whole revenue." Foster & Abbot, 116. Under the old law it was held in 1872, in Gray v. Darlington, 15 Wall. 63, 66, that "the mere fact that property has advanced in value between the date of its acquisition and sale does not authorize the imposition of the tax on the amount of the advance. Mere advance in value in no sense constitutes the gains, profits, or income specified by the statute. It constitutes and can be treated merely as increase of capital."

Under the act of 1870, which imposed a tax on gains, profits, and income for 1871, and no longer, the amount of a promissory note taken in 1871, on the sale in that year of a patent right, but not due until some time in 1872, and paid in that year, was not taxable as income for 1871. United States v. Schillinger, 14 Blatch. 71.

The tax under the old law was assessed upon the income of individuals, and not upon firms. Bout. (1863) 275. See 4 Int. Rev. Rec. 46.

Salaries, wages, or compensation for personal service of whatever kind and in whatever form paid. It was held under the old acts

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. But see above as to the income from gifts.

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 the 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 ruling on the emancipation of a child is given in 11 Int. Rev. Rec. 122.

That salaries, except where specially provided for by statute, were income from business. 3 Int. Rev. Rec. 188. Formerly the salary of a judge of a State court was held not liable. Collector v. Day, 11 Wall. 113; 3 Cliff. 376. So formerly the revenues of a State, and also the revenues of municipal corporations created for the purpose of exercising within a limited sphere the governmental powers of the State, so far as the latter revenues were municipal in their nature, were exempt from such taxation. United States v. Railroad Co., 17 Wall. 322. As to soldiers honorably discharged, see 11 Int. Rev. Rec. 123.

That gifts of money, when not for services or other valuable consideration, were not liable, and amounts received on life insurance policies and tort damages were exempt. 7 Int. Rev. Rec. 59. See 3 Int. Rev. Rec. 118; 41 U. S. Rev. Journ. 77. But see above as to the income from gifts.

That extra pay granted to officers by special acts was liable. 2 Int. Rev. Rec. 108. For cases where certain salaries of government employees were to be included with other taxable income, and, in the event of the salary exceeding a certain amount, the amount of salary from which the tax had been deducted was to be deducted from the gross income, see 7 Int. Rev. Rec. 59.

Professions, vocations, businesses, trade, com

merce.

Betting is a vocation. Partridge v. Mallandaine, L. R. 18 Q. B. D. 276.

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.

It was held under the old acts

That the profits of a manufacturer from his

business were not exempt because of his having paid an excise tax upon his manufactures. Bout. (1863), 275.

That a merchant's return should cover the business of the income year, excluding previous years, and that uncollected accounts must be estimated. Bout. (1863), 273.

That lawyers and physicians might return either the actual fees of the income year no matter when accrued, or the amounts due to the business of that year. 7 Int. Rev. Rec. 59.

That if the manufacturer or dealer had estimated his annual profits by taking inventories of stock, he might take the cost value unless he had taken the market value in making previous returns. 7 Int. Rev. Rec. 59.

That when a taxpayer had adopted one method of estimating, he could not subsequently adopt another. 7 Int. Rev. Rec. 59. That there was no distinction between income from business and fixed investments. 7 Int. Rev. Rec. 59.

Sales or dealings in property, whether real or personal, growing out of the ownership or use of or interest in real or personal property.

In Merchants' Ins. Co. v. McCartney, 12 Int. Rev. Rec. 122, 1 Lowell, 447, it was held that surplus earnings laid aside by a bank

before the first income tax law, and profits of sales of real estate bought before that time, were not liable to the income tax when divided afterward, and that under 13 St. at Large, 281, 282, an insurance company holding shares in a bank was not liable to a tax upon a dividend declared by the bank, and on which the bank had paid full income tax.

It was held under the old Acts

That if an inventor sold his invention for a gross sum, he should return the whole amount, less expenses of perfecting the invention and procuring a patent; if he sold only a portion of his right during the year he might deduct a proportionate amount of the expense. 7 Int. Rev. Rec. 59.

That where a corporation distributed its assets after liquidation among its stockholders, the difference between the price paid for the shares and the sum so received was taxable as profits. 2 Int. Rev. Rec. 138. As to undistributed earnings made before September 1, 1862, see Bout. (1863), 275; 12 Int. Rev. Rec. 157.

That if a part of a piece of real estate purchased within the required time was sold, the excess of the sum received over the sum paid for the same portion should be returned. 5 Int. Rev. Rec. 138. And the fact that the real

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