The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-04-10

As was anticipated would be the case,
the handing down of the decision of the
supreme court of the United States on the
income tax law, in which the declaration
is, made that with the exception of the
clauses which provide for the taxation OF
rentals and county, state and municipal
bonds, the statute is perfectly constitu-
ticnal, was followed by a perfect deluge
of returns at the offices of the local in
ternal revenue officials. It looked very
much as though the prospective taxpay-
ers had had their reports made out some
time but did not desire to send them in
until the action of the court had been
made public The knocking out of the
clauses named necessitated some changes
in those reports which had been made out
and it therefore became very patent that
the revenue to be derived from this ter
ritory by the general government through
the workings of the income tax law has
been very materially reduced, for there
are many people whose incomes would
come within the limit were rentals but
counted IN.
There seems to be much doubt even in
the minds of the gove>1ment officials, as
to the effects of the supreme court de-
cisicn and the chances for the commence
ment of other suits on different grounds
are very bright. In fact, the announces
ment has been made that the law will
be attacked on the ground that the pro-
visions are unconstitutional, in that they
only provide for the collection of a tax
on an income which is over $4,000.
Utahs money making mining companies
do not seem to be in any great hurry to
make their reports and to date not one
has filed a statement, Notwithstanding
! the fact that there are but five more days
in which to get the reports to the OIL
Gals. The banks, are sending, in their
haIf of hGn hox
complied with the law.
In addition to the rentals and city.
county and state bonds, the following ex-
emptions are allowed by the law:
/ neutrality-suspicious. companies or as
SociationS organized and conducted solely
for charitable, religious or educational
! purposes, including fraternal, beneficiary
societies. orders or associations, operat-
ing upon the lodge system and providing
for payment of life, sick, and other
benefits to the members of such societies,
orders or associations and dependents of
| such members.
Thrd-The stocks, shares funds or Sc
curities held by any fiduciary agent or
trustee for charitable, religious and edu-
cational purposes.
| Fourth-Building or loan associations
or companies which make loans only to
their shareholders.
Fifth-Savings banks and savings insti-
tutionS or other societies which shall:
Have no stockholders or members ex-
eept depositors and no. capital except de-
posits; which shall not receive deposits
>
of more than $1,000 from the same de-
postor; which shall not allow an &C
cumulation or total of deposits by any
one depositor exceeding $4,000; which
shall actually divide and distribute to its
depositors ratable to deposits all their
earnings over the necessary and proper
expenses of such banks and institutions
or societies, except such as shall be ap-
piled to surplus; which shall not possess
in any form a surplus fund exceeding 10
per cent of its aggregate deposits; and
such savings banks, savings institutions
| or societies composed of members who
do not participate in the profits thereof,
and which pay interest or dividends only
TO their depositors-
The exemption extended in the above
named provisions to corporations, COM
panieS or associations is intended for the
| benefit of the depositors, shareholders
and other beneficiaries of such corpora
| lions, companies or associations The
corporations as such, and all stockholders
therein who own such stock as invest
ment for capital or for speculative pur-
poses, are not the intended benefciaries
| of this exemption.
How to Compute Incomes.
The interest on all bonds of the United
! States shall be returned as income by the
person, corporation, company or asso-
| citation owning or holding such bonds, eX-
| cept the interest on bonds of the funded
/ loan of 1891 continued at per cent,
and the bonds of the per cent. funded
/ loan of 1907, and the bonds of the per
cent. funded loans of 1904, all of which
are by the law of their issuance exempt,
| interest
| federal taxation.
In estimating the amount of taxable
| income only such losses as shall have
| been actually suffered. and the amount
| during the year covered by the return
can be deducted from the gross profits
allowed for any losses not specially de-
sribed and set forth in the annual re-
turn for the person or corporation claim
! ing the deduction.
Non-residents are not entitled to the
exemption of $4,000 to any exemption
whatever, unless they make out their
oath or affirmation and deliver the same
to the collector or deputy of the district
wherein their property, or business from
time prescribed in the case of residents.
Gains of Merchants.
The annual return of merchants and
manufacturers of their gains or income
should cover the business of the year
from the LIST day of January to the 31st !
day of December in the year for which |
return is made, and their books of &C |
count: stock records Ia, and inventories e11 prizes
and in such manner as to- clearly show |
the gross profits, business expenses, net
profits or income, for the year ending |!
at the close of business hours on the 31st !
day of December
The interest accrued during the year
good and collectable Indebtedness at the
end of the year should be returned as /
income, whether actually collected or not. /
Dividends and interest payable in 1884 !
should be returned as income for that |
year, no matter when declared.
Debts which were contracted during the |
year 1894, but found in said year to be |
absolutely worthless, may be deducted |
from the income of the creditor in his |
annual return for said year, but such
debts cannot be considered or returned /
as worthless until after legal proceedings |
to recover the same have proved fruit |
less. or it clearly appears that the |
debtor is insolvent, and that proceedings |
to collect the debt would avail nothing |
In making the deduction for worthless |
debts, the person claiming the same must
set forth il, his return that the fact |
as above stated exist in connection with
the debt returned as worthless. No |
debts contracted prior to the year for |
which return IS made can be deducted |
No deduction can be made because of |
the diminished value. actual or estimated, |
| of real estate, nor of stocks. bonds OF. ]
other personal property, while owned by |
the person making the return. nor for
estimated depreciation of mines by the |
process of mining or otherwise. Rent |
from mines, or royalty thereon, is in |
i and Shou1d ha ipclude6 in ya1