SoleProprietorshipReturns,1997
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SoleProprietorshipReturns,1997
by Therese Cruciano and Michael Parisi
onfarm sole proprietorship profits increased
5.6 percent for 1997 to $186.6 billion, with
all of the principal sole proprietorship
industrial divisions reporting increased profits. Tax
Year 1997 marked the first time since 1990 that sole
proprietorships showed 2 consecutive years of
constant dollar growth in profits. Of the industrial
divisions that accounted for most of the profits,
finance, insurance, and real estate showed the largest
increases, 8.6 percent. This division was dominated
by the finance and real estate groups, with increases
of 17.9 percent each. The next largest growth in
profits for a major industrial division was 8.0 percent
for the construction division. Sole proprietorships in
the services division (the largest industrial division)
showed an increase in profits of 3.7 percent, with a
25.7-percent increase in profits for the consulting and
management services group.
The 1997 level of sole proprietorship profits
coincides with the growth of both receipts and deductions: total business receipts increased 3.2 percent to $870.4 billion, while total business deductions grew 2.6 percent to $683.9 billion. The growth
rates of both receipts and deductions were lower than
their 1996 levels of 4.4 percent. The finance, insurance, and real estate division reported the largest
percentage increases in receipts (17.0 percent) and
deductions (21.6 percent) for 1997. Within this
division, the finance group reported a 55.3-percent
increase in receipts and a 60.6-percent increase in
deductions. When inflation is taken into account,
1997 total nonfarm sole proprietorship profits increased 3.6 percent, receipts increased 1.3 percent,
and deductions increased 0.7 percent.
N
6
ReturnsandReceipts
The number of individual income tax returns reporting nonfarm sole proprietorship activity for 1997
increased 1.3 percent, from more than 16.9 million
for 1996 to almost 17.2 million (Figure A) [1]. Of
the two largest industrial divisions, the number of
sole proprietorship returns for 1997 increased 2.1
percent for services and declined 0.6 percent for
wholesale and retail trade. Total business receipts
(the sum of “income from sales and operations” and
Therese Cruciano and Michael Parisi are economists with
the Individual Returns Analysis Section. This article was
prepared under the direction of Jeff Hartzok, Chief.
6
“other business income”) for all nonfarm sole
proprietorship industries increased 3.2 percent, from
$843.2 billion to $870.4 billion [2]. All of the sole
proprietorship industrial divisions reported growth in
business receipts for 1997, except wholesale and
retail trade, which decreased 2.5 percent. The
finance, insurance, and real estate division showed
the largest percentage growth in receipts, an increase
of 17.0 percent. Sole proprietorships in the services
division showed the greatest dollar increase in
receipts with an $11.5-billion increase. The transportation and public utilities division receipts increased
8.5 percent, the second largest percentage increase in
receipts for 1997.
As shown in Figure B, sole proprietorship receipts (in constant dollars) increased annually from
1984 through 1988 [3]. Between 1988 and 1991, the
growth in receipts stopped, resulting in year-to-year
fluctuations between gains and losses. Since 1991,
total business receipts increased every year except
1995, when receipts declined 0.2 percent. For 1997,
total receipts increased 1.3 percent (in constant
dollars).
Deductions
Total business deductions (cost of sales and operations, plus business expenses, including expenses for
a home office) increased 2.6 percent from $666.5
billion for 1996 to $683.9 billion for 1997 (Figure
A)[4,5]. As with total business receipts, all of the
sole proprietorship principal divisions except wholesale and retail trade, reported increased business
deductions for 1997. Sole proprietorships in the
finance, insurance, and real estate division showed
the largest percentage growth in deductions (21.6
percent), as well as the largest dollar increase in
deductions ($9.1 billion). The transportation and
public utilities division produced the second largest
percentage increase of 6.3 percent, while the services
division produced the second largest dollar increase
of $7.8 billion. When allowing for inflation, business deductions increased 0.7 percent for 1997
(Figure B).
Representing 46.7 percent of total 1997 business
deductions, the cost of sales and operations was
$319.6 billion (Figure C), a 1.0-percent increase
from the 1996 level. Total business “expenses” (total
business deductions minus the cost of sales and
operations) were $364.3 billion for 1997, a 4.1-
Sole Proprietorship Returns, 1997
FigureA
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Groups,
Tax Years 1996 and 1997
[Number of returns is in thousands--money amounts are in billions of dollars]
Number of returns
Industrial group
Total business receipts
Percentage
Total business deductions
Percentage
Percentage
1996
1997
increase
1996
1997
increase
1996
1997
increase
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
3.2
2.7
4.9
8.5
-2.5
-4.0
-2.2
-9.2
666.5
105.6
73.8
36.4
244.4
35.7
208.7
36.8
683.9
107.3
76.7
38.7
237.4
34.4
203.0
33.3
2.6
1.6
4.0
6.3
-2.9
-3.6
-2.7
-9.6
-6.6
7.9
17.0
55.3
-1.3
10.1
4.0
9.6
-1.9
4.8
19.8
6.9
51.4
25.6
42.2
13.1
11.0
18.2
185.5
54.3
40.4
13.1
12.8
52.2
48.1
26.0
51.3
21.0
11.2
19.1
193.3
61.2
40.4
13.6
14.5
55.8
-6.4
1.4
21.6
60.6
2.0
5.2
4.2
12.7
(¹)
3.7
13.8
6.8
All nonfarm industries...........................................................................................................................
16,955.0
17,176.5
1.3
843.2
870.4
Construction...........................................................................................................................
2,096.8
2,196.8
4.8
127.4
130.8
Special trade contractors...........................................................................................................................
1,798.5
1,908.8
6.1
92.1
96.6
Transportation and public utilities...........................................................................................................................
824.7
781.0
-5.3
42.1
45.7
Wholesale and retail trade...........................................................................................................................
3,151.3
3,132.6
-0.6
261.1
254.6
Wholesale trade...........................................................................................................................
351.0
348.2
-0.8
41.0
39.4
Retail trade...........................................................................................................................
2,800.3
2,784.4
-0.6
220.1
215.3
Food stores...........................................................................................................................
138.8
131.6
-5.2
38.1
34.6
Automotive dealers and
service stations...........................................................................................................................
175.5
168.5
-4.0
53.3
49.7
Eating and drinking places...........................................................................................................................
243.8
252.8
3.7
26.6
28.8
Finance, insurance, and real estate...........................................................................................................................
1,271.4
1,314.0
3.4
64.6
75.6
Finance...........................................................................................................................
128.9
182.7
41.8
14.9
23.2
Insurance...........................................................................................................................
399.5
373.5
-6.5
20.0
19.8
Real estate...........................................................................................................................
743.1
757.8
2.0
29.7
32.7
Services...........................................................................................................................
8,233.9
8,408.0
2.1
287.5
299.0
Business and personal services...........................................................................................................................
3,216.3
3,481.7
8.3
77.4
84.8
Medical and health services...........................................................................................................................
771.5
804.5
4.3
74.1
72.7
Legal services...........................................................................................................................
291.1
294.4
1.1
24.5
25.7
Consulting and management services...........................................................................................................................
832.8
898.9
7.9
25.8
30.9
All other industries ²...........................................................................................................................
1,377.0
1,344.1
-2.4
60.5
64.7
¹ Less than 0.05 percent.
² Includes agricultural services, forestry, and fishing; mining; manufacturing; and nature of business not allocable.
NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.
FigureB
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1984-1997
[Money amounts are in billions of dollars]
Total business receipts
Tax
year
Total business deductions ¹
Constant dollars
Current
dollars
(1)
Amount
2,3
Percentage
Current
increase
dollars
(3)
(4)
445.3
461.3
469.0
505.4
545.7
560.2
589.2
571.2
583.1
600.8
623.8
638.1
666.5
683.9
(2)
1984..............................................................................................
516.0
679.8
6.8
1985..............................................................................................
540.0
687.9
1.2
559.4
694.0
0.9
1986..............................................................................................
610.8
735.0
5.9
1987..............................................................................................
672.0
780.5
6.2
1988..............................................................................................
692.8
772.4
-1.0
1989..............................................................................................
730.6
780.6
1.1
1990..............................................................................................
712.6
732.4
-6.2
1991..............................................................................................
737.1
737.1
0.6
1992..............................................................................................
757.2
738.0
0.1
1993..............................................................................................
790.6
752.3
1.9
1994..............................................................................................
807.4
751.0
-0.2
1995..............................................................................................
843.2
770.1
2.5
1996..............................................................................................
870.4
779.9
1.3
1997..............................................................................................
Net income less deficit
Constant dollars
2,3
Constant dollars
2,3
Percentage
Current
increase
dollars
(5)
(6)
(7)
(8)
(9)
586.7
587.6
581.9
608.2
633.8
624.5
629.5
587.1
583.1
585.6
593.6
593.6
608.6
612.8
5.9
0.2
-1.0
4.5
4.2
-1.5
0.8
-6.7
-0.7
0.4
1.4
(4 )
2.5
0.7
70.8
78.8
90.4
105.5
126.3
132.7
141.4
141.5
154.0
156.5
166.8
169.3
176.8
186.6
93.3
100.4
112.2
127.0
146.7
147.9
151.1
145.4
154.0
152.5
158.7
157.5
161.4
167.2
12.9
7.6
11.8
13.2
15.5
0.8
2.2
-3.8
5.9
-1.0
4.1
-0.8
2.5
3.6
Amount
Amount
Percentage
increase
¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses
(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or
deficit.
² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis in the Survey of Current Business , August, 1998. The deflator represents the annual average of current-weighted prices, based on 1992=100.
³ The overall implicit price deflator for gross domestic product was revised for 1995 and 1996.
4
Less than 0.05 percent.
NOTE: Percentage increases were calculated after rounding.
7
Sole Proprietorship Returns, 1997
FigureC
8
8
(10.6 percent), rent on business property, machinery,
and equipment (8.0 percent), and depreciation (7.9
Components of Nonfarm Sole Proprietorship
percent). For 1997, these items were $38.7 billion,
Business Deductions, Tax Years 1996 and 1997
$29.3 billion, and $28.6 billion, respectively. Car
[Money amounts are in millions of dollars]
and truck expenses showed a 5.5-percent increase
from 1996; rent on business property, machinery,
Business deductions
1996
1997
Percentage
and equipment increased 2.8 percent; and depreciaincrease
tion increased 4.6 percent. Part of the increase in car
(1)
(2)
(3)
1,2
and truck expenses was likely due to the increase in
Business deductions, total ..........................................................................................................
666,460.9
683,872.4
2.6
the standard mileage rate from 31 cents a mile for
Cost of sales and operations..........................................................................................................
316,420.9
319,557.4
1.0
1996 to 31.5 cents a mile for 1997.
Inventory, beginning of year..........................................................................................................
32,021.1
32,058.2
0.1
Cost of labor..........................................................................................................
26,001.5
24,940.8
-4.1
The depreciation deduction first began to decline
Purchases..........................................................................................................
220,028.8
224,259.0
1.9
for 1986, following the enactment of the Tax Reform
Materials and supplies..........................................................................................................
40,473.4
37,552.1
-7.2
Act of 1986 (TRA86) (Figure E). TRA86 reduced
Other costs..........................................................................................................
31,681.2
33,970.0
7.2
the allowable depreciation deduction by lengthening
Inventory, end of year..........................................................................................................
33,785.2
33,222.7
-1.7
the cost recovery periods and changing the depreciaBusiness expenses, total..........................................................................................................
350,039.9
364,315.0
4.1
Advertising expenses..........................................................................................................
8,974.9
8,977.7
(²)
tion methods for property placed in service after July
Bad debts from sales or services..........................................................................................................
986.5
1,100.7
11.6
31, 1986. In constant dollars, the depreciation deCar and truck expenses..........................................................................................................
36,700.3
38,727.7
5.5
duction dropped 2.1 percent for 1986 and continued
Commissions..........................................................................................................
10,791.7
10,985.8
1.8
to decline through 1992. Beginning with 1993, when
Depletion..........................................................................................................
566.3
565.3
-0.2
Depreciation..........................................................................................................
27,364.6
28,625.3
4.6
the limit on expensing of certain capital expenditures
Employee benefit programs..........................................................................................................
1,409.7
1,417.0
0.5
increased, the trend reversed, and depreciation inInsurance..........................................................................................................
13,195.2
13,299.5
0.8
creased until 1995, when it decreased 2.0 percent to
Legal and professional services..........................................................................................................
6,330.3
6,551.6
3.5
$24.4 billion [6]. The increases for 1996 and 1997
Meals and entertainment deducted..........................................................................................................
3,520.0
3,570.5
1.4
were a return to the upward trend. The constantMortgage interest..........................................................................................................
4,475.4
4,533.7
1.3
Other interest paid on business
dollar depreciation deduction for 1997 was $25.6
indebtedness..........................................................................................................
6,091.2
6,350.0
4.2
billion. This amount represents a 2.4-percent inOffice expenses..........................................................................................................
8,824.0
9,209.7
4.4
crease from 1996. This increase is partly due to a
Pension and profit-sharing plans..........................................................................................................
707.0
728.3
3.0
change in law, again increasing the limit on expensRent on machinery and equipment..........................................................................................................
6,926.9
7,358.2
6.2
ing certain capital expenditures, from $17,500 to
Rent on other business property..........................................................................................................
21,589.4
21,967.7
1.8
Repairs..........................................................................................................
10,715.0
10,897.4
1.7
$18,000 for Tax Year 1997 [7]. The 1997 depreciaSalaries and wages..........................................................................................................
56,322.1
57,746.2
2.5
tion deduction accounted for 4.2 percent of total
Supplies..........................................................................................................
18,777.1
19,546.5
4.1
business deductions. Depreciation deductions as a
Taxes paid..........................................................................................................
13,736.1
13,774.1
0.3
percentage of total business deductions remained
Travel..........................................................................................................
7,179.0
7,452.6
3.8
Utilities..........................................................................................................
18,161.6
18,575.1
2.3
well below the 1985 (pre-TRA86) level of 5.7 perHome office business deductions..........................................................................................................
3,769.0
3,817.5
1.3
cent.
Other business deductions..........................................................................................................
61,828.6
67,336.5
8.9
Beginning with Tax Year 1992, certain smaller
¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for
businesses
could elect to not itemize depreciation and
business deductions on Schedule C-EZ, the totals shown in the statistics exceed the sum
of the detailed deductions; the detailed deductions are, therefore, slightly understated.
other business deductions by filing Schedule C-EZ,
² Less than 0.05 percent.
Net Profit From Business, a simplified version of
NOTE: Percentage increases were calculated after rounding.
Schedule C, Profit or Loss From Business. (Schedule C and Schedule C-EZ are the source of sole
percent increase from the 1996 amount. Figure D
proprietorship statistics.) Taxpayers could use
graphically presents the main components of total
Schedule C-EZ if they: had business expenses of
business expenses. The largest component, salaries
$2,500 or less; used the cash accounting method; had
and wages, accounted for 15.9 percent of the total.
no inventories; did not report a deficit from the
For 1997, salaries and wages totaled $57.7 billion,
business; had only one business as a sole proprietor;
2.5 percent more than for 1996 (Figure C). The next
had no employees; were not required to file Form
largest components were car and truck expenses
4562, Depreciation and Amortization, for the busi-
Sole Proprietorship Returns, 1997
FigureD
Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 1997 ¹
Car and truck expenses
10.6%
Commissions
3.0%
Other business
deductions²
33.7%
Depreciation
7.9%
Insurance
3.7%
$364.3 billion
Rent on business
property, machinery, and
equipment
8.0%
Repairs
3.0%
Utilities
5.1%
Supplies
5.4%
Taxes paid
3.8%
Salaries and wages
15.9%
¹ Total business expenses equal all business deductions minus cost of sales and operations.
² Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional
services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office deductions. Other business
deductions also include all Schedule C-EZ deductions ($1.2 billion).
NOTE: Detail may not add to 100 percent because of rounding.
FigureE
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1984-1997
[Money amounts are in billions of dollars]
Constant dollars
Current dollars
Tax year
Net income
Deficit
(1)
(2)
Depreciation ³
1984..................................................................................
89.8
19.1
1985..................................................................................
98.8
20.0
1986..................................................................................
110.5
20.1
1987..................................................................................
123.8
18.3
1988..................................................................................
145.5
19.2
1989..................................................................................
152.4
19.7
1990..................................................................................
161.7
20.2
1991..................................................................................
162.4
20.9
1992..................................................................................
173.5
19.5
1993..................................................................................
177.0
20.5
1994..................................................................................
187.8
21.0
1995..................................................................................
191.7
22.5
1996..................................................................................
200.1
23.4
1997..................................................................................
210.5
23.8
Net income
Deficit
1,2
Percentage increase in constant dollars
Depreciation ³
1,2
Net income
Deficit
Depreciation ³
(3)
(4)
(5)
(6)
(7)
(8)
(9)
23.9
26.3
26.4
25.6
26.1
24.5
23.7
23.1
23.3
25.0
26.2
26.2
27.4
28.6
118.4
125.9
137.1
149.0
169.0
169.9
172.7
166.9
173.5
172.5
178.7
178.4
182.8
188.6
25.1
25.5
24.9
22.0
22.3
21.9
21.6
21.5
19.5
20.0
20.0
20.9
21.3
21.3
31.5
33.5
32.8
30.8
30.3
27.3
25.4
23.7
23.3
24.3
24.9
24.4
25.0
25.6
10.1
6.3
8.9
8.7
13.4
0.5
1.6
-3.4
4.0
-0.6
3.6
-0.2
2.5
3.2
0.7
1.6
-2.4
-11.6
1.4
-1.8
-1.4
-0.5
-9.3
2.6
-4.5
1.9
--
4.3
6.3
-2.1
-6.1
-1.6
-9.9
-7.0
-6.7
-1.7
4.3
2.5
-2.0
2.5
2.4
¹ Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of
Economic Analysis in the Survey of Current Business , August, 1998. The deflator represents the annual average of current-weighted prices, based on 1992=100.
² The overall implicit price deflator for gross domestic product was revised for 1995 and 1996.
³ For 1991-1995, excludes depreciation reported on Form 8829 for home office business.
NOTE: Percentage increases were calculated after rounding.
9
Sole Proprietorship Returns, 1997
FigureF
Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Divisions, Tax Year 1997
[Money amounts are in millions of dollars]
Number of returns
Industrial division
Total
(1)
Total business receipts
With
Percentage
Schedule
of
C-EZ
total
(2)
(3)
Total
(4)
Total business deductions
On
Percentage
Schedule
of
C-EZ
total
(5)
(6)
On
Total
Percentage
Schedule
of
C-EZ
total
(7)
(8)
(9)
All nonfarm industries..................................................................................................
17,176,487
2,414,035
14.1
870,392.3
11,263.6
1.3
683,872.4
1,212.2
0.2
Construction..................................................................................................
2,196,762
314,454
14.3
130,764.7
1,842.3
1.4
107,314.8
148.1
0.1
Transportation and
public utilities..................................................................................................
780,994
53,255
6.8
45,690.0
258.4
0.6
38,732.2
36.1
0.1
Wholesale and retail trade..................................................................................................
3,132,594
223,289
7.1
254,642.3
Finance, insurance, and
929.6
0.4
237,439.7
117.5
(¹)
75,595.1
298,983.8
510.7
6,861.8
0.7
2.3
51,317.9
193,283.4
72.9
775.3
0.1
0.4
All other industries..................................................................................................
1,344,116
200,114
14.9
64,716.5
860.6
1.3
55,784.3
62.4
0.1
real estate..................................................................................................
1,314,029
89,548
6.8
Services..................................................................................................
8,407,991
1,533,374
18.2
¹ Less than 0.05 percent.
NOTE: Detail may not add to totals because of rounding.
10
ness; claimed no deduction for home business expenses; and had no prior-year disallowed passive
activity losses from the business. Since taxpayers
using Schedule C-EZ did not itemize business deductions, the detailed deductions in Table 2 are slightly
understated and will not add to the totals.
Figure F presents the numbers and percentages
of nonfarm sole proprietorship returns filed on
Schedule C-EZ by industrial division. More than 2.4
million taxpayers filed Schedule C-EZ for Tax Year
1997, an increase of 12.2 percent from 1996. Of the
Schedule C-EZ returns filed for 1997, taxpayers in
the services industries filed 1.5 million returns, or
63.5 percent. For 1997, business receipts from
Schedule C-EZ filers totaled almost $11.3 billion, or
1.3 percent of total business receipts reported. However, the business deductions reported on Schedule
C-EZ returns accounted for only 0.2 percent of total
business deductions for all industries. Even in the
services division with its concentration of Schedule
C-EZ filers, deductions reported on Schedule C-EZ
accounted for only 0.4 percent of total business
deductions.
ProfitsandLosses
All of the principal industrial divisions reported
increased sole proprietorship profits for 1997. Figure
B presents total profits for all industries (in both
current and constant dollars), while Figure G presents profits by industrial group [8]. Total profits
10
FigureG
Nonfarm Sole Proprietorship Profits, by Selected
Industrial Groups, Tax Years 1996 and 1997
[Money amounts are in billions of dollars]
Net income less deficit
Industrial group
1996
1997
Percentage
increase
(1)
(2)
(3)
All nonfarm industries.........................................................................................................
176.8
186.6
5.6
Construction.........................................................................................................
21.7
23.5
8.0
Special trade contractors.........................................................................................................
18.3
19.9
8.7
Transportation and public utilities.........................................................................................................
5.7
6.9
22.2
Wholesale and retail trade.........................................................................................................
16.7
17.2
3.1
Wholesale trade.........................................................................................................
5.3
4.9
-6.4
Retail trade.........................................................................................................
11.4
12.3
7.5
Food stores.........................................................................................................
1.3
1.3
0.2
Automotive dealers and
service stations.........................................................................................................
1.9
1.6
-13.4
Eating and drinking places.........................................................................................................
1.0
1.5
46.6
Finance, insurance, and real estate.........................................................................................................
22.4
24.3
8.6
Finance.........................................................................................................
1.8
2.1
17.9
Insurance.........................................................................................................
9.0
8.6
-5.2
Real estate.........................................................................................................
11.5
13.6
17.9
Services.........................................................................................................
102.0
105.8
3.7
Business and personal services.........................................................................................................
23.1
23.6
2.2
Medical and health services.........................................................................................................
33.7
32.3
-4.1
Legal services.........................................................................................................
11.4
12.1
6.0
Consulting and management services.........................................................................................................
13.1
16.4
25.7
All other industries ¹.........................................................................................................
8.3
9.0
7.9
¹ Includes agricultural services, forestry, and fishing; mining; manufacturing; and nature of
business not allocable.
NOTE: Detail may not add to totals because of rounding. Percentage increases were
calculated before rounding.
Sole Proprietorship Returns, 1997
increased 5.6 percent, from $176.8 billion for 1996
to $186.6 billion for 1997. Transportation and public
utilities, a relatively small division, reported the
largest percentage change in profits for 1997, a 22.2percent increase. Of the larger divisions, finance,
insurance, and real estate reported an 8.6-percent
increase in profits. The finance and real estate
groups led this division’s growth in profits, both
showing 17.9-percent increases. The services division, the largest of the industrial divisions, produced
a 3.7-percent increase.
TRA86 may have influenced 1996 sole proprietorship profits through its placement of restrictions
on “passive losses.” Beginning in 1987, these restrictions were an effort to curb investment in “tax
shelters” [9]. However, the restrictions had a limited
effect on overall sole proprietorship profits, amounting to $200.0 million in nondeductible losses reported for 1997.
In constant dollars, total profits increased 3.6
percent for 1997 (Figure B), surpassing the 2.5percent increase from the previous year. For the first
time since 1990, sole proprietorships had 2 consecutive years of constant dollar growth in profits. Prior
to 1997, profits increased every other year starting
with 1990. Figure E presents net income and deficit
for sole proprietorships between 1984 and 1997, in
current and constant dollars. For 1997, net income
(in constant dollars) increased 3.2 percent, and deficits (in constant dollars) remained virtually unchanged.
IndustryTrends
Using receipts as a measure of business size, Figures
A and H show that services continued to be the
largest sole proprietorship industrial division for
1997 with 34.4 percent of all business receipts. Total
receipts for this division, at $299.0 billion, were 4.0
percent more than the $287.5 billion reported for
1996. Figures G and I show that services division
profits grew 3.7 percent to $105.8 billion, accounting
for 56.7 percent of sole proprietorship profits for
1997. Medical services had the largest profits in the
division, reporting almost one third of total services
profits. However, small declines in both receipts and
deductions for this group led to a 4.1-percent decline
in profits for 1997. All of the other major groups
showed some growth. The largest increases in
receipts and deductions (19.8 percent and 13.8
percent, respectively) were for the consulting and
management services group, producing a 25.7percent increase in profits. The business and
personal services group reported an increase in both
receipts and deductions. The net effect of these
changes was increased profits (2.2 percent) to a level
of $23.6 billion. Profits from business and personal
services sole proprietorships comprised 22.3 percent
of total profits for the services division. Sole proprietorships in the legal services group reported
increased receipts and deductions, resulting in a 6.0percent growth in profits.
The second largest sole proprietorship industrial
division with 29.3 percent of total receipts was
wholesale and retail trade. A 2.5-percent decrease in
receipts for this division, accompanied by a slightly
larger 2.9-percent decrease in deductions, led to
moderate growth in profits (a 3.1-percent increase).
Within this division, the wholesale trade group
showed a 4.0-percent decrease in receipts and a 3.6percent decrease in deductions, leading to a 6.4percent decrease in profits. The other component of
this division, the retail trade group, reported declines
in both receipts and deductions (2.2 percent and 2.7
percent, respectively), and showed a 7.5-percent
increase in profits. Sole proprietorships in the retail
trade group accounted for 84.5 percent of the receipts
and 71.4 percent of the profits for the division.
Within the retail trade group, eating and drinking
places reported a 46.6-percent growth in profits.
This substantial growth contrasts with the 0.2-percent
increase and 13.4-percent decease in profits shown
for food stores and automotive dealers and services
stations groups, respectively.
The third largest industrial division was construction, with receipts totaling $130.8 billion. This
amount was 15.0 percent of all sole proprietorship
receipts for 1997, representing a 2.7-percent increase
from the 1996 amount. Deductions likewise increased by 1.6 percent. Construction profits increased 8.0 percent for 1997, totaling $23.5 billion.
Special trade contractors reported the largest portion
(84.7 percent) of these profits. As a group, they
showed increases of 4.9 percent for receipts and 8.7
percent for profits.
The fourth largest division was finance, insurance, and real estate, which accounted for 8.7 percent
11
Sole Proprietorship Returns, 1997
FigureH
Nonfarm Sole Proprietorship Total Business Receipts, Tax Year 1997
All other industries
7%
Construction
15%
Transportation and
public utilities
5%
Services
35%
$870.4 billion
Wholesale and retail
trade
29%
Finance, insurance, and
real estate
9%
12
FigureI
Nonfarm Sole Proprietorship Total Business Profits, Tax Year 1997
All other industries
5%
Construction
13%
Transportation and public
utilities
4%
Wholesale and retail
trade
9%
$186.6 billion
Services
56%
12
Finance, insurance, and
real estate
13%
Sole Proprietorship Returns, 1997
of sole proprietorship receipts for 1997. Receipts
increased 17.0 percent to $75.6 billion, and deductions increased 21.6 percent to $51.3 billion, yielding
an 8.6-percent growth in profits. This growth in
profits was the second largest percentage gain in
profits of all the principal industrial divisions. The
finance group showed substantial increases in returns
(up 41.8 percent) and both receipts (55.3 percent)
and deductions (60.6 percent). These increases
were probably due, in part, to the large growth of
activity in the stock market for 1997. The large 17.9percent increases in profits for both the finance and
real estate groups more than compensated for the
5.2-percent decline in profits for the insurance group.
Summary
Profits for nonfarm sole proprietorships for 1997 grew
5.6 percent to $186.6 billion. Receipts and deductions increased 3.2 percent and 2.6 percent, respectively. All of the principal industrial divisions showed
increased profits for 1997. Of the divisions that accounted for most of the profits, finance, insurance, and
real estate reported the largest percentage growth, 8.6
percent. The services division remained the largest
sole proprietorship industrial division, accounting for
34.4 percent of receipts and 56.7 percent of profits.
Services division receipts grew 4.0 per-cent to
$299.0 billion, while profits grew 3.7 percent to
$105.80 billion. In constant dollars, total nonfarm
sole proprietorship profits increased 3.6 percent. For
the first time since Tax Year 1990, there were 2
consecutive years of constant dollar growth.
DataSourcesandLimitations
The 1997 sole proprietorship estimates are based on
a stratified probability sample of unaudited individual income tax returns, Forms 1040 and 1040PC
(including electronically-filed returns), processed by
the Internal Revenue Service during 1998. Returns
in the sample were stratified based on: (1) the
presence or absence of Schedule C, Profit or Loss
From Business (Sole Proprietorship), or Schedule CEZ, Net Profit From Business, and Schedule F, Farm
Income and Expenses; (2) the larger of positive
income or negative income (i.e., “adjusted gross
income” before statutory adjustments); and (3) tax
year. The returns were selected at rates that ranged
from 0.02 percent to 100 percent. The 1997 nonfarm
sole proprietorship data are based on a sample of
38,883 returns and a population of 17,181,683
returns [10]. The corresponding sample and population for the 1996 data were 40,075 and 17,171,195
returns, respectively.
Since the data presented in this article are estimates based on a sample of returns filed, they are
subject to sampling error. To properly use the statistical data provided, the magnitude of the potential
sampling error must be known; coefficients of variation (CV’s) are used to measure that magnitude.
Figure J presents estimated coefficients of variation
for the number of returns and money amounts for
selected items and industrial divisions. The Appendix to this issue of the Bulletin discusses the reliability of estimates based on samples, and the use of
coefficients of variation for evaluating the precision
FigureJ
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial
Divisions, Tax Year 1997
[Coefficients of variation are in percentages]
Coefficients of variation
Industrial division
Total business
receipts ¹
(1)
0.78
All nonfarm industries.................................................................................................
Construction.................................................................................................
2.89
Total business
deductions
Depreciation
Net income
Deficit
(2)
(3)
(4)
(5)
0.69
1.14
2.28
1.53
2.72
3.60
8.45
4.40
Transportation and public utilities.................................................................................................
4.18
3.71
5.57
0.21
5.86
Wholesale and retail trade.................................................................................................
1.96
2.03
3.55
4.61
3.63
Finance, insurance, and real estate.................................................................................................
2.89
2.86
4.22
7.41
5.13
Services… … … … … .................................................................................................
1.37
1.70
3.98
2.48
¹ Positive only.
1.30
13
Sole Proprietorship Returns, 1997
of estimates based on samples.
Notes and References
[1] For 1997, the 17,176,487 nonfarm sole proprietorship returns accounted for 19,218,650 nonfarm
businesses. Actually, more businesses may have
existed than those counted; processing for tax
administration purposes allows only three businesses (reported on separate Schedules C) per
return, and combines any remaining businesses
on one (or more) of the three Schedules C.
Statistics of Income--1981, Sole Proprietorship Returns contains a more detailed explanation of the relationship between proprietors and
proprietorships.
14
For purposes of the statistics, if a proprietor
owned more than one business, the statistics for
each business were combined with those of the
proprietor’s dominant business and included in
the industrial group for that business activity.
When this occurred, the sum of net incomes (for
businesses reporting a positive net income)
reduced by the sum of net deficits (for businesses
reporting a deficit) yielded the profits for a
specific industrial group.
The Standard Industrial Classification Manual,
1987, issued by the U.S. Office of Management
and Budget, was used to classify data by industry. These classifications were applied on a “per
business” (rather than on a “per establishment”)
basis for Statistics of Income by combining
various industry groups, although businesses
were further combined as described above.
While the wording of the industry titles used for
the sole proprietorship statistics diverges somewhat from those appearing in the Standard
Industrial Classification Manual, the definitions
are consistent.
[2] Statistics for “business receipts, total” in Table 2
represent the total receipts of the business,
mainly gross receipts from sales and operations.
Business receipts also include miscellaneous
business receipts, such as incidental sales of
scrap, shown separately in the statistics as “other
business income.” However, business receipts
exclude incidental investment income received
14
through the business. Examples of such incidental investment income are interest, dividends,
income or loss from rents or royalties, and
capital or ordinary gain or loss from the sale of
investment and business property. Sole proprietors report incidental investment income, in
combination with nonbusiness related investment
income, as part of their total income on their
individual income tax returns.
[3] Based on the overall implicit price deflator for
Gross Domestic Product (GDP). See U.S.
Department of Commerce, Bureau of Economic
Analysis, Survey of Current Business, August
1998. Indices used for this article were:
Year
Indices
Year
Indices
1984
1985
1986
1987
1988
1989
1990
75.9
78.5
80.6
83.1
86.1
89.7
93.6
1991
1992
1993
1994
1995
1996
1997
97.3
100.0
102.6
105.1
107.5
109.5
111.6
[4] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from
business income or loss, which is reported on the
attached Schedule C, Profit or Loss From
Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid to
owners qualify as personal income, not as a
business expense, and are, therefore, part of the
owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made
through the business as personal expenses on
Schedule A, Itemized Deductions. However, the
owner of a sole proprietorship may choose to
deduct any foreign taxes paid as a business
expense, unless the owner elects to claim these
taxes as a credit against U.S. income tax.
[5] Business deductions include the home office
business deduction. After 1990, home office
expenses were calculated separately on Form
8829, Expenses for Business Use of Your Home,
and the deductible portion brought forward to
Schedule C. In some cases, these expenses were
limited. Prior to 1990, these expenses were not
Sole Proprietorship Returns, 1997
limited and were included with other expenses,
such as the depreciation deduction, utilities, and
“other” expenses, on Schedule C.
their tax on total “taxable income,” which
includes their business profits, plus any other
income.
[6] The increase in the depreciation deduction for
1993 may be attributed, in part, to a provision of
the Omnibus Budget Reconciliation Act of 1993
(OBRA93). The cost of certain tangible property
(as described in Internal Revenue Code section
179) may be treated as a current expense rather
than a capital expenditure subject to depreciation
deductions. The provision of OBRA93 (related
to these expenses) increased the maximum
amount of investment certain small businesses
could immediately deduct on property placed in
service after 1992, from $10,000 to $17,500. As
a result of this provision, the deduction increased
32.4 percent to $13.5 billion for 1993.
[9] Losses generated by any “flow-through”
business activity (i.e., such as partnerships or S
Corporations for which profits and certain other
amounts pass through to the owners for taxation), in which the taxpayer did not “materially
participate” (i.e., was not involved regularly
and substantially in the operations of the
activity) qualified as passive activity losses.
The Tax Reform Act of 1986 (TRA86) gradually eliminated the use of passive losses as a
means to offset nonpassive income, such as
salaries and wages. TRA86 provided for a 5year phase-in (ending in 1991) of the limitations on passive losses for investments made
prior to 1987; since Tax Year 1991, the restrictions applied to all passive losses. However,
exceptions up to $25,000 were made for certain
real estate losses. Under prior law, passive
losses were fully deductible.
[7] Section 1111 of the Small Business Job Protection Act of 1996 (H.R. 3448, 104th Congress;
Public Law 188) increased the maximum section
179 expense deduction from $17,500 to $18,000
beginning with 1997. The Act set up the maximum 179 expense deduction to be phased in over
7 years to $25,000 for 2003 and thereafter. The
total amount of this deduction for 1997 for all
individual taxpayers (including sole proprietorships) was $19.2 billion, a 6.6-percent increase
from 1996.
[8] Net income minus deficit (loss) before Federal
income tax yields profits. Proprietors compute
[10] The difference between the number of returns
in the population and the total number of
returns in Tables 1 and 2 is mainly due to
returns in which Schedule C income was
moved to other income or wages to avoid
double counting of taxpayers for Gross Domestic Profit calculations. In addition, data from
amended returns and tentative returns are not
reflected in these statistics.
15
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group
Number
of returns
Business
receipts
(1)
(2)
Depreciation
1
deduction
Rent paid
Rent paid
on machinery
and
1
equipment
on other
business
1
property
Net income
less deficit
(3)
(4)
(5)
(6)
(7)
(8)
7,358,163
21,967,711
10,883,658
82,686,988
186,643,910
232,631
204,861
38,766
437
325,447
281,753
83,312
5,829
414,700
325,936
79,198
18,761
3,582,902
3,343,199
666,015
28,247
3,675,044
2,905,014
907,529
-166,687
12,027
127,906
25,724
26,771
1,000
--
92,145
91,344
9,122
12,783
22,162
*8,749
68,947
127,461
31,570
18,366
67,579
*2,819
263,108
1,660,336
725,493
80,244
159,175
*283
105,077
1,858,339
200,756
226,068
550,945
*-6,982
Mining...............................................................................................
124,365
5,731,388
343,281
39,186
Metal mining...............................................................................................
2,412
21,472
4,295
1,313
Coal mining...............................................................................................
*17
*161,117
*4,193
*709
Oil and gas extraction...............................................................................................
112,086
5,117,745
292,972
19,637
Quarrying and nonmetallic minerals, except fuels...............................................................................................
9,849
431,055
41,822
17,526
45,442
50
*36
29,737
15,619
138,572
377
*1,076
123,583
13,535
299,343
7,011
*3,449
198,111
90,772
176,539
-23,275
*7,706
199,440
-7,331
Construction...............................................................................................
2,196,762
130,764,670
4,291,107
1,075,890
General building contractors and operative builders...............................................................................................
260,684
31,334,595
559,568
116,943
General building contractors...............................................................................................
232,342
27,715,014
501,215
102,700
Operative builders...............................................................................................
28,342
3,619,581
58,352
14,243
Heavy construction contractors...............................................................................................
27,249
2,823,889
265,230
105,545
Highway and street construction...............................................................................................
6,585
520,151
52,865
13,100
Heavy construction, except highway...............................................................................................
20,664
2,303,738
212,366
92,445
Special trade contractors...............................................................................................
1,908,829
96,606,187
3,466,309
853,402
Plumbing, heating, and air conditioning...............................................................................................
144,361
10,478,289
371,958
43,391
Painting and paperhanging...............................................................................................
225,902
7,216,776
221,210
62,876
Electrical work...............................................................................................
113,210
7,860,172
179,163
40,890
Masonry, stonework, tile setting, and plastering...............................................................................................
196,568
10,800,400
256,061
89,104
Carpentering and flooring...............................................................................................
558,319
22,339,426
625,844
107,209
Roofing, siding, and sheet metal work...............................................................................................
115,409
8,051,696
236,968
63,877
Concrete work...............................................................................................
51,205
3,742,628
124,070
43,037
Miscellaneous special trade contractors...............................................................................................
503,856
26,116,800
1,451,035
403,019
Manufacturing...............................................................................................
480,365
33,254,751
1,661,932
399,951
Food and kindred products...............................................................................................
12,616
2,081,799
45,512
1,660
Textile mill products...............................................................................................
*1,467
*314,227
*9,834
*440
Apparel and other textile products...............................................................................................
34,734
2,238,470
78,860
29,794
Lumber and wood products, except furniture
(including logging)...............................................................................................
95,919
8,537,689
656,148
128,086
Furniture and fixtures...............................................................................................
26,432
1,569,276
46,492
31,550
Printing, publishing, and allied industries...............................................................................................
98,317
4,944,073
153,985
68,681
Leather and leather products...............................................................................................
*2,052
*115,432
*3,894
*39
Stone, clay, and glass products...............................................................................................
19,155
635,322
34,227
2,337
Primary metal industries...............................................................................................
*3,151
*64,973
*299
-Fabricated metal products...............................................................................................
43,023
2,007,816
118,091
29,770
Machinery, except electrical ...............................................................................................
41,705
4,914,759
349,098
51,634
Electrical and electronic equipment ...............................................................................................
17,227
924,861
14,199
1,543
Paper and allied products...............................................................................................
5,753
697,586
15,988
5,684
Other manufacturing industries...............................................................................................
78,813
4,208,468
135,305
48,734
Transportation and public utilities...............................................................................................
780,994
45,690,042
3,991,756
1,257,406
Local and interurban passenger transit...............................................................................................
99,974
2,918,648
150,741
292,449
Taxicabs...............................................................................................
60,990
1,411,810
33,463
244,104
Bus and limousine transportation...............................................................................................
37,912
1,446,806
88,978
48,232
Other highway passenger transportation...............................................................................................
*1,072
*60,032
*28,301
*113
Trucking and warehousing ...............................................................................................
492,521
33,318,681
3,526,772
818,938
Trucking, local and long distance, including
trash collection without own dump...............................................................................................
365,555
31,009,545
3,468,659
781,080
Courier or package delivery service...............................................................................................
123,662
2,270,267
57,373
36,116
Public warehousing...............................................................................................
*3,304
*38,870
*740
*1,743
Water transportation...............................................................................................
9,788
422,148
26,967
3,847
Air transportation...............................................................................................
10,520
286,279
30,753
2,861
Transportation services...............................................................................................
91,399
6,027,035
117,411
72,769
Travel agents and tour operators...............................................................................................
49,633
3,720,361
36,515
25,234
Other transportation services...............................................................................................
41,766
2,306,673
80,897
47,535
Communication services...............................................................................................
58,906
2,431,712
117,612
63,543
Utilities, including dumps, snowplowing,
road cleaning, etc................................................................................................
17,885
285,540
21,500
3,000
Footnotes at end of table.
724,807
109,489
90,300
19,189
3,415
1,549
1,866
611,903
51,040
27,767
48,392
46,456
128,242
84,175
23,441
202,389
769,852
41,573
*51
125,970
1,262,944
381,598
344,074
37,524
67,656
9,905
57,751
813,690
88,759
32,789
38,275
41,957
147,801
36,312
40,390
387,407
514,587
11,342
*7,196
15,843
20,203,271
4,451,993
3,854,012
597,981
380,055
59,628
320,428
15,371,222
1,462,185
1,101,148
1,467,645
2,313,805
2,710,339
1,644,254
720,286
3,951,561
4,376,403
131,672
*11,629
472,942
23,450,389
3,335,662
2,971,144
364,517
245,477
21,118
224,359
19,869,251
1,726,884
2,232,731
1,448,097
2,354,012
6,154,617
1,321,919
355,357
4,275,634
4,377,188
102,411
*56,045
266,874
73,519
47,966
144,326
*3,772
28,303
*217
58,266
95,604
19,243
4,133
126,908
379,839
64,043
27,266
36,761
*16
217,450
197,930
14,920
74,888
*454
7,904
*1,063
26,062
97,337
4,940
-54,708
950,061
63,540
33,577
26,566
*3,396
773,598
988,815
243,554
646,066
*51,174
90,402
*3,973
356,916
829,233
82,471
*18,235
449,323
3,897,366
169,647
44,156
125,189
*302
2,825,840
538,264
476,159
614,525
*10,802
68,807
*19,828
211,593
907,693
254,935
*-25,108
874,360
6,941,712
671,758
380,344
293,003
*-1,588
4,944,089
210,659
6,791
-6,388
12,077
45,085
31,560
13,526
28,119
760,064
12,273
*1,261
11,355
16,735
54,042
13,478
40,564
27,690
2,729,829
94,826
*1,185
24,108
43,853
407,501
135,964
271,537
392,257
4,225,407
700,485
*18,197
61,155
59,687
563,793
212,866
350,927
571,366
6,676
3,102
34,161
69,863
Agricultural services, forestry, and fishing...............................................................................................
564,734
23,645,626
1,703,435
Agricultural services...............................................................................................
486,968
20,378,460
1,357,429
Veterinary services, including pets...............................................................................................
27,622
3,645,722
140,575
Livestock breeding...............................................................................................
21,126
409,507
48,384
Animal services, except livestock breeding,
and veterinary...............................................................................................
109,082
3,269,015
225,609
Landscape and horticultural services...............................................................................................
270,548
10,387,964
821,086
Farm labor, management, and crop services...............................................................................................
58,590
2,666,253
121,775
Forestry, except logging...............................................................................................
16,634
1,073,756
85,242
Commercial fishing...............................................................................................
57,248
2,167,277
256,773
Hunting and trapping...............................................................................................
*3,885
*26,133
*3,992
16
Payroll 1,3
29,061,859
All nonfarm industries...............................................................................................
17,176,487
870,392,286
16
Interest paid
deduction 1,2
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group
Rent paid
Rent paid
on machinery
and
on other
business
equipment ¹
property ¹
Number
of returns
Business
receipts
Depreciation
deduction ¹
Interest paid
deduction 1,2
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Wholesale and retail trade...............................................................................................
3,132,594
254,642,287
4,474,373
1,092,289
7,873,463
2,643,933
17,454,541
17,215,295
Wholesale trade...............................................................................................
348,193
39,353,838
561,789
92,276
416,882
267,172
1,371,670
4,929,770
wood, metals, etc................................................................................................
205,779
21,192,944
Nondurable goods, including food, fiber,
341,283
47,787
220,360
149,518
806,947
3,377,040
chemicals, etc................................................................................................
142,413
18,160,894
Retail trade...............................................................................................
2,784,402
215,288,449
220,507
3,912,584
44,489
1,000,013
196,522
7,456,581
117,654
2,376,760
564,723
16,082,872
1,552,731
12,285,524
Payroll 1,3
Net income
less deficit
Durable goods, including machinery,
Building materials, paint, hardware,
garden supply, and mobile home dealers...............................................................................................
71,919
9,137,257
227,556
Lumber and other building materials dealers...............................................................................................
24,780
2,983,733
83,648
47,095
20,705
122,236
41,639
187,158
44,997
838,655
324,123
812,032
346,820
Paint, glass, and wallpaper stores...............................................................................................
11,199
611,521
6,600
Hardware stores...............................................................................................
13,188
2,803,938
41,228
2,657
17,092
16,118
45,858
14,694
53,913
106,523
172,683
40,428
221,441
Retail nurseries and garden supply stores...............................................................................................
16,913
1,860,652
81,697
6,345
14,094
52,736
158,883
152,010
14,382
50,966
297
7,704
4,527
183,036
20,818
32,956
76,442
212,121
51,333
396,752
Variety stores...............................................................................................
11,595
1,477,020
10,871
Computer and software stores...............................................................................................
11,606
1,209,509
15,537
3,840
723
93,489
28,220
8,050
2,879
74,693
46,835
165,940
80,866
Mobile home dealers...............................................................................................
5,839
877,413
General merchandise stores...............................................................................................
40,407
4,634,001
Other general merchandise stores...............................................................................................
17,205
1,947,472
24,557
3,141
61,327
22,027
90,593
149,946
463,060
283,838
114,679
68,693
858,039
548,186
258,844
188,466
2,252,622
1,456,050
1,299,802
918,328
57,490
121,732
21,280
24,705
110,272
199,582
37,237
33,140
368,039
428,534
57,364
324,109
Automotive dealers and service stations...............................................................................................
168,505
49,737,433
414,620
84,544
656,231
474,058
2,284,843
1,641,972
Food stores...............................................................................................
131,615
34,559,055
Grocery stores...............................................................................................
75,860
26,877,171
Retail bakeries...............................................................................................
17,178
1,783,130
Miscellaneous food stores...............................................................................................
38,576
5,898,753
Motor vehicle dealers--new car
dealers (franchised)...............................................................................................
8,559
1,387,901
7,490
4,208
3,234
20,264
59,825
18,927
Motor vehicle dealers--used cars only...............................................................................................
76,543
16,076,271
75,282
Auto parts and accessories and
9,764
177,601
182,928
619,279
659,786
selected home supply stores...............................................................................................
30,446
3,595,801
48,342
29,673
64,776
40,076
236,367
299,667
217,368
11,024
31,603
120
367,497
16,982
144,671
20,631
1,143,894
35,104
493,431
2,462
Miscellaneous automotive dealers...............................................................................................
22,570
4,920,341
55,115
Apparel and accessory stores...............................................................................................
111,500
8,614,870
139,282
9,176
67,438
26,141
690,900
65,488
97,273
190,374
615,398
167,699
548,015
Gasoline service stations...............................................................................................
25,663
22,656,763
Boat dealers...............................................................................................
4,723
1,100,356
Men's and boys' clothing stores...............................................................................................
5,579
666,498
4,365
13,962
53,218
8,283
44,509
29,961
Women's ready-to-wear stores...............................................................................................
24,659
1,488,220
41,357
Women's accessory and specialty stores...............................................................................................
17,099
1,078,226
9,787
14,443
1,546
137,167
56,372
13,151
16,302
101,154
80,289
-37,239
101,275
Family clothing stores...............................................................................................
18,051
1,391,883
Shoe stores...............................................................................................
6,440
1,175,590
20,778
11,131
1,073
9,237
120,654
78,280
25,224
10,003
128,288
47,977
43,051
77,472
elsewhere classified...............................................................................................
39,671
2,814,452
51,864
Furniture and home furnishings stores...............................................................................................
107,352
9,377,117
267,735
27,176
51,353
245,208
432,501
24,310
139,119
213,182
1,036,585
333,495
728,417
Apparel and accessory stores, not
Furniture stores...............................................................................................
30,448
3,687,538
129,152
12,529
208,128
59,450
421,762
177,656
Home furnishings and equipment
stores, except appliances...............................................................................................
31,108
2,556,464
37,464
11,402
95,971
48,954
288,962
247,589
24,609
2,807
70,315
45,820
16,450
9,941
160,077
134,856
175,778
89,433
Household appliance stores...............................................................................................
19,179
1,457,423
42,415
Television, audio, and electronic stores...............................................................................................
8,251
1,162,689
27,969
Music and record stores...............................................................................................
18,367
513,002
30,734
6
12,268
4,324
30,928
37,961
Eating and drinking places...............................................................................................
252,827
28,764,269
Eating places...............................................................................................
136,631
22,425,239
799,343
639,000
219,015
175,582
1,720,231
1,446,960
476,195
360,499
5,164,658
4,417,089
1,537,207
1,050,070
Drinking places...............................................................................................
54,747
4,834,113
Catering services...............................................................................................
61,450
1,504,918
130,876
29,467
27,067
16,366
215,418
57,854
107,638
8,059
669,464
78,106
242,237
244,900
Miscellaneous retail stores...............................................................................................
1,900,277
70,464,447
1,550,023
408,185
2,793,407
711,158
3,677,989
5,321,329
23,325
42,597
5,710
28,059
49,791
177,814
9,776
31,238
299,743
180,231
266,005
174,013
Used merchandise and antique stores...............................................................................................
117,829
3,631,249
78,660
Sporting goods and bicycle shops...............................................................................................
49,200
3,741,163
65,268
46,857
6,111
417,839
114,647
35,961
43,939
144,375
167,076
114,753
45,195
Book stores...............................................................................................
17,786
1,124,536
16,526
1,767
86,500
12,211
124,837
34,830
Stationery stores...............................................................................................
8,714
1,039,465
Jewelry stores...............................................................................................
27,615
3,194,405
12,252
37,698
9,735
8,953
62,363
194,787
14,684
33,263
77,222
174,213
94,371
335,372
1,401
*3,515
114,556
*26,409
12,935
*4,295
48,379
*20,525
-2,345
*51,004
Drug stores...............................................................................................
4,240
3,895,898
Liquor stores...............................................................................................
11,095
4,452,581
Hobby, toy, and game shops...............................................................................................
36,689
988,373
22,523
Camera and photographic supply stores...............................................................................................
*5,076
*363,697
*5,808
Luggage and leather goods stores...............................................................................................
*2,407
*187,982
*1,018
*199
*10,291
*2,383
*6,256
*17,302
Fabric and needlework stores...............................................................................................
12,755
560,349
16,284
Catalog or mail order...............................................................................................
114,182
1,732,993
22,390
4,954
12,057
49,115
18,490
4,962
10,356
67,684
41,564
-11,693
-22,629
Vending machine selling...............................................................................................
66,877
2,045,849
244,210
Sales by door-to-door, telephone, etc................................................................................................
1,102,799
18,866,536
481,616
9,422
124,096
9,025
332,867
31,828
190,590
41,044
398,433
101,935
2,750,972
Gift, novelty, and souvenir shops...............................................................................................
62,925
3,159,680
54,279
24,540
265,463
30,728
209,456
107,026
Fuel oil dealers...............................................................................................
4,264
1,998,131
Florists...............................................................................................
46,022
3,483,564
29,464
109,614
2,585
19,441
5,624
162,449
15,324
45,180
89,754
527,195
63,525
156,202
Other retail shops...............................................................................................
209,802
15,997,995
Footnotes at end of table.
286,489
98,783
695,378
181,502
1,060,003
1,045,491
17
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group
Number
of returns
Business
receipts
Depreciation
deduction ¹
(1)
(2)
(3)
Rent paid
Rent paid
on machinery
and
on other
business
equipment ¹
property ¹
Finance, insurance, and real estate...............................................................................................
1,314,029
75,595,055
1,582,804
Finance...............................................................................................
182,730
23,163,149
Interest paid
deduction 1,2
Payroll 1,3
Net income
less deficit
(4)
(5)
(6)
(7)
(8)
541,017
1,159,813
1,323,742
3,175,416
24,264,460
2,148,732
214,523
64,453
237,034
554,953
587,865
Credit agencies and mortgage bankers...............................................................................................
24,553
1,097,148
10,386
7,814
23,328
43,003
31,514
27,804
Security and commodity brokers and services...............................................................................................
75,834
14,471,710
79,657
Security brokers and dealers...............................................................................................
23,311
8,975,782
19,125
24,427
2,045
113,977
33,391
308,421
222,022
192,768
58,214
895,387
-11,592
20,973
72,050
74,312
115,225
858,325
Investment advisors and services...............................................................................................
40,454
3,294,230
51,244
Commodity contract brokers, exchanges
and services...............................................................................................
12,069
2,201,698
Other financial services...............................................................................................
82,343
7,594,290
9,287
124,480
1,410
32,212
8,537
99,729
12,087
203,529
19,329
363,583
48,653
1,225,542
Insurance agents and brokers...............................................................................................
332,118
17,957,535
333,972
179,428
468,875
195,399
1,603,631
7,989,875
Insurance services...............................................................................................
41,389
1,808,997
59,344
36,463
44,165
10,004
266,654
572,662
Real estate...............................................................................................
757,791
32,665,375
974,965
Real estate property managers...............................................................................................
54,616
1,574,693
70,661
260,672
13,943
409,738
40,818
563,385
58,479
717,267
108,123
13,553,191
407,195
Operators and lessors of buildings...............................................................................................
9,049
828,204
76,947
2,045
16,749
122,724
95,041
8,057
Operators and lessors, other than buildings...............................................................................................
5,437
436,848
38,784
1,320
11,156
51,374
26,477
61,645
235,523
--
328,297
2,346
208,374
4,050
431,183
10,589
12,867,821
152,823
Real estate agents and brokers...............................................................................................
663,123
27,185,203
710,480
Title abstract companies...............................................................................................
9,888
326,465
8,885
69,206
7,841
10,373
118,384
45,854
55,650
Services...............................................................................................
8,407,991
298,983,752
10,951,907
Hotels and other lodging places...............................................................................................
49,754
4,812,662
526,918
Hotels, motels, and tourist courts...............................................................................................
33,717
3,738,895
421,938
Subdividers and developers...............................................................................................
15,679
2,313,962
2,710,252
21,023
18,572
10,676,698
67,096
49,920
3,597,804
602,650
469,033
29,645,925
704,136
549,476
105,774,261
96,500
67,442
Rooming and boarding houses...............................................................................................
9,323
717,638
45,314
24,832
1,745
12,019
75,356
120,971
59,666
706
5,157
58,262
33,689
4,226
Personal services...............................................................................................
1,384,187
31,286,346
1,107,178
Coin-operated laundry and dry cleaning...............................................................................................
13,626
725,450
71,957
512,263
22,374
2,528,857
135,750
303,620
19,497
3,065,418
45,228
8,535,622
74,629
dry cleaning, garment, carpet, and upholstery...............................................................................................
59,250
3,720,470
215,344
110,104
Camps and camping parks...............................................................................................
6,714
356,130
Other cleaning services, including laundry,
18
411,564
52,051
707,563
460,090
Photographic portrait studios...............................................................................................
39,831
1,286,325
Beauty shops...............................................................................................
440,119
10,944,644
67,693
265,921
16,702
210,017
53,278
1,449,596
5,557
111,073
64,683
1,430,067
199,640
3,165,123
Barber shops...............................................................................................
65,980
1,370,754
38,088
48,908
139,740
13,218
108,633
635,163
Funeral service and crematories...............................................................................................
9,779
1,006,303
63,955
9,997
14,166
28,340
61,488
203,853
Miscellaneous personal services, including
valet parking...............................................................................................
755,601
12,232,399
384,220
94,161
324,762
73,884
647,758
3,797,124
Business services...............................................................................................
2,097,503
53,537,140
2,266,856
482,960
936,394
454,370
4,643,867
15,060,260
Advertising, except direct mail...............................................................................................
66,910
3,213,943
20,260
38,210
7,174
71,400
794,675
Consumer credit reporting and collecting services...............................................................................................
2,725
14,934
18
-Janitorial and related services to buildings...............................................................................................
440,598
7,612,937
205,740
45,126
74,280
6
44,565
-47,616
-1,580,377
*2,571
2,390,339
Computer and data processing services...............................................................................................
222,640
4,130,464
222,408
31,635
57,370
39,159
137,513
1,550,774
54,724
12,358
145,982
26,269
18,494
25,991
237,193
54,895
1,655,768
195,855
Mailing, reproduction, commercial art and
photography, and stenographic services...............................................................................................
199,797
5,204,748
245,942
Computer repair, maintenance, and leasing...............................................................................................
41,267
1,854,346
110,593
Equipment rental and leasing, except computer
and automotive...............................................................................................
28,367
1,097,085
302,916
6,867
30,904
48,281
69,679
160,150
Other business services...............................................................................................
1,095,199
30,408,684
1,104,958
311,989
593,088
267,655
2,492,808
8,310,128
291,021
6,263
981,469
2,756
346,618
31,406
2,803,947
48,137
2,776,816
-11,616
Automotive repair and services...............................................................................................
386,169
24,099,954
1,028,852
Automotive rentals or leasing, without drivers...............................................................................................
7,994
982,857
138,619
Automobile parking, except valet...............................................................................................
*1,979
*137,363
*3,588
*2,879
*48,655
*6,401
*2,538
*24,377
649,361
214,627
825,605
237,043
2,373,514
2,029,115
Automotive services, except repair...............................................................................................
91,937
4,553,572
237,284
Miscellaneous repair services...............................................................................................
256,398
9,596,230
291,921
67,252
43,765
104,454
209,041
71,767
121,978
379,759
777,236
734,941
2,094,188
TV and audio equipment repair...............................................................................................
18,651
583,642
14,196
Automotive repair shops...............................................................................................
284,260
18,426,162
307
15,573
3,762
42,369
173,180
Electrical repair, except TV and audio equipment...............................................................................................
56,115
1,998,326
41,284
9,082
37,054
39,626
154,054
425,172
Reupholstery and furniture repair...............................................................................................
51,540
1,745,311
32,550
Other miscellaneous repair...............................................................................................
130,092
5,268,951
203,891
9,150
25,226
80,983
75,431
10,029
68,561
245,150
335,663
543,719
952,117
293,344
74,548
88,305
25,007
123,555
382,581
Motion picture and video production...............................................................................................
59,650
1,669,363
209,969
61,656
23,896
13,293
50,522
314,097
*8,197
Motion pictures...............................................................................................
70,239
2,435,655
Motion picture and tape distribution and
allied services...............................................................................................
*220
*15,468
*43
--
--
*112
--
Motion picture theaters...............................................................................................
*585
*108,158
*2,551
*353
*4,395
*4,128
*17,630
*7,447
Video tape rentals...............................................................................................
9,784
642,666
80,781
12,540
60,014
7,474
55,403
52,840
Amusement and recreation services, except
motion pictures...............................................................................................
638,344
13,575,585
932,474
113,284
395,065
156,958
579,646
3,515,454
related services...............................................................................................
332,572
6,086,148
426,904
36,504
106,440
36,290
126,190
2,082,817
Bowling centers...............................................................................................
*611
*196,719
Professional sports and racing,
*20,697
*631
*741
*19,315
*40,686
*29,216
Entertainers, producers, agents, and
18
including promoters and managers..........................
92,521
2,957,497
235,732
16,296
25,197
26,918
103,328
793,740
Other amusement and recreation services.................
192,141
4,077,585
231,825
58,272
231,057
71,834
298,366
537,029
Physical fitness facilities..............................................
Footnotes at end of table.
20,499
257,636
17,316
1,581
31,631
2,601
11,076
72,651
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group
Number
Business
of returns
receipts
Depreciation
1
deduction
(1)
(2)
(3)
Rent paid
on machinery
Rent paid
on other
and
1
equipment
business
1
property
deduction 1,2
Payroll 1,3
less deficit
(4)
(5)
(6)
(7)
(8)
2,936,762
903,771
922,144
49,683
293,504
172,330
58,044
2,444
60,609
60,028
414,207
1,136,451
229,969
135,110
22,306
72,363
111,369
7,985
277,097
31,293
358,648
15,395
135,721
12,350
816,422
155,175
345,534
9,512
96,583
41,722
20,178
3
82,259
7,819
57,637
209,803
22,395
103,082
1,984
18,929
25,193
2,373
132,824
34,228
208,122
1,229
10,018
37,315
10,328,175
2,768,238
5,069,391
174,168
515,139
386,928
75,379
6,621
482,504
247,628
602,180
2,871,181
158,286
616,831
459
366,104
462,139
181,495
837,025
239,933
818,050
11,909
56,533
51,820
32,288,203
14,393,722
9,197,277
838,060
1,263,532
633,473
262,404
550,247
296,355
541,271
4,311,862
12,088,877
1,107,534
1,880,589
1,303,979
1,820,064
936,982
293,532
3,855,656
1,598,057
14,824,099
171,742
1,143,524
769,023
Services-Continued
Medical and health services...............................................................................................
804,491
72,697,040
1,765,853
491,645
Offices of physicians...............................................................................................
186,744
25,959,238
400,369
159,060
Offices of dentists...............................................................................................
102,684
24,607,538
742,157
132,732
Offices of osteopathic physicians...............................................................................................
7,816
1,387,908
28,734
2,418
Offices of chiropractors...............................................................................................
29,008
3,673,340
131,102
50,571
Offices of optometrists...............................................................................................
13,916
2,837,071
111,430
18,011
Offices of podiatrists...............................................................................................
5,502
775,701
23,736
15,333
Registered and practical nurses...............................................................................................
47,203
754,768
4,281
1,060
Nursing and personal care facilities...............................................................................................
37,014
1,977,357
63,782
11,845
Medical and dental laboratories...............................................................................................
23,473
1,575,121
29,240
8,266
Other medical and health services...............................................................................................
351,132
9,148,998
231,020
92,348
Legal services...............................................................................................
294,356
25,686,437
529,867
228,533
Educational services...............................................................................................
251,859
2,965,746
118,235
19,242
Child day care...............................................................................................
520,815
6,374,781
292,953
28,545
Ministers and chaplains...............................................................................................
188,913
2,193,077
37,224
34,582
Engineering services...............................................................................................
95,904
3,958,173
182,945
28,825
Architectural services...............................................................................................
46,661
2,970,299
128,667
12,961
Surveying services...............................................................................................
14,859
859,097
38,496
1,678
Accounting, auditing, and bookkeeping services...............................................................................................
311,338
8,377,809
404,615
61,199
Management services...............................................................................................
75,676
3,095,004
75,903
22,320
Consulting services...............................................................................................
823,237
27,841,973
847,003
223,861
Public relations...............................................................................................
15,808
444,346
9,129
4,790
Counseling, except health practitioners...............................................................................................
81,480
2,176,398
73,472
13,208
Nature of business not allocable...............................................................................................
174,652
2,084,714
61,265
9,541
Footnotes at end of table.
Interest paid
Net income
19
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group
Number
of returns
Business
receipts
(9)
(10)
Depreciation
1
deduction
Rent paid
Rent paid
on machinery
and
1
equipment
on other
business
1
property
Net income
(11)
(12)
(13)
(14)
(15)
(16)
6,019,606
17,818,167
7,374,766
71,528,212
210,464,545
208,472
182,954
34,845
135
250,388
224,568
60,325
3,077
300,130
242,024
63,947
14,256
3,304,027
3,105,804
619,127
13,409
4,717,972
3,810,979
964,434
30,825
9,002
119,474
19,498
24,519
1,000
--
80,004
74,453
6,710
12,703
13,117
--
39,863
102,444
21,514
15,579
42,527
--
207,597
1,587,244
678,427
67,212
131,011
--
464,827
2,071,244
279,648
258,458
647,079
*1,456
Mining...............................................................................................
73,399
4,195,799
171,524
37,787
Metal mining...............................................................................................
**
**
**
**
Coal mining...............................................................................................
**18
**146,954
**1,542
**2,019
Oil and gas extraction...............................................................................................
70,499
3,759,619
146,480
18,481
Quarrying and nonmetallic minerals, except fuels...............................................................................................
2,882
289,225
23,503
17,287
31,828
**
**38
16,393
15,396
50,229
**
**269
40,000
9,960
218,596
**
**10,446
145,934
62,216
935,145
**
**8,474
891,964
34,706
Construction...............................................................................................
1,883,389
117,797,385
3,438,034
917,456
General building contractors and operative builders...............................................................................................
219,636
27,285,027
458,087
99,582
General building contractors...............................................................................................
196,874
24,271,116
404,889
86,993
Operative builders...............................................................................................
22,762
3,013,912
53,198
12,589
Heavy construction contractors...............................................................................................
17,572
2,319,559
171,627
99,517
Highway and street construction...............................................................................................
2,425
324,076
33,008
12,275
Heavy construction, except highway...............................................................................................
15,148
1,995,484
138,619
87,242
Special trade contractors...............................................................................................
1,646,181
88,192,798
2,808,320
718,357
Plumbing, heating, and air conditioning...............................................................................................
114,885
9,650,171
305,458
40,102
Painting and paperhanging...............................................................................................
212,684
7,009,851
187,869
56,442
Electrical work...............................................................................................
95,012
7,261,582
157,917
33,388
Masonry, stonework, tile setting, and plastering...............................................................................................
174,848
9,945,308
217,418
78,985
Carpentering and flooring...............................................................................................
494,166
20,390,798
510,991
94,530
Roofing, siding, and sheet metal work...............................................................................................
103,223
7,381,297
223,667
50,580
Concrete work...............................................................................................
41,867
3,251,815
89,121
24,525
Miscellaneous special trade contractors...............................................................................................
409,497
23,301,976
1,115,879
339,804
Manufacturing...............................................................................................
328,693
28,366,414
1,257,300
337,844
Food and kindred products...............................................................................................
9,105
2,013,290
35,344
1,593
Textile mill products...............................................................................................
*1,466
*314,157
*9,834
*440
Apparel and other textile products...............................................................................................
24,077
1,832,455
63,073
26,161
Lumber and wood products, except furniture
(including logging)...............................................................................................
56,405
6,870,543
441,537
111,981
Furniture and fixtures...............................................................................................
20,926
1,454,591
37,740
1,104
Printing, publishing, and allied industries...............................................................................................
68,789
3,928,261
107,673
64,346
Leather and leather products...............................................................................................
*545
*84,949
*1,323
*39
Stone, clay, and glass products...............................................................................................
10,469
537,011
30,864
2,192
Primary metal industries...............................................................................................
3,143
64,968
299
-Fabricated metal products...............................................................................................
32,467
1,615,534
85,136
25,106
Machinery, except electrical ...............................................................................................
31,200
4,410,373
308,394
49,953
Electrical and electronic equipment ...............................................................................................
13,908
924,416
14,107
1,543
Paper and allied products...............................................................................................
*2,527
*244,029
*4,767
*5,349
Other manufacturing industries...............................................................................................
53,667
4,071,837
117,209
48,039
Transportation and public utilities...............................................................................................
603,387
38,610,938
2,867,930
1,075,181
Local and interurban passenger transit...............................................................................................
85,448
2,501,859
106,007
262,533
Taxicabs...............................................................................................
50,526
1,255,502
23,564
244,036
Bus and limousine transportation...............................................................................................
**34,922
**1,246,357
**82,443
**18,498
Other highway passenger transportation...............................................................................................
**
**
**
**
Trucking and warehousing ...............................................................................................
392,563
28,321,638
2,597,562
694,308
Trucking, local and long distance, including
trash collection without own dump...............................................................................................
287,801
26,282,331
2,571,215
658,193
Courier or package delivery service...............................................................................................
101,462
2,007,028
26,009
36,115
Public warehousing...............................................................................................
3,300
32,280
338
-Water transportation...............................................................................................
5,585
330,101
6,509
2,086
Air transportation...............................................................................................
7,012
228,384
9,306
2,326
Transportation services...............................................................................................
58,545
4,868,976
86,369
50,005
Travel agents and tour operators...............................................................................................
23,789
2,810,724
24,079
2,856
Other transportation services...............................................................................................
34,756
2,058,252
62,290
47,149
Communication services...............................................................................................
46,079
2,105,750
50,157
60,925
Utilities, including dumps, snowplowing,
road cleaning, etc................................................................................................
8,155
254,229
12,020
2,999
Footnotes at end of table.
608,458
94,829
76,531
18,298
1,863
1,428
435
511,766
41,999
27,759
47,794
43,441
88,309
82,115
19,054
161,294
593,529
21,419
*51
81,144
904,233
216,054
199,916
16,138
36,627
3,941
32,686
651,552
79,408
30,569
33,139
38,339
125,273
36,161
31,403
277,261
372,067
8,926
*7,196
12,651
17,696,645
3,846,220
3,286,950
559,270
272,569
29,300
243,269
13,577,856
1,362,162
1,094,241
1,305,786
2,024,045
2,322,119
1,391,472
597,110
3,480,921
3,751,927
127,274
*11,618
426,064
25,278,038
3,789,831
3,354,908
434,924
337,663
31,344
306,319
21,150,544
1,837,403
2,284,408
1,508,528
2,426,316
6,381,469
1,373,566
437,475
4,901,380
5,224,914
153,135
*56,103
348,296
55,389
46,073
100,814
*1,864
10,059
*212
45,699
90,272
19,228
*4,133
117,172
323,062
59,115
26,655
**32,460
**
193,341
127,807
10,151
40,097
*454
7,904
*1,063
11,229
90,002
4,940
-49,647
713,244
46,983
24,993
**21,990
**
600,190
751,939
230,928
515,708
*28,267
90,136
*3,973
265,085
774,752
81,958
*18,235
425,989
3,154,823
112,896
-**112,896
**
2,262,840
729,600
496,691
821,043
*20,557
117,243
*19,863
320,403
934,652
257,765
*9,558
940,004
7,926,480
750,039
435,791
**314,248
**
5,589,350
186,556
6,785
-4,357
8,522
31,988
18,753
13,235
19,255
592,737
7,049
*403
4,020
5,127
48,411
12,602
35,809
6,928
2,173,736
89,104
-23,337
42,181
325,691
94,349
231,341
353,871
4,821,303
749,258
*18,790
92,433
94,641
649,108
273,256
375,851
668,313
6,485
1,586
34,007
82,595
Agricultural services, forestry, and fishing...............................................................................................
399,442
20,954,073
1,144,957
Agricultural services...............................................................................................
341,484
18,101,406
930,232
Veterinary services, including pets...............................................................................................
17,654
3,405,008
113,240
Livestock breeding...............................................................................................
3,928
291,212
6,064
Animal services, except livestock breeding,
and veterinary...............................................................................................
62,918
2,466,215
118,087
Landscape and horticultural services...............................................................................................
216,367
9,626,182
632,903
Farm labor, management, and crop services...............................................................................................
40,617
2,312,789
59,938
Forestry, except logging...............................................................................................
12,712
972,404
60,433
Commercial fishing...............................................................................................
44,828
1,875,797
154,021
Hunting and trapping...............................................................................................
418
4,466
271
20
Payroll 1,3
21,512,587
All nonfarm industries...............................................................................................
12,702,663
762,301,189
20
Interest paid
deduction 1,2
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group
Number
Business
Depreciation
Rent paid
on machinery
Rent paid
on other
Interest paid
of returns
receipts
deduction ¹
and
business
deduction 1,2
equipment ¹
property ¹
(9)
(10)
Payroll 1,3
Net income
(11)
(12)
(13)
(14)
(15)
(16)
Wholesale and retail trade...............................................................................................
1,788,907
212,651,235
3,040,082
790,771
5,943,891
1,774,553
13,914,579
23,979,248
Wholesale trade...............................................................................................
238,064
34,054,594
Durable goods, including machinery,
397,039
72,882
362,351
195,064
1,181,234
5,537,275
wood, metals, etc................................................................................................
147,915
18,128,309
212,600
40,940
187,997
95,954
669,147
3,733,044
184,439
2,643,043
31,942
717,889
174,354
5,581,540
99,109
1,579,489
512,087
12,733,345
1,804,231
18,441,973
33,498
16,789
104,118
35,116
141,258
38,896
652,799
216,863
1,010,600
409,662
Nondurable goods, including food, fiber,
chemicals, etc................................................................................................
90,149
15,926,285
Retail trade...............................................................................................
1,550,843
178,596,641
Building materials, paint, hardware,
garden supply, and mobile home dealers...............................................................................................
54,950
7,547,713
189,459
Lumber and other building materials dealers...............................................................................................
22,416
2,423,031
75,142
Paint, glass, and wallpaper stores...............................................................................................
9,683
557,560
5,745
804
16,118
8,246
106,523
48,654
9,704
40,724
35,613
137,204
298,133
5,905
297
10,626
1,534
45,260
13,243
123,136
69,073
179,703
74,449
35,713
5,202
132,105
20,994
160,515
469,249
Variety stores...............................................................................................
8,536
1,319,888
9,388
Computer and software stores...............................................................................................
5,805
1,076,206
13,119
1,581
709
74,748
24,069
5,324
2,101
68,149
41,537
174,181
116,411
Hardware stores...............................................................................................
9,098
2,355,550
31,897
Retail nurseries and garden supply stores...............................................................................................
10,163
1,582,317
65,051
Mobile home dealers...............................................................................................
3,590
629,255
11,623
General merchandise stores...............................................................................................
26,145
3,797,667
2,912
33,288
13,569
50,830
178,658
Food stores...............................................................................................
90,791
29,582,770
Other general merchandise stores...............................................................................................
11,803
1,401,573
13,205
319,921
86,264
675,400
190,845
1,751,460
1,673,065
Grocery stores...............................................................................................
57,082
23,102,240
Retail bakeries...............................................................................................
9,330
1,207,268
223,996
36,732
61,464
8,909
456,023
55,932
159,168
12,477
1,189,754
185,278
1,107,273
143,360
Miscellaneous food stores...............................................................................................
24,379
5,273,262
59,193
15,891
163,445
19,201
376,428
422,432
Automotive dealers and service stations...............................................................................................
123,584
42,752,254
329,727
Motor vehicle dealers--new car
68,825
559,675
345,799
1,963,632
2,144,722
3,369
4,123
1,811
7,577
42,666
44,059
Motor vehicle dealers--used cars only...............................................................................................
53,499
13,594,078
51,812
dealers (franchised)...............................................................................................
8,326
909,077
5,559
138,470
122,889
528,164
890,358
Auto parts and accessories and
selected home supply stores...............................................................................................
24,160
2,907,177
33,057
29,264
48,806
29,726
181,843
372,453
Gasoline service stations...............................................................................................
20,993
19,938,343
183,982
27,269
328,746
118,591
1,027,137
588,965
Boat dealers...............................................................................................
3,435
935,181
9,564
Miscellaneous automotive dealers...............................................................................................
13,172
4,468,396
47,944
57
2,553
16,011
25,831
14,704
52,312
27,293
156,528
32,256
216,631
80,999
48,467
469,791
57,482
425,348
886,813
Men's and boys' clothing stores...............................................................................................
*3,978
*345,381
*940
*13,962
*48,496
*991
*22,626
*42,919
2,557
1,525
89,669
46,452
4,192
10,500
68,357
41,771
114,699
123,180
Apparel and accessory stores...............................................................................................
73,824
6,532,943
Women's ready-to-wear stores...............................................................................................
10,977
906,359
10,231
Women's accessory and specialty stores...............................................................................................
9,245
887,852
7,316
Family clothing stores...............................................................................................
10,670
1,002,965
13,764
606
67,558
17,159
88,456
109,892
Shoe stores...............................................................................................
4,593
1,065,495
Apparel and accessory stores, not
6,821
9,237
68,133
4,083
39,921
96,710
elsewhere classified...............................................................................................
34,361
2,324,892
41,929
20,579
149,483
20,556
164,218
399,413
Furniture and home furnishings stores...............................................................................................
67,456
8,131,963
225,517
32,343
334,622
98,853
886,545
973,360
114,830
7,474
149,463
45,738
368,531
276,877
32,739
11,385
71,696
38,806
243,454
287,377
10,786
2,691
60,275
42,132
10,440
1,826
152,894
93,049
217,964
132,858
Furniture stores...............................................................................................
17,012
3,069,762
Home furnishings and equipment
stores, except appliances...............................................................................................
23,521
2,294,950
Household appliance stores...............................................................................................
15,374
1,349,565
39,150
Television, audio, and electronic stores...............................................................................................
3,489
941,408
18,679
Music and record stores...............................................................................................
8,060
476,278
20,118
6
11,056
2,044
28,616
58,284
Eating and drinking places...............................................................................................
171,271
22,247,096
527,990
170,355
1,285,130
301,977
3,841,142
2,306,868
Eating places...............................................................................................
90,179
17,428,838
Drinking places...............................................................................................
35,327
3,414,362
435,910
70,472
134,984
21,597
1,092,033
138,446
226,289
67,633
3,314,046
455,047
1,585,832
414,357
Catering services...............................................................................................
45,765
1,403,896
21,608
13,774
54,652
8,054
72,049
306,679
Miscellaneous retail stores...............................................................................................
942,822
58,004,235
Drug stores...............................................................................................
4,177
3,800,883
933,717
23,311
272,935
5,586
2,020,700
49,261
422,281
9,402
3,051,904
290,459
8,977,295
266,450
Liquor stores...............................................................................................
9,681
4,170,549
40,162
23,564
174,718
30,846
173,625
221,932
Used merchandise and antique stores...............................................................................................
58,613
2,891,716
54,840
41,828
280,352
20,361
116,863
396,717
Sporting goods and bicycle shops...............................................................................................
14,791
2,504,654
36,363
Book stores...............................................................................................
3,388
629,230
10,125
2,340
455
74,280
48,451
28,752
6,872
120,854
78,682
212,641
107,560
Stationery stores...............................................................................................
3,568
1,008,795
11,900
5,486
62,358
13,317
77,135
119,136
Jewelry stores...............................................................................................
18,751
2,782,321
22,959
Hobby, toy, and game shops...............................................................................................
12,424
727,017
7,983
5,364
794
142,636
83,820
20,064
7,200
148,647
36,274
435,825
65,928
Camera and photographic supply stores...............................................................................................
*1,816
*346,505
*5,431
*3,515
*26,409
--
*18,980
*60,837
Luggage and leather goods stores...............................................................................................
*2,407
*187,982
*1,018
*199
*10,291
*2,383
*6,256
*17,302
Fabric and needlework stores...............................................................................................
3,778
294,595
5,421
Catalog or mail order...............................................................................................
40,422
1,452,851
11,131
452
957
20,214
7,306
1,300
2,576
32,428
36,392
39,482
277,224
89,147
6,462
5,309
5,741
36,617
284,509
Sales by door-to-door, telephone, etc................................................................................................
554,128
15,192,137
284,593
Gift, novelty, and souvenir shops...............................................................................................
34,873
2,620,021
30,151
Vending machine selling...............................................................................................
20,123
1,492,868
65,308
23,037
227,392
191,318
101,879
20,723
309,326
195,363
4,279,472
255,561
Fuel oil dealers...............................................................................................
4,036
1,675,073
24,813
2,281
3,383
8,719
67,551
75,863
Florists...............................................................................................
27,675
2,725,782
73,085
18,236
112,963
24,554
442,963
300,996
Other retail shops...............................................................................................
128,171
13,501,255
Footnotes at end of table.
201,283
67,072
500,238
117,591
863,490
1,559,861
21
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group
Number
Business
Depreciation
Rent paid
on machinery
Rent paid
on other
Interest paid
of returns
receipts
deduction ¹
and
business
deduction 1,2
equipment ¹
property ¹
(9)
(10)
(11)
Payroll 1,3
Net income
(12)
(13)
(14)
(15)
(16)
Finance, insurance, and real estate...............................................................................................
967,775
63,459,200
1,267,847
488,663
990,494
621,143
2,765,951
27,193,534
Finance...............................................................................................
112,538
14,824,876
152,120
Credit agencies and mortgage bankers...............................................................................................
12,272
909,642
9,423
49,968
4,738
159,179
10,349
114,323
3,643
330,339
28,016
3,495,522
289,182
1,595,959
Security and commodity brokers and services...............................................................................................
46,213
8,301,330
52,338
22,664
68,119
48,146
153,962
8,467
1,213
12,171
5,669
31,114
446,802
Investment advisors and services...............................................................................................
27,539
2,061,843
36,277
Commodity contract brokers, exchanges
20,913
54,736
41,718
111,858
967,665
Security brokers and dealers...............................................................................................
15,721
4,670,513
and services...............................................................................................
2,954
1,568,975
7,594
537
1,212
759
10,991
181,493
Other financial services...............................................................................................
54,053
5,613,904
Insurance agents and brokers...............................................................................................
262,182
16,843,268
90,359
310,257
22,567
171,679
80,711
445,183
62,534
174,177
148,361
1,572,146
1,610,381
8,301,051
Insurance services...............................................................................................
30,930
1,624,550
52,690
33,260
36,342
8,629
241,676
643,201
Real estate...............................................................................................
562,126
752,780
233,755
349,790
324,014
621,790
14,753,760
Real estate property managers...............................................................................................
36,875
1,262,174
30,791
Operators and lessors of buildings...............................................................................................
3,848
524,107
44,389
9,443
210
37,091
11,521
12,416
49,275
74,946
71,859
522,838
94,305
30,166,506
Operators and lessors, other than buildings...............................................................................................
3,454
407,520
32,030
Real estate agents and brokers...............................................................................................
499,629
25,910,293
602,012
Title abstract companies...............................................................................................
9,887
326,447
8,885
Subdividers and developers...............................................................................................
8,432
1,735,966
1,285
9,175
44,916
24,244
118,012
215,515
--
282,095
2,345
164,767
4,047
411,881
10,570
13,491,101
152,833
34,674
7,303
7,563
48,593
28,290
374,671
Services...............................................................................................
6,512,423
274,362,316
8,276,380
Hotels and other lodging places...............................................................................................
28,982
3,214,241
289,428
Hotels, motels, and tourist courts...............................................................................................
18,304
2,408,853
213,986
2,156,738
14,365
12,062
9,074,357
52,569
40,307
2,610,013
280,460
217,354
26,689,407
464,522
362,495
114,268,832
430,621
313,261
Rooming and boarding houses...............................................................................................
5,296
507,338
26,768
1,599
7,106
25,852
76,452
89,912
48,673
774,855
704
375,343
5,156
2,059,516
37,254
246,178
25,575
2,735,201
27,448
9,708,330
Coin-operated laundry and dry cleaning...............................................................................................
10,166
579,508
41,148
13,839
90,670
11,924
44,203
111,621
dry cleaning, garment, carpet, and upholstery...............................................................................................
44,025
3,124,924
156,146
73,463
Photographic portrait studios...............................................................................................
26,706
1,180,857
50,238
12,547
362,519
50,611
40,583
5,196
618,602
63,642
547,346
253,029
Camps and camping parks...............................................................................................
5,382
298,049
Personal services...............................................................................................
1,010,041
28,230,085
Other cleaning services, including laundry,
Beauty shops...............................................................................................
355,939
9,917,087
22
189,054
177,162
1,170,682
91,264
1,241,379
3,430,322
Barber shops...............................................................................................
60,190
1,337,295
36,210
Funeral service and crematories...............................................................................................
6,966
899,220
63,512
48,908
9,997
123,532
9,010
13,218
28,340
108,633
42,339
659,564
221,300
Miscellaneous personal services, including
238,547
39,428
252,492
55,654
616,403
4,485,149
Business services...............................................................................................
1,626,903
47,688,165
1,610,858
Advertising, except direct mail...............................................................................................
42,912
2,914,714
52,583
valet parking...............................................................................................
506,048
11,191,195
393,304
17,974
736,450
30,854
303,459
6,170
3,962,701
54,504
17,053,968
902,616
Consumer credit reporting and collecting services...............................................................................................
1,481
4,086
18
Janitorial and related services to buildings...............................................................................................
391,620
6,838,185
181,997
Computer and data processing services...............................................................................................
156,969
3,750,690
136,101
--
--
--
--
*2,576
40,329
25,420
36,513
41,427
44,136
13,817
1,217,670
126,234
2,594,513
1,793,241
Mailing, reproduction, commercial art and
photography, and stenographic services...............................................................................................
148,600
4,605,693
173,275
43,423
89,589
15,353
202,403
1,855,306
Computer repair, maintenance, and leasing...............................................................................................
27,923
1,643,573
73,231
Equipment rental and leasing, except computer
12,141
18,779
17,221
52,827
286,963
120,832
5,085
18,528
18,142
63,962
297,265
Other business services...............................................................................................
839,764
27,037,407
872,821
Automotive repair and services...............................................................................................
285,944
21,028,836
783,040
and automotive...............................................................................................
17,634
893,816
248,933
200,489
500,759
787,761
188,621
259,973
2,245,101
2,297,358
9,321,488
3,293,000
406
2,691
11,303
31,733
44,223
Automobile parking, except valet...............................................................................................
*1,970
*136,074
*3,151
Automotive rentals or leasing, without drivers...............................................................................................
4,252
747,934
66,941
*2,879
*48,655
*6,186
*2,151
*24,654
Automotive repair shops...............................................................................................
205,107
15,942,793
529,997
Automotive services, except repair...............................................................................................
74,614
4,202,034
182,951
151,077
46,127
658,957
77,458
182,980
59,505
1,937,689
325,785
2,389,348
834,775
Miscellaneous repair services...............................................................................................
196,441
8,549,455
34,453
189,358
99,723
695,320
2,249,376
TV and audio equipment repair...............................................................................................
13,373
542,612
10,378
307
Electrical repair, except TV and audio equipment...............................................................................................
53,519
1,966,247
33,581
8,873
244,741
11,647
37,053
3,762
39,442
42,369
149,971
177,739
433,712
Reupholstery and furniture repair...............................................................................................
40,988
1,600,509
30,420
3,042
71,810
8,386
217,633
562,510
Other miscellaneous repair...............................................................................................
88,561
4,440,087
170,362
22,231
68,847
48,132
285,347
1,075,415
Motion pictures...............................................................................................
39,970
1,911,697
157,131
Motion picture and video production...............................................................................................
30,702
1,218,758
82,737
49,716
36,845
69,885
18,443
15,341
3,795
106,564
44,704
570,133
467,853
Motion picture and tape distribution and
allied services...............................................................................................
168
15,304
Motion picture theaters...............................................................................................
*348
*57,294
41
*1,223
-*332
-*961
-*4,092
-*7,886
*9,129
*10,194
Video tape rentals...............................................................................................
8,752
620,342
73,129
12,540
50,481
7,454
53,974
82,958
motion pictures...............................................................................................
404,640
11,295,463
Entertainers, producers, agents, and
540,294
89,186
231,599
89,741
457,664
4,683,563
related services...............................................................................................
204,851
5,325,878
243,722
21,949
77,117
28,103
98,621
2,604,918
Bowling centers...............................................................................................
*604
*185,494
Professional sports and racing,
*19,634
*615
*34
*17,796
*37,533
*29,913
including promoters and managers...............................................................................................
44,386
2,565,981
99,659
10,409
16,396
7,336
92,311
1,188,706
Other amusement and recreation services...............................................................................................
140,435
2,985,329
165,727
54,631
106,600
33,913
218,163
781,652
1,581
31,453
2,592
11,036
78,374
Amusement and recreation services, except
22
Physical fitness facilities...............................................................................................
14,362
232,781
Footnotes at end of table.
11,552
Sole Proprietorship Returns, 1997
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group
Number
Business
of returns
receipts
Depreciation
1
deduction
(9)
(10)
(11)
Rent paid
on machinery
Rent paid
on other
and
1
equipment
business
1
property
deduction 1,2
Payroll 1,3
Net income
(12)
(13)
(14)
(15)
(16)
Interest paid
Services-Continued
Medical and health services...............................................................................................
686,841
70,453,871
1,646,247
423,261
2,758,080
735,454
9,940,640
32,971,879
Offices of physicians...............................................................................................
162,603
25,462,628
386,137
151,550
866,588
147,809
2,714,387
14,613,676
Offices of dentists...............................................................................................
95,272
24,242,038
720,021
122,608
902,175
335,599
4,956,415
9,260,324
Offices of osteopathic physicians...............................................................................................
7,451
1,383,419
28,734
2,418
49,683
9,512
174,168
838,146
Offices of chiropractors...............................................................................................
23,042
3,523,217
115,547
38,590
250,860
77,681
502,784
1,315,089
Offices of optometrists...............................................................................................
12,465
2,788,032
107,068
15,579
170,806
41,274
372,408
646,527
Offices of podiatrists...............................................................................................
5,502
775,701
23,736
15,333
58,044
20,178
75,379
262,404
Registered and practical nurses...............................................................................................
39,867
737,560
4,276
1,060
2,444
3
5,648
553,677
Nursing and personal care facilities...............................................................................................
28,416
1,577,122
47,643
4,613
34,161
59,735
380,966
340,560
Medical and dental laboratories...............................................................................................
19,798
1,485,814
22,560
8,266
59,172
6,848
208,774
572,276
Other medical and health services...............................................................................................
292,427
8,478,339
190,525
63,243
364,148
36,816
549,709
4,569,200
Legal services...............................................................................................
240,482
24,743,868
460,647
209,408
1,018,182
165,533
2,703,657
12,527,014
Educational services...............................................................................................
224,813
2,657,511
95,913
6,577
169,626
12,635
118,477
1,177,107
Child day care...............................................................................................
428,505
5,489,839
222,290
19,731
114,890
62,279
479,011
2,136,927
Ministers and chaplains...............................................................................................
158,916
2,099,076
27,358
34,063
22,306
1,976
-1,349,267
Engineering services...............................................................................................
75,592
3,605,738
149,277
28,721
60,829
17,405
311,460
1,925,359
Architectural services...............................................................................................
44,116
2,797,669
120,924
12,331
100,296
17,136
418,664
963,708
Surveying services...............................................................................................
13,738
854,403
34,515
1,678
7,985
1,863
180,884
298,209
Accounting, auditing, and bookkeeping services...............................................................................................
280,122
8,187,595
350,261
56,615
253,869
121,799
817,292
3,969,580
Management services...............................................................................................
67,145
2,817,716
61,597
13,130
22,732
26,119
212,168
1,684,861
Consulting services...............................................................................................
624,896
26,290,754
644,586
180,656
288,003
145,164
734,330
15,863,769
Public relations...............................................................................................
11,167
390,730
5,086
577
10,044
781
11,909
194,628
Counseling, except health practitioners...............................................................................................
63,172
2,055,605
57,333
13,136
120,376
6,994
41,585
1,217,535
Nature of business not allocable...............................................................................................
145,248
1,903,831
48,533
6,692
2,160
29,155
32,257
940,383
* Estimate should be used with caution because of the small number of sample returns on which it is based.
**Data combined to prevent disclosure of information for specific taxpayers.
¹ Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly
understated.
² Interest paid is the sum of mortgage interest and other interest paid on business indebtedness (see Table 2).
³ Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations (see Table 2).
NOTE: Detail may not add to totals because of rounding.
23
Sole Proprietorship Returns, 1997
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Agricultural services, forestry, and fishing
Mining
Animal
All
Net income status, item
nonfarm
Total
industries
services,
Landscape
All other
Livestock
except
and
agricultural
breeding
livestock
horticultural
services,
breeding, and
services
forestry, and
veterinary
(1)
(2)
(3)
(4)
Total
Oil and
gas extraction
fishing
(5)
(6)
(7)
(8)
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns ¹...............................................................................................................
17,176,487
564,734
21,126
109,082
270,548
163,978
124,365
112,086
Business receipts, total ¹...............................................................................................................
870,392,286
23,645,626
409,507
3,269,015
10,387,964
9,579,140
5,731,388
5,117,745
Income from sales and operations ¹...............................................................................................................
858,452,648
23,413,949
394,303
3,209,115
4,867,026
10,370,622
9,439,910
5,477,337
Other business income...............................................................................................................
11,939,638
231,676
15,204
59,900
17,342
139,230
254,051
250,719
Business deductions, total 1,2...............................................................................................................
683,872,364
20,023,443
565,925
3,226,704
8,529,625
7,701,189
5,559,832
4,923,288
Cost of sales and operations...............................................................................................................
319,557,408
6,605,231
141,138
1,177,411
2,934,813
2,351,868
1,329,635
1,052,783
Inventory, beginning of year...............................................................................................................
32,058,234
432,471
*14,682
54,655
151,890
211,243
65,315
27,605
Cost of labor...............................................................................................................
24,940,782
947,044
*832
36,395
620,797
289,019
56,048
24,759
149,662
1,021,055
1,150,037
1,425,027
604,597
427,522
Materials and supplies...............................................................................................................
37,552,076
1,211,794
*1,218
79,278
887,733
243,565
26,505
16,532
Other costs...............................................................................................................
33,970,016
701,747
85,769
227,127
377,632
639,971
580,618
24,253
Purchases...............................................................................................................
224,259,001
3,745,781
Inventory, end of year...............................................................................................................
33,222,700
433,606
*36,476
99,742
102,770
194,618
62,802
Advertising expenses...............................................................................................................
8,977,738
182,288
3,826
40,148
97,023
41,291
5,136
3,911
Bad debts from sales or services...............................................................................................................
1,100,682
16,810
*45
*10,034
4,899
1,832
12,945
12,869
Car and truck expenses...............................................................................................................
38,727,748
1,188,901
19,082
162,610
726,441
280,768
215,296
180,854
Commissions...............................................................................................................
10,985,782
131,182
14,091
10,156
68,824
38,112
3,285
2,791
*7
*520
*161
*109
406,324
403,785
292,945
Depletion...............................................................................................................
565,328
798
Depreciation...............................................................................................................
28,625,259
1,698,222
24
11,219
48,266
223,924
817,872
608,161
342,986
Employee benefit programs...............................................................................................................
1,416,962
46,462
*537
4,795
16,861
24,267
6,955
5,018
Insurance...............................................................................................................
13,299,494
635,166
84,506
320,357
219,400
69,175
59,294
Legal and professional services...............................................................................................................
6,551,619
146,841
2,749
19,797
65,259
59,037
87,850
84,342
Meals and entertainment deducted...............................................................................................................
3,570,473
71,700
515
9,188
25,186
36,811
11,286
9,311
Mortgage interest...............................................................................................................
4,533,657
173,537
*16,224
30,965
39,502
86,846
17,307
11,532
Other interest paid on business indebtedness...............................................................................................................
6,350,002
241,164
2,537
37,982
87,959
112,685
121,265
112,051
Office expenses...............................................................................................................
9,209,728
192,232
23,660
79,928
84,878
25,087
23,435
*465
*1,726
11,179
1,665
1,631
Rent on machinery and equipment...............................................................................................................
7,358,163
232,631
*437
12,027
127,906
92,261
39,186
19,637
29,737
10,903
3,766
Pension and profit-sharing plans...............................................................................................................
728,349
13,370
-Rent on other business property...............................................................................................................
21,967,711
325,447
5,829
92,145
91,344
136,129
45,442
Repairs...............................................................................................................
10,897,367
666,389
5,712
57,716
356,464
246,498
84,411
47,682
Salaries and wages...............................................................................................................
57,746,206
2,635,858
27,416
226,713
1,039,539
1,342,191
243,295
173,353
Supplies...............................................................................................................
19,546,451
898,696
53,950
167,484
417,968
259,293
46,016
41,141
Taxes paid...............................................................................................................
13,774,081
473,547
3,021
49,022
190,739
230,765
170,816
157,197
Travel...............................................................................................................
7,452,594
118,624
2,670
26,138
20,030
69,786
24,831
21,859
Utilities...............................................................................................................
18,575,129
485,979
9,260
108,003
190,865
177,851
80,420
73,220
*11,810
19,044
7,866
3,007
2,623
Depreciation, Form 8829...............................................................................................................
436,600
5,213
*118
*1,686
3,214
*195
*296
*27
Other business deductions...............................................................................................................
67,336,466
2,772,081
192,202
630,544
777,401
1,171,934
2,163,345
2,097,421
199,440
Home office business deductions...............................................................................................................
3,817,539
40,453
*1,732
Net income less deficit 1,2...............................................................................................................
186,643,910
3,675,044
-166,687
105,077
1,858,339
1,878,315
176,539
Net income 1,2 ...............................................................................................................
210,464,545
4,717,972
30,825
464,827
2,071,244
2,151,076
935,145
891,964
Deficit ²...............................................................................................................
23,820,635
1,042,928
197,512
359,750
212,905
272,761
758,606
692,524
Footnotes at end of table.
24
Sole Proprietorship Returns, 1997
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Agricultural services, forestry, and fishing
Mining
Animal
All
Net income status, item
nonfarm
Total
industries
services,
Landscape
All other
Livestock
except
and
agricultural
breeding
livestock
horticultural
services,
breeding, and
services
forestry, and
veterinary
(1)
(2)
(3)
(4)
Total
Oil and
gas extraction
fishing
(5)
(6)
(7)
(8)
BUSINESSES WITH NET INCOME
Number of returns ¹...............................................................................................................
12,702,663
399,442
3,928
62,918
216,367
116,230
73,399
70,499
Business receipts, total ¹...............................................................................................................
762,301,189
20,954,073
291,212
2,466,215
9,626,182
8,570,465
4,195,799
3,759,619
Income from sales and operations ¹...............................................................................................................
751,716,864
20,797,432
278,849
2,445,853
3,606,845
9,608,952
8,463,778
4,042,996
Other business income...............................................................................................................
10,584,325
156,641
*12,363
20,362
17,230
106,687
152,802
152,774
Business deductions, total 1,2...............................................................................................................
551,909,057
16,236,100
260,386
2,001,388
7,554,938
6,419,388
3,259,441
2,866,443
Cost of sales and operations...............................................................................................................
261,321,486
5,656,074
*133,584
796,954
2,658,601
2,066,934
971,768
803,306
Inventory, beginning of year...............................................................................................................
21,503,637
236,104
*13,315
21,150
119,228
82,412
15,056
11,869
Cost of labor...............................................................................................................
21,161,462
871,848
*272
*32,432
598,413
240,731
*43,720
*19,842
412,831
Purchases...............................................................................................................
182,367,635
3,140,078
*146,206
680,465
1,014,576
1,298,830
545,367
Materials and supplies...............................................................................................................
32,226,449
1,065,607
*1,218
71,711
759,667
233,011
23,448
13,568
Other costs...............................................................................................................
26,726,781
550,271
*7,424
*17,149
225,508
300,189
353,397
351,722
Inventory, end of year...............................................................................................................
22,664,478
207,833
*34,851
25,952
58,791
88,239
9,221
6,527
Advertising expenses...............................................................................................................
7,183,488
143,302
*819
31,150
80,341
30,992
2,306
1,805
Bad debts from sales or services...............................................................................................................
570,390
7,825
*37
*1,308
*4,808
1,672
*101
*89
110,324
638,266
208,550
185,733
162,322
Car and truck expenses...............................................................................................................
31,024,523
967,796
*10,655
Commissions...............................................................................................................
9,148,122
100,899
*1
2,230
61,838
36,830
1,926
1,432
Depletion...............................................................................................................
300,200
*269
*( 4)
*10
*158
*102
242,248
240,861
Depreciation...............................................................................................................
21,175,313
1,140,821
146,466
*5,948
117,266
629,875
387,733
171,510
Employee benefit programs...............................................................................................................
1,267,741
43,641
--
*4,582
15,391
23,668
5,090
3,917
Insurance...............................................................................................................
11,218,668
519,389
37,279
294,146
183,377
53,942
47,642
*4,587
Legal and professional services...............................................................................................................
5,057,598
120,533
764
12,070
59,152
48,548
41,772
39,870
Meals and entertainment deducted...............................................................................................................
2,921,086
61,479
*68
6,611
22,713
32,088
5,326
5,107
*19,667
27,512
63,486
6,755
2,590
Other interest paid on business indebtedness...............................................................................................................
4,289,623
176,304
*1,095
20,195
74,932
80,082
43,474
37,410
Office expenses...............................................................................................................
7,450,532
165,040
8,919
Mortgage interest...............................................................................................................
3,085,143
123,827
*13,161
19,085
71,184
73,975
9,771
Pension and profit-sharing plans...............................................................................................................
700,971
13,369
--
*796
*464
*1,726
11,179
1,445
1,435
Rent on machinery and equipment...............................................................................................................
6,019,606
208,472
*135
9,002
119,474
79,861
37,787
18,481
Rent on other business property...............................................................................................................
17,818,167
250,388
*3,077
80,004
74,453
92,854
31,828
16,393
Repairs...............................................................................................................
8,460,977
508,876
*270
39,437
304,635
164,534
64,610
36,912
Salaries and wages...............................................................................................................
50,366,750
2,432,179
*13,137
175,165
988,831
1,255,046
174,876
126,092
Supplies...............................................................................................................
15,484,726
699,205
*25,407
100,888
358,799
214,111
40,486
36,713
Taxes paid...............................................................................................................
11,279,873
415,353
*1,454
33,297
178,128
202,474
109,669
101,206
Travel...............................................................................................................
5,726,373
82,150
*224
13,286
16,030
52,610
13,732
13,430
Utilities...............................................................................................................
14,581,896
405,915
*5,857
83,241
163,077
153,740
61,510
58,857
*6,653
15,021
7,828
*2,726
*2,568
Depreciation, Form 8829...............................................................................................................
337,273
4,136
*116
*821
*3,028
*171
*15
*14
Other business deductions...............................................................................................................
51,085,000
1,932,895
38,536
272,282
684,332
937,745
976,191
949,759
30,825
464,827
2,071,244
2,151,076
935,145
891,964
Number of returns...............................................................................................................
2,414,035
78,025
*51
*10,714
32,319
34,941
7,373
7,373
Business receipts...............................................................................................................
11,263,555
296,629
*126
*37,151
117,343
142,008
8,491
8,491
Business deductions...............................................................................................................
1,212,240
29,834
*9
*8,939
11,515
9,370
2,865
2,865
*117
*28,212
105,827
132,638
5,626
5,626
Home office business deductions...............................................................................................................
3,188,162
30,265
*763
Net income 1,2 ...............................................................................................................
210,464,545
4,717,972
Returns with Schedule C-EZ:
Net income...............................................................................................................
10,051,315
266,795
Footnotes at end of table.
25
Sole Proprietorship Returns, 1997
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Mining--cont'd
Construction
Special trade contractors
General
Net income status, item
All other
Total
mining
(9)
building
Plumbing,
and heavy
(10)
Total
Masonry,
heating,
Painting and
Electrical
construction
and air
paperhanging
work
contractors
conditioning
(11)
(12)
(13)
stonework,
tile setting,
and plastering
(14)
(15)
(16)
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns ¹...............................................................................................................
12,279
2,196,762
287,933
1,908,829
144,361
225,902
113,210
196,568
Business receipts, total ¹...............................................................................................................
613,643
130,764,670
34,158,484
96,606,187
10,478,289
7,216,776
7,860,172
10,800,400
Income from sales and operations ¹...............................................................................................................
610,312
130,073,486
33,881,614
96,191,872
10,791,958
10,463,140
7,186,244
7,842,363
Other business income...............................................................................................................
3,332
691,185
276,870
414,314
15,148
30,531
17,809
*8,442
Business deductions, total 1,2...............................................................................................................
636,544
107,314,766
30,577,345
76,737,421
8,751,405
4,984,045
6,412,075
8,446,859
Cost of sales and operations...............................................................................................................
276,852
58,830,523
20,743,672
38,086,851
4,629,395
2,073,605
3,660,756
4,358,886
Inventory, beginning of year...............................................................................................................
*37,710
2,260,408
1,364,509
895,899
157,286
*8,934
62,086
*3,220
9,002,460
611,290
767,373
820,420
1,576,072
Cost of labor...............................................................................................................
*31,290
12,286,510
3,284,050
Purchases...............................................................................................................
177,075
18,313,315
6,513,201
11,800,115
1,971,876
314,749
1,666,166
747,861
Materials and supplies...............................................................................................................
*9,973
18,891,512
5,750,421
13,141,091
1,672,046
901,780
1,036,221
1,434,493
Other costs...............................................................................................................
59,353
9,471,917
5,262,578
4,209,339
366,220
90,684
137,172
635,477
Inventory, end of year...............................................................................................................
*38,550
2,393,139
1,431,087
962,052
149,323
*9,916
61,310
*38,237
Advertising expenses...............................................................................................................
1,224
642,802
95,208
547,593
89,103
39,876
49,232
35,326
Bad debts from sales or services...............................................................................................................
*77
53,091
6,396
46,696
6,705
*2,142
*8,841
*2,733
6,042,067
552,114
595,476
443,069
772,329
143,305
Car and truck expenses...............................................................................................................
34,442
7,099,367
1,057,300
Commissions...............................................................................................................
*494
1,038,917
297,150
741,767
13,918
108,279
9,291
Depletion...............................................................................................................
*2,539
1,357
*399
*958
--
--
--
--
Depreciation...............................................................................................................
50,041
4,255,391
819,796
3,435,595
359,920
217,591
177,783
254,962
Employee benefit programs...............................................................................................................
*1,937
217,654
37,329
Insurance...............................................................................................................
9,881
2,634,431
26
559,189
Legal and professional services...............................................................................................................
3,509
628,123
188,549
17,011
10,136
50,231
10,647
223,813
153,581
171,828
202,628
49,188
439,574
65,987
25,349
27,443
Meals and entertainment deducted...............................................................................................................
1,975
203,912
35,965
167,948
14,485
16,806
19,371
10,117
Mortgage interest...............................................................................................................
5,775
480,496
238,748
29,173
*7,477
7,508
11,162
Other interest paid on business indebtedness...............................................................................................................
9,214
782,448
210,506
571,942
59,586
25,312
30,767
30,795
Office expenses...............................................................................................................
1,652
634,760
494,174
74,577
41,782
53,003
34,907
18,216
*3,556
*4,859
*1,391
--
Rent on machinery and equipment...............................................................................................................
19,549
1,075,890
222,488
853,402
43,391
62,876
40,890
89,104
241,748
140,585
Pension and profit-sharing plans...............................................................................................................
*34
19,028
*812
Rent on other business property...............................................................................................................
*15,704
724,807
112,904
Repairs...............................................................................................................
36,730
1,483,560
308,940
611,903
51,040
27,767
48,392
46,456
1,174,620
105,286
50,926
38,956
77,141
Salaries and wages...............................................................................................................
69,943
7,916,760
1,547,998
6,368,762
850,894
333,775
647,225
737,732
Supplies...............................................................................................................
4,874
4,486,851
551,057
3,935,794
570,018
368,475
209,110
535,318
Taxes paid...............................................................................................................
13,619
1,600,854
430,552
1,170,302
168,077
67,430
133,512
123,580
Travel...............................................................................................................
2,972
461,529
63,563
397,965
40,110
30,850
34,816
23,272
Utilities...............................................................................................................
7,200
1,521,018
307,762
1,213,256
184,388
92,096
108,077
73,697
14,458
Home office business deductions...............................................................................................................
*384
302,943
50,554
252,389
31,722
28,492
13,358
Depreciation, Form 8829...............................................................................................................
*269
35,716
5,002
30,714
12,038
3,619
*1,380
*1,100
Other business deductions...............................................................................................................
65,924
10,075,763
2,533,309
7,542,454
562,640
571,643
421,503
797,193
Net income less deficit 1,2...............................................................................................................
-22,901
23,450,389
3,581,139
19,869,251
1,726,884
2,232,731
1,448,097
2,354,012
Net income 1,2 ...............................................................................................................
43,181
25,278,038
4,127,494
21,150,544
1,837,403
2,284,408
1,508,528
2,426,316
Deficit ²...............................................................................................................
66,082
1,827,649
546,355
1,281,293
110,519
51,677
60,431
72,304
Footnotes at end of table.
26
180,325
2,075,242
Sole Proprietorship Returns, 1997
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Mining--cont'd
Construction
Special trade contractors
General
Net income status, item
All other
Total
mining
(9)
building
Plumbing,
and heavy
(10)
Total
Masonry,
heating,
Painting and
Electrical
construction
and air
paperhanging
work
contractors
conditioning
(11)
(12)
(13)
stonework,
tile setting,
and plastering
(14)
(15)
(16)
BUSINESSES WIT
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