Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1867-04-12
to deduct more than tue excess OF his pay

a congregation to their pastor. &c, are TAX
able as income when the gifts or donations
are in the nature of compensation fof ser
vices rendered, whether IN accordance Win
an understanding to that effect at the TIME
of settlement, or with an annual custom.
10. Gifts of money, when clearly not in
the nature of payment for services render
ed.or other valuable consideration, are
not liable to taxation as income. Amounts
received on life insurance policies, and
damages 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 bust
ness of the year But when the taxpayer
has. heretofore adopted one method, he
cannot now be allowed to make use of the
other
81. If the manufacturer OF dealer has
been in the practice of estimating his an
nuaI profits by taking inventories of stock
he should take the cost value Of such stock,
unless he has taken the market value III
making previous returns. Whichever meth
cd has been adopted by the taxpayer should
be adhered to uniformly.
%. If interest accrued during the year
on notes, bonds, &c, is good and collecta-
bic ut the end of the year, It should be re-
turned as income whether actually collect
ed or not.
%. The fact that income is devoted to
the payment of debts does not release the
same from liability to income tax.
u. If all inventor sell his invention at
once fora gross sum, he should return as ia
come the whole amount, less the expenses
actually incurred in perfecting the lnVcn-
ton, or in procuring a patent right But
no allowance can be made for the labor or
personal expenses Of the inventor. If he
sell only portion of his right during the
year. he may deduct prOpOrtlonatc
amount of such expense.
%. Wherever the salary or pay received
By any person i'll government employ does
not exceed the rate of $1,000 per annum,
or is made up of fees, or is unc ertaln or IL
regular i'll the amount or time, and has not
therefore been subjected to salary tax, 1t
should be included with other taxable i'll
come. Where such salary exceeds the rate
of $1,000 per annum, the amount OF salary
from which the tax has been deducted may
be deducted from the gross income.
26. Incomes of persons who died after
December 81 are taxable, and should be re-
turned by executors or administrators and
also all income which accrued IN 1866 to
persons who died within that year. In
come which accrued from the estates of
such persons in 1866 after the date OF de
cease, should be returned by their heirs or
other persons who received tue benefit of
the same.
81 Residents should make return III the
district where they reside at the tlme OF
making return. The residence required
under section 116 for the purpose of taxing
income is held to be aresidence during the
year of which income is ''derived." If
To toy-
abroad his return should be made in the
district where he last resided.
% Citizens Of the United States resid
ing abroad are subject to tax upon their en-
tire incomes from all sources whatever; and
the same IS true of foreigners residing in
this country.
%. The law provides that n like tax shall
be levied, collected and paid upon the gains,
profits and income of every business, trade
or profession carried on in the United
States by persons residing without the Uni
ted States and not citizens thereof.
80. A lease for years or for life is person
al estate, and any profits on the sale OF such
a lease are taxable as income for the year Of
sale
81. Where any portion OF q legacy has
been transferred by the executor to the le-
gatee. so that the executor in his capacity
of guardian or trustee has no longer any
control of the profits arising from such le-
gacy, the return of such profits as income
must be required of the legatee.
81. The payment of legacy or succession
tax on the bequest of an annuity does not
relieve the annuitant from liability to in
come tax on his annuity.
SO. Assessors should be careful not to al
low the deduction of amounts claimed to
have been lost in business when in reality
they should be regarded as investments or
expenditures, as when merchants eXpend
money in farming or gardening for recrea-
ton or adornment rather than pecuniary
profit.
"a. Whenever scrip dividendsar return
able as income they should I've returned at
their market value.
50. 1t is believed that in many instances,
in the assessment of income for former
years. persons holding United States secu-
rites have not included the accruing inter
est in their return of income. Assessors
should inquire especially into this subject,
and if the omission has been made, the de
ficiency should be assessed but without pen
atty when it appears to have been due to q
misrepresentation of the law.
So. The attention of assessors is 1,articu-
larry called to the terms of the act in force,
which require to be included in returns of
income the snare OF any person OF Gno gains
and profits of all companies, whether incor-
porated or partnership, who would be emit
tied to the same If divided, whether divid-
ed otherwise.
SPECIAL TAN.
l. Section seventy-four requires all spe-
cial tax receipts Except III case Of auction
GERS, produce brokers, commercial brokers,
patent-right dealers, photographers, build
ers, insurance agents, and peddlers) to spe=
ely the place at which the business is to be
done, and the word ''place as here used
is construed to mean thepremises coupled
by the taxpayer in the prosecution of his
business, whether the place be Il single
room, in building containing many rooms,
or whether it be several buildings, stand
ing upon the same premises and us ed for a
common purpose. But there are certain
branches of business which are not restrict
ed to such premises, as it is provid ed in the
act that lawyers, physicians, surgeons, den
fists, cattle brokers and 'horse-dealers may
do business at any place whatever without
being subject to additional special tax
Proprietors of circuses, jugglers, Nc, must
pay special tax for each State IN which