The Daily clarion., 1867-05-09
Treasury DEPARTMENT,
Or-r-rfrE aE INTERNAL. REVENUE.

the back of form tWeDty-ioUr shOHlu De n'ltu
out and the blank left. This being done, 1t
becomes the duty of the tax payer TO seek
the assistant assessor and deliver his return
E. A ROLLINS, Commissioner.
INCOME.
l. The fsrmer's profits from sales of live
stock are to be found by deducting from the
gross receipts for animals sold, the purchase
money paid for 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 as other
hired laborers in determining his income.
B. 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.
A. Deduction can be allowed in any case
for the cost of unproductive labor If house
serva ITS are employed portion OF their
time in productive labor, such as the max
ing of butter and cheese for sale, proper
tionate amount of the wages paid them may
be deducted.
>. Expenses for ditching and clearing
new land are plainly expenses for permanent
improvements, and not deductable.
g. The whole amount expended for Ter
tilizers, 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 III their own
immediate families.
g. If a person sells timber standing the
profits are to be ascertained by estimating
the value of the land after the removal OF
+I,s nd oI1 tb44ato fla 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.
9. A farmer should make return of all his
produce sold within the year but mere
executory contract for a sale is not a sale ;
delivery, either actual OF 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 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 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
IL. Costs of suits and other legal proceed
ings arising from ordinary business are to
be treated as other expenses on such busi-
50 SIS ssssrs a-'sSy-s ss=t2 eeH FEN 1s rraSs
/, y 'roIlis. nsre9s afBaA as IN
-. - ..E f'"mrrlF attsgtess &c -.
a horse Tor tiAeca Vafsea. t,sitr,er IS, they
may deduct SiH sHa Cct-n Expense so
incurred as is falrls aSil.ees s-~he business
done.
I3. Expenses for medieals attendance,
store bills, &c, are not proper subjects for
deduction. Expenses for repairs of imple-
ments, tools, &c, used in business may be
deducted.
Ia. If the members of family have
separate incomes, the returns may be made
separately by the proper parties, and d 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. Ii the minor has no guardian or
trustee, he should make return himself If
he refuse or neglect, an independent assess
ment must be made as in other cases. omit
ting penalty.
10 For the purposes of the exemption of
one thousand dollars, husband and wife are
to be regarded as members of the same fami-
ly, though living separate, unless separated
by divorce or other operation of law, so as 10
break up the family relation Minor chill
dren and their parents should be counted
members of the same family, whether living
together or not.
10. If taxpayer has minor child in
the service of the government receiving
salary, such parent should include in his in
come return so much of the salary of his
child as is not subject to salary tax.
II. Rent of homestead actually paid
may be deducted, but the rental value of
property owned by taxpayer is not
subject of deduction; but where the tax
payer rents a furnished house, that portion
of the rent paid in consideration of the use
of the furniture should not be allowed as a
deduction.
Any persons claiming deduction on ac-
count of expense for room rent must satisfy
the assessor that the room or rooms oceupi-
ed by him constitute his home, and that he
has 10 residence elsewhere, and this being
shown, he may be allowed to deduct what he
actually pays for rent of such rooms, but
nothing can be allowed for rent of furniture
or care ofrooms. When rent is included and
deducted as an expense of business, it must
not be again deducted as rent, nor should a
person hiring a house and subletting
portion of it be allowed to deduct more than |
the excess of his payments over his receipts |
~ ACNSF StAtS AAOlu 1hCInDtIS Oh /
a congregation to their pastor g&, are taxa !
BILE as income when the gifts or donations |
are in the nature of compensation for servi- |
ces rendered, whether in accordance with an /
if 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 service fIendered /
or other valuable consideration, are not liza |
ble to taxation as income. Amounts re-
ceived on life insurance policies, and damag- |
es recovered in actions of tort are exempt /
from income tax.
90. Lawyers and physicians may return
either the actual fees received during the
year, without regard to the time when they
accrued or the amounts due to the business
IF the year But when the taxpayer has here
-ofoTe adopted one method, he cannot now be
allowed to make use ofthe other.
p. If the manufacturer OF dealer has been
n the practice of estimating his annual
'rofts by taking inventories of stock, he
hould take the cost value of such stock,
nless he has taken the market value In ma
ing previous returns. Whichever method
las been adopted by the taxpayer should be
dhered to uniformly.
% If interest accrued during the year on
otes, bonds &c, is good and collectable at
be end of the year, it should be returned as
lcome whether actually collected or not
%. The fact that income is devoted to the
ayment of debts does not release the same
rom liability TO income tax |
"a. fan inventor sell his invention at .
nee for a gross sum, he should return as in
ONE the whole amount, less the expenses
ctually incurred in perfecting the inven-
on, or in procuring patent right. But no
Ilowance can be made for the labor or per-
,nal expenses of the inventor. IF he sell
nly portion of his right during the year,
e may deduct proportionate amount of /
lch expense.
25. Wherever the salary or pay received ,
v any person in government employ does
OF exceed the rate of $1,000 per annum or is