The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1895-03-30
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 OF Interest to Those
with Taxable Incomes.

VI Indt uLStrlcL 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 not
have been paid until January l, 1894.
THE law and regulations do not pro-
vide for the naming in the returns of
corporations, companies or associa-
lions from which dividends are re-
'ceived, and, therefore, such designa-
tion 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 t assume that their
be~neficiaries 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 a deficiency
an the capital stock or reserve fund of
said corporations.
All rents, interest and profits re-
turned as income for the year 1894
must be exclusively confined to the
earnings and business of the year 1894,
from January l to December 81, both
days inclusive, in said year. No part
of the gains or profits earned in the
year 1893 OIL to be earned in the year
1885, 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 \ = =
in the United States by people residing
without the United States is not con-
fined in its meaning to real property,
but must be held to all property
of every character from which income
is derived.
I'm the case of a beneficiary who
has an income independent of the
trust estate, the trustee in making re-
turns for such beneficiary is author
lied by law to make the reduction of
$4,000 allowed as the specific exemp-
ton. There is but one exemption of
81, 900 allowed in such cases from all
the property of beneficiary, including
that held in trust for him.
II FAMILY A TAXABLE M
"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
that in all cases he can ascer-
tain the amount of said income, and,
excepting cases where such incomes
are controlled by a legal trustee or
other person duly appointed by court,
it must be assumed hat he has con-
troll of the same. In cases where the
wife has a separate taxable income
and manages herown business separate
ly, she is required to make return of
her income, and the same should be at
tached to the retu 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 car be reasonably CON
strued as a business transaction, may
be allowed a. deduction from income.
All losses actually sustained by sale of
stocks, bonds, mortgages, etc, where
the same was made as a business trans
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
confined to real estate purchased SUBJ
to December 81, 1892.
Expenses for ordinary repairs, not
including amounts expended for bet
and permanent improvement
ASuA Sob"NST u NC o11ONNSu dS d uc- |
duction. The deduction for repairs,
however, must be confined t. necessary
that is, such as are needed for
preservation of property. When
said ownership is absolute for a term of
years, the cost of improvements, bet
terments or additions to such property
not be deducted under the provi-
of the law.
CERTAIN GIFTS TWICE TAXED.
1.-THE gift of a person to his grand
child or any other person not a mem
Der of his family is not an allowable
deduction in the first instance from the
of the person who gave the
same; and is, therefore, subject to tax
alton liz his hands. The person who
it clearly as a gift, and if such
rift. with his income above the taxa
Die limit, he is liable to a tax upon all
.he excess above said limit.
If the father pays "a Epon his in
come and the income of all the MEM
of his family the amount of his
yift or allowance to a minor child
not escape taxation, whether
computed while N the hands of the
or by him in making return for
Ill members Of the .2mily.
"In cases where lawyers or ply
'icians or other persons refuse to make
their returns in compliance with the