FIFTY-THIRD CONGRESS. Sess. II. Ch. 349. 1894. 553 Sec. 27. That from and after the first day of January, eighteen hun- DWERNAL Rmm. dred and ninety-five, and until the first day of January, nineteen hun- ii]-.$gm;;:X`ee¤t on dred, there shall be assessed, levied, collected, and paid annually upon >‘b° ;*g0¤¤*!·¤· ¤¤~¤·· the gains, profits, and income received in the preceding calendar year initio. ’ °°’”°mm°5 by every citizen of the United States, whether residing at home or abroad, and every person residing therein, whether said gains, proii ts, or income be derived from any kind of property, rents, interest, dividends, or salaries, or from any profession, trade, employment, or vocation carried on in the United States or elsewhere, or from any other ` source whatever, a tax of two per centnm on the amount so derived over and above four thousand dollars, and a like tax shall be levied, * collected, and paid annually upon the gains, profits, and income from all property owned and of every business, trade, or profession carried on in the United States by persons residing without the United States. And the tax herein provided for shall be assessed, by the Commissioner of Internal Revenue and collected, and paid upon the gains, profits, and income for the year ending the thirty-first day of December next preceding the time for levyin g, collecting, and paying said tax. Sec. 28. That in estimating the gains, pront , and income of any Bmmeties i¤¤·>¤¤¤- person there shall be included all income derived from interest upon notes, bonds, and other securities, except such bonds of the United States the principal and interest of which are by the law of their issuance exempt from all Federal taxation; profits realized within the year R°“l "*”*° *****5- from sales of real estate purchased within two years previous to the ,,£'°°"“"'°'“""“““· _ close of the year for which income is estimated; interest received or accrued upon all notes, bonds, mortgages, or other forms of indebtedness bearing interest, whether paid or not, if good and collectible, less the interest which has become due from said person or which has been paid by him during the year; the amount of all premium on bonds, notes, or coupons; the amount of sales of live stock, sugar, cotton, S*‘°* wool, butter, cheese, pork, beef, mutton, or other meats, hay, and grain, or other vegetable or other productions, being the growth or produce of the estate of such person, less the amount expended in the purchase or production of said stock or produce, and not including any part thereof consumed directly by the family; money and the value of Gnu ,,t,,_ all personal property acquired by gift or inheritance; all other gains, profits, and income derived from any source whatever except that portion of the salary, compensation, or pay received for services in the omem maui oncivil, military, naval, or other service of the United States, including ""°” °‘°°P‘°**· Senators, Representatives, and Delegates in Congress, from which the tax has been deducted, and except that portion of any salary upon which · the employer is required by law to withhold, and does withhold the tax and pays the same to the officer authorized to receive it. In computing “"'“"“°"“· incomesthe necessaryexpenses actually incurredin carryiugon any busi- P°"* I" °`”· ness, occupation, or profession shall be deducted and also all interest due or paid within the year by such person on existing indebtedness. And all national, State, county, school, and municipal taxes, not including those assessed against local benents, paid within the year shall be deducted from the gains, profits, or income of the person who has actually paid the same, whether such person be owner, tenant, or mortgagor; also losses actually sustained dnrin g the year, incurred in trade or arising from iires, storms, or shipwreck, and not compensated for by insurance or otherwise, and debts ascertained to be worthless, but excluding all estimated depreciation of values and losses within the year on sales of real estate purchased within two years previous to _ the year for which income is estimated; Provided, That no deduction f3,;;';;';},, for in shall be made for any amount paid out for new buildings, permanent rr<>v¤¤¤¤¤¤ exceptedimprovements, or bettcrments, made to increase the value of any prop- OD, _ on and mm erty or estate: Provided further, That only one deduction of four r,,,, fYumj_];,e;c_u thousand dollars shall be made from the aggregate income of all the members of any family, composed of one or both parents, and one or
