INCOME TAX. Business losses, what are.-Different branches of business are independent of each other, and a loss by fire or otherwise sustained in one does not entitle the party to a deduction in the other. Thus, if A B C had an income of five thousand dollars, of which three thousand was from business, and two thousand from the rents of houses, if the latter should be destroyed by fire, causing to him a loss of five thousand dollars over and above all insurance, he would still be liable to taxation on the three thousand dollars received from business. It is also settled, that a person meeting with a heavy loss by fire cannot apply the income from the rest of his estate towards making up this loss, and deduct from the income of a subsequent year. Physician's expenses.—“The amount expended by a physician for the keeping of a horse, used exclusively in the business of his profession, is a legitimate deduction from income. "EDW'D MCPHERSON, Deputy Commissioner." THE LEGACY DUTY. Where a testator directs his executors to lay out money in the purchase of land for the use of certain devisees, the direction is a conversion of the personal into real estate from the death of the testator, and the money directed to be so appropriated is not subject to the legacy duty under the act of congress. Where the will gives to the executors general authority to sell real estate, either to pay debts or for the purpose of distribution, the land is converted into money at the time of the death of the testator, and is subject to the provisions of the excise law of July 1, 1862, relating to legacies. Where the testator authorizes land to be sold and the money to be paid for certain purposes, and the legatees elect to take their legacies in land, and thus avoid the necessity of a sale, their election does not prevent the conversion, nor prevent the estate from being subject to the legacy tax. Where the testator appoints the time when the conversion of real estate into personal shall take effect, his intention will control the generality of the rule as to the time of the conversion, and postpone the conversion to the period appointed. But no delay on the part of an executor or trustee, in the performance of his duty, to sell, nor exercise of his discretion, in the execution of his powers, with a view to a better market, or for the convenience of the estate, will postpone the conversion. When, on the death of any person leaving personal property, the care and management of such property is assumed by another person without the issue of letters authorizing administration, the person thus assuming the care and management must be considered as administrator de son tort, and should be required to pay the legacy tax, and any other taxes for which the estate may be liable. (Decis. No. 121.) The commissioner has also decided that in a case where a testator dies bequeathing an estate in money to his wife and daughter for life with the remainder to the survivor, and after the death of the survivor the same to go to remote kindred, the tax upon the whole estate must be paid before the executor makes any distribution. The life interest of the wife is to be estimated by approved tables of life annuities, upon which interest no tax is to be charged. The interest of the daughter, computed by the same tables, is taxed three-fourths of one per cent. The remainder of the estate, bequeathed to remote kindred, is to be taxed one and one-half per cent. CONCERNING THE EVIDENCE REQUIRED WHERE A CLAIM IS MADE FOR THE REFUNDING OF TAXES COLLECTED ON MERCHANDIZE MANUFACTURED FOR THE GOVERNMENT UNDER A CONTRACT MADE PRIOR TO THE FIRST DAY OF JULY, 1862. First. A statement containing the name of the claimant or claimants, the date of the contract and with whom made, the description of the merchandize furnished, the quantity, price, rate of tax, amount of tax, total. Second. A certificate from the collector of internal revenue of the payment of the tax, which certificate shall contain a particular description of the merchandize, the time when the tax was paid, rate and amount thereof. Third. The affidavit of the claimant, or, if a firm, one of the members thereof, setting forth that the merchandize was furnished under said contract; that it has been delivered to and accepted by the Government; that the taxes have been paid thereon, as certified by the collector, naming him and his district; that the merchandize named in the statement annexed is the identical merchandize on which the tax was paid, as certified by the collector, and that the claimant is justly entitled to the amount claimed. This affidavit must be made before a notary public, or any other officer having a seal, whose seal of office must be affixed. Each of the foregoing certificates, and the affidavit, must be stamped at the expense of the claimant, five cents. (Reg. of May 29, 1863.) (See Decision No. 111, p. 333, ante.) RIGGERS AND CORDAGE-MAKERS. The commissioner has decided that rope and cordage-makers are liable to a duty of three per cent ad valorem on all ratlines, running rigging, stays, shrouds, ropes, or cords of whatever name or description, whether made to order for a particular vessel, or made for general sale. Riggers are not held to be liable for any additional tax on ropes or cordage as named above, in consequence of cutting, fitting, and attaching the same to masts and spars of a ship, or, in other words, for the process of rigging a vessel. The value of a ship for purpose of taxation does not include sails, rigging, or other tackle. INSURANCE COMPANIES. The commissioner has decided that all dividends of the gains, profits, or accumulation of life insurance companies declared on money or scrip, or added as a bonus or augmentation to the policy of the insured, since the 1st day of September, 1862, including such as were divided before that day but not payable till after, are liable to the duty of three per cent, under section 82 of the excise law, whenever the same shall be paid or used in reduction of the premium upon any policy, or in payment or part payment of any premium note given to such company. And whenever the holder of a policy shall realize, on a surrender of it to the insurer, an advance on the premium, three per cent must be paid on said advance. STAMPS ON CONVEYANCES. "Oct. 30, 1863. "Sir: In answer to your letter of the 30th instant, I have the honor to state that, on any deed, instrument, or writing, whereby any lands, tenements, or other realty sold shall be granted, assigneď, &c., there shall be affixed a stamp, or stamps, appropriate to the actual value of the estate conveyed, as provided in schedule 13, following the 110th section of the act of July 1, 1862. "The word 'sold,' used in the excise law, and recited above, is used in the same sense as when incorporated in the phraseology of a deed, 'bargained, sold,' &c. “Sir: Your enclosure of form of confession of judgment has been received. 66 In reply thereto, I have the honor to state that this instrument is held to be in the nature of an agreement, and subject to a stamp duty of five cents. "ED. MCPHERSON, "Deputy Commissioner." LICENSES OF RECTIFIERS. Commissioner Lewis has decided that a rectifier must pay $25 for every 500 barrels rectified, and his license must expire on the first day of May following its issue. His license, if issued after the first of May, must be issued upon the payment of the ratable proportion of the whole amount of duty imposed for such license. If a rectifier's license is to be dated on the first day of November, a license may be issued on the payment of twelve dollars and a half, to expire the first of May following; and it will authorize rectifying at the rate of five hundred barrels per year, or any quantity not exceeding two hundred and fifty barrels during the time of its continuance. If this quantity is rectified before the expiration of the license, and the rectifier then applies for a new license, the new will be issued upon the payment of the amount appropriate to the actual rate at which he may be doing business. If, in case the license should be dated Nov. 1, for rectifying two hundred and fifty barrels, the quantity shall be rectified in the first four months following the issue of the license, the authority will be exhausted and a new license must be taken, for which the rectifier will be assessed the ratable proportion of $50, and will authorize the rectifying of the ratable proportion of 1000 barrels. Such license will expire on the 1st day of May following, whether the specified quantity has been rectified or not. The same principle will regulate the issue of fractional licenses to dist.llers and brewers. ། [The references are to the page. Those within parentheses refer to the provisions ACKNOWLEDGMENT, when not requiring stamp-duty, 192 (286). AFFIDAVITS whether requiring stamp, 192, 333, 344. may receive goods without payment of duties, 32. traveling, are not brokers, 33. AGREEMENTS OR CONTRACTS, stamp-duty on, 192, 313 (287). agents for sale of, when not peddlers, 151. who are liable to duty for selling, 151. ALCOHOL not a manufacture; makers of require a license, 33 (263). certificate of, receivable in payment of duties, 29 (296). on cordials, 29 (297). penalties for fraudulent claim of, 30 (296). AMBROTYPES, duty on, 153. AMERICAN patent calf skins, duty on, 111 (261). license fee of, 33 (250). may sell alcohol without additional license, 34 (250). APPEALS from assistant assessor's valuation, 18 (220). to be in writing, and state what, 18. questions to be determined on, 18. to commissioner of internal revenue, 19, 141 (256). APPRAISEMENTS, stamp-duty on, 193 (287). ARCHITECTS' license fee, 34 (251). ASSESSMENT of the duties, 13, 19, 305. ASSESSORS AND ASSISTANTS, appointment of, 10 (215). on what estimated, 36. exemptions from the duty, 36. AUCTIONEERS' license fee, 34 (246). powers, and obligations of, 35. |