Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1895-03-28
THE INCOME TAX.
Rulings Promulgated by the Inter-
nal Revenue Bureau
In Relation to the Making of Returns of
Incomes and the Collection of the
Tax Interest to Those
with Taxable Incomes.

The New York Herald has inter
viewed the internal revenue collector
of that district on the rulings of the
department for the collection of in.
come taxes. Among them are the fol
lowing:
Dividends and interest earned and
accrued prior to 1894 should not be in
cluded in the income tax return for
that year, although the same may no,
have been paid until January 1, 1894.
1.-The law and regulations do not pro-
vide for the naming in the returns OF
corporations. companies or assQcia.
tons from which dividends are re
ceived, and, therefore, such designa
ton by taxpayers can not be insisted
upon by collectors
Executors, administrators and trust
ees should make returns and pay the
tax on all taxable incomes of persons
for whom they act, and are not au.
thorized by law to assume that their
beneficiarieS will return and pay the
tax.
stockholders of corporations can
not under the law deduct from their
incomes as business expenses or other
wise assessments paid by them to the
corporations to make good deficiency
in the capital stock or reserve fund OF
said corporations.
''All rents, interest and profits re-
turned as income for the year 1894
must oe exclusively confined to the
earnings and business of the year 1894,
from January 1 to December 81, both
days inclusive, in said year. No part
of the gains or profits earned in the
year 1898 or to be earned in the year
1895 shall be included in the return for
1894, without regard to whether the
same has been paid or not.
THE language of section 81 of the
income tax law. as follows, and a like
tax shall be- levied, collected and paid
annually upon the gains, profits and
income from all property owned y
in the United States by people residing
without the United States is not con.
fined in it's meaning to real property.
but must be held to mean all property
of every character from which income
is derived.
I'm the case of beneficiary who
has an income independent of the
trust estate, the trustee, in making re-
lied by law to make the reduction of
81, 900 allowed as the specific exemp-
ton. There is but one exemption of
81 600 allowed in such cases from all
the property of beneficiary, including
that held in trust for him.
THE FAMILY A TAXABLE UNIT.
"The husband or father, as the head
and legal representative of the house
hold. can be required to make and rem
der a return for himself, wife and
minor children in the aggregate. For
the purposes of this law it must be as
sumed that in all cases he can ascer-
tain the amount of said income, and,
excepting cases where such incomes
are controlled by legal trustee or
other person duly appointed by court,
it must be assumed that he has con-
troll of the same. In cases where the
wife has separate taxable income
and manages her.own business separate
ly, she is required to make return of
her income, and the same should be at
tached to the return of her husband.
in order that but one deduction
of $4,000 may be made from
the aggregate income of all the
members of the family. All the
foregoing instructions would be ap-
plicable to cases where husband and
wife live separately, unless they were
divorced OR separated by other opera
ton of law.
Losses occurring by the Endorsement
of notes or other negotiable paper or
evidences of Indebtedness, when such
Endorsement can be reasonably con-
strued as a business transaction, may
be allowed as deduction from income.
All losses actually sustained by sale of
the same was made as a business trans
action, must be allowed as losses in
Cured in trade, if bought and sold in
1894.
Losses sustained in the sale of real
estate during the year 1894 must be
to real estate purchased sub
to December 81, 1892.
Expenses for ordinary repairs, not
including amounts expended for bet
terment and permanent Improvement
of real estate, must be allowed as a de-
duction. The deduction for repairs,
however, must be confined to necessary
repairs; that is, such as are needed for
the preservation of property. When
said ownership is absolute for term of
years, the cost of improvements, bet
terments or additions to such property
can not be deducted under the provi-
-sions of the law.
CERTAIN GIFTS TWICE TAXED.
1.-THE gift of a person to his grand
child or any other person not a mem
+; 20 &c Of III
deduction in the first instance from the
income of the person who gave the
same; and is, therefore. subject to tax
alton in his hands. The person who
receives it clearly as gift, and if such
gift. with his income above the taxa
BILE limit, he is liable to a tax upon all
the excess above said limit.
''If the father pays tax upon his in
come and the income Of all the men,
bers of his family the amount of his
gift or allowance to a minor child
should not escape taxation, whether
computed while in the hands of the
father or by him in making return for
all members of the family.
''In cases where lawyers or ply
sicians or other persons refuse to make
their returns in compliance with the
law and regulations, or render any re-
turns which are false within the mean
ing of the law and regulations, col
lectors should make such returns and
add the prescribed penalties thereto.
mo deduction can be allowed for
rent paid for a residence where persons
live in rented houses. The exemption
of 81 900 is clearly intended to cover
such expenses.