Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-02-11
BSfRACT OF THB ANNUAL INCOME nav
ANNUAL o TAX.

- ANNUAL INCOME TAX.
Having been requested to prepare an abstract,
Of wh.t p REQUIRED BY lay In r~sfeeenes 70 the In
mont a. Washington upon VARIOUS questions that
have arisen. we present tho whole subject, under
its several distinct heads:
SHOULD II MApE-wHERr, WHEN,
n BY WHOM. II
l. ThelAw requires every persou oflAwful arc,
residing IN the United States, 70 render 10 The
Assistant Assessor Of The b-distr.c ct in which hs
or abe may be residing on the ln day Of May, a
written statement, according to u prescribed
form. Of thu amount Of his or her income, gains
md prohts during the previous year, from jan
nary LIST to December 3lst, both days i~nclusiye.
A printed blank containing this form can be OBJ
tanned from the Assistant Assessor. A person
having no fxsd residence. shonld mako q state
ment wherever he % shs may happen to DO; and,
= certified copy Of such statement to show any
other Assistant Assessor, VII otherwise might
make . second ASSIGNMENT
= The statement muat be rendered on or be-
fore the LIST day Of Nay, or within ten days after
written or printed notice requiring IL, has been
Ian n the place ofrsAdsnce or Of business, or de-
positsd In the peArsst Post Ofhce.
] Tit mnul income tax Is . personal tax.
and IL cannot be assessed against any corporation,
company, or partnership, as such. Every tndi-
vduA member must make q statement OF nis or
bar share Of or interest In the gains and profits OF
such company, ETC.. whether such gain and
profits are divided or not, and must also state
separately bis Or her Income from all other
sources.
ryILs or SroLrcr TO MAKE OUT OR VERIFY
s~rArEdESrS
& II any person neglects or refuses to render a
written siatement, the Assistant Assessor 10 re-
quested 10 an cot = blank with such persons
name, and taxable income estimated according to
the best information that can be obtained. and
upon this estimated income to asess the tax. and
then te sddaS per eent, 70 sach tax - . penalty
for neglect or refusal
& An Assatant Assessor may ia misled In
making this estimate, by being misinformed a. 10
money received. or not informed As TO money
paid. He must assess, however, according 10 the
oeSt Information within his reach. The only per
SON capable Of giving absolutely correct lnforma'
ton Ia frequently the one who refuses or peglects
to make q statement. II such person viii not
take the trouble TO inform the Assistant Assessor,
there 10 q bar TO all complaint, should the assess.
usnt prove incorrect. and q heavier TAX be levied
than would otherwise be charged. Moreover,
sfter an as,essment has once been made. II erro
peSus, IL IL always troublesome TO the party in.
tsrestsd 70 have it corrected. All persons, thcre-
fore, bat sspeei4lly sreA a. Asrs no TAXABLE ia1oa<,
should not fall TO render the required statement,
UPON thu proper blank, 30 A. 70 avoid undue tax
sion and troublet
T. Ever statement must be verified by odth or
sEraaiea. When this u not done, the Assistant
Assessor u required TO estimate the income and
to sdd IS per cent TO 10 the tax
Evils OF MAKING A FALSE STATEMENT.
8 An Assistant Assessor has power 20 inerease
the amount In any statement. after giving due
information 70 the party interested He Is re
quired, also. to add 100 per cent TO the tax when
. 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 fbr making y false statement with In
tent 70 defaud the Government, and the other
for perjury.
MANSER OF MAKING Up STATEMENT OF INCOME
BY the lleth section Of the law. the Commit
aioner Of Internal Revenue IL empowered to pre-
scribe the fern and MANNER in which the state
ment Of income must be made up. This he has
done IN q printed blank used BY the Assistant As
SCISSOR, and in vanoss circulars and rulings The
following Is summary OF what has been pre-
scribcd:
/ Each Of the great classes into which the pur-
suits Of life and the investments Of capital have
been divided must be returned Eparsiely- losses
In one mot being Alowed TO Offset gains In another.
Tim . merchant who engages In farming or In
spscuiAtlons not belonging 10 his legitimate bud.
nesa cannot Offset gains In the ono by losses In
the other.
. INA expenses incident to each business are
deductible rom the receipts Of that business
] Speeulations is1itfaasly belonging to any
business, and thsss Alooe. may Do carried into Its
pront and loss account. Thus a broker may spec
ulate In stocks. . dry goods merchant In cotton, q
ardware man In iron, etc. and sreh speculation
may Affect the gain and Loss Of ssch legitimate
business A msrchant also may make or lose by
exchange or the kind Of money paid for his mer.
chAndlSe, and this gain or loss belongs 10 his mer.
chAndiss account But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one fthe articles Of trade belong.
tS 10 hA regular business, for the purpose Of
speculation. the profit or loss from such speculs.
ton vii not 30 Alowsd 70 affect the prodt or loss
from hhs regular business. A business hrm
placed $4,000 In The hands Of a New York bro
ker, lnstructing him 10 use u " tSr pIrchase and
sale or gold, on their account; and having lost
o27,3Oo In this venture, they sined that It
should b deducted from ih-lr proits IN business.
Conmissioner Lewis disallowed the claim. and
said the rniIorn ruling had been that when 4
loss 10 made In any particular business. against
which there are no gains TO Offset, II - consid-
cred Q lsad ioss Of capital iarestsd In Aaf bust
n4ss." Again. loss Of capital cannot be de-
Quoted from Income" Return Of income must
be made on the Hains."
q How far dffsrcnt kinds of business must be
rsturned separately Is shown by the following
rulings Of Commissioned Rollins;
sl-"Loss incurred In the prosecution OF one
kfnd Of buiipesx cannot DO deducted from gain In
business Of an entirely dG1cfeAdraef1, nor from
uiNy, rents, dividends. etc"
B-"Loses incurred In the prosecution Of one
braseAo Of business cannot DO deducted from gain
In another, sinco an absolute loss incurred in the
prosecution Of q single business u indispensably
sloss of capital"
M-"Losses In merchandise can be deducted
only from gains In norrhandise; but, In this case,
particular branches Of msrehsndise need not be
separated so in speculation, the loss or gain
from stocks may otfset loss or gain from produce
speculated In"
M-rMsrchant. 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
()-"Losses in speculation cannot be deducted
from salaries, nor from gains 10 merchandife.
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 10 any other branch Of nsrchandhse"
n-"where stocks, etc. are bought AZ q per-
msnent investment, and sold again mersly 10
change the Investment, q loss sustained In the
sale may be deducted from the dividends from
sseA stock. But where the purchase L. made for
the purpose Of selling again on speculation. the
from dividends, but may be deducted from gains
derived from the prrehass and sah Of stock, etc.
10 the ssme year"
Ncoxr FRox RENTS OF BuILDINaS
From the total amount Of such rents received
within the year for which income n estimated. or
due and coliectahie on the 3lst day OF December
ofsaid year, should be deducted:
lIt The amount paid or due. BY the owner. for
repairs made within tha 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 Dew structures, or for
new and permanent improvements.
ID. Insurance for the year paid by the owner
upon the buildings rented or offered for rent, not
including Insurance. paid upou any other prop
erty. real. % Rcrygual
y. Interest which accrued for the year on in
cumbranees upon the buildings rented or offered
for rent, or upon IN. lands on which they stand,
WHISTLER such interest has been paid or remains
due. l
All buildings offered for rent will be regarded
together. no segregation being required. Repairs,
Insurance and interes, paid on account Of any
and Al such buildings, whether occupied or not,
will be deducted from the total amount Of rents.
Taxes will not be deducted from rents. bu.
from GoN ipeome from all sources. /
BY ths Law Of juno 20, 1854. In estimating In
como from rents, no account Is taken Of the rental
value OF . homestead occupied By the owner.
Payments for repairs, insurance and interest, on
scHnunt Of . homestead, will Be considered here
after. when treating Of general deductions from
gross income.
Notice TO Creditors.