The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1895-03-07
The New Law Is Amply
Quoted
For the Benefit of In
quirers.
Detail of the System and Its Operations
as Applied to Individuals and
and to Corporations.

letter has been received by the
Statesman from q business man, MAX
ing inquiries concerning the operation
of the income tax law under the act of
August %, 1894. Inasmuch as other
inquiries have been made along the
same line a representative or the
Statesman took occasion yesterday to
.ook the matter up. The gentleman
asks: First Is the exemption of $4,-
600 allowed to individuals, extended to
corporations? Second. Is not cor
poration exempt the same as an in
dividual and therefore does not have to
pay amy Income tax if their net in
come does not exceed $500?
There are two blanks furnished by
the UNITED States government, through
the Internal revenue collectors; one for
individuals, and one for corporations.
In order to answer the inquiries of our
reader fully it will be necessary to give
those sections Of the new law bearing
on both private and corporate taxation
under the new law.
Section 27 of the Wilson bill, which
became a law, reads as follows, and
GOV ers the point in regard to the in
come tax as relates to individuals:
"Seotion 27. That from and after
the first day of january, 1925. and un-
TIL the first day of january, 1900, there
shall be assessed, levied and collected,
and paid annually uqon the gains,
profits, and income received in the pre-
ceding calendar year by every citizen
of the United States, whether residing
at home or abroad, and every person
residing therein, whether said gains,
profits or income be derived from any
kind of property, rents, Interest, divi-
dends, of salaries, or from amy profes-
sdon, trade, employment, or vocation
carried ON in the UNITED States or else
where, or from any other source what
ever, a tax of two per centum on the
amount so derived over and above 81
600, and a like tax shall be levied, col
lected, and paid annually upon the
gains, profits, and income from all
property owned and of every business,
trade, or profession carried on In the
United States by persons residing with
out the United States. And the tax
herein provided for shall be assessed by
the commissioner OF internal revenue
and collected and paid upon the gains
profits, and income for the year ending
the 31st day of December next pre-
ceding the time for levying, collecting
and paying said tax"
Section % of this law states that all
persons having an income over $500
per annum must make returns also to
the internal revenue collector. The
opening clause of this section which
relates to TINS is as follows:
"Sectio1 29 That 1T shall be the
duty of all persons of lawful age hav-
ing am income of more than $500 for
the taxable year, computed on the
basis herein prescribed, to make and
render list or return, ON or before the
day provided by law, i'm such form and
manner as may be directed by the COM
missioner of the internal revenue, with
the approval of the secretary of the
treasury, to the collector or a deputy
collector of the district in which they
reside, Of the amount of their income
gains and profits, as aforesaid"
The gross gains, profits and incomes
returned by persons shall include:
1. Gross profits of any trade, business
or vocation wherever carried on.
2. Rents received or accrued during
the year.
3. Profits rom sales of real estate
purchased Within two years.
5. Money and value of all personal
anc1.
6. Premiums on bonds. stocks, notes
and ,upons.
Z. Income from trade or profession
not by stated salary and not hereto
fore enumerated.
8. From salary or compensation
other than that received from the
United States.
8. Undivided gains and profits OF
any partnership.
IL. Interest received or accrued from
all notes, bonds or other securities.
IL. Interest ON bonds or coupons
paid of amy corporation.
H. Dividends from corporations.
13. Income of wife or minor child or
children.
L. ALI other sources OF income not
above enumerated.
The deductions allowed ON the return
and therein enumerated are:
1. Four thousand dollars exempt by
law.
2. Interest due and paid within the
year