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including those assessed against local benefits,” are new in this Act; otherwise the sentence as to taxes was the same in earlier Acts, the final words, or mortgagor" being first added in the Act of 1864, the word "county" being first added in the Act. of 1865, and the Act of 1862 reading, "national, State, and local taxes."- Lines 50, 51. "Storms," and the clause “and not compensated for by insurance or otherwise," are new in this Act. Line 55. "Within" is new here. Line 56. After "estimated," the Act of 1867 further contained the following provision: "The amount actually paid for labor or interest by any person who rents lands or hires labor to cultivate land, or who conducts any other business from which income is actually derived; the amount actually paid by any person for the rent of the house or premises occupied as a residence for himself or his family; the amount paid out for usual and ordinary repairs." -- Line 82. The clause beginning "and shall include" to the end of the section is new in this Act.

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That legatees were not required to return their legacies. Bout. 275. But see the above provision, "money and the value of all personal property acquired by gift or inheritance."

That pensions from the government must be returned. Bout. 274; 4 Int. Rev. Rec. 55. That interest accrued during the previous year on United States securities should be returned.

7 Int. Rev. Rec. 60. As to a case of the premium. on gold, see 2 Int. Rev. Rec. 5.

That interest accrued during the income year on notes, bonds, etc., if good and collectible at the end of the year, should be returned whether collected. or not. 7 Int. Rev. Rec. 59.

That where an absolute deed was taken instead of a mortgage, and an agreement given to reconvey upon the payment of a certain sum equal to the loan with interest, the transaction was equivalent to a mortgage, and the gain to the lender must be returned. 3 Int. Rev. Rec. 140.

That interest should be considered as income only when paid, unless collectible and remaining unpaid by consent of the creditor. Bout. 274.

That incomes from coal mines were to be returned, and no deductions were to be made on account of diminished value, actual or supposed, of the coal vein or bed by mining. Bout. 271.

That the rental value of property occupied by the owner was neither to be included in his income nor deducted. 1 Int. Rev. Rec. 171.

That a party renting his own house and paying rent elsewhere must return the rent received, and was to be allowed to deduct the amount of the rent paid. 4 Int. Rev. Rec. 46; 5 Int. Rev. Rec. 154. For a case where land was leased for years under a contract that the lessee should erect a building, and the expense of erecting the building was held to be in the nature of rent, and returnable by the lessor. 7 Int. Rev. Rec. 60.

That where one cultivated the land of another under a contract to pay for the use in produce, it was rent, and should be returned; and the expenses were to be deducted from the income of the lessee only. 7 Int. Rev. Rec. 60.

That scrip dividends returnable as incomes should be returned at their market value. 7 Int. Rev. Rec. 60.

That the tax was assessed upon the income of individuals, and not upon firms. Bout. 275.

That marriage fees of and gifts to a pastor were returnable when the gifts were in the nature of compensation for services, whether in accordance with an understanding at the settlement or an annual custom. 7 Int. Rev. Rec. 59.

That where the earnings of a minor were under the control of the father they were to be included in his income; if entirely free from his control, the assessment was to be separate. 1 Int. Rev. Rec. 181. And if a taxpayer had a minor child in the service of the government receiving a salary, the parent should include in his return so much of the salary as was not subject to a salary tax. 7 Int. Rev. Rec. 59. A decision on the subject of emancipation of a child is given in 11 Int. Rev. Rec. 122. See the second proviso to the above section.

That a taxpayer was to return as income all profits from sale of stocks made within the year, though bought previously. United States v. Smith, 12 Int. Rev. Rec. 135. As to the liability of stock

holders to pay on dividends or other income paid to them by their corporations, see United States v. Erie Ry. Co., 24 Int. Rev. Rec. 76; Phila. R. Co. v. Barnes, 12 Id. 112; 7 Phila. 543; Stockdale v. Ins. Cos., infra, p. 19; Merchants' Ins. Co. v. McCartney, infra, p. 21; Magee v. Denton, 5 Blatch. 130.

Interest on railroad bonds earned in 1871 but payable by the coupons in 1872 was held not subject to the tax authorized by the Act of 1870 to be collected in 1871. United States v. Indianapolis Railroad Co., 113 U. S. 711.

In Gray v. Darlington, 15 Wall. 63, it was said that the advance in personal property during a series of years does not constitute the gains, profits, or income of any one year of the series, although the entire amount of the advance be at one time turned into money by a sale; and United States bonds having been sold after being held by the owner for years at an advance over cost, it was held that the amount was not taxable as "gains, profits, or income" for the year in which the sale was made, under the amendatory Act of 1867.

The tax on brokers, under the Act of 1864, is stated in United States v. Cutting, 3 Wall. 441; United States v. Fisk, Ibid. 445. As to tax on deposits in savings banks under the old law, see Bank for Savings v. Collector, 3 Wall. 495.

A provision, in a defeasance of a railroad mortgage to secure coupon bonds, that the mortgage should be void if the mortgagor paid the debt and

interest without deduction, etc. in respect of taxes, etc., was held, in Haight v. Railroad Co., 6 Wall. 15, not to oblige the company to pay the interest. clear of the tax which by the Act of 1864 such companies were "to deduct and withhold from all payments on account of any interest or coupons due and payable."

It was held in Stockdale v. Ins. Companies, 20 Wall. 323, that whether the tax on dividends from the earnings of corporations for 1869 be viewed as a tax on the shareholder or on the corporation, it was intended to tax the earnings for that year by the section of the Act of 1870, which limited the duration of the income tax.

See Barnes v. Railroads, 17 Wall. 294;

United States v. Railroad Co., 17 Id. 322. Section 117 of the Act of 1864, which required stockholders in certain companies to return as income all gains and profits to which entitled, whether "divided or otherwise," was held to embrace not only dividends declared, but profits not divided and invested partly in real estate, machinery, and raw material, and partly applied to the payment of debts incurred in previous years.

Collector v. Hubbard, 12 Wall. 1; S. C., nom.
Hubbard v. Brainard, 35 Conn. 563.

It was held in United States v. Central Nat. Bank, 24 Fed. Rep. 577, that when taxes imposed by a State law are imposed upon the stockholders of a national bank, and not upon the corporation, the

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