Sole Proprietorship Returns, 1996
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Sole Proprietorship Returns, 1996
SoleProprietorshipReturns,1996
by Therese Cruciano
N
onfarm sole proprietorship profits for 1996
increased 4.4 percent over their 1995 level to
$176.8 billion. Excepting a decline in profits for
the transportation and public utilities division, all of the
principal sole proprietorship industrial divisions reported
increased profits. The finance, insurance, and real estate
division reported the largest percentage increase in profits
at 8.5 percent, followed by the services and construction
divisions with increases of 4.9 percent and 4.2 percent,
respectively.
The 1996 level of sole proprietorship profits coincides
with the growth of both receipts and deductions: total
business receipts increased 4.4 percent to $843.2 billion,
while total business deductions also grew 4.4 percent to
$666.5 billion. The growth rates of both receipts and
deductions were higher than their 1995 levels of 2.1
percent and 2.3 percent, respectively. The finance, insurance, and real estate division reported the largest percentage increases in receipts (12.4 percent) and deductions
(14.5 percent) for 1996. When inflation is taken into
account, total nonfarm sole proprietorship profits, receipts,
and deductions all increased 2.2 percent from 1995. This
growth rate for receipts and deductions for 1996 represents the highest rate of growth since 1988.
Returns and Receipts
6
The number of individual income tax returns reporting
nonfarm sole proprietorship activity for 1996 increased
3.2 percent, from 16.4 million for 1995 to more than 16.9
million (Figure A) [1]. The two largest industrial divisions showed larger percentage increases in the number of
sole proprietorship returns for 1996, 3.5 percent for
services and 4.1 percent for wholesale and retail trade.
Total business receipts (the sum of “income from sales
and operations” and “other business income”) for all
nonfarm sole proprietorship industries increased 4.4
percent, from $807.4 billion to $843.2 billion [2]. All of
the sole proprietorship industrial divisions reported
growth in business receipts for 1996. The finance,
insurance, and real estate division showed the largest
percentage growth in receipts, an increase of 12.4 percent,
approximately twice the increase reported for 1995. Sole
proprietorships in the services division showed the
greatest dollar increase in receipts for 1996 with a $12.2billion increase. The construction division showed both
Therese Cruciano is an economist with the Individual Returns
Analysis Section. This article was prepared under the direction
of Jeff Hartzok, Chief.
6
the second largest percentage (7.1 percent) and dollar
($8.4 billion) increases in receipts.
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
0.4 percent. For 1996, total receipts increased 2.2 percent
(in constant dollars), the largest percentage increase since
1988.
Deductions
Total business deductions (cost of sales and operations,
plus business expenses, including expenses for a home
office) increased 4.4 percent from $638.1 billion for 1995
to $666.5 billion for 1996 (Figure A) [4,5]. As with total
business receipts, all of the sole proprietorship principal
divisions reported increased business deductions for 1996.
Sole proprietorships in the finance, insurance, and real
estate division showed the largest percentage growth in
deductions, an increase of 14.5 percent. Sole
proprietorships in the construction division produced the
second largest percentage increase (7.7 percent) and the
largest dollar increase ($7.5 billion). When allowing for
inflation, business deductions increased 2.2 percent for
1996 (Figure B). This increase, the largest since 1988,
contrasts with the 0.3 percent decline in deductions (in
constant dollars) shown for 1995.
Representing 47.5 percent of total 1996 business
deductions, the cost of sales and operations was $316.4
billion (Figure C). This amount represents a 3.1-percent
increase from the 1995 level. Total business “expenses”
(total business deductions minus the cost of sales and
operations) were $350.0 billion for 1996, an increase of
5.7 percent from the 1995 amount. Figure D graphically
presents the main components of total business expenses.
The largest component, net salaries and wages, accounted
for 16.1 percent of the total. For 1996, net salaries and
wages totaled $56.3 billion, 3.4 percent more than for
1995 (Figure C). The next largest components were car
and truck expenses (10.5 percent), rent on business property, machinery, and equipment (8.1 percent), and depreciation (7.8 percent). For 1996, these items were $36.7
billion, $28.5 billion, and $27.4 billion, respectively. Car
and truck expenses showed an 11.9-percent increase from
1995; rent on business property, machinery, and equipment increased 3.7 percent; and depreciation increased 4.3
percent. Part of the large increase in car and truck expenses was likely due to the increase in the standard
Sole Proprietorship Returns, 1996
Figure A
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Industry, Tax Years 1995 and 1996
[Number of returns is in thousands--money amounts are in billions of dollars]
Industrial group
Number of returns
Percentage
1995
1996
increase
Total business receipts
Percentage
1995
1996
increase
(1)
(4)
(2)
(3)
Total business deductions
Percentage
1995
1996
increase
(5)
(6)
(7)
(8)
(9)
All industries...........................................................................................................................
16,423.9
16,955.0
3.2
807.4
843.2
Construction...........................................................................................................................
2,111.4
2,096.8
-0.7
118.9
127.4
Special trade contractors...........................................................................................................................
1,731.2
1,798.5
3.9
82.0
92.1
4.4
7.1
12.3
638.1
98.1
65.3
666.5
105.6
73.8
4.4
7.7
13.1
Transportation and public utilities...........................................................................................................................
737.1
824.7
11.9
39.8
42.1
5.8
Wholesale and retail trade...........................................................................................................................
3,027.0
3,151.3
4.1
257.3
261.1
1.5
Wholesale trade...........................................................................................................................
374.3
351.0
-6.2
41.9
41.0
-2.2
Retail trade...........................................................................................................................
2,652.7
2,800.3
5.6
215.4
220.1
2.2
Food stores...........................................................................................................................
152.5
138.8
-9.0
36.0
38.1
5.6
Automotive dealers and
service stations...........................................................................................................................
183.2
175.5
-4.2
53.5
53.3
-0.4
Eating and drinking places...........................................................................................................................
232.9
243.8
4.7
27.1
26.6
-1.8
Finance, insurance, and real estate...........................................................................................................................
1,275.1
1,271.4
-0.3
57.5
64.6
12.4
Finance...........................................................................................................................
135.2
128.9
-4.7
10.9
14.9
36.5
Insurance...........................................................................................................................
402.8
399.5
-0.8
20.3
20.0
-1.3
Real estate...........................................................................................................................
737.1
743.1
0.8
26.3
29.7
13.0
Services...........................................................................................................................
7,957.6
8,233.9
3.5
275.3
287.5
4.4
Business and personal services...........................................................................................................................
3,006.8
3,216.3
7.0
71.2
77.4
8.7
Medical services...........................................................................................................................
802.4
771.5
-3.9
73.1
74.1
1.3
Legal services...........................................................................................................................
281.1
291.1
3.6
23.5
24.5
4.1
Consulting and management
services...........................................................................................................
788.1
832.8
5.7
23.5
25.8
10.1
All other industries...........................................................................................................................
1,315.7
1,377.0
4.7
58.6
60.5
3.3
34.0
240.7
36.9
203.8
34.7
36.4
244.4
35.7
208.7
36.8
7.1
1.6
-3.1
2.4
6.0
51.8
25.9
36.9
9.7
10.8
16.4
178.1
51.0
39.4
12.8
51.4
25.6
42.2
13.1
11.0
18.2
185.5
54.3
40.4
13.1
-0.8
-1.1
14.5
34.4
1.9
11.0
4.2
6.6
2.5
2.4
11.3
50.4
12.8
52.2
13.3
3.7
NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.
Figure B
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1984-1996
[Money amounts are in billions of dollars]
Tax year
Total business receipts
Constant dollars 1,2
Current
Percentage
dollars
Amount
increase
(1)
(2)
(3)
1984......................................................................
516.0
679.8
1985......................................................................
540.0
687.9
559.4
694.0
1986......................................................................
610.8
735.0
1987......................................................................
672.0
780.5
1988......................................................................
692.8
772.4
1989......................................................................
730.6
780.6
1990......................................................................
712.6
732.4
1991......................................................................
737.1
737.1
1992......................................................................
757.2
738.0
1993......................................................................
790.6
752.2
1994......................................................................
807.4
748.9
1995......................................................................
843.2
765.2
1996......................................................................
6.8
1.2
0.9
5.9
6.2
-1.0
1.1
-6.2
0.6
0.1
1.9
-0.4
2.2
Total business deductions
Constant dollars 1,2
Current
Percentage
dollars
Amount
increase
(4)
(5)
(6)
Net income less deficit
Constant dollars 1,2
Current
Percentage
dollars
Amount
increase
(7)
(8)
(9)
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
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
586.7
587.6
581.9
608.2
633.8
624.5
629.5
587.1
583.1
585.6
593.5
592.0
604.8
5.9
0.2
-1.0
4.5
4.2
-1.5
0.8
-6.7
-0.7
0.4
1.3
-0.3
2.2
93.3
100.4
112.2
127.0
146.7
147.9
151.1
145.4
154.0
152.5
158.7
157.0
160.4
12.9
7.6
11.8
13.2
15.5
0.8
2.2
-3.8
5.9
-1.0
4.1
-1.1
2.2
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 , April, 1998. The deflator represents the annual average of current-weighted prices, based on 1992=100.
² Due to technical changes, the overall implicit price deflator for gross domestic product was revised for 1985, 1994, and 1995.
NOTE: Percentage increases were calculated after rounding.
mileage rate from 30 cents a mile for 1995 to 31 cents a
mile for 1996.
In constant dollars, the depreciation deduction for 1996
was $24.8 billion (Figure E). This amount represents a
2.1-percent increase from 1995. The depreciation deduction first began to decline for 1986, following the enactment of the Tax Reform Act of 1986 (TRA86). TRA86
reduced the allowable depreciation deduction by lengthen-
7
Sole Proprietorship Returns, 1996
Figure C
return to the upward trend. The 1996 depreciation deduction accounted for 4.1 percent of total business deductions.
Depreciation deductions as a percentage of total business
[Money amounts are in millions of dollars]
deductions remained well below the 1985 (pre-TRA86)
level of 5.7 percent.
Business deductions
1995
1996
Percentage
Beginning with Tax Year 1992, certain smaller busiincrease
nesses
could elect to not itemize depreciation and other
(1)
(2)
(3)
business deductions by filing the Schedule C-EZ, Net
Business deductions, total ¹,²..........................................................................................................
638,126.8 666,460.9
4.4
Cost of sales and operations..........................................................................................................
306,958.5 316,420.9
3.1
Profit From Business, a simplified version of Schedule C,
Inventory, beginning of year..........................................................................................................
31,167.7
32,021.1
2.7
Profit or Loss From Business. (Schedule C and Schedule
Cost of labor..........................................................................................................
24,383.4
26,001.5
6.6
C-EZ are the source of sole proprietorship statistics.)
Purchases..........................................................................................................
219,305.5 220,028.8
0.3
Materials and supplies..........................................................................................................
34,427.1
40,473.4
17.6
Taxpayers could use Schedule C-EZ if they: had business
Other costs..........................................................................................................
31,030.6
31,681.2
2.1
expenses of $2,500 or less; used the cash accounting
Inventory, end of year..........................................................................................................
33,355.8
33,785.2
1.3
method; had no inventories; did not report a deficit from
Business expenses, total..........................................................................................................
331,168.3 350,039.9
5.7
Advertising expenses..........................................................................................................
8,309.6
8,974.9
8.0
the business; had only one business as a sole proprietor;
Bad debts from sales or services..........................................................................................................
996.6
986.5
-1.0
had no employees; were not required to file Form 4562,
Car and truck expenses..........................................................................................................
32,784.9
36,700.3
11.9
Depreciation and Amortization, for the business; claimed
Commissions..........................................................................................................
9,591.6
10,791.7
12.5
Depletion..........................................................................................................
457.5
566.3
23.8
no deduction for home business expenses; and had no
Depreciation ³..........................................................................................................
26,233.8
27,364.6
4.3
prior-year disallowed passive activity losses from the
Employee benefit programs..........................................................................................................
1,298.8
1,409.7
8.5
business. The filing requirements for Schedule C-EZ
Insurance..........................................................................................................
12,977.6
13,195.2
1.7
Legal and professional services..........................................................................................................
6,340.0
6,330.3
-0.2
changed for 1996 by eliminating the gross receipts ceiling
Meals and entertainment deducted..........................................................................................................
3,208.7
3,520.0
9.7
(previously $25,000) and by increasing the limit on busiMortgage interest..........................................................................................................
4,076.3
4,475.4
9.8
ness expenses from $2,000 to $2,500. Since taxpayers
Other interest paid on business
indebtedness..........................................................................................................
5,980.2
6,091.2
1.9
using Schedule C-EZ did not itemize business deductions,
Office expenses..........................................................................................................
8,344.2
8,824.0
5.8
the detailed deductions in Table 2 are slightly understated
Pension and profit-sharing plans..........................................................................................................
649.0
707.0
8.9
Rent on machinery and equipment..........................................................................................................
6,218.4
6,926.9
11.4
and will not add to the totals.
Rent on other business property..........................................................................................................
21,284.6
21,589.4
1.4
Figure F presents the numbers and percentages of
Repairs..........................................................................................................
10,171.8
10,715.0
5.3
nonfarm sole proprietorship returns filed on Schedule CSupplies..........................................................................................................
16,902.1
18,777.1
11.1
Net salaries and wages..........................................................................................................
54,470.7
56,322.1
3.4
EZ by industrial division. Of the 2.2 million Schedule CTaxes paid..........................................................................................................
13,471.2
13,736.1
2.0
EZ returns filed for 1996, taxpayers in the services indusTravel..........................................................................................................
6,505.0
7,179.0
10.4
tries filed 1.3 million returns, or 61.8 percent. Despite the
Utilities..........................................................................................................
17,205.8
18,161.6
5.6
Home office business deductions..........................................................................................................
3,337.9
3,769.0
12.9
loosening of the filing restrictions for Schedule C-EZ, the
Other business deductions..........................................................................................................
59,408.1
61,828.6
4.1
number of filers was virtually the same as for 1995. For
¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for
1996, business receipts from Schedule C-EZ filers totaled
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.
$10.1 billion, or 1.2 percent of total business receipts
² Total business deductions are calculated before subtraction of nonallowable "passive"
reported. However, the business deductions reported on
activity losses and any "passive loss" carryover from the prior years. However, these losses
(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total
Schedule C-EZ returns accounted for only 0.2 percent of
business receipts minus total business deductions may not always equal net income or
total business deductions for all industries. Even in the
deficit.
³ Depreciation does not include depreciation reported on Form 8829 for home office
services division with its concentration of Schedule C-EZ
businesses.
filers, deductions reported on Schedule C-EZ accounted
NOTE: Percentage increases were calculated after rounding.
for only 0.3 percent of total business deductions.
Components of Nonfarm Sole Proprietorship
Business Deductions, Tax Years 1995 and 1996
8
ing the cost recovery periods and changing the depreciation methods for property placed in service after July 31,
1986. The depreciation deduction dropped 2.1 percent
for 1986 and continued to decline through 1992. Beginning with 1993, when the limit on expensing of certain
capital expenditures increased, the trend reversed and
depreciation increased until 1995, when it decreased 2.4
percent to $24.3 billion [6]. The 1996 increase was a
8
Profits and Losses
All of the principal industrial divisions, except transportation and public utilities, reported increased sole proprietorship profits for 1996. Figure B presents total profits for all
industries (in both current and constant dollars), while
Figure G presents profits by industrial group [7]. Total
profits increased 4.4 percent, from $169.3 billion for 1995
to $176.8 billion for 1996. Among the largest industrial
Sole Proprietorship Returns, 1996
Figure D
Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 1996 ¹
Car and truck
expenses
10.5% Commissions
3.1%
Other business
deductions ²
33.0%
Depreciation
7.8%
Insurance
3.8%
$350.0 billion
Rent on business
property, machinery,
and equipment
8.1%
Repairs
3.1%
Utilities
5.2%
Taxes paid
3.9%
Supplies
5.4%
Net salaries and
wages
16.1%
¹ Total business expenses equals all business deductions minus cost of sales and operations.
² Other business deductions includes: office expenses; advertising expenses; travel, meals, and entertainment; bad debts; depletion;
employee benefit programs; interest; legal and professional services; pension and profit-sharing plans; and home office deductions.
Other business deductions also includes all Schedule C-EZ deductions ($1.1 billion).
Figure E
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1984-1996
[Money amounts are in billions of dollars]
Constant dollars 1,2
Current dollars
Tax year
Net income
Deficit
(1)
(2)
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
Depreciation
Net income
Deficit
Percentage increase in constant dollars ¹
Depreciation
Net income
Deficit
Depreciation
(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
118.4
125.9
137.1
149.0
169.0
169.9
172.7
166.9
173.5
172.5
178.7
177.9
181.6
25.1
25.5
24.9
22.0
22.3
21.9
21.6
21.5
19.5
20.0
20.0
20.8
21.2
31.5
33.5
32.8
30.8
30.3
27.3
25.4
23.7
23.3
24.3
24.9
24.3
24.8
10.1
6.3
8.9
8.7
13.4
0.5
1.6
-3.4
4.0
-0.6
3.6
-0.4
2.1
0.7
1.6
-2.4
-11.6
1.4
-1.8
-1.4
-0.5
-9.3
2.6
-4.0
1.9
4.3
6.3
-2.1
-6.1
-1.6
-9.9
-7.0
-6.7
-1.7
4.3
2.5
-2.4
2.1
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 , April, 1998. The deflator represents the annual average of current-weighted prices, based on 1992=100.
² Due to technical changes, the overall implicit price deflator for gross domestic product was revised for 1985, 1994, and 1995.
NOTE: Percentage increases were calculated after rounding.
9
Sole Proprietorship Returns, 1996
Figure F
Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Industry, Tax Year 1996
[Money amounts are in millions of dollars]
Industrial division
Total
(1)
Number of returns
With
Percentage
Schedule
of
C-EZ
total
(2)
(3)
Total business receipts
On
Percentage
Total
Schedule
of
C-EZ
total
(4)
(5)
(6)
Total business deductions
On
Percentage
Total
Schedule
of
C-EZ
total
(7)
(8)
(9)
All industries..................................................................................................
16,955,023
2,151,320
12.7
843,233.8
10,129.8
1.2
666,460.9
1,100.8
0.2
Construction..................................................................................................
2,096,767
245,329
11.7
127,357.3
Transportation and
public utilities..................................................................................................
824,687
89,892
10.9
42,124.8
Wholesale and retail trade..................................................................................................
3,151,272
198,424
6.3
261,111.2
Finance, insurance,
and real estate..................................................................................................
1,271,394
97,365
7.7
64,606.6
Services..................................................................................................
8,233,940
1,329,037
16.1
287,494.8
All other industries..................................................................................................
1,376,964
191,273
13.9
60,539.4
1,377.5
1.1
105,632.9
157.8
0.1
323.8
801.5
0.8
0.3
36,444.1
244,421.9
42.6
120.3
0.1
(¹)
432.8
6,406.7
787.5
0.7
2.2
1.3
42,216.4
185,514.6
52,230.9
84.6
621.9
73.6
0.2
0.3
0.1
¹ Less than 0.05 percent.
NOTE: Detail may not add to totals because of rounding.
10
divisions, the finance, insurance, and real estate division
reported the largest percentage change in profits for 1996,
an 8.5 percent increase. The services division produced
the next largest percentage change, an increase of 4.9
percent.
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” [8]. However,
the restrictions had a limited effect on overall sole proprietorship profits, amounting to only $79.7 million in
nondeductible losses reported for 1996.
In constant dollars, total profits increased 2.2 percent
for 1996 (Figure B), contrasting with the 1.1-percent
decrease reported for 1995. The constant dollar increase
in profits for 1996 continued the every-other-year cycle of
increases starting with 1990. Figure E presents net income and deficit for sole proprietorships between 1984
and 1996, in current and constant dollars. For 1996, net
income (in constant dollars) increased 2.1 percent and
deficits (in constant dollars) increased 1.9 percent. This
increase in net income is only the third such increase since
1990.
Industry Trends
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 1996 with 34.1
percent of all business receipts. Total receipts for this
division, at $287.5 billion, were 4.4 percent more than the
$275.3 billion reported for 1995. Figures G and I show
that services division profits grew 4.9 percent to $102.0
10
billion, accounting for 57.7 percent of sole proprietorship
profits for 1996. Medical services had the largest profits
in the division, reporting approximately one third of total
Figure G
Nonfarm Sole Proprietorship Profits, by Industry,
Tax Years 1995 and 1996
[Money amounts are in billions of dollars]
Industrial group
Net income less deficit
Percentage
1995
1996
increase
(1)
(2)
(3)
All industries.........................................................................................................
169.3
176.8
4.4
Construction.........................................................................................................
20.8
21.7
4.2
Special trade contractors.........................................................................................................
16.7
18.3
9.3
Transportation and public utilities.........................................................................................................
5.8
5.7
-2.0
Wholesale and retail trade.........................................................................................................
16.6
16.7
0.5
Wholesale trade.........................................................................................................
5.1
5.3
4.2
Retail trade.........................................................................................................
11.6
11.4
-1.2
Food stores.........................................................................................................
1.4
1.3
-4.8
Automotive dealers and
service stations.........................................................................................................
1.7
1.9
10.8
Eating and drinking places.........................................................................................................
1.3
1.0
-16.4
Finance, insurance, and real estate.........................................................................................................
20.6
22.4
8.5
Finance.........................................................................................................
1.2
1.8
54.3
Insurance.........................................................................................................
9.5
9.0
-5.2
Real estate.........................................................................................................
9.9
11.5
16.2
Services.........................................................................................................
97.2
102.0
4.9
Business and personal services.........................................................................................................
20.2
23.1
14.1
Medical services.........................................................................................................
33.7
33.7
(¹)
Legal services.........................................................................................................
10.7
11.4
6.3
Consulting and management services...................................................................................................
12.1
13.1
7.5
All other industries.........................................................................................................
8.2
8.3
1.1
¹ Less than 0.05 percent.
NOTE: Detail may not add to totals because of rounding. Percentage increases were
calculated before rounding.
Sole Proprietorship Returns, 1996
Figure H
Shares of Nonfarm Sole Proprietorship Total Business Receipts, by
Industry, Tax Year 1996
All other industries
7.1%
Construction
15.1%
Transportation and
public utilities
5.0%
Services
34.1%
$843.2 billion
Wholesale and
retail trade
31.0%
Finance, insurance,
and real estate
7.7%
Figure I
Shares of Nonfarm Sole Proprietorship Total Business Profits, by Industry,
Tax Year 1996
All other industries
4.8%
Construction
12.3%
Transportation and
public utilities
3.2%
Wholesale and
retail trade
9.4%
$176.8 billion
Services
57.7%
Finance, insurance,
and real estate
12.6%
11
Sole Proprietorship Returns, 1996
12
12
services profits. However, small growth in both receipts
and deductions for this group led to almost no change in
profit levels for 1996. All of the other major groups
showed faster growth. The business and personal services
group reported an increase in both receipts and deductions. The net effect of these changes was increased
profits (14.1 percent) to a level of $23.1 billion. Profits
from business and personal services sole proprietorships
comprised 22.6 percent of total profits for the services
division. Consulting and management services receipts
and deductions increased 10.1 percent and 13.3 percent,
respectively, resulting in a 7.5-percent increase in profits.
Sole proprietorships in the legal services group reported
increased receipts and deductions, resulting in a 6.3percent growth in profits.
The second largest sole proprietorship industrial division with 31.0 percent of total receipts was wholesale and
retail trade. A 1.5-percent increase in receipts for this
division, accompanied by a 1.6-percent increase in deductions, led to profits slightly higher than the previous year’s
level (0.5-percent increase). Within this division, the
wholesale trade group showed a 2.2-percent decrease in
receipts and a 3.1-percent decrease in deductions, leading
to a 4.2-percent increase in profits. The other component
of this division, the retail trade group, reported growth in
both receipts and deductions (2.2 percent and 2.4 percent,
respectively), and showed a 1.2-percent decline in profits.
Sole proprietorships in the retail trade group accounted for
84.3 percent of the receipts and 68.5 percent of the profits
for the division. Within the retail trade group, automotive
dealers and service stations reported a 10.8-percent
growth in profits. This growth contrasts with the 4.8percent and 16.4-percent declines in profits for food stores
and eating and drinking places groups, respectively.
The third largest industrial division was construction,
with receipts totaling $127.4 billion. This amount was
15.1 percent of all sole proprietorship receipts for 1996,
representing a 7.1-percent increase from the 1995 amount.
Deductions likewise increased by 7.7 percent. Construction profits increased by 4.2 percent for 1996 to $21.7
billion. Special trade contractors reported the largest
portion (84.2 percent) of these profits. As a group, they
showed substantial increases of 12.3 percent for receipts
and 9.3 percent for profits.
The fourth largest division was finance, insurance, and
real estate, which accounted for 7.7 percent of sole proprietorship receipts for 1996. Receipts increased 12.4 percent to $64.6 billion, and deductions increased 14.5
percent to $42.2 billion, yielding an 8.5-percent growth in
profits. This growth in profits was the largest percentage
gain in profits of all the principal industrial divisions. The
large 54.3-percent and 16.2-percent increases in profits for
the finance and real estate groups, respectively, more than
compensated for the 5.2-percent decline in profits for the
insurance group. The exceptional high growth in finance
profits was probably related to the large growth in stock
activities exhibited for 1996.
Summary
Profits for nonfarm sole proprietorships for 1996 grew 4.4
percent to a level of $176.8 billion. Receipts and deductions both also increased 4.4 percent. All of the principal
industrial divisions, except transportation and public
utilities, showed increased profits for 1996. The finance,
insurance, and real estate division reported the largest
percentage growth in profits at 8.5 percent. The services
division remained the largest sole proprietorship industrial
division, accounting for 34.1 percent of receipts and 57.7
percent of profits. Services division receipts grew 4.4
percent to $287.5 billion, while profits grew 4.9 percent to
$102.0 billion. In constant dollars, total nonfarm sole
proprietorship profits increased 2.2 percent, the largest
percentage increase since 1988.
Data Sources and Limitations
The 1996 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 1997. 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 C-EZ, 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 1996
nonfarm sole proprietorship data are based on a sample of
40,075 returns and a population of 17,171,195 returns [9].
The corresponding sample and population for the 1995
data were 39,539 and 16,604,604 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.
Sole Proprietorship Returns, 1996
Figure J
Coefficients of Variation for Selected Items, Tax Year 1996
[Coefficients of variation are in percentages]
Coefficients of variation
Industrial division
Total
receipts¹
Total
deductions
(1)
(2)
0.80
0.89
All industries.................................................................................................
Construction.................................................................................................
3.06
3.23
Transportation and public utilities.................................................................................................
4.10
4.23
Wholesale and retail trade.................................................................................................
1.96
1.96
Finance, insurance, and real estate.................................................................................................
3.05
3.15
Services.....................................................................................................................................
1.38
1.58
Net income
Net deficit
Depreciation
(3)
1.12
(4)
2.23
(5)
1.46
3.60
5.44
3.64
4.07
1.70
9.43
9.19
4.55
6.28
3.96
4.39
5.71
3.35
5.64
2.37
¹ Positive only.
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 of
estimates based on samples.
Notes and References
[1] For 1996, the 16,955,023 nonfarm sole proprietorship
returns accounted for 19,031,717 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.
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 diverge
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 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, April 1998. Indices used for this
article were:
Year Indices
1984 75.9
1985 78.5
1986 80.6
1987 83.1
1988 86.1
1989 89.7
1990 93.6
Year
1991
1992
1993
1994
1995
1996
Indices
97.3
100.0
102.6
105.1
107.8
110.2
13
Sole Proprietorship Returns, 1996
[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 C-EZ, 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 the Schedule C. In some
cases, these expenses were limited. Prior to 1990,
these expenses were not limited and were included
with other expenses, such as the depreciation deduction, utilities, and “other” expenses on Schedule C.
14
[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. The
total amount of this deduction for 1996 for all
individual taxpayers (including sole proprietorships)
was $18.0 billion, a 5.8-percent increase from 1995.
[7] Net income minus deficit (loss) before Federal
income tax yields profits. Proprietors compute their
tax on total “taxable income,” which includes their
business profits, plus any other income.
[8] 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 5-year 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.
[9] 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.
Source: IRS, Statistics of Income Bulletin, Publication
1136, Summer 1998.
14
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Businesses with and without net income
Rent paid
Rent paid
on machinery
on other
Interest paid
and
business
deduction ¹,³
equipment ¹
property ¹
Number
of returns
Business
receipts
Depreciation
deduction ¹,²
(1)
(2)
(3)
Payroll ¹,4
Net income
less deficit
(4)
(5)
(6)
(7)
(8)
6,926,867
21,589,370
10,566,611
82,323,614
176,755,693
Agricultural services, forestry, and fishing..........................................................................................................
552,107
20,279,907
1,383,587
182,960
Agricultural services..........................................................................................................
472,604
17,684,865
1,135,149
153,949
Veterinary services, including pets..........................................................................................................
19,637
2,878,491
96,395
16,721
Livestock breeding..........................................................................................................
22,462
193,924
29,241
43
Animal services, except livestock breeding,
and veterinary..........................................................................................................
105,563
2,972,381
194,062
26,740
Landscape and horticultural services..........................................................................................................
259,871
8,830,873
716,507
79,040
Farm labor, management, and crop services..........................................................................................................
65,071
2,809,196
98,945
31,406
Forestry, except logging..........................................................................................................
14,944
604,448
38,362
15,413
Commercial fishing..........................................................................................................
59,159
1,979,614
205,217
13,597
Hunting and trapping..........................................................................................................
5,401
10,979
4,860
-Mining..........................................................................................................
107,516
5,951,643
417,980
73,995
Metal mining..........................................................................................................
6,339
99,137
5,928
5,182
Coal mining..........................................................................................................
1,033
240,279
6,586
682
Oil and gas extraction..........................................................................................................
92,855
5,228,101
362,734
55,112
Quarrying and nonmetallic minerals, except fuels..........................................................................................................
7,289
384,125
42,733
13,019
282,274
263,203
68,045
3,019
317,399
263,846
69,547
4,732
2,982,131
2,822,504
548,849
22,640
3,223,406
2,794,525
728,419
-112,993
69,040
81,018
42,080
5,516
12,534
1,020
83,770
7,072
49
55,409
21,239
41,533
115,631
32,403
6,697
37,865
8,991
198,778
4,609
1,171
179,412
13,586
262,107
1,309,139
679,770
41,484
117,713
430
308,047
5,239
3,625
223,894
75,289
100,036
1,795,578
283,485
85,913
358,365
-15,397
290,019
28,114
26,617
236,287
-999
Construction..........................................................................................................
2,096,767
127,357,252
3,962,306
913,136
General building contractors and operative builders..........................................................................................................
271,886
32,206,819
599,958
107,999
General building contractors..........................................................................................................
238,282
28,479,408
552,388
97,853
Operative builders..........................................................................................................
33,604
3,727,411
47,570
10,146
Heavy construction contractors..........................................................................................................
26,406
3,094,698
269,811
136,905
Highway and street construction..........................................................................................................
7,618
834,869
78,547
17,280
Heavy construction, except highway..........................................................................................................
18,788
2,259,829
191,264
119,626
Special trade contractors..........................................................................................................
1,798,476
92,055,735
3,092,537
668,231
Plumbing, heating, and air conditioning..........................................................................................................
147,073
10,200,301
253,264
51,323
Painting and paperhanging..........................................................................................................
202,618
6,601,971
177,044
47,627
Electrical work..........................................................................................................
107,696
6,538,012
152,136
53,333
Masonry, stonework, tile setting, and plastering..........................................................................................................
180,009
10,380,450
226,968
53,437
Carpentering and flooring..........................................................................................................
539,768
21,468,433
592,914
101,573
Roofing, siding, and sheet metal work..........................................................................................................
112,290
7,380,616
208,330
30,480
Concrete work..........................................................................................................
54,979
3,837,638
120,305
53,336
Miscellaneous special trade contractors..........................................................................................................
454,042
25,648,315
1,361,575
277,123
Manufacturing..........................................................................................................
507,167
32,057,221
1,655,554
376,220
Food and kindred products..........................................................................................................
19,613
1,739,279
84,173
33,241
Textile mill products..........................................................................................................
*2,765
*338,982
*9,482
*509
Apparel and other textile products..........................................................................................................
30,190
2,208,358
59,441
12,546
Lumber and wood products, except furniture
(including logging)..........................................................................................................
100,580
8,045,650
749,626
130,643
Furniture and fixtures..........................................................................................................
25,190
1,395,062
43,223
1,903
Printing, publishing, and allied industries..........................................................................................................
125,668
5,497,411
177,474
78,381
Leather and leather products..........................................................................................................
4,638
341,696
-2,177
Stone, clay, and glass products..........................................................................................................
25,188
813,784
54,890
9,192
Primary metal industries..........................................................................................................
*2,404
*55,889
*15,796
*250
Fabricated metal products..........................................................................................................
23,511
1,805,435
99,970
10,526
Machinery, except electrical ..........................................................................................................
39,572
3,393,216
214,504
22,777
Electrical and electronic equipment ..........................................................................................................
23,796
1,461,092
29,861
2,735
Paper and allied products..........................................................................................................
4,558
455,833
3,364
4,471
Other manufacturing industries..........................................................................................................
79,495
4,505,534
113,749
66,869
Transportation and public utilities..........................................................................................................
824,687
42,124,760
3,604,427
1,136,665
Local and interurban passenger transit..........................................................................................................
87,720
2,208,252
117,672
206,041
Taxicabs..........................................................................................................
47,040
1,105,736
38,106
194,672
Bus and limousine transportation..........................................................................................................
36,444
1,075,892
74,940
11,370
Other highway passenger transportation..........................................................................................................
*4,236
*26,624
*4,625
-Trucking and warehousing ..........................................................................................................
505,040
31,831,864
3,202,165
839,207
Trucking, local and long distance, including
trash collection without own dump..........................................................................................................
380,483
29,044,588
3,146,308
742,221
Courier or package delivery service..........................................................................................................
123,900
2,586,797
43,397
96,616
Public warehousing..........................................................................................................
657
200,479
12,459
370
Water transportation..........................................................................................................
12,076
424,698
27,318
4,873
Air transportation..........................................................................................................
11,161
722,139
40,533
7,030
Transportation services..........................................................................................................
95,162
5,264,533
110,123
60,161
Travel agents and tour operators..........................................................................................................
57,851
3,176,495
36,316
23,140
Other transportation services..........................................................................................................
37,311
2,088,038
73,807
37,021
Communication services..........................................................................................................
89,276
1,356,796
68,821
10,341
Utilities, including dumps, snowplowing,
road cleaning, etc...........................................................................................................
24,254
316,479
37,795
9,012
Footnotes at end of table.
690,952
121,816
110,072
11,744
1,133
212
921
568,003
67,895
43,767
52,520
49,263
132,903
66,122
16,960
138,573
852,973
38,311
*4,790
118,692
1,083,932
308,074
278,281
29,793
59,843
19,696
40,147
716,015
92,060
34,527
29,541
42,015
119,957
39,620
60,697
297,599
523,078
33,634
*7,246
13,791
19,448,612
4,621,590
3,982,692
638,898
458,273
93,885
364,388
14,368,749
1,474,370
1,026,477
1,085,892
1,901,161
2,992,744
1,287,273
719,154
3,881,678
4,781,076
193,927
*58,950
465,734
21,706,292
3,124,296
2,672,553
451,743
308,104
91,422
216,682
18,273,893
1,399,582
2,085,981
1,286,693
2,439,135
5,099,653
1,394,273
411,551
4,157,024
3,941,135
-11,598
*46,584
342,631
55,996
46,738
174,685
9,319
20,822
-66,873
91,241
33,394
13,059
179,053
384,692
50,765
43,659
7,107
-222,241
219,865
12,321
68,341
-16,382
*1,028
20,877
59,756
18,054
1,313
50,470
883,316
53,436
25,734
26,228
*1,475
718,227
1,090,600
292,233
746,896
*62,346
132,487
-348,817
660,502
176,157
19,706
532,722
4,009,466
117,879
32,176
85,703
-2,820,756
493,330
278,379
839,531
*45,822
84,873
*10,463
201,732
700,302
211,878
50,256
646,952
5,680,369
508,987
312,912
195,892
*182
4,110,629
165,105
33,584
23,552
7,508
13,193
80,770
63,114
17,656
9,906
703,407
4,358
10,462
12,295
35,596
35,104
7,278
27,827
22,396
2,703,856
95,904
20,996
18,315
55,222
759,913
562,425
197,488
227,971
3,304,376
740,410
65,844
91,339
132,242
513,928
315,727
198,201
235,345
309
6,261
9,410
87,899
All nonfarm industries..........................................................................................................
16,955,023
843,233,843
27,882,580
15
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Businesses with and without net income
Rent paid
Rent paid
on machinery
on other
Interest paid
and
business
deduction ¹,³
equipment ¹
property ¹
Number
of returns
Business
receipts
Depreciation
deduction ¹,²
(1)
(2)
(3)
16
Net income
less deficit
(4)
(5)
(6)
(7)
(8)
1,202,334
7,484,810
2,662,626
18,209,606
16,696,463
Wholesale trade..........................................................................................................
350,993
40,976,076
546,115
146,616
Durable goods, including machinery,
wood, metals, etc...........................................................................................................
191,973
20,930,359
339,125
83,483
Nondurable goods, including food, fiber,
chemicals, etc...........................................................................................................
159,020
20,045,717
206,990
63,132
Retail trade..........................................................................................................
2,800,279
220,135,070
4,027,608
1,055,718
Building materials, paint, hardware,
garden supply, and mobile home dealers..........................................................................................................
81,372
10,752,931
248,472
79,940
Lumber and other building materials dealers..........................................................................................................
27,393
3,062,178
93,283
39,303
Paint, glass, and wallpaper stores..........................................................................................................
8,613
699,860
22,928
6,591
Hardware stores..........................................................................................................
23,831
3,565,186
58,630
28,292
Retail nurseries and garden supply stores..........................................................................................................
15,993
2,162,663
60,348
2,363
Mobile home dealers..........................................................................................................
5,543
1,263,044
13,283
3,391
General merchandise stores..........................................................................................................
53,175
4,708,909
58,274
6,725
Variety stores..........................................................................................................
18,812
1,817,471
14,628
5,841
Computer and software stores..........................................................................................................
13,980
1,305,638
15,930
241
365,457
208,924
1,351,950
5,264,599
189,132
116,779
714,378
3,522,720
176,325
7,119,353
92,146
2,453,702
637,572
16,857,656
1,741,879
11,431,864
141,586
28,200
21,363
78,334
12,298
1,391
189,243
114,525
13,474
209,081
28,391
15,342
62,488
41,073
61,787
35,181
13,226
7,420
894,561
195,796
132,377
223,663
258,245
84,481
243,871
82,830
54,611
763,365
416,480
34,799
320,430
70,844
-79,187
332,900
167,864
64,720
61,243
864,105
525,193
123,886
215,027
644,630
14,535
349,473
270,593
42,133
36,747
521,315
106,430
2,622,395
1,654,283
410,454
557,658
2,329,718
100,316
1,296,600
847,800
117,150
331,651
1,896,956
1,858
116,755
10,244
186,167
39,972
346,208
85,860
795,810
118,354
363,976
25,689
17,999
549,011
20,056
194,823
52,464
77,083
87,423
60,782
171,828
52,149
40,145
91,221
8,632
9,063
10,722
19,681
15,676
445,174
1,313,159
71,522
113,683
742,354
39,974
139,454
81,833
80,042
92,670
330,597
477,052
10,329
197,308
455,062
10,937
-3,866
26,867
118,184
33,662
117,162
399,159
152,102
27,445
146,563
57,824
308,382
1,047,976
376,639
269,279
561,242
219,291
93,884
61,825
45,835
45,514
1,599,179
1,403,548
159,563
36,068
2,732,440
52,818
159,469
364,452
157,420
73,014
82,117
180,259
136,293
*19,037
*10,148
37,417
39,452
11,962
247,551
320,835
3,900
139,694
696,600
37,630
18,593
22,839
9,677
465,687
351,979
111,646
2,062
635,182
13,269
45,744
46,531
57,373
9,943
14,907
29,163
23,018
*3,535
*1,256
4,560
6,208
11,334
126,709
34,084
15,792
33,230
158,526
240,433
108,636
215,756
106,513
4,775,568
4,263,005
469,208
43,354
4,201,213
465,646
337,518
173,654
206,946
133,003
99,277
220,712
81,457
*4,745
*6,012
22,418
77,355
68,766
439,533
301,174
76,431
394,637
1,091,928
144,928
93,877
89,348
13,797
1,048,728
793,368
192,322
63,038
5,077,010
293,774
213,727
245,864
203,053
85,061
126,402
406,377
10,948
*26,668
*5,577
13,320
-57,006
153,468
2,151,340
-5,251
50,722
213,120
939,846
Wholesale and retail trade..........................................................................................................
3,151,272
261,111,146
4,573,723
16
Payroll ¹,4
Other general merchandise stores..........................................................................................................
20,384
1,585,800
27,716
643
Food stores..........................................................................................................
138,792
38,070,740
493,264
119,408
Grocery stores..........................................................................................................
87,074
29,624,223
325,834
76,148
Retail bakeries..........................................................................................................
14,999
1,864,891
69,444
14,079
Miscellaneous food stores..........................................................................................................
36,719
6,581,627
97,986
29,181
Automotive dealers and service stations..........................................................................................................
175,536
53,270,793
500,622
137,538
Motor vehicle dealers--new car
dealers (franchised)..........................................................................................................
5,463
1,729,363
4,322
4,190
Motor vehicle dealers--used cars only..........................................................................................................
71,554
16,199,186
93,104
31,241
Auto parts and accessories and
selected home supply stores..........................................................................................................
30,422
5,291,443
74,850
22,447
Gasoline service stations..........................................................................................................
33,409
25,143,433
271,984
65,439
Boat dealers..........................................................................................................
8,627
1,783,105
28,218
2,067
Miscellaneous automotive dealers..........................................................................................................
26,060
3,124,264
28,144
12,154
Apparel and accessory stores..........................................................................................................
85,937
7,619,133
131,338
59,270
Men's and boys' clothing stores..........................................................................................................
1,508
569,854
9,839
88
Women's ready-to-wear stores..........................................................................................................
17,080
1,665,921
26,907
20,836
Women's accessory and specialty stores..........................................................................................................
15,469
677,000
14,983
9,926
Family clothing stores..........................................................................................................
17,408
1,367,570
22,600
789
Shoe stores..........................................................................................................
7,042
1,140,617
8,523
4,590
Apparel and accessory stores, not
elsewhere classified..........................................................................................................
27,429
2,198,172
48,485
23,041
Furniture and home furnishings stores..........................................................................................................
101,792
10,047,327
192,917
62,923
Furniture stores..........................................................................................................
26,853
3,613,835
70,920
36,921
Home furnishings and equipment
stores, except appliances..........................................................................................................
28,608
2,403,718
58,732
1,645
Household appliance stores..........................................................................................................
11,591
1,095,376
13,707
17,910
Television, audio, and electronic stores..........................................................................................................
13,644
1,823,426
30,330
6,363
Music and record stores..........................................................................................................
21,096
1,110,973
19,228
85
Eating and drinking places..........................................................................................................
243,842
26,649,073
867,754
188,239
Eating places..........................................................................................................
142,562
21,523,686
681,550
134,363
Drinking places..........................................................................................................
43,026
4,076,956
140,494
40,983
Catering services..........................................................................................................
58,254
1,048,431
45,709
12,893
Miscellaneous retail stores..........................................................................................................
1,919,833
69,016,163
1,534,967
401,676
Drug stores..........................................................................................................
4,398
4,237,096
29,535
7,010
Liquor stores..........................................................................................................
11,306
4,674,642
47,393
2,774
Used merchandise and antique stores..........................................................................................................
129,308
3,535,160
77,226
13,831
Sporting goods and bicycle shops..........................................................................................................
39,935
3,823,767
67,458
10,730
Book stores..........................................................................................................
8,970
1,222,097
14,809
2,645
Stationery stores..........................................................................................................
9,978
1,304,521
15,510
15,107
Jewelry stores..........................................................................................................
47,390
3,611,228
53,412
20,286
Hobby, toy, and game shops..........................................................................................................
60,566
1,558,701
20,858
18,271
Camera and photographic supply stores..........................................................................................................
*1,687
*262,307
*4,583
*4,206
Luggage and leather goods stores..........................................................................................................
*1,369
*180,225
*1,745
*3,162
Fabric and needlework stores..........................................................................................................
13,276
500,230
6,133
12,169
Catalog or mail order..........................................................................................................
125,327
2,890,396
51,239
7,074
Vending machine selling..........................................................................................................
60,900
1,676,637
172,355
10,110
Sales by door-to-door, telephone, etc...........................................................................................................
1,064,835
16,479,665
449,630
119,308
Gift, novelty, and souvenir shops..........................................................................................................
76,970
3,319,223
73,231
34,150
Fuel oil dealers..........................................................................................................
8,489
1,883,317
24,015
1,058
Florists..........................................................................................................
47,656
3,139,584
108,095
43,856
Other retail shops..........................................................................................................
207,474
14,717,366
317,741
75,928
Footnotes at end of table.
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Number
of returns
Business
receipts
(1)
(2)
Businesses with and without net income
Rent paid
Rent paid
Depreciation on machinery
on other
Interest paid
deduction ¹,²
and
business
deduction ¹,³
equipment ¹
property ¹
(3)
Payroll ¹,4
Net income
less deficit
(4)
(5)
(6)
(7)
(8)
512,324
1,368,856
1,247,274
3,326,982
22,351,241
Finance..........................................................................................................
128,864
14,916,259
210,758
50,525
Credit agencies and mortgage bankers..........................................................................................................
10,380
786,843
15,016
4,160
Security and commodity brokers and services..........................................................................................................
61,804
8,416,184
84,844
25,268
Security brokers and dealers..........................................................................................................
25,853
3,396,132
26,783
4,744
Investment advisors and services..........................................................................................................
26,409
1,914,065
49,403
12,720
Commodity contract brokers, exchanges
and services..........................................................................................................
9,542
3,105,987
8,658
7,803
Other financial services..........................................................................................................
56,680
5,713,232
110,899
21,098
Insurance agents and brokers..........................................................................................................
350,847
18,222,075
359,731
190,685
Insurance services..........................................................................................................
48,634
1,806,217
33,832
50,264
Real estate..........................................................................................................
743,050
29,662,010
967,977
220,850
Real estate property managers..........................................................................................................
55,370
1,634,712
111,180
15,786
Operators and lessors of buildings..........................................................................................................
17,146
996,449
109,673
11,065
Operators and lessors, other than buildings..........................................................................................................
5,464
433,244
40,114
1,977
Real estate agents and brokers..........................................................................................................
642,090
24,390,719
668,306
190,827
Title abstract companies..........................................................................................................
9,515
126,431
4,767
--
264,930
20,840
126,410
37,991
66,528
483,029
34,181
108,091
59,918
13,974
588,639
42,374
415,318
44,227
109,460
1,821,972
185,400
987,871
204,047
632,305
21,891
117,680
575,146
33,666
495,114
56,068
7,004
8,811
416,858
1,478
34,199
340,757
184,375
9,483
570,386
41,796
112,188
34,979
247,737
2,622
261,631
130,947
1,634,452
198,310
905,581
114,364
64,165
24,652
660,178
13,890
151,518
648,700
8,323,482
705,554
11,500,233
401,162
9,715
154,182
10,758,895
55,415
Subdividers and developers..........................................................................................................
13,464
2,080,454
33,938
1,195
4,894
Services..........................................................................................................
8,233,940
287,494,755
10,638,378
2,494,704
10,432,048
Hotels and other lodging places..........................................................................................................
48,471
4,889,841
545,542
14,878
71,606
Hotels, motels, and tourist courts..........................................................................................................
36,810
4,285,738
490,616
14,054
48,826
Rooming and boarding houses..........................................................................................................
8,045
375,079
27,999
516
1,509
Camps and camping parks..........................................................................................................
3,615
229,025
26,927
307
21,272
Personal services..........................................................................................................
1,261,698
28,072,556
1,070,098
362,825
2,274,040
Coin-operated laundries and dry cleaning..........................................................................................................
13,336
614,526
48,979
3,033
122,192
Other cleaning services, including laundry,
dry cleaning, garment, carpet, and upholstery..........................................................................................................
59,197
3,004,272
153,067
74,693
267,895
Photographic portrait studios..........................................................................................................
48,635
1,907,659
115,172
19,631
99,091
Beauty shops..........................................................................................................
412,173
9,979,326
251,523
162,100
1,345,891
Barber shops..........................................................................................................
59,553
1,161,047
27,159
11,524
114,300
Funeral service and crematories..........................................................................................................
9,801
676,668
48,847
10,268
786
Miscellaneous personal services, including
valet parking..........................................................................................................
659,002
10,729,058
425,350
81,576
323,885
Business services..........................................................................................................
1,954,565
49,354,675
2,178,136
386,390
849,376
Advertising, except direct mail..........................................................................................................
66,016
2,958,735
75,814
23,285
34,216
Consumer credit reporting and collecting services..........................................................................................................
1,969
38,620
1,314
-8
Janitorial and related services to buildings..........................................................................................................
488,511
7,213,736
177,858
70,936
41,772
Computer and data processing services..........................................................................................................
202,025
4,143,744
251,707
43,842
51,403
Mailing, reproduction, commercial art and
photography, and stenographic services..........................................................................................................
181,732
4,884,406
196,836
37,342
119,798
Computer repair, maintenance, and leasing..........................................................................................................
31,453
1,149,630
69,822
896
27,400
Equipment rental and leasing, except computer
and automotive..........................................................................................................
27,341
1,562,864
389,242
39,966
36,510
Other business services..........................................................................................................
955,518
27,402,937
1,015,543
170,122
538,270
Automotive repair and services..........................................................................................................
392,337
25,507,386
962,557
274,046
965,326
Automotive rentals or leasing, without drivers..........................................................................................................
7,671
365,310
72,245
5,084
7,002
Automobile parking, except valet..........................................................................................................
5,687
137,390
5,174
5,041
57,994
Automotive repair shops..........................................................................................................
287,444
20,730,753
675,615
210,833
805,489
Automotive services, except repair..........................................................................................................
91,536
4,273,932
209,523
53,087
94,841
Miscellaneous repair services..........................................................................................................
278,687
9,831,001
325,323
60,053
212,349
TV and audio equipment repair..........................................................................................................
24,460
940,578
15,763
7,670
10,692
Electrical repair, except TV and audio equipment..........................................................................................................
49,296
1,627,099
48,982
1,359
41,358
Reupholstery and furniture repair..........................................................................................................
44,344
1,542,876
26,136
4,042
57,825
Other miscellaneous repair..........................................................................................................
160,587
5,720,447
234,442
46,981
102,474
Motion pictures..........................................................................................................
85,832
2,512,489
269,290
37,853
108,018
Motion picture and video production..........................................................................................................
69,075
1,327,600
107,687
27,622
24,636
Motion picture and tape distribution and
allied services..........................................................................................................
3,183
220,436
8,659
107
1,338
Motion picture theaters..........................................................................................................
*1,623
*120,113
*10,967
*237
*5,918
Video tape rentals..........................................................................................................
11,950
844,340
141,976
9,887
76,126
Amusement and recreation services, except
motion pictures..........................................................................................................
670,637
13,737,511
835,875
119,029
476,880
Entertainers, producers, agents, and
related services..........................................................................................................
344,270
5,784,129
321,139
59,121
87,850
Bowling centers..........................................................................................................
4,494
298,287
24,719
566
12,868
Professional sports and racing,
including promoters and managers..........................................................................................................
94,977
2,804,658
201,541
7,508
30,377
Other amusement and recreation services..........................................................................................................
210,435
4,463,662
275,981
39,562
281,152
Physical fitness facilities..........................................................................................................
16,462
386,775
12,495
12,271
64,633
Footnotes at end of table.
131,064
3,626,838
676,875
594,121
53,288
29,467
264,121
18,709
28,332
29,216,366
634,733
577,516
35,926
21,291
2,673,216
38,903
120,864
101,984,543
120,214
87,508
35,637
-2,931
7,817,475
61,368
35,470
8,542
105,636
13,083
23,392
551,637
83,204
1,470,049
98,986
44,861
532,092
295,410
2,784,289
567,392
144,697
59,288
467,581
24,880
-60,379
34,015
385,575
4,357,966
67,452
-1,275,337
163,223
3,432,227
15,267,091
658,823
3,277
2,557,432
1,645,056
39,404
16,871
315,611
42,996
1,713,336
169,822
57,793
234,239
348,974
16,608
5,016
246,623
80,727
93,304
3,625
12,182
10,826
66,672
22,004
1,491
121,090
2,372,257
3,049,743
8,902
10,590
2,619,905
410,345
851,184
66,893
130,567
232,015
421,709
136,275
19,472
250,593
8,268,752
3,072,089
29,913
16,694
2,345,483
679,999
2,135,529
278,561
340,610
477,054
1,039,303
533,680
468,649
113
*6,640
13,760
6,472
*18,960
91,371
33,434
*-12,160
43,757
193,988
640,788
3,414,391
36,125
28,059
118,297
44,752
2,090,777
470
15,130
106,188
8,486
93,561
351,262
32,916
701,998
554,842
66,304
Finance, insurance, and real estate..........................................................................................................
1,271,394
64,606,561
1,572,299
17
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Number
of returns
Business
receipts
(1)
(2)
Businesses with and without net income
Rent paid
Rent paid
Depreciation on machinery
on other
Interest paid
deduction ¹,²
and
business
deduction ¹,³
equipment ¹
property ¹
(3)
(4)
Payroll ¹,4
Net income
less deficit
(5)
(6)
(7)
(8)
Medical and health services..........................................................................................................
771,450
74,094,250
1,877,917
542,640
Offices of physicians..........................................................................................................
192,631
27,457,471
427,816
181,752
Offices of dentists..........................................................................................................
102,424
24,290,857
751,638
160,950
Offices of osteopathic physicians..........................................................................................................
11,175
1,498,417
21,510
4,162
Offices of chiropractors..........................................................................................................
31,599
3,807,103
161,426
60,917
Offices of optometrists..........................................................................................................
13,182
2,784,032
82,194
23,528
Offices of podiatrists..........................................................................................................
6,875
1,011,390
35,934
14,271
Registered and practical nurses..........................................................................................................
54,245
807,683
8,452
888
Nursing and personal care facilities..........................................................................................................
54,842
2,363,413
77,640
10,978
Medical and dental laboratories..........................................................................................................
25,075
1,306,830
34,075
10,161
Other medical and health services..........................................................................................................
279,402
8,767,055
277,231
75,033
Legal services..........................................................................................................
291,119
24,508,796
545,906
239,500
Educational services..........................................................................................................
258,497
2,760,817
133,872
6,593
Child day care..........................................................................................................
541,696
5,611,317
277,787
28,658
Ministers and chaplains..........................................................................................................
217,460
2,522,690
51,908
17,033
Engineering services..........................................................................................................
118,878
4,624,948
168,011
19,027
3,019,585
881,491
952,765
46,949
260,218
176,596
78,625
2,652
71,269
58,434
490,585
1,197,169
118,969
72,794
55,815
75,259
855,627
183,178
345,122
11,446
93,775
33,830
20,547
111
101,933
9,235
56,449
229,324
31,977
70,050
15,502
30,029
10,179,869
2,760,690
4,969,264
161,307
501,791
351,501
112,727
8,972
559,008
214,904
539,705
3,022,597
217,402
438,913
-571,080
33,667,876
15,752,613
9,003,571
917,469
1,326,509
684,777
371,455
558,686
363,627
394,084
4,295,085
11,401,376
958,703
1,780,859
1,366,371
1,956,490
Architectural services..........................................................................................................
66,454
2,985,603
93,861
23,613
Surveying services..........................................................................................................
24,566
971,040
40,730
13,937
Accounting, auditing, and bookkeeping services..........................................................................................................
308,379
6,996,336
390,800
67,756
Management services..........................................................................................................
95,402
2,741,428
64,994
29,943
Consulting services..........................................................................................................
737,403
23,079,357
741,754
227,381
Public relations..........................................................................................................
15,848
319,393
13,957
4,532
Counseling, except health practitioners..........................................................................................................
94,562
2,373,322
50,060
19,019
Nature of business not allocable..........................................................................................................
210,174
2,250,599
74,324
34,529
Footnotes at end of table.
158,456
19,381
272,563
61,418
274,460
4,330
144,255
8,995
20,833
8,745
115,661
43,240
131,452
1,322
6,227
23,370
315,153
268,863
769,205
189,828
835,264
18,588
45,701
41,327
933,102
197,754
2,830,835
1,428,804
11,632,625
151,198
1,318,082
882,226
Services-Continued
18
18
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Number
of returns
Business
receipts
Depreciation
deduction ¹,²
(9)
(10)
(11)
Businesses with net income
Rent paid
Rent paid
on machinery
on other
and
business
equipment ¹
property ¹
Interest paid
deduction ¹,³
Payroll ¹,4
Net income
(12)
(13)
(14)
(15)
(16)
5,431,643
17,450,439
6,907,241
70,030,209
200,123,896
Agricultural services, forestry, and fishing..........................................................................................................
398,677
17,903,635
954,000
154,649
Agricultural services..........................................................................................................
336,382
15,541,485
751,571
126,564
Veterinary services, including pets..........................................................................................................
12,797
2,756,744
89,580
14,129
Livestock breeding..........................................................................................................
6,794
122,880
1,872
-Animal services, except livestock breeding,
and veterinary..........................................................................................................
63,154
2,400,722
80,638
26,432
Landscape and horticultural services..........................................................................................................
203,921
7,855,901
531,939
64,934
Farm labor, management, and crop services..........................................................................................................
49,716
2,405,239
47,542
21,069
Forestry, except logging..........................................................................................................
8,768
484,917
21,435
15,373
Commercial fishing..........................................................................................................
52,177
1,873,345
180,931
12,712
Hunting and trapping..........................................................................................................
1,350
3,888
63
-Mining..........................................................................................................
65,298
4,360,475
242,503
45,723
Metal mining..........................................................................................................
*2,232
*90,100
*1,862
*5,182
Coal mining..........................................................................................................
*1,028
*213,856
*3,202
*682
Oil and gas extraction..........................................................................................................
61,189
3,831,038
214,650
27,051
Quarrying and nonmetallic minerals, except fuels..........................................................................................................
849
225,482
22,789
12,809
231,344
214,293
54,199
2,707
215,417
185,657
62,015
125
2,697,353
2,556,474
531,327
16,411
4,195,222
3,649,225
772,572
29,730
59,819
70,393
27,175
5,499
11,552
-68,137
*6,963
*25
40,466
20,684
25,301
83,441
14,775
4,823
24,937
-47,693
*4,336
*215
36,619
6,522
216,388
1,166,033
626,316
32,418
108,461
-211,376
*5,239
*3,625
172,667
29,845
460,151
2,037,614
349,158
115,207
428,316
*2,474
957,058
*37,353
*27,912
868,257
23,536
Construction..........................................................................................................
1,816,919
114,368,103
3,195,941
702,755
General building contractors and operative builders..........................................................................................................
221,455
27,541,362
467,779
88,313
General building contractors..........................................................................................................
191,991
24,496,626
428,354
80,373
Operative builders..........................................................................................................
29,464
3,044,736
39,425
7,940
Heavy construction contractors..........................................................................................................
24,325
2,577,449
218,152
112,099
Highway and street construction..........................................................................................................
6,312
762,606
73,561
16,746
Heavy construction, except highway..........................................................................................................
18,013
1,814,843
144,591
95,353
Special trade contractors..........................................................................................................
1,571,140
84,249,292
2,510,009
502,343
Plumbing, heating, and air conditioning..........................................................................................................
115,901
9,322,769
207,850
45,200
Painting and paperhanging..........................................................................................................
190,166
6,191,637
144,278
45,452
Electrical work..........................................................................................................
88,934
6,131,395
142,386
51,779
Masonry, stonework, tile setting, and plastering..........................................................................................................
166,340
9,778,623
206,706
41,334
Carpentering and flooring..........................................................................................................
477,270
19,519,666
462,767
83,196
Roofing, siding, and sheet metal work..........................................................................................................
106,082
7,090,060
202,796
23,645
Concrete work..........................................................................................................
46,049
3,246,275
89,127
29,281
Miscellaneous special trade contractors..........................................................................................................
380,396
22,968,869
1,054,099
182,456
Manufacturing..........................................................................................................
328,123
27,287,971
1,156,246
277,255
Food and kindred products..........................................................................................................
11,131
1,490,781
30,857
16,769
Textile mill products..........................................................................................................
*2,419
*276,418
*9,337
*509
Apparel and other textile products..........................................................................................................
22,871
1,876,114
50,985
7,929
Lumber and wood products, except furniture
(including logging)..........................................................................................................
53,041
6,510,000
514,191
106,284
Furniture and fixtures..........................................................................................................
20,874
1,307,344
34,719
1,903
Printing, publishing, and allied industries..........................................................................................................
81,763
4,914,221
126,425
71,017
Leather and leather products..........................................................................................................
*4,638
*341,696
-*2,177
Stone, clay, and glass products..........................................................................................................
18,949
677,440
29,468
9,192
Primary metal industries..........................................................................................................
*2,397
*55,887
*15,796
*250
Fabricated metal products..........................................................................................................
14,995
1,480,747
69,380
6,687
Machinery, except electrical ..........................................................................................................
26,777
3,242,946
201,193
14,203
Electrical and electronic equipment ..........................................................................................................
15,611
1,206,961
17,987
2,734
Paper and allied products..........................................................................................................
*2,468
*244,450
*1,512
*2,583
Other manufacturing industries..........................................................................................................
50,189
3,662,965
54,395
35,018
Transportation and public utilities..........................................................................................................
608,729
34,902,737
2,455,055
947,412
Local and interurban passenger transit..........................................................................................................
73,426
1,927,489
87,832
191,077
Taxicabs..........................................................................................................
40,578
916,672
20,071
181,168
Bus and limousine transportation..........................................................................................................
31,703
989,757
64,441
9,909
Other highway passenger transportation..........................................................................................................
1,145
21,060
3,321
-Trucking and warehousing ..........................................................................................................
401,388
26,226,480
2,178,581
681,592
Trucking, local and long distance, including
trash collection without own dump..........................................................................................................
303,863
23,837,541
2,142,984
616,912
Courier or package delivery service..........................................................................................................
96,876
2,196,599
25,791
64,321
Public warehousing..........................................................................................................
649
192,340
9,807
359
Water transportation..........................................................................................................
10,445
375,420
12,943
4,625
Air transportation..........................................................................................................
7,802
560,817
21,047
4,044
Transportation services..........................................................................................................
66,774
4,427,965
86,519
48,925
Travel agents and tour operators..........................................................................................................
36,534
2,529,363
28,925
17,181
Other transportation services..........................................................................................................
30,240
1,898,602
57,594
31,743
Communication services..........................................................................................................
28,932
1,084,899
36,863
9,312
Utilities, including dumps, snowplowing,
road cleaning, etc...........................................................................................................
19,960
299,667
31,270
7,838
Footnotes at end of table.
569,980
101,024
90,518
10,506
473
170
302
468,483
60,840
40,035
52,490
38,671
86,041
65,562
11,524
113,320
683,474
25,185
*749
79,960
783,851
190,736
180,509
10,227
44,640
17,429
27,210
548,476
86,448
31,352
29,132
35,139
94,429
39,392
25,220
207,363
366,401
13,957
*7,245
10,185
16,475,069
3,411,333
2,981,845
429,488
341,208
86,264
254,945
12,722,527
1,387,830
905,060
961,972
1,703,690
2,668,412
1,214,801
588,399
3,292,363
4,133,074
145,794
*17,260
406,652
23,425,391
3,634,666
3,114,142
520,524
338,012
96,982
241,030
19,452,713
1,528,773
2,137,340
1,332,288
2,555,603
5,365,236
1,431,367
498,970
4,603,136
4,968,795
114,967
*47,437
381,193
37,480
43,484
151,043
*9,319
12,717
-47,311
89,670
22,870
*3,002
160,683
291,742
50,200
43,097
7,103
-159,839
145,598
9,821
63,815
-9,858
*1,027
13,901
49,761
8,113
*158
32,963
606,898
37,718
14,713
21,530
*1,475
500,611
903,351
287,584
650,911
*62,346
111,976
-309,995
631,929
133,733
*19,706
451,837
3,137,340
82,842
-82,842
-2,086,204
743,529
298,202
1,066,404
*45,822
97,872
*10,514
283,120
794,835
268,815
*59,265
756,819
6,985,382
575,998
346,246
224,262
*5,489
5,031,573
128,942
7,422
23,474
4,964
10,164
59,116
42,622
16,495
7,151
488,769
4,045
7,797
6,550
18,739
28,982
5,951
23,032
8,862
1,988,947
76,881
20,376
13,441
52,022
714,217
526,385
187,832
179,202
4,145,215
817,651
68,706
124,196
173,602
621,543
398,134
223,409
366,821
308
5,436
9,410
91,648
All nonfarm industries..........................................................................................................
12,523,855
738,136,654
20,087,203
19
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Number
of returns
Business
receipts
(9)
(10)
20
Interest paid
deduction ¹,³
Payroll ¹,4
Net income
(11)
(12)
(13)
(14)
(15)
(16)
2,950,934
838,634
5,468,699
1,721,175
14,141,991
23,858,400
Wholesale trade............................................................................
236,556
36,052,714
384,161
Durable goods, including machinery,
wood, metals, etc.............................................................................
137,849
18,931,322
229,154
Nondurable goods, including food, fiber,
chemicals, etc.............................................................................
98,707
17,121,392
155,007
Retail trade............................................................................
1,487,361
178,895,524
2,566,773
Building materials, paint, hardware,
garden supply, and mobile home dealers............................................................................
55,812
8,358,073
178,745
Lumber and other building materials dealers............................................................................
21,956
2,811,170
81,480
Paint, glass and wallpaper stores............................................................................
6,641
488,957
17,540
Hardware stores............................................................................
12,871
2,769,036
41,762
Retail nurseries and garden supply stores............................................................................
11,558
1,451,630
33,986
Mobile home dealers............................................................................
2,785
837,280
3,977
General merchandise stores............................................................................
30,980
4,111,553
38,587
Variety stores............................................................................
13,242
1,638,856
13,233
Computer and software stores............................................................................
3,203
1,076,214
6,543
91,889
293,646
162,284
1,090,169
5,929,218
45,847
141,896
90,830
564,600
3,873,904
46,042
746,746
151,750
5,175,054
71,454
1,558,891
525,569
13,051,821
2,055,314
17,929,182
52,287
23,189
3,267
24,943
879
9
2,033
1,158
233
106,150
28,200
14,003
52,932
10,157
857
156,730
101,759
13,474
102,173
27,572
1,031
39,431
22,910
11,230
21,423
7,762
1,395
610,156
186,880
94,585
149,399
112,706
66,587
219,559
72,337
54,247
1,048,805
432,384
49,405
375,306
136,156
55,554
456,128
202,710
105,240
643
105,965
66,957
10,295
28,713
106,836
41,497
667,952
408,045
68,803
191,105
544,696
12,266
225,836
182,113
12,376
31,347
358,615
92,974
2,044,321
1,369,422
190,240
484,658
2,007,676
148,177
1,695,542
1,134,837
181,336
379,370
2,429,968
4,190
17,466
1,858
83,362
10,244
122,563
39,972
291,165
85,860
1,007,154
16,435
55,324
2,045
11,378
30,292
*87
3,173
9,926
789
1,575
99,772
327,678
14,829
17,196
350,119
*11,571
114,418
31,172
57,499
61,388
41,911
109,184
43,748
30,965
62,691
*4,531
4,755
8,454
16,152
7,067
386,464
1,132,570
52,578
104,927
440,631
*21,582
90,220
74,816
41,218
57,286
426,539
611,952
49,017
249,446
766,281
*25,530
117,533
54,798
159,478
81,292
14,743
44,505
21,973
74,073
263,259
84,134
21,731
104,019
52,974
155,508
807,278
346,321
327,649
930,045
286,691
995
17,846
3,619
72
125,580
98,249
25,368
1,963
279,247
5,343
2,389
6,133
6,479
1,054
10,325
13,911
17,703
*3,310
*3,162
10,615
6,518
6,926
62,334
19,440
567
43,734
59,304
51,061
54,180
38,854
35,031
1,104,772
983,480
103,992
17,300
1,981,375
41,862
156,250
220,608
147,765
55,999
79,194
163,072
86,811
*17,664
*2,677
20,320
20,858
11,376
182,443
192,175
1,655
107,849
472,796
28,083
8,009
8,439
6,514
269,774
206,192
61,520
2,062
414,361
9,985
38,844
27,964
56,002
6,492
14,090
15,721
10,498
-*469
3,657
3,876
4,370
75,898
20,321
6,484
18,086
101,603
183,151
95,361
125,834
56,610
3,467,219
3,088,924
340,421
37,875
3,454,982
435,768
330,599
158,784
197,408
87,214
95,463
184,782
62,132
*1,646
*6,012
21,733
73,796
68,686
350,098
202,011
54,199
345,400
779,251
272,189
126,513
170,234
74,418
2,033,453
1,542,171
335,547
155,735
8,568,960
316,067
231,183
532,174
270,957
105,948
152,834
482,591
151,164
*31,715
*6,948
64,760
327,219
291,126
3,480,715
212,379
68,273
321,714
1,521,193
Wholesale and retail trade............................................................................
1,723,917
214,948,238
20
Depreciation
deduction ¹,²
Businesses with net income
Rent paid
Rent paid
on machinery
on other
and
business
equipment ¹
property ¹
Other general merchandise stores............................................................................
14,536
1,396,483
18,812
Food stores............................................................................
103,698
30,965,508
355,229
Grocery stores............................................................................
65,847
23,801,867
248,940
Retail bakeries............................................................................
9,978
1,119,226
33,386
Miscellaneous food stores............................................................................
27,872
6,044,416
72,904
Automotive dealers and service stations............................................................................
121,642
45,297,110
382,132
Motor vehicle dealers--new car
dealers (franchised)............................................................................
5,463
1,729,363
4,322
Motor vehicle dealers--used cars only............................................................................
45,171
13,440,859
70,460
Auto parts and accessories and
selected home supply stores............................................................................
21,527
4,561,862
56,355
Gasoline service stations............................................................................
22,218
21,343,928
204,720
Boat dealers............................................................................
6,316
1,496,367
20,663
Miscellaneous automotive dealers............................................................................
20,947
2,724,731
25,611
Apparel and accessory stores............................................................................
49,154
5,471,114
65,186
Men's and boys' clothing stores............................................................................
*637
*254,464
*2,170
Women's ready-to-wear stores............................................................................
9,200
1,108,528
13,325
Women's accessory and specialty stores............................................................................
5,650
597,457
4,451
Family clothing stores............................................................................
11,612
1,050,966
16,545
Shoe stores............................................................................
4,492
832,648
6,730
Apparel and accessory stores, not
elsewhere classified............................................................................
17,563
1,627,052
21,965
Furniture and home furnishings stores............................................................................
60,719
8,176,427
128,894
Furniture stores............................................................................
20,741
3,093,581
61,270
Home furnishings and equipment
stores, except appliances............................................................................
17,163
1,846,378
29,674
Household appliance stores............................................................................
10,707
943,767
9,246
Television, audio, and electronic stores............................................................................
9,183
1,363,494
24,766
Music and record stores............................................................................
2,925
929,208
3,938
Eating and drinking places............................................................................
145,038
19,836,564
508,755
Eating places............................................................................
88,011
16,105,933
388,364
Drinking places............................................................................
22,273
3,016,888
95,747
Catering services............................................................................
34,753
713,743
24,644
Miscellaneous retail stores............................................................................
920,318
56,679,173
909,245
Drug stores............................................................................
3,680
3,812,981
27,204
Liquor stores............................................................................
8,043
4,409,161
42,161
Used merchandise and antique stores............................................................................
57,913
2,648,868
43,120
Sporting goods and bicycle shops............................................................................
19,035
3,342,130
53,390
Book stores............................................................................
4,572
806,782
9,457
Stationery stores............................................................................
5,460
1,264,388
13,776
Jewelry stores............................................................................
29,595
3,222,280
45,061
Hobby, toy, and game shops............................................................................
33,883
1,226,691
14,597
Camera and photographic supply stores............................................................................
*1,618
*234,375
*3,609
Luggage and leather goods stores............................................................................
*237
*121,833
*1,745
Fabric and needlework stores............................................................................
3,754
404,691
4,538
Catalog or mail order............................................................................
37,804
2,492,893
19,063
Vending machine selling............................................................................
20,037
1,476,535
64,887
Sales by door-to-door, telephone, etc.............................................................................
499,690
13,302,743
221,678
Gift, novelty, and souvenir shops............................................................................
29,817
2,429,336
39,858
Fuel oil dealers............................................................................
7,115
1,429,008
16,429
Florists............................................................................ 31,000
2,606,634
59,597
Other retail shops............................................................................
127,062
11,447,847
229,076
Footnotes at end of table.
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Number
of returns
Business
receipts
(9)
(10)
Depreciation
deduction ¹,²
Businesses with net income
Rent paid
Rent paid
on machinery
on other
and
business
equipment ¹
property ¹
Interest paid
deduction ¹,³
Payroll ¹,4
Net income
(11)
(12)
(13)
(14)
(15)
(16)
1,157,983
435,771
1,186,266
556,223
3,062,929
24,683,313
Finance..........................................................................................................
85,233
11,399,562
151,844
41,782
Credit agencies and mortgage bankers............................................................................
8,672
631,170
12,698
3,049
Security and commodity brokers and services............................................................................
39,230
6,168,765
56,787
21,216
Security brokers and dealers............................................................................
13,723
2,173,938
11,950
1,070
Investment advisors and services............................................................................
21,890
1,520,412
37,769
12,522
Commodity contract brokers, exchanges
and services..........................................................................................................
3,617
2,474,415
7,067
7,623
Other financial services..........................................................................................................
37,331
4,599,628
82,358
17,518
Insurance agents and brokers..........................................................................................................
291,095
17,429,481
311,043
164,561
Insurance services..........................................................................................................
42,393
1,685,976
32,136
32,155
Real estate..........................................................................................................
549,912
26,954,042
662,960
197,273
Real estate property managers..........................................................................................................
36,517
1,424,834
72,104
11,758
Operators and lessors of buildings..........................................................................................................
7,275
560,481
24,596
10,645
Operators and lessors, other than buildings..........................................................................................................
3,542
370,631
25,115
1,069
Real estate agents and brokers..........................................................................................................
486,903
22,948,339
524,696
173,651
Title abstract companies..........................................................................................................
8,370
123,305
4,767
--
216,618
16,194
94,300
28,519
57,852
115,422
24,480
29,674
3,692
10,682
526,702
38,032
375,362
18,204
98,479
2,683,662
210,434
1,378,192
399,086
705,922
7,929
106,125
535,390
31,549
402,708
44,292
6,011
8,360
340,349
1,478
15,299
61,268
168,658
7,656
264,488
13,607
21,919
12,161
157,337
2,622
258,679
113,308
1,580,933
193,857
761,437
85,662
29,565
23,341
594,174
13,890
273,184
1,095,035
8,608,923
764,831
12,625,897
535,962
142,950
162,050
11,346,586
57,367
Subdividers and developers..........................................................................................................
7,305
1,526,453
11,682
151
Services..........................................................................................................
6,443,283
264,891,870
7,943,476
1,997,165
Hotels and other lodging places..........................................................................................................
25,595
3,292,143
286,991
6,874
Hotels, motels, and tourist courts..........................................................................................................
20,404
2,938,819
254,356
6,634
Rooming and boarding houses..........................................................................................................
4,189
258,472
15,897
202
Camps and camping parks..........................................................................................................
*1,003
*94,852
*16,738
*38
Personal services..........................................................................................................
965,656
25,085,273
747,155
274,568
Coin-operated laundries and dry cleaning..........................................................................................................
10,281
491,518
24,554
232
Other cleaning services, including laundry,
dry cleaning, garment, carpet, and upholstery..........................................................................................................
45,670
2,623,609
123,286
50,057
Photographic portrait studios..........................................................................................................
33,838
1,609,580
92,355
16,572
Beauty shops..........................................................................................................
351,068
9,002,456
177,290
136,837
Barber shops..........................................................................................................
54,617
1,125,385
19,307
11,524
Funeral service and crematories..........................................................................................................
8,541
670,118
48,391
10,195
Miscellaneous personal services, including
valet parking..........................................................................................................
461,641
9,562,608
261,971
49,151
Business services..........................................................................................................
1,531,501
44,756,386
1,541,625
293,493
Advertising, except direct mail..........................................................................................................
42,362
2,701,951
46,423
16,562
Consumer credit reporting and collecting services..........................................................................................................
1,568
5,419
1
-Janitorial and related services to buildings..........................................................................................................
444,070
6,438,621
153,493
31,191
Computer and data processing services..........................................................................................................
142,313
3,793,607
127,075
39,949
Mailing, reproduction, commercial art and
photography, and stenographic services..........................................................................................................
125,408
4,615,506
161,739
34,355
Computer repair, maintenance, and leasing..........................................................................................................
21,915
962,703
49,093
621
Equipment rental and leasing, except computer
and automotive..........................................................................................................
17,820
1,382,634
231,582
32,920
Other business services..........................................................................................................
736,045
24,855,944
772,218
137,894
Automotive repair and services..........................................................................................................
310,329
22,333,555
736,308
206,486
Automotive rentals or leasing, without drivers..........................................................................................................
5,768
247,249
8,077
1,938
Automobile parking, except valet..........................................................................................................
4,399
131,126
3,407
5,041
Automotive repair shops..........................................................................................................
223,621
18,076,255
567,810
155,066
Automotive services, except repair..........................................................................................................
76,541
3,878,925
157,015
44,442
Miscellaneous repair services..........................................................................................................
211,760
8,900,319
255,333
44,045
TV and audio equipment repair..........................................................................................................
19,079
915,156
15,763
800
Electrical repair, except TV and audio equipment..........................................................................................................
39,634
1,445,296
27,192
1,157
Reupholstery and furniture repair..........................................................................................................
37,921
1,420,769
22,299
-Other miscellaneous repair..........................................................................................................
115,126
5,119,098
190,079
42,088
Motion pictures..........................................................................................................
54,364
2,045,031
181,312
26,061
Motion picture and video production..........................................................................................................
43,472
1,137,828
48,705
16,073
Motion picture and tape distribution and
allied services..........................................................................................................
*1,741
*92,121
*1,150
*107
Motion picture theaters..........................................................................................................
*118
*8,048
*231
*2
Video tape rentals..........................................................................................................
9,033
807,035
131,225
9,879
Amusement and recreation services, except
motion pictures..........................................................................................................
423,269
11,012,491
432,829
66,709
Entertainers, producers, agents, and
related services..........................................................................................................
232,952
4,944,496
166,623
32,186
Bowling centers..........................................................................................................
*569
*197,565
*23,649
*420
Professional sports and racing,
including promoters and managers..........................................................................................................
44,104
2,391,296
83,182
4,516
Other amusement and recreation services..........................................................................................................
133,836
3,128,719
152,853
24,860
Physical fitness facilities..........................................................................................................
11,808
350,415
6,522
4,728
Footnotes at end of table.
2,218
8,944,237
27,498
25,197
1,489
*811
1,822,855
101,253
56,842
2,597,311
355,798
317,263
25,096
*13,438
211,116
9,039
14,804
26,131,159
404,650
360,101
35,195
*9,354
2,242,868
37,778
380,982
110,045,171
481,884
407,879
64,824
*9,181
9,023,777
89,418
210,579
70,209
1,134,320
103,513
786
19,131
7,689
92,903
13,083
23,248
484,776
70,693
1,202,416
98,330
44,440
609,003
388,901
3,073,299
586,804
158,648
202,195
679,687
31,723
-37,037
50,506
46,023
331,816
8,397
-55,111
29,242
304,434
3,591,852
64,020
-873,863
131,133
4,117,705
16,933,906
734,129
*3,903
2,677,382
1,896,655
84,729
1,545
36,520
5,460
281,085
39,434
1,835,309
227,045
35,387
438,759
836,557
6,756
57,994
717,505
54,301
185,859
10,692
36,823
49,952
88,392
77,504
17,270
26,824
170,262
232,593
2,380
3,877
171,222
55,114
71,574
3,625
11,637
10,678
45,634
12,430
1,436
115,199
2,087,117
2,581,223
985
10,590
2,210,531
359,117
749,982
66,893
92,599
196,879
393,611
106,315
15,656
351,682
9,207,801
3,544,048
46,319
21,733
2,706,759
769,238
2,333,448
284,100
375,382
480,105
1,193,861
782,236
631,447
*1,338
*957
57,939
*3
*49
10,943
*2,971
*856
86,832
*48,437
*1,264
101,088
276,265
87,418
395,348
4,673,093
47,023
*806
11,615
*18,945
72,565
*40,158
2,631,434
*20,777
15,310
156,491
56,636
5,199
43,945
7,713
83,745
169,366
29,514
1,055,582
876,657
88,644
Finance, insurance, and real estate............................................................................
968,632
57,469,061
21
Sole Proprietorship Returns, 1996
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Industrial group
Number
of returns
Business
receipts
Depreciation
deduction ¹,²
(9)
(10)
(11)
Businesses with net income
Rent paid
Rent paid
on machinery
on other
and
business
equipment ¹
property ¹
Interest paid
deduction ¹,³
Payroll ¹,4
Net income
(12)
(13)
(14)
(15)
(16)
497,290
169,395
149,892
4,162
51,492
20,540
12,881
888
10,644
10,161
67,235
222,661
5,865
22,008
16,489
18,835
2,851,546
848,803
936,736
46,912
223,952
164,775
74,441
2,593
44,006
41,311
468,018
1,098,717
103,523
44,663
55,798
71,568
755,182
159,680
332,968
11,446
69,172
31,029
20,547
111
71,504
8,425
50,299
208,334
23,956
34,542
5,922
17,622
9,964,687
2,717,073
4,925,749
161,307
482,337
334,194
111,005
8,972
493,509
205,749
524,793
2,823,131
192,513
339,122
-542,446
34,350,538
15,946,894
9,075,847
917,517
1,361,234
690,911
375,748
564,908
434,780
406,595
4,576,103
11,689,027
1,057,428
1,966,174
1,448,583
2,115,081
Services-Continued
Medical and health services..........................................................................................................
650,651
72,004,550
1,718,467
Offices of physicians..........................................................................................................
170,494
26,711,182
404,158
Offices of dentists..........................................................................................................
94,868
24,072,287
736,923
Offices of osteopathic physicians..........................................................................................................
10,828
1,475,652
21,502
Offices of chiropractors..........................................................................................................
23,575
3,558,287
115,239
Offices of optometrists..........................................................................................................
12,651
2,701,036
76,542
Offices of podiatrists..........................................................................................................
6,530
993,403
35,721
Registered and practical nurses..........................................................................................................
47,231
794,473
8,428
Nursing and personal care facilities..........................................................................................................
40,562
1,991,573
56,820
Medical and dental laboratories..........................................................................................................
21,627
1,222,951
32,988
Other medical and health services..........................................................................................................
222,286
8,483,707
230,147
Legal services..........................................................................................................
239,868
23,718,141
475,821
Educational services..........................................................................................................
211,720
2,544,240
94,366
Child day care..........................................................................................................
459,187
4,957,030
212,751
Ministers and chaplains..........................................................................................................
184,853
2,389,687
26,130
Engineering services..........................................................................................................
96,160
4,389,845
132,510
22
22
Architectural services..........................................................................................................
60,699
2,936,665
92,585
19,976
141,916
20,663
311,540
953,598
Surveying services..........................................................................................................
22,416
894,743
35,929
8,586
19,323
8,745
246,609
218,544
Accounting, auditing, and bookkeeping services..........................................................................................................
260,044
6,717,776
326,053
63,761
243,111
91,493
710,218
2,972,947
Management services..........................................................................................................
81,963
2,606,373
54,309
13,451
54,795
33,900
147,796
1,526,378
Consulting services..........................................................................................................
560,917
21,673,490
545,220
166,466
216,982
87,909
717,793
12,421,284
Public relations..........................................................................................................
12,154
308,636
12,153
4,532
4,330
1,322
17,386
175,806
Counseling, except health practitioners..........................................................................................................
80,178
2,325,498
35,631
19,009
131,739
4,975
45,681
1,377,391
Nature of business not allocable..........................................................................................................
170,276
2,004,564
31,065
32,278
6,559
12,272
39,920
1,005,163
* Estimate should be used with caution because of the small number of sample returns on which it is based.
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 Depreciation excludes depreciation reported on Form 8829 for home office businesses.
³ Interest paid is the sum of mortgage interest and other interest paid on business indebtedness (see Table 2).
4 Payroll is the sum of net 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.
Sole Proprietorship Returns, 1996
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
All
Net income status, item
nonfarm
Total
industries
Animal services,
Landscape
All other
Livestock
except
and
agricultural
breeding
livestock
horticultural
services,
breeding, and
services
forestry, and
veterinary
(1)
(2)
Mining
(3)
(4)
Total
Oil and
gas extraction
fishing
(5)
(6)
(7)
(8)
259,871
8,830,873
8,779,678
51,195
7,035,295
2,364,143
55,825
468,417
811,839
750,746
326,003
48,686
95,556
14,478
624,197
29,171
*363
713,967
13,162
243,121
45,463
16,121
39,812
75,819
70,398
*1,878
79,040
81,018
284,607
840,722
457,803
183,779
23,236
149,833
25,895
*2,539
551,888
1,795,578
2,037,614
242,036
164,212
8,282,729
8,121,575
161,154
6,842,144
1,963,586
113,799
226,744
1,421,705
172,154
153,206
124,022
31,753
2,573
251,092
90,858
*623
443,551
24,410
164,618
56,401
29,279
72,124
83,379
60,810
7,225
77,137
129,196
252,749
1,161,502
331,284
196,449
49,929
156,645
12,068
*227
1,182,444
1,440,785
1,667,727
226,942
107,516
5,951,643
5,640,321
311,322
5,683,100
1,361,785
74,357
95,822
528,195
16,092
721,037
73,718
4,200
5,699
162,676
5,040
471,625
417,672
6,169
58,373
100,444
10,078
19,665
179,114
31,334
1,417
73,995
83,770
119,052
212,225
99,553
181,271
27,621
74,652
2,994
309
1,971,074
290,019
957,058
667,039
92,855
5,228,101
4,919,913
308,189
5,013,292
1,085,079
36,391
57,688
350,042
7,890
670,452
37,384
3,808
5,249
135,774
4,053
461,772
362,684
4,640
49,176
96,973
8,353
13,880
165,532
25,507
1,400
55,112
55,409
80,436
166,207
89,396
168,254
25,375
64,232
2,668
*50
1,880,719
236,287
868,257
631,970
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns ¹......................................................................................................
16,955,023
552,107
22,462
105,563
Business receipts, total ¹......................................................................................................
843,233,843
20,279,907
193,924
2,972,381
Income from sales and operations ¹......................................................................................................
831,545,876
19,923,805
178,613
2,843,938
Other business income......................................................................................................
11,687,967
356,102
15,311
128,443
Business deductions, total ¹,²......................................................................................................
666,460,878
17,060,810
307,346
2,876,024
Cost of sales and operations......................................................................................................
316,420,940
5,338,071
41,933
968,408
Inventory, beginning of year......................................................................................................
32,021,142
278,166
*904
107,638
Cost of labor......................................................................................................
26,001,536
704,722
*2
*9,559
Purchases......................................................................................................
220,028,820
3,121,473
*39,215
848,715
Materials and supplies......................................................................................................
40,473,390
957,980
*1,084
*33,997
Other costs......................................................................................................
31,681,218
583,119
*1,851
102,059
Inventory, end of year......................................................................................................
33,785,165
307,389
*1,123
133,560
Advertising expenses......................................................................................................
8,974,861
158,300
4,901
26,090
Bad debts from sales or services......................................................................................................
986,451
20,381
-*3,330
Car and truck expenses......................................................................................................
36,700,251
1,033,271
17,625
140,357
Commissions......................................................................................................
10,791,724
128,834
967
7,839
Depletion......................................................................................................
566,320
1,133
*27
*121
Depreciation ³......................................................................................................
27,364,611
1,379,809
29,116
193,174
Employee benefit programs......................................................................................................
1,409,655
44,723
*3,563
3,588
Insurance......................................................................................................
13,195,206
467,247
3,577
55,932
Legal and professional services......................................................................................................
6,330,311
130,501
11,178
17,459
Meals and entertainment deducted......................................................................................................
3,519,959
56,058
197
10,460
Mortgage interest......................................................................................................
4,475,403
131,011
*1,318
17,757
Other interest paid on business indebtedness......................................................................................................
6,091,207
186,387
3,414
23,775
Office expenses......................................................................................................
8,823,978
178,037
4,527
42,302
Pension and profit-sharing plans......................................................................................................
706,964
9,734
-*631
Rent on machinery and equipment......................................................................................................
6,926,867
182,960
*43
26,740
Rent on other business property......................................................................................................
21,589,370
282,274
3,019
69,040
Repairs......................................................................................................
10,715,000
617,636
2,045
78,235
Salaries and wages......................................................................................................
56,322,078
2,277,410
22,638
252,548
Supplies......................................................................................................
18,777,077
958,658
21,220
148,351
Taxes paid......................................................................................................
13,736,129
427,780
2,771
44,781
Travel......................................................................................................
7,178,971
112,181
2,631
36,386
Utilities......................................................................................................
18,161,600
396,404
4,309
85,617
Home office business deductions......................................................................................................
3,768,966
46,082
*861
*7,259
Depreciation, Form 8829......................................................................................................
517,969
3,778
*124
*888
Other business deductions......................................................................................................
61,828,590
2,470,447
125,302
610,813
Net income less deficit ¹,²......................................................................................................
176,755,693
3,223,406
-112,993
100,036
Net income ¹,²......................................................................................................
200,123,896
4,195,222
29,730
460,151
Deficit ²......................................................................................................
23,368,202
971,817
142,723
360,116
Footnotes at end of table.
23
Sole Proprietorship Returns, 1996
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
All
Net income status, item
nonfarm
Total
industries
Animal services,
Landscape
All other
Livestock
except
and
agricultural
breeding
livestock
horticultural
services,
breeding, and
services
forestry, and
veterinary
(1)
(2)
Mining
(3)
(4)
Total
Oil and
gas extraction
fishing
(5)
(6)
(7)
(8)
203,921
7,855,901
7,806,076
49,824
5,818,287
1,979,280
40,309
416,416
672,839
610,113
279,547
39,943
73,895
*9,669
535,295
27,285
-529,894
12,010
213,170
36,896
12,129
22,850
60,591
54,902
*1,631
64,934
70,393
216,852
749,617
343,378
161,548
20,616
127,281
21,397
*2,045
462,950
2,037,614
124,808
7,524,132
7,382,259
141,873
5,856,614
1,702,767
87,823
215,637
1,257,825
138,198
106,083
102,799
24,345
2,571
194,613
86,478
*301
339,403
21,659
142,464
48,683
23,106
53,919
52,631
53,994
7,225
63,283
98,425
204,420
1,082,884
297,622
181,833
30,616
132,105
8,289
*148
993,069
1,667,727
65,298
4,360,475
4,156,846
203,630
3,402,957
1,010,623
11,931
61,740
436,794
8,674
502,300
10,818
3,098
1,579
135,334
3,941
328,749
242,483
5,027
42,672
46,482
4,816
6,161
41,531
16,304
1,055
45,723
68,137
90,670
149,635
81,323
110,755
14,982
48,924
*2,458
*20
899,025
957,058
61,189
3,831,038
3,629,990
201,048
2,962,320
846,799
8,482
*52,745
284,572
7,796
500,582
7,378
2,848
1,476
113,712
2,954
318,985
214,632
3,617
36,349
44,624
4,184
4,652
31,967
12,022
1,044
27,051
40,466
65,961
119,921
74,675
102,100
13,527
40,728
*2,351
*18
834,205
868,257
24,942
103,617
9,824
93,793
36,117
137,589
10,460
127,130
4,478
17,278
1,605
15,673
4,470
17,275
1,604
15,671
BUSINESSES WITH NET INCOME
24
Number of returns ¹......................................................................................................
12,523,855
398,677
6,794
63,154
Business receipts, total ¹......................................................................................................
738,136,654
17,903,635
122,880
2,400,722
Income from sales and operations ¹......................................................................................................
728,180,718
17,582,560
105,214
2,289,011
Other business income......................................................................................................
9,955,937
321,075
*17,666
111,711
Business deductions, total ¹,²......................................................................................................
538,014,424
13,708,621
93,150
1,940,571
Cost of sales and operations......................................................................................................
260,088,608
4,468,146
*39,623
746,476
Inventory, beginning of year......................................................................................................
21,691,339
187,091
*904
58,056
Cost of labor......................................................................................................
21,899,604
640,774
*2
*8,719
Purchases......................................................................................................
178,701,446
2,665,472
*39,138
695,671
Materials and supplies......................................................................................................
34,958,641
781,343
*95
*32,936
Other costs......................................................................................................
26,286,139
413,633
*578
*27,426
Inventory, end of year......................................................................................................
23,448,560
220,167
*1,093
76,332
Advertising expenses......................................................................................................
7,097,067
118,192
*754
19,197
Bad debts from sales or services......................................................................................................
622,434
12,285
-*45
Car and truck expenses......................................................................................................
29,263,159
831,445
*9,336
92,202
Commissions......................................................................................................
9,198,082
118,560
*25
4,772
Depletion......................................................................................................
405,644
*301
--Depreciation ³......................................................................................................
19,692,229
950,854
*1,754
79,802
Employee benefit programs......................................................................................................
1,278,004
40,286
*3,273
*3,344
Insurance......................................................................................................
10,943,574
393,687
*95
37,959
Legal and professional services......................................................................................................
4,929,380
92,928
*252
7,096
Meals and entertainment deducted......................................................................................................
2,840,202
43,082
*55
7,792
Mortgage interest......................................................................................................
2,906,167
90,604
-*13,836
Other interest paid on business indebtedness......................................................................................................
4,001,074
124,813
*125
11,466
Office expenses......................................................................................................
7,205,185
126,347
*2,053
15,398
Pension and profit-sharing plans......................................................................................................
672,655
9,485
-*629
Rent on machinery and equipment......................................................................................................
5,431,643
154,649
-26,432
Rent on other business property......................................................................................................
17,450,439
231,344
*2,707
59,819
Repairs......................................................................................................
8,228,204
468,674
*210
47,192
Salaries and wages......................................................................................................
48,130,605
2,056,579
*16,409
207,669
Supplies......................................................................................................
15,022,656
739,755
*1,054
97,701
Taxes paid......................................................................................................
11,158,186
375,181
*2,162
29,639
Travel......................................................................................................
5,565,769
74,575
*52
23,291
Utilities......................................................................................................
14,257,143
327,093
*2,055
65,652
Home office business deductions......................................................................................................
3,142,521
37,435
*729
*7,021
Depreciation, Form 8829......................................................................................................
394,974
3,146
*118
*835
Other business deductions......................................................................................................
47,401,753
1,797,391
*10,264
331,109
Net income ¹,²......................................................................................................
200,123,896
4,195,222
29,730
460,151
Returns with Schedule C-EZ:
Number of returns......................................................................................................
2,151,320
68,061
*1,188
*5,814
Business receipts......................................................................................................
10,129,759
248,646
*766
*6,675
Business deductions......................................................................................................
1,100,828
25,479
*163
*5,034
Net income......................................................................................................
9,028,931
223,167
*603
*1,641
Footnotes at end of table.
24
Sole Proprietorship Returns, 1996
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
and heavy
(10)
Plumbing,
Masonry,
heating,
Painting and
Electrical
construction
and air
paperhanging
work
contractors
conditioning
(11)
Total
(12)
stonework,
tile setting,
and plastering
(13)
(14)
(15)
(16)
147,073
10,200,301
10,165,769
34,532
8,800,719
5,206,757
143,954
705,142
2,753,432
1,478,424
262,044
136,239
79,084
8,339
556,633
*14,795
-252,042
29,601
226,176
43,712
12,039
44,189
47,871
64,316
*5,847
51,323
67,895
93,506
769,228
392,586
167,893
17,957
171,995
20,644
*1,221
452,116
1,399,582
1,528,773
129,190
202,618
6,601,971
6,564,400
*37,571
4,515,989
1,938,170
*14,624
784,761
368,684
688,687
112,108
30,694
48,097
*2,365
563,265
*28,134
-173,900
*5,519
150,102
32,779
22,492
14,665
19,862
42,388
*4,609
47,627
43,767
63,936
241,717
365,057
62,109
51,444
65,822
30,781
3,145
464,891
2,085,981
2,137,340
51,359
107,696
6,538,012
6,523,223
14,789
5,251,318
3,000,489
71,230
545,831
1,224,908
1,078,841
166,860
87,181
26,894
*4,295
350,797
5,487
-151,052
20,750
165,757
27,540
10,376
*2,612
26,929
46,508
*1,168
53,333
52,520
42,167
540,060
138,961
113,404
14,204
97,291
14,538
*1,084
330,447
1,286,693
1,332,288
45,595
180,009
10,380,450
10,342,016
38,434
7,941,314
4,126,784
*46,555
1,270,871
983,406
1,208,972
646,259
*29,280
32,536
*6,603
804,540
*170,230
-223,346
*8,651
221,524
30,842
23,817
17,194
24,821
40,482
*112
53,437
49,263
84,381
630,289
384,687
106,168
45,742
101,521
39,433
3,622
702,700
2,439,135
2,555,603
116,468
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns ¹......................................................................................................
14,661
2,096,767
298,292
1,798,476
Business receipts, total ¹......................................................................................................
723,541
127,357,252
35,301,517
92,055,735
Income from sales and operations ¹......................................................................................................
720,409
126,292,109
34,784,850
91,507,260
Other business income......................................................................................................
*3,133
1,065,143
516,668
548,475
Business deductions, total ¹,²......................................................................................................
669,809
105,632,887
31,851,045
73,781,842
Cost of sales and operations......................................................................................................
276,706
61,027,364
22,153,203
38,874,161
Inventory, beginning of year......................................................................................................
*37,967
2,367,969
1,606,354
761,615
Cost of labor......................................................................................................
*38,135
12,304,019
3,526,328
8,777,692
Purchases......................................................................................................
*178,153
17,718,625
6,179,243
11,539,382
Materials and supplies......................................................................................................
*8,202
21,890,969
8,182,601
13,708,368
Other costs......................................................................................................
*50,584
9,405,465
4,312,525
5,092,940
Inventory, end of year......................................................................................................
*36,334
2,659,683
1,653,848
1,005,835
Advertising expenses......................................................................................................
391
609,642
112,289
497,354
Bad debts from sales or services......................................................................................................
*449
54,122
12,736
41,387
Car and truck expenses......................................................................................................
26,902
7,015,266
1,152,816
5,862,450
Commissions......................................................................................................
*987
939,284
182,552
756,732
Depletion......................................................................................................
*9,854
40,158
*1,589
38,569
Depreciation ³......................................................................................................
54,987
3,928,878
855,804
3,073,073
Employee benefit programs......................................................................................................
*1,529
194,855
38,030
156,824
Insurance......................................................................................................
9,197
2,680,246
616,264
2,063,982
Legal and professional services......................................................................................................
3,471
512,383
138,394
373,989
Meals and entertainment deducted......................................................................................................
1,725
235,157
38,974
196,183
Mortgage interest......................................................................................................
*5,785
432,917
181,302
251,615
Other interest paid on business indebtedness......................................................................................................
13,581
651,016
186,615
464,400
Office expenses......................................................................................................
5,827
670,546
175,382
495,164
Pension and profit-sharing plans......................................................................................................
*18
37,854
8,292
29,561
Rent on machinery and equipment......................................................................................................
18,883
913,136
244,905
668,231
Rent on other business property......................................................................................................
28,360
690,952
122,949
568,003
Repairs......................................................................................................
38,615
1,399,284
263,543
1,135,741
Salaries and wages......................................................................................................
46,019
7,144,593
1,553,535
5,591,058
Supplies......................................................................................................
10,157
4,109,820
584,091
3,525,729
Taxes paid......................................................................................................
13,017
1,633,282
457,224
1,176,059
Travel......................................................................................................
2,245
351,348
43,389
307,959
Utilities......................................................................................................
10,420
1,471,428
305,299
1,166,128
Home office business deductions......................................................................................................
*326
307,793
55,391
252,402
Depreciation, Form 8829......................................................................................................
*259
33,429
13,965
19,464
Other business deductions......................................................................................................
90,355
8,424,098
2,347,758
6,076,340
Net income less deficit ¹,²......................................................................................................
53,732
21,706,292
3,432,400
18,273,893
Net income ¹,²......................................................................................................
88,801
23,425,391
3,972,678
19,452,713
Deficit ²......................................................................................................
35,069
1,719,099
540,279
1,178,820
Footnotes at end of table.
25
Sole Proprietorship Returns, 1996
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
and heavy
(10)
Plumbing,
Masonry,
heating,
Painting and
Electrical
construction
and air
paperhanging
work
contractors
conditioning
(11)
Total
(12)
stonework,
tile setting,
and plastering
(13)
(14)
(15)
(16)
115,901
9,322,769
9,298,389
24,380
7,793,996
4,617,651
98,468
687,015
2,320,519
1,343,959
258,503
90,814
76,329
8,339
484,813
*8,080
-206,629
28,594
209,275
39,165
11,990
42,204
44,244
53,570
*5,740
45,200
60,840
81,450
700,815
351,359
154,431
14,097
149,577
19,997
*1,221
375,434
1,528,773
190,166
6,191,637
6,154,103
*37,534
4,054,296
1,748,909
*6,248
697,901
286,314
663,007
106,952
*11,515
45,206
*1,181
496,276
*7,282
-141,133
*5,519
142,913
23,467
21,902
14,514
16,838
35,673
*4,609
45,452
40,035
60,214
207,159
316,916
58,806
49,049
63,071
30,781
3,145
444,897
2,137,340
88,934
6,131,395
6,116,606
14,789
4,799,107
2,856,680
65,902
535,711
1,157,088
1,052,732
126,918
81,671
26,327
*4,289
318,131
*2,945
-141,333
14,592
153,821
24,740
9,983
*2,277
26,855
44,714
*1,168
51,779
52,490
36,447
426,261
79,952
98,708
12,463
88,762
11,741
*1,053
298,908
1,332,288
166,340
9,778,623
9,777,519
*1,104
7,223,020
3,783,115
*15,071
1,150,380
974,002
1,042,849
603,340
*2,528
28,171
*6,603
711,513
*168,855
-203,132
*8,295
206,745
28,462
23,420
14,161
20,978
37,331
*112
41,334
38,671
83,021
553,310
358,933
91,652
44,936
63,547
39,264
3,575
655,250
2,555,603
*11,732
*38,431
*4,174
*34,257
28,961
243,545
32,495
211,050
*13,522
*54,024
*13,740
*40,284
*13,983
*131,547
*12,211
*119,336
BUSINESSES WITH NET INCOME
26
Number of returns ¹......................................................................................................
4,109
1,816,919
245,780
1,571,140
Business receipts, total ¹......................................................................................................
529,438
114,368,103
30,118,811
84,249,292
Income from sales and operations ¹......................................................................................................
526,856
113,526,871
29,705,067
83,821,804
Other business income......................................................................................................
*2,582
841,232
413,744
427,488
Business deductions, total ¹,²......................................................................................................
440,637
90,942,711
26,146,132
64,796,579
Cost of sales and operations......................................................................................................
*163,823
53,192,063
18,246,274
34,945,789
Inventory, beginning of year......................................................................................................
*3,449
1,691,902
1,106,892
585,010
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