By analogy, also, if a person works his own mine, the profits should be ascertained by taking the value of the land at the end of the year and adding thereto the amount received for the mineral mined by him during the year, and from the sum thus obtained deducting the actual expense of the mining (excluding the expense of the personal services of the owner and his family) plus the actual value of the land at the beginning of the year, or the time of his purchase, if he purchased after the beginning of the year. Such a rule would seem to be fairer than the one under the old law above stated. Under that law he paid on the profit above the estimated original cost to him of the mineral, even if the land was purchased many years prior, even before the discovery of the mine, and such a result is opposed to the tendency of the decision of the Supreme Court of the U. S., in Gray v. Darlington, 15 Wall., 63, referred to on page 18. XI. SUGGESTIONS AS TO RETURNS FOR 1894 IN RELATION TO INCOMES FROM BUSINESS. 1. Get at Gross Receipts, Credits, Earnings and Gains from your business of 1894, as nearly as is practicable. To be placed in Item I on personal and corporation blanks. 2. This seems to exclude receipts in 1894 from any of the business before 1894. 3. But seems to include (1) Either all receipts, credits, earnings and gains from the business of 1894, whether payment was to be made in 1894 or later. (2) Or, more probably, only such receipts, credits, earnings and gains as payment was due from in 1894. 4. Get at cost of materials included in 1 as nearly as is practicable. To be placed: (1) Either wholly under Deduction 9 on Personal Blanks, and Deduction 7 on Corporation Blanks; or (2) cost of material on hand Dec. 31, 1893, sold in 1894, under above items of deductions, and cost of other material under Deduction 5 on Personal Blanks and Deduction 8 on Corporation Blanks. 5. Materials on hand Dec. 31, 1893, should in ordinary lines of business have been marked, separated, or otherwise kept, so that the amount of such materials on hand Dec. 31, 1894, could be identified and cost estimated. 6. Cost of materials sold in 1894, payable in 1895, or later, should have been taken at time of sale unless cost could be obtained after materials were gone. 7. Account of stock on hand Dec. 31, 1894, should have been taken. 8. Either Or (1) Cost of stock on hand Dec. 31, 1893, added to cost of stock purchased in 1894, less cost of stock on hand Dec. 31, 1894, and less also cost of stock sold in 1894 payable after 1894, equals cost of the materials included in Item 1 (Gross Receipts, etc.), which can be deducted, (2) Cost of stock on hand Dec. 31, 1893, added to cost of stock purchased in 1894, less cost of stock on hand Dec. 31, 1894, equals cost of the materials included in Item 1 (Gross Receipts, etc.), which can be deducted. 9. As the law was not passed until Aug. 28, 1894, the above means for estimating cost may not have been possible. For the Return for 1894 the Department, without doubt, will allow each taxpayer to get at the required items of the business in the most practicable way. 1 Gross receipts, credits, earnings, and gains from any business, or any interest therein, wherever carried on. 2 From rents received or accrued during the year. 3 From profits realized on sales of real estate purchased since December 31, 1892. 4 From farming operations: Proceeds from sales of live stock Proceeds from sales of agri 66 66 cultural products. 5 Money, and the value of all personal property acquired by gift or inheritance. 6 Premium on bonds, stocks, notes, or coupons 7 Income from profession, trade, or other employment, except stated salary or pay 8 From salary, compensation, or pay for particular services, and not including salary, or compensation received from the United States.. 9 From salary, or compensation received for services in the civil, military, naval, or other service of the United States, including salary of Senator, Representative, or Delegate in Congress. 10 From gains and profits, divided or undivided, of any partnership. *11 From interest received or accrued within the year upon 12 From interest or coupons paid or accrued on any bonds, or 14 Income of wife or minor children computed on the same basis as this return. 15 From all sources not above enumerated, viz: 1 Exempt by law. DEDUCTIONS. 2 Interest which has become due or which has been paid during the year. 3 4 National, State, county, school, or municipal taxes paid within the year, not including taxes assessed against local benefits. Amount expended in the purchase or production of live stock, or produce sold within the year. 5 Necessary expenses actually incurred in carrying on any business, occupation, or profession, and not elsewhere deducted in this return 6 Losses actually sustained during the year, incurred in trade or arising from fires, storms, or shipwreck, and not compensated for by insurance or otherwise, and not already deducted in ascertaining profits. 7 Actual losses on sales of real estate purchased since December 31, 1892. 8 Debts ascertained within the year to be worthless, and not elsewhere deducted in this return. 9 Cost price of material purchased for manufacture or resale, not increasing stock on hand December 31, 1893. 10 Dividends, heretofore included in the statement of profits, under paragraph 13, received from corporations, companies, or associations, on which the tax of two per centum has once been paid by such corporation. *See instructions Nos. 11 and 16. $4 000 00 |