUE,

the day this act takes effect"
The following Instructions should be {
served in the assessment Of the annual taz
of 1867. They have been prepared n
printed to answer the questions which ha
been most frequently presented by reven
officers in their letters to the commission
Particular attention is directed to t
modification of the rules observed in t
last annual assessment.
Assessors should instruct their assistan
to call personally upon those who have N
returned their income as required by la
If any person is not at home, the notice
the back Of form twenty-four should be fill,
out, and the blank left This being done,
becomes the duty Of the tax payer to SEE
the assistant assessor and deliver his retur
E. A. ROLLINS, Commissioner.
INCOME. s,s,s
1. The fsrmer's profits from sales of lily
stock are to be found by deducting from ii
gross receipts for animals sold, the purchai
money paid for the same.
g No deduction can be made by the fla
mer for the value of services rendered by hi
minor children, whether he actually pay
for such services or not. II his adult childre
work for him and receive compensation TO
their labor, they are to be regarded as Othe
hired labOrers in determining his income.
3. Money paid for labor, except such
is used or employed i'm domestic service, 0
in the production of articles consumed II
the family of the producer, may be deduct
ed
4. Deduction can be allowed in any cas-
for the cost of unproductive labor. II hous'
serva ats are employed q portion of thei
time in productive labor, such as the max
ing of butter and cheese for sale, a proper
tiOnate amount of the wages paid them may
be deducted .,sf-s f-,4sii BE- el.elI..fs
s. Expenses for ditching and clearing
new land are plainly expeDsesfor permanent
improvements, and not deductable.
6. The whole amount expended for fer
tiIizerss 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. -
3. If o person sells timber standing the
profits are to be ascertained 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 of purchase, if purchased since
that date.
y. FARMER BlOuia tHhh0-I VI di1 lilo
produce sold within the year but mere
executory contract for a sale is not sale;
delivery, either actual or constructive, is
essential The criterion by which to judge
whether sale is complete or not is to deter
mine whether the vendor still retains IN
that character o 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 vendee, would the loss fall
10. Taxpayers frequently claim deduc-
tions for losses from depreciation in the
value of stock OR other property of q like
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.
ii. Costs of suits and other legal proceed
ings, arising from ordinary business are to
be treated as other expenses of such busi-
ness and may be deducted from the gross
profits thereof f,f,- as5-s
PHYSICIANS.
r. Where physicians are obliged to keep
a horse for the transaction of business, they
may deduct so much of tho expense 80
incurred as is fairly referable to the business
done.
10. Expenses for medicals attendance,
store bills &c, are not proper subjects for
deduction. Expenses for repairs OF imple-
ments, tools, &c, used in business may be
IA. If the members of a family have
separate incomes, the returns may be made
separately by the proper parties, and rata
BILE proportion of the $1,000 exempted from
the income of each. The parent as the
natural guardian of the minor child, is
required to make return for him. But
where any other guardian or trustee has
been appointed, the return should be made
BY the latter. Ifthe minor has no guardian or
trustee, he should make return himself If
be refuse OF neglect, an independent assess
nent must be made as in other cases, omit
ing penalty.
is. For the purposes of the exemption of
me thousand dollars, husband and wife are
20 be regarded as members of the same fami-
y, though living separate, unless separated
" divorce or other operation of law, so as TO
break up the family relation Minor chill
lren and their parents should be counted
members of the same family, whether living
together or not.
he service of the government receiving
alary, such parent should include in his in
,ome return so much of the salary of his
hid as is not subiect'to salaryitax1
IL. Rent of homestead actually paid
nay be deducted; but the rental value of /
property owned by taxpayer is not
ubject of deduction; but where the tax
aver rents furnished house, that portion
f the rent paid in consideration of the use
f the furniture should not be allowed as a
eduction.
ANY persons claiming deduction on ac-
cunt Of expense for room rent must satisfy
he assessor that the room or rooms occupi-
d by him constitute his home, and that he
as no residence elsewhere, and this being
hown, he may be allowed to deduct what he
paws for rent of such rooms, but
othing can be allowed for rent of furniture
T care ofrOoms. When rent is included and
educted as an expense of business, it must
ot he again deducted as rent, nor should
ersOn hiring a house and sub-letting
ortion of it be allowed to deduct more than
be excess of his payments over his receipts. ,
IL. Marriage fees, gifts from members OF I
congregation tn their pastor, d., are taxa I
lie as income when the gifts, or donations Z
re in the nature OF compensation for servi-
es rendered, whether in accordance with an :
if that effect at the time of
,ttlement, or with an annual custom. !
10. Gifts of money, when clearly not in !
ne nature of payment for services rendered. i
other valuable consideration, are not LA
le to taxation as income. Amounts re- 1
,ived on life insurance policies, and damag- /
recovered in actions of tort are. exempt 4
om income faxle3g 10 e9li lii iI ~ il1-'i y
90 Lawyers and physicians may return /
Their the actual fees received during the O
sar, without regard to the time when they @
,crued, or the amounts due to the business a
the year. But when the taxpayer has here
fore adopted one method, he cannot now be f
lowed to make use of the other ~ asvai N
2I. II the manufacturer or dealer has been a
the practice of estimating his annual q
offs by taking inventories Of stock, he s
ould take the cost valne of such stock,
less he has taken the market vaiueip mar D
ng previous returns. Whichever method a
IS been adopted by the taxpayer should be D
hered 10 uniformly.
p. If interest accrued during the year on G.
ties, bonds, &c. is good and oollectable at Il
e end Of the year, it should be returned as
come whether actually collected or not p
y. The fact that income is devoted to the d
yment Of debts does not release the same n
1m liability TO income tax "
a IL an inventor sell his invention at 81
zoe for gross sum, he should return as in Of
me the whole amount, less the expenses
tually incurred in perfecting the inven- lsre
m, OF In procuring patent right But no Re
owance can be made for the labor or per
pal expenses Of the inventor. II he ell N
" a portion Of his right during the year. N