Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-08
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL O TAX.


-tah A.. lei. D.
Having been requested to prepare an abstract
Of what Is required by law In reference to the In
come Tax, and Of the decisions by the Depart.
ment at Washington upon various questions TINT
have arisen. we present the whole subject. under
It's several distinct heads: H'-H
STATEMENT HoULD Tx AADE-wHERE, WHEN,
AND BY WHOM.
!. The law requires every person oflRwfnl age,
T, siding In the United States, to render TO the
Assistant Assessor ofthe sub-distr-e ct in which no
or she may be residing on the LIST day of May, N
written statement, according to Y prescribed
form, of the amount of his or her income, gains
and profits during the previous year, nom Jan.
uAry lSt to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ.
tanned from the Assistant Assessor. A person
having no hxed residence, should make u state.
ment wherever he or she may happen to be-; and.
in case Of removal TO another district, should taks
a certified copy Of such statement. to show any
other Assistant Assessor, who otherwise might
make u second assessment.
9. The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
a written or printed notice requiring II, has been
left at the place of residence or ofbusiness, or de-
posted in the nearest Post Office.
,. The annual income tax Ia a personal tax,
and IL cannot he assessed against any corporation,
company or partnership, an such. Every indi.
vidual member must make a statement OF his or
her share Of or Interest In the gains and profits OF
such company, etc, whether such gains and
proats are divided or not, and musi also state
separately his or her income from all other
sources
EVILS OF NEGLECT TO MAXI OUT OR VERIFY
STATEMENTS
5. II any person ueglects or refuses to renders
| written statement, the Assistant Assessor ~ re-
quested to oil out u blank with such persons
| name. and taxable income estimated according to
the best Information that can be obtained, and
| upon this stimated income 10 assessthe tax, and
| then TO add 25 per cent, to such tax az a penalty
for neglect or refusal.
s. An Assistant Assessor may be misled In
making this estimate. by being misinformed an to
money received, or not Informed ~ to money
\ paid. lie must assess, however. according TO the
best information within his reach. The only per.
son capable Of giving absolutely correct iutorma'
tion is frequently the one who refuses or neglects
| to make n statement. II such person will not
take the trouble to inform the Assistant Assessor,
there il u bar to all complaint. should the ASSESS.
ment prove Incorrect, and n heavier tax believed
than would otherwise be charged. Moreover,
| after an assessment has once been made, II erro
neSus, Il Is always troublesome TO the party In.
tercsted 10 have Il corrected. All persons, there.
fore. but especially sEeA as hdpe no td1dbts income,
should not fall TO render the required statement,
| upon the proper blank, 10 as to avoid undue tax
| alton and trouble
7. Every statement must be verified by oath or
| Affirmation. When this Ia not done, the Assistant
| Assessor Ia required to estimate the income ana
to add 25 per cent. to to the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount in any statement. after giving due
information TO the party Interested. He IL re.
| quired, also, to add 100 per cent. to the tax when
n false. statement has been rendered and the
| party making the false statement becomes liable,
not only for this additional tax. but likewise 10
two distinct prosecutions before the United States
/ D-.. 49,. To- ,allo- an fulsa o. Nth in
tent TO defraud the Government, and the other
for perjury.
MANNER OF NAMING UP STATEMENT OF INCOME.
By the llsth section Of the law, the Commits
xioner Of Internal Revenue IL empowered to pre-
scribe the form and manner In which the STATE.
ment of income must be made up. This he has
done In 4 printed blank used by tho Assistant As
SCISSOR. and in varioas circulars and rulings. The
following Ia a summary Of what has been pre-.
scribed:
l. Each ofthe great classes into which the pur'
| suits Of life and the Investments OF capital have
| been divided must be returned sepdrGtsly- losses
In one not being allowedto Offset gains In another.
/ Thus q merchant who engages In farming or In
npeculations not belonging to his legitimate busi'
ness cannot offset gains In the one by losses 10
the other.
9. The expenses incident TO each business re
deductible from the receipts Of that business.
,. Speculatlons ls1itfmately 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 such speculation
may affect the gain and loss Of SUCH 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 his mer.
chandise account. But II he buys gold, uncurrent
money. United States Treasury notes, or any
other thing not one of the articles Of trade belong.
Ing to his regular business, for the purpose Of
speculation, tho profit or loss from such specula.
tion will not be allowed to affect the profit or loss
from his regular business. A business firm
placed $4,000 In the hands Of = New York bro.
ker, InEtructing him to use Il 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 profits In business.
| Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that when q
loss Is made in any particular business, against
which there are no gains TO Offset. II - consid-
cred a dead loss Of capital iarestsd IN that bnsi.
ness" Again, "loss Of capital cannot be de.
Quoted from income" Return of income must
be made on the Hdins."
4. How far different kinds Of business must be
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 entirely dferentehardefsr, 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 Is indispensably
Aloss of capital"
only from gains in merchandise; but, in this case,
particular branches Of merchandise need not he
separated. So In speculation, the loss or gain
from stocks may Offset loss or gain from produce
Ipeculated in"
M-"Merchants must mako return Of their
Il prodta fap, rnarehandiae with0ut re1afd tn thRir
losses In speculation. or gains from interest. divi-
dends, rents, or any other source"
G)-"Losses In speculation cannot be deducted
from salaries, nor from gains in merchandise.
When losses are sustained In one speculation and
gains made In another speculation, such Losses
NAV be deducted from such gains Losses In one
branch Of merchandise may be deducted from
gains in any other branch Of merchandise"
O-"where stocks. etc, are bought a. a per-
manent investment, and sold again merely to
change the Investment, q loss sustained In the
sale may be deducted from the dividends from
such stock. But where the purchase IL made for
the purpose OF selling again on speculation, the
loss sustained by the sale cannot be deducted
from dividends. but may be deducted from gains
derived from the pnrehass and 'als OF STOCK etc.,
In the same year"
INCOME FROM RENTS OF BUILDINGS.
From the total amount Of such rents received
within the year for which income Is estimated. or
due and collectnble on the 3lst day Of December
ofsaid year, should be 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
upon the buildings rented or offered for rent, not
including Insurance paid upon any other prop
crty, real or personal
Cd. Interest which accrued for the year on In.
cumbranees upon tho buildings rented or offered
for rent. or upon the lands on which they stand,
whether such interest has been paid or remains
due.
All buildings offered for rent will be regarded
together, no segregation being required. Repairs,
Insurance. aud interest paid on account Of any
and all such buildings, whether occupied or not,
will be deducted from the total amount Of rents.
Taxes will not be deducted from rents, but
from gross Income from all sources.
BY the law Of juno 30, 1864. In estimating in.
come from rents, no account Is taken Of tho rental
value Of q homestead occupied BY the owner.
Payments for repairs, insurance and interest, on
account Of a homestead, will be considered here