Sole Proprietorship Returns, 2006

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by Jonathan Dent, Jeff Curry, and Justin Bryan

or Tax Year 2006, there were approximately

22.1 million individual income tax returns that

reported nonfarm sole proprietorship activity, a

2.8-percent increase from 2005. Profits for these returns grew to a level of $278.0 billion in 2006, a 3.0percent increase from 2005. In constant dollars, total

nonfarm sole proprietorship profits decreased for the

first time since Tax Year 2001, by 0.4 percent, after

increasing 5.5 percent in 2005. The professional,

scientific, and technical services sector, representing 24.1 percent of total sole proprietorship profits

at $67.0 billion, had the largest profits of any sector,

increasing 9.8 percent from 2005.

Reporting the second largest profits of any sector was the health care and social assistance sector,

with 16.0 percent of total profits, at $44.5 billion.

Receipts and deductions increased 4.5 percent and

5.0 percent for all sole proprietorships, respectively.

The construction sector reported the largest percentage of total business receipts and deductions among

all industrial sectors, with 18.5 percent and 19.9

percent, respectively. This sector reported a 6.5-percent increase in receipts and a 6.3-percent increase

in deductions. Although not among the larger of the

industrial sectors, the finance and insurance sector

reported the largest percentage increase in both receipts and deductions, with a 13.8-percent increase

in business receipts and an 18.9-percent increase in

deductions.

Among all industrial sectors, the real estate and

rental and leasing sector experienced the most significant downturn in both profits and receipts from

Tax Years 2005 to 2006. After reporting the largest

percentage increase in profits in 2005 at 19.4 percent,

Jonathan Dent and Jeff Curry are economists with the Individual Research Section. Justin Bryan is an economist

with the Individual Returns Analysis Section. This article

was prepared under the direction of Mike Strudler, Chief of

Individual Research, and Jeff Hartzok, Chief of Individual

Returns Analysis.

profits in the real estate and rental and leasing sector

decreased by 18.5 percent in 2006.1 In dollar terms,

these profits fell from $33.3 billion reported in 2005

to $27.2 billion in 2006. This sector also reported

the largest percentage decrease in receipts for 2006,

dropping from $82.9 billion in 2005 to $77.2 billion

for 2006, a 6.9-percent decrease. In 2005, this sector had reported the largest percentage increase in

receipts for all sectors, at 17.4 percent.

The North American Industry Classification System (NAICS) for industrial coding was introduced in

Tax Year 1998. Due to coding changes, comparisons

between data by industries from 1998–2006 with

1997 and prior years may show inconsistencies. A

reason for this was that many sole proprietorships

under the NAICS system were classified in completely different industrial groups, which makes prior-year

comparisons inappropriate. For example, in 1997,

finance, insurance, and real estate were grouped by

Standard Industrial Classification (SIC) codes as one

industry, while, under the NAICS system, the group

has been split into two industrial sectors. The industrial sectors based on the NAICS codes are reported

in Tables 1 and 2.

Returns and Receipts

The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2006

increased 2.8 percent to almost 22.1 million (Figure

A).2 The largest sector (in terms of number of returns), professional, scientific, and technical services,

increased 1.6 percent to 2.9 million returns. Similarly, the construction sector, which was the second

largest sector, also reported roughly 2.9 million

returns, with an increase of 3.4 percent. The largest

reported increase in number of returns for any industrial sector was in the administrative and support and

waste management and remediation services sector,

increasing 11.8 percent to 2.1 million returns.3 The

real estate and rental and leasing sector, which last

Curry, Jeff and Justin Bryan, “Sole Proprietorship Returns, 2005,” Statistics of Income Bulletin, Summer 2007, Volume 27, Number 1, pp. 6-64. Profits in the real estate

and rental and leasing sector increased from $27.9 million in 2004 to $33.3 million in 2005.

2 For 2006, the 22,074,953 nonfarm sole proprietorship returns accounted for an estimated 24,603,249 nonfarm businesses. 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 North American Industry Classification System (NAICS) was used to classify data by industries for 2006. These classifications were applied on a “per business”

(rather than on a “per establishment”) basis for Statistics of Income by combining various industry groups, although businesses were further combined as described above.

While the wording of the industry titles used for the sole proprietorship statistics diverges somewhat from those appearing in NAICS, the defi nitions are consistent.

3 Based on NAICS, the full name of the administrative and support services sector is the administrative and support and waste management and remediation services

sector. The waste management and remediation services portion makes up a small percentage of the overall numbers reported under this classification, which are detailed

in Table 1.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Figure A

Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors,

Tax Years 2005 and 2006

[Number of returns is in thousands—money amounts are in billions of dollars]

Industrial sector

All nonfarm industries

Construction

Specialty trade contractors

Wholesale trade (merchant wholesalers)

Retail trade

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Real estate

Professional, scientific, and technical services

Administrative and support and waste

management and remediation services

Health care and social assistance

Child day care services

Arts, entertainment, and recreation

Performing arts, spectator sports, and

related industries

Other services

Personal and laundry services

All other industries

Number of returns

Percentage

2005

2006

increase

Total business receipts

Percentage

2005

2006

increase

Total business deductions [1]

2005

2006

Percentage

increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

21,467.6

2,820.6

2,235.2

347.9

2,473.6

1,043.1

705.5

1,349.6

1,284.3

2,883.4

22,075.0

2,915.8

2,287.0

378.5

2,466.1

1,084.0

688.3

1,381.3

1,318.1

2,929.7

2.8

3.4

2.3

8.8

-0.3

3.9

-2.4

2.4

2.6

1.6

1,222.9

222.1

149.0

46.3

197.3

72.3

72.4

82.9

78.7

145.1

1,278.4

236.4

158.4

48.5

194.6

76.3

82.4

77.2

73.5

156.1

4.5

6.5

6.3

4.8

-1.4

5.4

13.8

-6.9

-6.6

7.5

953.4

187.3

122.6

41.4

188.0

62.3

52.9

49.6

45.7

84.2

1,001.1

199.0

129.9

43.7

185.7

65.5

62.9

50.0

46.4

89.1

5.0

6.3

6.0

5.5

-1.2

5.2

18.9

0.8

1.5

5.8

1,915.5

1,768.7

674.2

1,157.2

2,140.7

1,873.5

715.3

1,238.3

11.8

5.9

6.1

7.0

52.0

106.7

9.8

27.4

57.2

110.4

10.9

30.0

10.1

3.5

11.8

9.6

37.5

63.7

6.2

20.9

41.1

66.0

7.0

22.9

9.7

3.6

13.3

9.7

971.1

2,315.2

1,488.5

2,687.3

1,039.5

2,281.8

1,401.4

2,697.0

7.0

-1.4

-5.8

0.4

20.0

78.1

37.8

120.2

21.7

81.8

38.2

127.5

8.1

4.7

0.9

6.0

14.2

60.3

26.7

105.3

15.7

63.8

26.8

111.3

10.2

5.8

0.7

5.8

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.

NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.

year reported a 14.4-percent increase in number of

returns, showed a more modest increase of 2.4 percent for 2006.

Total business receipts (the sum of “income from

sales and operations” and “other business income”)

for all nonfarm sole proprietorship industries increased 4.5 percent, from $1,222.9 billion to $1,278.4

billion.4 In the construction sector, the largest sector

in terms of business receipts and accounting for 18.5

percent of total business receipts, receipts increased

by 6.3 percent in 2006, down from 11.9 percent in

2005. The retail trade sector, the second largest sector in terms of business receipts, actually experienced

a percentage decrease in receipts in 2006, declining

by 1.4 percent in 2006.

Many of the industries with the highest percentage increases in receipts for 2006 were those sectors

that made up a relatively small segment of total busi-

ness receipts. Consequently, they had very little effect on the overall growth in total receipts. Among

these, the finance and insurance sector, despite reporting a 2.4-percent decrease in number of returns,

showed the highest percentage increase in total

business receipts among all industrial sectors, with a

13.8-percent increase.

The second largest percentage increase in receipts for 2006 was in the administrative and support

and waste management and remediation services

sector, increasing 10.1 percent. This was followed

closely by the 9.6-percent growth in the arts, entertainment, and recreation sector. The real estate and

rental and leasing sector, which showed the largest

percentage increase in receipts for Tax Year 2005,

reported the largest percentage decrease in receipts

among all industrial sectors for Tax Year 2006,

decreasing 6.9 percent. Overall, the percentage in-

4 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 incomes on their individual income tax returns.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

crease in total business receipts, in constant dollar

terms, increased 1.1 percent in 2006, down from 5.4

percent and 3.9 percent in 2004 and 2005, respectively (Figure B).5

Deductions

Total business deductions (“cost of sales and operations” plus business expenses, including expenses for

home office) in current dollars increased 5.0 percent

from $953.4 billion for 2005 to $1,001.1 billion for

2006 (Figure A).6, 7 In addition to reporting the largest percentage increase in receipts, the finance and

insurance sector also reported the largest percentage increase in total business deductions, with 18.9

percent. The largest sector in terms of total business

deductions, the construction sector, reported a 6.3percent increase in deductions. The retail trade sector was the only sector to show a percentage decrease

Figure B

Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2006

[Money amounts are in billions of dollars]

Total business receipts

Tax year

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Current

dollars

Total business deductions [1]

Constant dollars [2]

Percentage

Amount

increase

Current

dollars

Net income less deficit (profits)

Constant dollars [2]

Percentage

Amount

increase

Current

dollars

Constant dollars [2]

Percentage

Amount

increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

672.0

692.8

730.6

712.6

737.1

757.2

790.6

807.4

843.2

870.4

918.3

969.3

1,021.0

1,016.8

1,029.7

1,050.2

1,139.5

1,222.9

1,278.4

887.8

881.9

895.5

843.9

853.3

856.8

876.0

876.6

898.5

912.2

951.8

990.5

1,021.0

993.3

990.6

990.8

1,044.5

1,084.7

1,096.7

[3]

-0.7

1.5

-5.8

1.1

0.4

2.2

0.1

2.5

1.5

4.3

4.1

3.1

-2.7

-0.3

[4]

5.4

3.9

1.1

545.7

560.2

589.2

571.2

583.1

600.8

623.8

638.1

666.5

683.9

716.2

761.4

806.4

799.6

808.9

820.2

892.4

953.4

1,001.1

720.9

713.1

722.1

676.4

675.0

679.7

691.2

692.8

710.1

716.7

742.3

778.0

806.4

781.1

778.2

773.8

818.0

845.7

858.8

[3]

-1.1

1.3

-6.3

-0.2

0.7

1.7

0.2

2.5

0.9

3.6

4.8

3.6

-3.1

-0.4

-0.6

5.7

3.4

1.6

126.3

132.7

141.4

141.5

154.0

156.5

166.8

169.3

176.8

186.6

202.3

207.9

214.7

217.4

221.1

230.3

247.6

269.9

278.0

166.9

168.9

173.3

167.6

178.3

177.0

184.8

183.8

188.3

195.6

209.7

212.5

214.7

212.3

212.7

217.3

226.9

239.4

238.5

[3]

1.2

2.6

-3.3

6.4

-0.7

4.4

-0.6

2.5

3.9

7.2

1.3

1.1

-1.1

0.2

2.1

4.4

5.5

-0.4

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses

(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income

or deficit.

[2] Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic

Analysis, in the Survey of Current Business. The deflator represents the annual average of current-weighted prices, based on 2000 = 100.

[3] Not calculated.

[4] Less than 0.05 percent.

NOTE: Percentage increases were calculated before rounding.

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. Indices used for this article were:

Year

1988

1989

1990

1991

1992

Indices

75.7

78.6

81.6

84.4

86.4

Year

1993

1994

1995

1996

1997

Indices

88.4

90.3

92.1

93.9

95.4

Year

1998

1999

2000

2001

2002

Indices

96.5

97.9

100.0

102.4

103.9

Year

2003

2004

2005

2006

Indices

106.0

109.1

112.7

116.6

6 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, Profi t 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, reported as wages on Form 1040 and not on Schedule C. 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.

7 Business deductions include home office business deductions. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use

of Your Home, and the deductible portion brought forward to Schedule C. In some cases, these expenses were limited. Prior to 1990, these expenses were not limited and

were included with other expenses, such as depreciation deductions, utilities, and “other” expenses on Schedule C.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

in deductions, decreasing 1.2 percent. As shown in

Figure B, when accounting for inflation, total business deductions increased 1.6 percent in 2006, the

third straight year in which total inflation-adjusted

business deductions increased.

The cost of sales and operations, which represented 40.9 percent of total 2006 business deductions, increased 3.2 percent from its 2005 level to

approximately $409.7 billion (Figure C). Total business “expenses” (total business deductions minus the

cost of sales and operations) were $591.4 billion for

2006, a 6.3-percent increase from 2005. The main

components of total business expenses are highlighted in Figure D. The largest component, salaries and

wages, accounted for 13.0 percent of the total. For

2006, salaries and wages totaled $77.0 billion, a 2.6percent increase from 2005.

Closely following salaries and wages, accounting for 12.7 percent of total business expenses, was

the car and truck component which increased 6.2

percent from 2005 to $75.4 billion. The next largest

components were rent on business property, machinery, and equipment (6.9 percent), and depreciation

(6.6 percent). For 2006, rent on business property,

machinery, and equipment increased 2.8 percent to

$40.6 billion, while depreciation declined 0.2 percent

to $39.0 billion. Contract labor expenses showed

the largest increase in percentage share of business

expenses at 0.8 percent, up from 5.1 percent in 2005,

while salaries and wages showed the largest decrease

at 0.5 percent, down from 13.5 percent for 2005.

Historically, constant dollar depreciation increased every year from 1993 through 2002, with

the exception of 1995, when it decreased 1.9 percent

to $28.5 billion (Figure E).8 In 2003, under the

Jobs and Growth Tax Relief Reconciliation Act of

2003, the maximum allowable section 179 deduction

(which allows expensing of investment property in

the year of the purchase instead of depreciating these

over time) rose from $24,000 for 2002 to $100,000

for 2003. This led to constant dollar depreciation

increasing by 11.7 percent for 2003. This was the

highest growth in depreciation of any year from 1988

through 2006.

This 2003 legislative change, which initially

caused the accelerated increase in depreciation, was

Figure C

Components of Nonfarm Sole Proprietorship

Business Deductions, Tax Years 2005 and 2006

[Money amounts are in millions of dollars]

Business deductions

2005

(1)

953,391.5

Cost of sales and operations, total 396,875.8

38,101.7

Inventory, beginning of year

32,163.0

Cost of labor

252,887.7

Purchases

55,902.0

Materials and supplies

59,845.9

Other costs

42,024.5

Inventory, end of year

Business expenses, total [1]

556,515.7

14,449.5

Advertising expenses

71,013.1

Car and truck expenses

15,439.7

Commissions

28,223.6

Contract labor

1,061.8

Depletion

39,080.2

Depreciation [3]

2,798.3

Employee benefit programs

8,801.1

Home office business deductions [3]

1,260.2

Depreciation, Form 8829

19,000.9

Insurance

9,836.9

Legal and professional services

6,802.2

Meals and entertainment deducted

5,543.7

Mortgage interest

Business deductions, total [1, 2]

Other interest paid on business

indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Salaries and wages

Supplies

Taxes paid

Travel

Utilities

Other business deductions

6,565.9

12,835.6

1,251.9

9,135.7

30,349.0

14,976.1

75,091.2

28,858.6

16,797.5

11,308.3

22,910.3

101,044.7

2006

Percentage

increase

(2)

(3)

1,001,097.6

409,661.0

41,101.7

31,743.9

259,992.7

59,699.4

61,626.5

44,503.2

591,436.6

15,274.1

75,402.4

15,634.3

34,577.9

1,058.4

39,004.5

2,867.7

10,119.5

1,639.7

19,083.9

10,092.9

7,306.3

6,297.5

5.0

3.2

7.9

-1.3

2.8

6.8

3.0

5.9

6.3

5.7

6.2

1.3

22.5

-0.3

-0.2

2.5

15.0

30.1

0.4

2.6

7.4

13.6

7,214.5

13,024.7

1,276.9

9,350.3

31,229.2

15,726.0

77,038.7

32,136.9

17,660.0

11,861.2

23,842.8

110,762.7

9.9

1.5

2.0

2.3

2.9

5.0

2.6

11.4

5.1

4.9

4.1

9.6

[1] Includes returns with Schedule C-EZ, Net Profit from Business, attached. Because

only a total is reported for 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.

[2] Total business deductions are before subtraction of nonallowable "passive" activity

losses and any "passive loss" carryover from the prior years.

[3] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home, is

included in "home office business deductions" and excluded from "depreciation" shown

above.

NOTES: Detail may not add to totals because of rounding. Percentage increases were

calculated before rounding.

offset in subsequent years by trends of decreased

depreciation. From 2004 through 2006, constant dollar declines of depreciation were witnessed for all 3

years. In 2004, constant dollar depreciation deductions decreased by 0.2 percent. This downward trend

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. Following the enactment of this provision, the 179 deduction for all individuals (not just sole proprietors)

filing Form 4562, Depreciation and Amortization, increased 32.4 percent to $13.5 billion for 1993.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Figure D

Nonfarm Sole Proprietorship Total Business Expenses, by Type of Expenses, Tax Year 2006 [1]

Type of expenses

Travel

2.0

Office expenses

2.2

Total interest

2.3

Advertising expenses

2.6

Commissions

2.6

Repairs

2.7

Taxes paid

3.0

Insurance

3.2

Utilities

4.0

Supplies

5.4

Contract labor

5.8

Depreciation [2]

6.6

Rent paid on machinery, equipment,

and other business property

6.9

Car and truck expenses

12.7

Salaries and wages

13.0

Other business deductions [3]

24.9

Percent of total

[1] Total business expenses equals all business deductions minus cost of sales and operations.

[2] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home, is included in "home office business deductions" and excluded from

"depreciation" shown above. See footnote 3 below.

[3] Other business deductions includes: depletion; employee benefit programs; legal and professional services; pension and profit-sharing plans; meals and

entertainment; and home office business deductions. Other business deductions also includes all Schedule C-EZ, Net Profit from Business , deductions ($3.6

billion).

NOTES: Percents are based on an estimated total business expense of $591.4 billion. Detail may not add to 100 percent because of rounding.

was even more evident in 2005, as constant dollar

depreciation decreased 11.8 percent. In 2006, constant dollar depreciation decreased by 3.5 percent.

During this same 3-year period, section 179 limits

gradually increased for inflation, from $102,000 in

2004 to $105,000 in 2005, and $108,000 in 2006.9,10

Beginning with Tax Year 1992, certain smaller

businesses could elect not to itemize depreciation

and other business deductions by filing Schedule

C-EZ, Net Profit From Business, a simplified version of Schedule C, Profit or Loss From Business.

(Schedule C and Schedule C-EZ are the source of

9 Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of section 179 deduction (the amount of depreciable property that one can

expense for the cost of certain qualifying property) increased from $24,000 for 2002 to $100,000 for 2003, $102,000 for 2004, $105,000 for 2005, and $108,000 for 2006.

For all tax returns that filed Form 4562, Depreciation and Amortization, the section 179 property deducted as an expense increased by 8.5 percent to $44.8 billion for 2005.

The Jobs Creation and Worker Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased

the bonus percentage to 50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as

advantageous as immediate expensing and therefore likely had less effect on their depreciation deductions.

10 The amount deducted as section 179 property on returns that had a Schedule C rose slightly to $21.6 billion, from 2005 to 2006. This number does not reflect depreciation solely deducted on Schedule C as this could also include depreciation taken on Schedule E, Supplemental Income and Loss, and Schedule F, Profit or Loss From

Farming.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Figure E

Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2006

[Money amounts are in billions of dollars]

Current dollars

Tax year

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Net income

Deficit

Constant dollars [1]

Depreciation [2]

Percentage increase in constant dollars [1]

Net income

Deficit

Depreciation [2]

Net income

Deficit

Depreciation [2]

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

145.5

152.4

161.7

162.4

173.5

177.0

187.8

191.7

200.1

210.5

226.2

233.4

245.2

250.2

257.3

269.1

290.5

314.8

326.8

19.2

19.7

20.2

20.9

19.5

20.5

21.0

22.5

23.4

23.8

23.9

25.5

30.5

32.8

36.2

38.8

42.9

44.8

48.7

26.1

24.5

23.7

23.1

23.3

25.0

26.2

27.4

28.6

29.1

30.6

32.2

33.4

36.6

41.8

42.9

39.1

39.0

192.2

194.0

198.2

192.3

200.8

200.3

208.1

208.2

213.2

220.6

234.5

238.5

245.2

244.4

247.5

253.9

266.3

279.2

280.3

25.4

25.1

24.8

22.6

23.2

23.3

24.4

24.9

25.0

24.8

26.0

30.5

32.0

34.8

36.6

39.3

39.8

41.8

34.5

31.2

29.0

27.4

27.0

28.3

29.0

28.5

29.2

30.0

30.2

31.3

32.2

32.7

35.3

39.4

39.3

34.7

33.5

[3]

0.9

2.2

-3.0

4.4

-0.3

3.9

[4]

2.4

3.4

6.3

1.7

2.8

-0.3

1.3

2.6

4.9

0.4

[3]

-1.1

-1.3

[4]

-8.8

2.8

0.3

4.8

2.1

0.3

-0.7

4.9

17.3

5.0

8.7

5.1

7.5

1.1

5.1

[3]

-9.6

-6.9

-5.8

-1.4

4.9

2.6

-1.9

2.4

2.9

0.7

3.7

2.8

1.4

8.0

11.7

-0.2

-11.8

-3.5

[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 . The deflator represents the annual average of current-weighted prices, based on 2000 = 100.

[2] Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home.

[3] Not calculated

[4] Less than 0.05 percent.

NOTE: Percentage increases were calculated before rounding.

sole proprietorship statistics.) For Tax Year 2006,

taxpayers could use Schedule C-EZ if they: had business expenses of $5,000 or less; used the cash accounting method; had no inventories; did not report a

deficit from the business; had only one business as a

sole proprietor; had no employees; were not required

to file Form 4562, Depreciation and Amortization,

for the business; claimed no deduction for home

business expenses; and had no prior-year disallowed

passive activity losses from the business. Since taxpayers using Schedule C-EZ did not itemize business

deductions, the detailed deductions in Table 2 are

slightly understated and do not add to the totals.

Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on

Schedule C-EZ by industrial sector. For Tax Year

2006, approximately 4.0 million taxpayers filed

Schedule C-EZ, marking a 4.0-percent increase from

the number filed for 2005. Of returns filed for 2006

in the administrative and support services sector (the

largest filers of this schedule), taxpayers filed approximately 0.6 million Schedule C-EZ returns, or

29.1 percent of the total for that sector. For 2006,

business receipts from Schedule C-EZ filers totaled

$28.3 billion, or 2.2 percent of total business receipts

reported. Business deductions reported on Schedule

C-EZ returns accounted for only 0.4 percent of total

business deductions for all industries, or $3.6 billion

of the total $1,001.1 billion. Despite having the largest concentration of Schedule C-EZ filers, deductions

reported on Schedule C-EZ by the administrative and

support services sector accounted for only 1.1 percent of that sector’s total business deductions.

Profits and Losses

For 2006, many of the largest principal industrial

sectors reported either modestly increased or decreased sole proprietorship profits (net income less

deficit). Figure B presents total profits for all industries (in both current and constant dollars) since

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Figure F

All Nonfarm Sole Proprietorship Returns and Those with Schedule C-EZ, by Selected Industrial

Sectors, Tax Year 2006

[Money amounts are in millions of dollars]

Industrial sector

All nonfarm industries

Construction

Wholesale trade (merchant wholesalers)

Retail trade

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Professional, scientific, and technical services

Administrative and support and waste

management and remediation services

Health care and social assistance

Arts, entertainment, and recreation

Other services

All other industries

Number of returns

Total business receipts

With

Schedule

C-EZ

With

Schedule

C-EZ

Percentage

total

Total

Percentage

total

Total

Total business deductions [1]

With

Percentage

Schedule

C-EZ

total

Total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

22,074,953

2,915,823

378,532

2,466,091

1,083,977

688,299

1,381,330

2,929,675

4,027,039

490,220

38,656

249,444

134,007

81,235

108,306

487,722

18.2

16.8

10.2

10.1

12.4

11.8

7.8

16.6

1,278,359.8

236,421.5

48,497.8

194,556.4

76,272.0

82,400.9

77,157.5

156,060.3

28,303.4

3,989.6

188.0

1,285.4

1,062.7

747.4

1,195.1

4,953.9

2.2

1.7

0.4

0.7

1.4

0.9

1.5

3.2

1,001,097.6

199,049.3

43,656.5

185,703.6

65,484.4

62,919.9

50,003.9

89,102.4

3,593.3

506.8

21.1

247.5

154.6

88.4

148.8

488.8

0.4

0.3

[2]

0.1

0.2

0.1

0.3

0.5

2,140,672

1,873,520

1,238,273

2,281,767

622,396

467,790

251,057

434,232

57,226.8

110,437.2

30,006.0

81,837.5

3,690.3

3,766.2

1,052.9

3,121.4

468.3

373.0

233.7

440.8

661,974

127,485.8

3,250.5

6.4

3.4

3.5

3.8

2.5

41,121.1

65,958.4

22,918.5

63,834.5

2,696,994

29.1

25.0

20.3

19.0

24.5

111,345.1

421.6

1.1

0.6

1.0

0.7

0.4

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.

[2] Less than 0.05 percent.

NOTES: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit from Business. See the text of this article

for a full list of the requirements to be eligible to file Schedule C-EZ.

1988, while Figure G presents profits by industrial

sector for 2005 and 2006.11 Total profits increased

3.0 percent from $269.9 billion for 2005 to $278.0

billion for 2006.

The professional, scientific, and technical services sector, which had the highest percentage of total

profits of all nonfarm sole proprietorships with 24.1

percent, reported the highest dollar increase in profits ($6.0 billion) and the second largest percentage

increase in profits with 9.8 percent. A smaller sector,

the administrative and support and waste management and remediation services sector reported a $1.7billion increase in profits from 2005. This represented the largest percentage change in profits for 2006,

increasing 12.0 percent to $16.2 billion The construction and health care and social assistance sectors

reported 8.0-percent and 3.3-percent increases in

profits, respectively. Interestingly, the real estate and

rental and leasing sector, which reported the largest

percentage increase in profits for 2005 with 19.4 percent, reported the largest decrease in profits for 2006

with 18.5 percent.

In constant dollars, total profits decreased 0.4

percent for 2006, after increasing by 5.5 percent in

Figure G

Nonfarm Sole Proprietorship Profits, by Selected

Industrial Sectors, Tax Years 2005 and 2006

[Money amounts are in billions of dollars]

Industrial sector

Net income less deficit (profits)

Percentage

2005

2006

increase

(1)

(2)

(3)

All nonfarm industries

269.9

278.0

3.0

Construction

Specialty trade contractors

Wholesale trade (merchant wholesalers)

Retail trade

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Real estate

Professional, scientific, and technical services

Administrative and support and waste

management and remediation services

Health care and social assistance

Child day care services

Arts, entertainment, and recreation

Performing arts, spectator sports, and

related industries

Other services

Personal and laundry services

All other industries

34.8

26.4

4.9

9.3

10.1

19.5

33.3

33.0

61.0

37.6

28.7

4.8

9.0

10.8

19.5

27.2

27.1

67.0

8.0

8.6

-2.0

-3.0

7.0

0.2

-18.5

-17.9

9.8

14.5

16.2

12.0

43.1

3.6

6.5

44.5

4.0

7.1

3.3

9.7

9.8

5.8

6.0

3.1

17.8

11.2

15.1

18.0

11.3

16.2

1.2

1.4

7.6

NOTES: Detail may not add to totals because of rounding. Percentage increases

were calculated before rounding.

11 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.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

2005 (Figure B). Profits as a percentage of business

receipts also decreased for 2006. Figure H shows

net income less deficits as a percentage of business

receipts for 1988 through 2006. In general, this

percentage has been increasing from a low of 18.8

percent for 1988. This trend continued through Tax

Year 2005, when profits as a percentage of business

receipts peaked at 22.1 percent. However, in 2006,

profits as a percentage of business receipts decreased

to 21.7 percent. Figure E presents net income and

deficit separately for 1988 through 2006, in current

and constant dollars. For 2006, net income (in constant dollars) increased 0.4 percent, and net deficit (in

constant dollars) increased by 5.1 percent.

Industries

Using receipts as a measure of business size, Figures A and I show that construction was the largest

sole proprietorship industrial sector for 2006, with

18.5 percent of all business receipts (the third year

in a row that this sector was largest). Total receipts

for the construction sector, at $236.4 billion, were

6.5-percent higher than the $222.1 billion reported

for 2005, while deductions increased by 6.3 percent,

leading to an 8.0-percent increase in profits (to $37.6

billion). The second largest industrial sector was retail trade, with receipts totaling $194.6 billion. This

amount was 15.2 percent of all sole proprietorship

receipts for 2006, and it represented a 1.4-percent decrease from the 2005 amount. This was one of only

two major sectors (the other being real estate and

rental and leasing) where receipts declined for 2006.

Deductions and profits also decreased in this sector

by 1.2 percent and 3.0 percent, respectively. Retail

trade profits totaled $9.0 billion for 2006.

The third largest sector was professional, scientific, and technical services, which accounted for

12.2 percent of sole proprietorship receipts for 2006.

Receipts increased 7.5 percent to $156.1 billion, and

deductions increased 5.8 percent to $89.1 billion.

Although this sector was just the third largest sector

in terms of business receipts, the professional, scientific, and technical services sector had the largest

percentage of sole proprietorship profits, with 24.1

percent (Figure J). For 2006, the professional, scientific, and technical services sector’s profits went

from $61.0 billion to $67.0 billion, a 9.8-percent increase from 2005. The sector with the second largest

profits was health care and social assistance. These

profits rose to $44.5 billion for 2006, a 3.3- percent

increase from 2005, and represented 16.0 percent of

Figure H

Nonfarm Sole Proprietorship Net Income Less Deficit (Profits) as a Percentage of Business

Receipts, Tax Years 1988-2006

Percent

22.0

21.4

21.1

20.9

21.0

21.9

21.5

21.4

21.0

22.1

21.7

21.5

21.0

20.7

19.9

19.4

19.2

18.8

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Tax year

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Figure I

Nonfarm Sole Proprietorship Total Business Receipts, by Selected Industrial Sectors, Tax Year 2006

Arts, entertainment, and recreation

2.3

Wholesale trade (merchant wholesalers)

3.8

Administrative and support and waste

management and remediation services

4.5

Transportation and warehousing

6.0

Real estate and rental and leasing

6.0

Other services

6.4

Finance and insurance

6.4

Health care and social assistance

8.6

All other industries

10.0

Professional, scientific, and technical services

12.2

Retail trade

15.2

Construction

18.5

Percent of total

NOTES: Percents are based on an estimated total business receipts of $1.3 trillion. Detail may not add to 100 percent because of rounding.

Figure J

Nonfarm Sole Proprietorship Total Business Profits, by Selected Industrial Sectors, Tax Year 2006

Wholesale trade (merchant wholesalers)

1.7

Arts, entertainment, and recreation

2.6

Retail trade

3.2

Transportation and warehousing

Administrative and support and waste

management and remediation services

All other industries

3.9

5.8

Other services

6.5

Finance and insurance

7.0

Real estate and rental and leasing

9.8

Construction

13.5

Health care and social assistance

16.0

Professional, scientific, and technical services

24.1

Percent of total

NOTES: Percents are based on an estimated total business profits of $278.0 billion. Detail may not add to 100 percent because of rounding.

Profits is a designation for "net income less deficit," shown elsewhere in this article.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

all sole proprietorship profits. This was followed by

construction (13.5 percent, as cited above) and real

estate and rental and leasing (9.8 percent) in terms of

overall sole proprietor profits.

Tax Year 2001 is the first year in which data

became available on the number of Limited Liability Companies (LLCs) among sole proprietorship

returns. LLC entities have the limited liability of

corporations but are taxed as sole proprietorships—

income and expenses flow through to the owner to

be taxed. In 2001, there were approximately 0.1

million sole proprietorship returns that indicated

status as an LLC (Figure K). This increased by 15.3

percent for 2002, 51.3 percent for 2003, 40.4 percent

for 2004, and 47.2 percent for 2005. For Tax Year

2006, the number of these sole proprietorships rose

to approximately 0.6 million, a 33.2-percent increase

from 2005. The 2006 level of LLCs among sole proprietorship returns accounts for 2.7 percent of total

nonfarm sole proprietorships, with the total number

of returns with LLCs having more than quadrupled

since 2001.

Summary

Profits for the 22.1 million returns with sole proprietorship activity for Tax Year 2006 grew by 3.0 per-

cent to $278.0 billion. In constant dollars, total nonfarm sole proprietorship profits decreased 0.4 percent,

after increasing 5.5 percent in 2005. This was the first

such decrease since Tax Year 2001. The professional,

scientific, and technical services sector had the largest profits of any sector, at $67.0 billion, representing

24.1 percent of total sole proprietorship profits, followed by the health care and social assistance sector,

at $44.5 billion, or 16.0 percent of total profits.

For all sole proprietorships, receipts and deductions increased 4.5 percent and 5.0 percent, respectively. The largest sole proprietorship industrial sector, based on business receipts, was the construction

sector, accounting for 18.5 percent of receipts. This

sector reported an 8.0-percent increase in profits.

The finance and insurance sector showed the largest

percentage increase in both receipts and deductions,

reporting a 13.8-percent increase in receipts and an

18.9-percent increase in deductions.

Filings of Schedules C-EZ increased 4.0 percent

in 2006, slightly less than the 4.5-percent increase

for 2005. The industrial sector experiencing the

most significant downturn in both profits and receipts

from Tax Years 2005 to 2006 was the real estate and

rental and leasing sector. After reporting the largest

percentage growth in profits in 2005 at 19.4 percent,

Figure K

Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs), Tax

Years 2001-2006

Tax year

2006

606,889

2005

455,734

2004

309,665

2003

220,615

2002

145,839

2001

126,437

100,000

200,000

300,000

400,000

Number of returns with LLCs

500,000

600,000

700,000

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

the real estate and rental and leasing sector reported

the largest percentage decrease in profits in 2006,

declining by 18.5 percent. Similarly, this sector also

reported the highest percentage increase in receipts

for 2005 among all other sectors, with 17.6 percent,

while reporting the largest percentage decrease in

2006, with 6.9 percent.

Data Sources and Limitations

The 2006 sole proprietorship estimates are based on

a stratified probability sample of unaudited individual

income tax returns, Form 1040 (including electronically filed returns), processed by the Internal Revenue Service during Calendar Year 2007. 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 0.1 percent to

100 percent. The 2006 nonfarm sole proprietorship

data are based on a sample of 88,619 returns and a

population of 22,407,707 returns.12 The corresponding sample and population for the 2005 data were

82,689 and 21,756,709 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 estimates provided, the magnitude of the potential

sampling error must be known. Coefficients of variation (CVs) are used to measure that magnitude. Figure

L presents estimated coefficients of variation for the

number of returns and money amounts for selected

items and industrial sectors. Generally, the smaller the

coefficient of variation, the more reliable the estimate

is judged to be. See SOI Sampling Methodology and

Data Limitations in the back of this issue for a discussion of the reliability of estimates based on samples,

and the use of coefficients of variation for evaluating

the precision of estimates based on samples.

Figure L

Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial

Sectors, Tax Year 2006

[Coefficients of variation are in percentages]

Coefficients of variation

Industrial sector

All nonfarm industries

Construction

Specialty trade contractors

Wholesale trade (merchant wholesalers)

Retail trade

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Real estate

Professional, scientific, and technical services

Administrative and support and waste management and

remediation services

Health care and social assistance

Child day care services

Arts, entertainment, and recreation

Performing arts, spectator sports, and related industries

Other services

Personal and laundry services

All other industries

Total business

receipts

Total business

deductions

Depreciation [1]

Net income

Deficit

(1)

(2)

(3)

(4)

(5)

0.54

0.61

1.25

0.73

1.40

1.83

1.93

3.33

2.13

4.73

2.23

2.36

3.95

2.51

6.19

4.60

4.71

8.61

6.58

8.66

2.08

2.07

4.10

3.32

3.75

2.65

2.73

4.18

3.52

6.14

2.16

6.60

3.60

6.56

2.42

2.70

5.09

2.96

5.01

2.48

2.77

5.26

3.01

5.24

1.77

2.10

3.74

1.98

4.32

3.02

3.56

5.96

2.97

6.28

1.91

2.05

4.07

2.27

6.87

4.84

6.05

11.32

4.79

14.02

3.41

3.50

5.51

4.67

5.36

3.86

4.10

6.78

4.67

6.03

2.67

2.96

4.77

2.77

5.51

3.34

3.75

6.92

3.59

7.34

2.12

2.18

3.32

2.80

3.58

[1] Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home.

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 Product calculations. In addition, data from amended returns and tentative

returns are not reflected in these statistics.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors, Tax Year 2006

[All figures are estimates based on samples—money amounts are in thousands of dollars]

Businesses with and without net income

Industrial sector

All nonfarm industries

Agriculture, forestry, hunting, and fishing

Number of

returns

Business

receipts

(1)

(2)

22,074,953 1,278,359,791

Depreciation

deduction

[1, 2]

Rent paid

Rent paid on

on other

machinery

business

and

equipment [1] property [1]

(3)

(4)

(5)

40,644,196

9,350,344

31,229,159

Interest paid

deduction

[1, 3]

Payroll

[1, 4]

Net income

less deficit

(6)

(7)

(8)

13,511,951 108,782,628 278,032,643

274,667

15,149,638

1,483,616

125,020

192,764

250,781

1,603,037

552,595

Animal production (including breeding of cats and dogs)

40,387

1,503,592

186,761

6,840

9,448

26,972

53,989

-358,695

Forestry and logging (including forest nurseries, timber tracts)

45,817

4,927,168

472,340

53,723

58,697

92,022

574,777

330,074

Fishing

69,764

2,307,587

315,514

13,278

45,410

49,215

111,514

208,056

Hunting and trapping

8,673

324,115

40,211

* 3,165

* 15,987

12,123

* 2,721

27,879

110,025

6,087,176

468,789

48,015

63,222

70,449

860,035

345,281

Support activities for agriculture and forestry

Mining

Oil and gas extraction

Coal mining

Metal ore mining

135,021

12,553,376

691,559

38,737

56,272

189,920

471,306

2,228,432

113,181

9,722,236

539,702

13,572

31,222

144,100

195,974

1,500,370

1,161

320,222

15,905

* 2,446

* 53

* 13,587

* 41,800

11,822

* 1,013

* 713

* 440

* 24

* 341

* -2,625

Nonmetallic mineral mining and quarrying

2,728

513,295

50,565

7,025

14,040

20,523

69,275

42,163

Support activities for mining

16,938

1,996,910

84,947

15,692

10,934

11,709

163,916

676,703

Utilities

13,962

389,979

61,131

* 7,978

* 1,955

8,340

* 13,740

10,883

2,915,823

236,421,496

7,537,599

1,571,914

1,399,443

1,943,775

28,663,453

37,593,450

Residential building construction

463,281

56,984,737

1,136,547

241,133

223,689

605,928

5,908,008

6,498,939

Nonresidential building construction

97,016

11,336,311

258,362

86,674

96,738

112,529

1,334,207

1,135,331

Heavy and civil engineering construction

68,498

9,736,691

623,286

108,344

50,734

247,233

795,831

1,259,983

2,287,028

158,363,757

5,519,403

1,135,763

1,028,282

978,086

20,625,407

28,699,197

Construction

Specialty trade contractors

Manufacturing

325,370

25,918,270

1,080,037

135,165

792,154

333,610

3,031,717

3,141,732

Food manufacturing

26,529

2,600,252

112,358

7,368

72,471

36,555

265,059

123,678

Textile and textile product mills

3,399

165,265

11,825

* 50

* 3,832

* 502

* 15,057

13,350

Apparel

23,467

1,212,652

26,377

* 3,234

65,821

8,519

163,562

120,123

Leather and allied products

4,099

208,383

* 4,160

* 268

* 4,001

* 8,155

18,518

Wood products

38,706

2,785,434

136,374

9,263

35,036

52,144

328,890

281,240

Paper products

Printing and related support activities

Petroleum and coal products

* 24

* 40,871

* 1,193

* 854

* 316

* 1,065

* 6,171

* 797

32,253

2,534,859

106,495

29,049

110,158

34,108

220,400

345,153

418

252,607

2,766

* 1,536

* 2,621

* 287

* 10,785

12,022

Chemical manufacturing

11,785

1,011,168

32,661

6,467

23,786

15,952

128,346

70,529

Plastics, rubber, clay, refractory, and glass products

10,900

490,960

21,197

1,438

19,166

32,346

105,368

-56,363

Nonmetallic mineral products

5,250

1,233,093

50,501

13,920

* 6,550

14,081

255,037

133,241

Primary metal industries

4,862

629,559

77,619

* 539

* 15,483

* 15,811

* 36,721

70,556

Fabricated metal products

41,607

4,422,472

168,578

24,021

154,482

41,121

671,603

674,798

445,516

Machinery

23,892

2,197,311

108,750

8,817

73,712

20,601

301,783

Computer and electronic products

8,037

214,865

4,489

* 335

5,985

* 11

14,335

44,531

Electrical equipment, appliances, and components

7,317

620,005

4,831

* 4,230

* 22,474

* 4,207

54,070

103,998

Transportation equipment

6,779

566,277

6,048

* 6,723

20,859

* 15,999

33,322

5,903

Furniture and related products

23,146

1,607,510

61,446

3,850

59,329

9,056

166,227

312,671

Medical equipment and supplies

6,346

397,594

4,731

* 2,012

20,076

* 27

* 16,758

104,620

Other miscellaneous manufacturing

46,552

2,727,134

137,639

11,459

79,732

27,216

230,068

316,852

Wholesale trade (merchant wholesalers)

378,532

48,497,837

670,765

130,060

583,668

348,849

1,562,932

4,848,637

Durable goods, including machinery, wood, metals, etc.

168,744

22,182,442

339,061

59,754

295,950

174,979

797,164

1,800,827

Nondurable goods, including food, fiber, chemicals, etc.

132,033

20,860,903

274,036

44,852

228,078

150,424

670,018

1,989,117

Wholesale electronic markets and agents and brokers

77,755

5,454,492

57,667

25,454

59,640

23,445

95,750

1,058,692

2,466,091

194,556,426

3,112,807

816,412

6,081,388

1,826,226

10,250,686

9,004,091

Motor vehicle and parts dealers

132,277

39,019,492

319,350

65,144

499,405

432,625

1,528,547

1,002,111

Furniture and home furnishing stores

48,371

5,121,661

63,496

14,997

335,490

49,989

501,265

349,902

Electronic and appliance stores

27,597

4,299,318

58,826

39,396

121,096

40,588

479,909

329,864

Building material and garden equipment and supplies dealers

46,151

9,785,421

176,941

32,268

206,989

110,491

791,010

652,868

Food and beverage stores

106,383

27,132,801

287,981

106,117

835,362

194,718

1,552,560

824,492

Health and personal care stores

164,729

9,929,055

130,189

96,578

308,432

47,646

668,444

702,245

Retail trade

Gasoline stations

21,142

24,573,469

177,668

35,057

311,050

167,540

713,264

217,528

Clothing and accessories stores

137,859

11,521,420

151,252

135,190

883,557

104,096

756,359

906,670

Sporting goods, hobby, book, and music stores

110,706

7,518,176

459,718

49,082

442,927

103,741

501,974

243,901

General merchandise stores

37,723

3,173,839

96,673

11,175

225,609

34,127

212,332

-75,179

Miscellaneous store retailers

520,556

28,225,819

550,723

132,764

1,499,101

320,152

1,835,512

2,143,487

1,112,596

24,255,956

639,990

98,645

412,368

220,514

709,511

1,706,203

Nonstore retailers

Footnotes at end of table.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors, Tax Year 2006—Continued

[All figures are estimates based on samples—money amounts are in thousands of dollars]

Businesses with net income

Industrial sector

All nonfarm industries

Agriculture, forestry, hunting, and fishing

Business

receipts

(9)

(10)

(11)

16,207,401 1,086,041,069

Rent paid on

machinery

and

equipment [1]

(12)

Rent paid

on other

business

property [1]

(13)

27,346,827

7,169,152

23,867,916

Interest paid

deduction

[1, 3]

Payroll

[1, 4]

Net income

(14)

(15)

(16)

8,033,548 89,339,914 326,769,239

159,446

11,780,204

760,887

87,326

91,366

117,030

1,281,866

Animal production (including breeding of cats and dogs)

10,829

1,144,304

30,339

* 551

4,815

7,534

38,955

101,101

Forestry and logging (including forest nurseries, timber tracts)

28,272

3,975,003

297,479

42,964

27,112

38,868

398,644

553,476

2,014,259

541,099

Fishing

42,289

1,915,780

190,519

* 7,703

28,636

30,483

* 98,720

Hunting and trapping

4,753

264,579

* 21,983

* 2,949

* 14,725

* 6,634

* 1,234

58,112

Support activities for agriculture and forestry

73,302

4,480,537

220,567

33,157

16,078

33,510

744,314

760,471

Mining

100,099

9,988,365

441,929

25,925

31,113

77,599

349,363

3,267,413

Oil and gas extraction

83,341

7,442,983

328,782

8,047

20,261

46,752

108,499

2,478,768

Coal mining

1,143

295,698

* 12,146

* 1,690

* 12

* 11,490

* 38,738

15,674

Nonmetallic mineral mining and quarrying

1,615

390,565

32,167

* 5,907

* 733

10,848

51,012

65,389

Support activities for mining

14,000

1,859,119

68,834

10,282

10,107

8,509

151,114

707,582

9,251

307,085

34,270

* 6,242

* 296

* 3,329

* 12,936

81,869

2,431,039

210,267,828

6,079,471

1,279,893

1,105,193

1,399,037 25,535,792

42,280,514

Residential building construction

377,884

48,497,062

920,591

180,070

165,086

397,214

5,225,688

Nonresidential building construction

79,108

9,173,024

207,069

64,789

61,394

77,443

1,056,762

1,401,606

Heavy and civil engineering construction

51,529

8,174,288

503,342

92,160

43,251

127,469

654,217

1,647,597

1,922,517

144,423,455

4,448,470

942,874

835,462

796,911 18,599,125

31,514,116

212,967

22,223,495

716,057

110,670

589,051

206,259

2,489,281

4,234,636

Food manufacturing

16,102

2,248,542

67,670

3,939

52,626

22,434

219,708

255,772

Textile and textile product mills

* 1,312

* 123,168

* 9,042

* 128

* 7,402

* 33,544

Metal ore mining

Utilities

Construction

Specialty trade contractors

Manufacturing

7,717,196

Apparel

16,190

969,053

12,960

* 3,233

54,410

* 4,265

93,306

176,903

Leather and allied products

* 3,088

* 189,512

* 2,890

* 152

* 3,992

* 6,712

* 29,458

Wood products

30,191

2,343,349

79,174

7,825

23,248

31,048

247,848

421,111

Paper products

* 12

* 20,567

* 396

* 390

* 2,432

* 5,427

20,473

2,035,933

50,185

28,153

86,881

29,105

160,098

445,762

Printing and related support activities

Petroleum and coal products

365

109,511

* 2,733

* 1,536

* 2,621

* 286

* 10,759

12,995

Chemical manufacturing

8,015

858,043

15,530

6,289

20,505

10,318

114,462

131,821

Plastics, rubber, clay, refractory, and glass products

4,174

366,086

14,241

* 364

* 3,955

4,247

* 73,612

33,775

Nonmetallic mineral products

5,002

1,192,877

43,202

13,794

* 6,148

* 11,621

249,585

142,244

Primary metal industries

3,425

594,232

* 75,949

* 539

* 15,335

* 4,249

* 36,512

96,438

Fabricated metal products

29,792

4,084,573

112,129

22,757

120,385

30,502

595,749

811,992

490,326

Machinery

15,615

1,768,385

59,283

3,071

30,372

13,971

248,146

Computer and electronic products

4,463

176,905

* 1,721

* 326

* 4,334

* 8,985

65,378

Electrical equipment, appliances, and components

5,914

592,629

4,246

* 2,083

* 22,424

* 3,446

* 50,669

116,576

Transportation equipment

4,188

473,236

* 3,910

* 6,687

* 8,129

* 15,091

* 20,068

68,361

Furniture and related products

15,235

1,481,995

48,380

3,838

57,016

4,442

139,878

358,960

Medical equipment and supplies

5,236

386,813

* 4,328

* 644

17,821

* 13,534

112,757

Other miscellaneous manufacturing

24,171

2,208,087

108,089

5,592

62,689

16,714

189,817

425,037

Wholesale trade (merchant wholesalers)

241,291

40,485,049

457,568

85,792

418,527

204,366

1,132,176

6,222,643

98,411

18,959,959

219,735

39,954

210,449

90,472

590,119

2,522,997

Nondurable goods, including food, fiber, chemicals, etc.

88,717

16,451,781

196,131

25,491

161,294

97,750

461,446

2,512,354

Wholesale electronic markets and agents and brokers

54,163

5,073,309

41,702

20,347

46,784

16,145

80,610

1,187,292

1,229,702

152,986,902

1,620,759

517,427

4,024,711

1,023,254

7,334,010

17,539,733

Durable goods, including machinery, wood, metals, etc.

Retail trade

Motor vehicle and parts dealers

85,163

29,305,993

191,918

38,845

305,011

247,869

1,019,913

1,893,257

Furniture and home furnishing stores

28,324

3,984,039

46,368

8,079

210,108

34,442

337,874

651,938

Electronic and appliance stores

20,898

3,514,872

48,180

18,246

98,244

34,867

313,304

400,086

Building material and garden equipment and supplies dealers

29,558

8,093,137

136,124

24,274

125,222

68,612

661,195

880,641

Food and beverage stores

70,796

22,393,740

193,407

93,189

637,618

134,401

1,246,393

1,439,268

Health and personal care stores

62,055

8,966,052

84,115

76,721

222,846

33,608

584,752

1,164,303

Gasoline stations

14,093

18,618,489

104,880

23,618

235,451

99,606

510,885

411,215

Clothing and accessories stores

85,955

9,364,273

80,244

65,368

666,093

64,164

569,519

1,435,523

813,641

Sporting goods, hobby, book, and music stores

48,861

5,256,769

89,966

20,767

239,898

36,151

261,125

General merchandise stores

17,023

2,072,070

21,720

9,515

126,005

13,735

95,194

176,503

Miscellaneous store retailers

284,016

22,672,115

327,795

64,943

895,521

168,149

1,241,637

3,782,210

Nonstore retailers

482,959

18,745,354

296,042

73,861

262,694

87,650

492,219

4,491,148

Footnotes at end of table.

Number of

returns

Depreciation

deduction

[1, 2]

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors, Tax Year 2006—Continued

[All figures are estimates based on samples—money amounts are in thousands of dollars]

Businesses with and without net income

Industrial sector

Number of

returns

Business

receipts

Depreciation

deduction

[1, 2]

Rent paid on

Rent paid

machinery

on other

and

business

equipment [1] property [1]

(5)

Payroll

[1, 4]

Net income

less deficit

(1)

(2)

(3)

1,083,977

76,271,968

5,267,261

Air and rail transportation

16,170

1,597,447

Water transportation

3,897

599,845

General freight trucking, local

General freight trucking, long distance and specialized freight

trucking

Urban transit

238,255

359,784

* 1,044

* 760

* 602

Interurban and rural bus transportation

* 2,740

* 8,573

* 1,730

* 736

* 11

* 203

* -14,692

1,289,685

Transportation and warehousing

(4)

Interest paid

deduction

[1, 3]

(6)

(7)

(8)

2,002,127

543,340

1,007,550

4,577,900

10,817,014

273,566

24,127

35,076

77,054

125,270

-132,522

53,049

* 1,150

9,442

12,623

45,168

225,384

20,891,122

1,622,687

466,877

122,581

256,869

1,848,681

2,861,969

37,211,507

2,680,136

893,799

187,096

491,506

1,592,730

4,315,397

Taxi and limousine service

152,300

4,878,985

160,289

489,594

79,138

74,613

136,056

School, employee, and charter bus industry

17,378

842,153

82,227

* 3,886

7,212

16,325

97,880

110,210

Other transit and ground passenger transportation

18,674

833,022

23,710

* 5,249

* 3,805

* 6,339

* 51,354

220,745

Pipeline transportation

* 668

* 165,865

* 6,319

* 3,276

* 42

* 1,151

* 570

* 28,181

Scenic and sightseeing transportation

Support activities for transportation (including motor vehicle

towing)

Couriers and messengers

7,424

258,845

73,382

* 222

12,860

10,891

31,508

-19,591

43,261

2,575,924

185,145

34,155

36,454

36,695

231,268

252,848

214,315

5,901,628

81,263

77,175

34,936

14,210

358,881

1,589,376

8,067

506,292

23,757

1,880

14,697

9,262

58,329

89,423

333,782

10,896,418

434,131

100,414

196,646

99,356

786,483

2,476,404

Publishing industries (except internet)

87,975

3,157,791

49,425

15,222

50,427

48,845

288,136

836,147

Motion picture and sound recording

88,159

2,704,713

245,941

66,660

80,769

21,201

124,482

282,252

Broadcasting (except internet) and telecommunications

52,024

2,211,356

72,985

12,154

39,170

12,786

112,159

318,274

Warehousing and storage facilities

Information

Internet publishing and broadcasting

Internet service providers, web search portals, and data processing

Finance and insurance

25,276

809,494

25,594

* 320

* 3,131

* 2,041

* 144,962

324,523

80,349

2,013,064

40,186

6,058

23,150

14,484

116,744

715,208

688,299

82,400,946

954,096

259,571

1,453,210

779,761

4,393,764

19,509,114

Credit intermediation and related activities

107,641

6,049,583

139,258

41,285

142,936

170,099

409,592

1,237,507

Securities, commodity contracts, and other financial investments

151,720

44,814,621

249,126

65,229

415,403

351,915

1,218,114

5,649,288

Investment bankers and securities dealers

6,062

2,718,609

18,010

3,009

27,296

20,893

38,817

386,027

Securities brokers

18,296

4,469,396

25,595

15,708

30,771

34,854

156,224

886,932

Commodity contracts brokers and dealers

8,437

699,537

11,830

10,074

40,908

20,751

53,358

75,522

263

1,975,048

600

* 83

* 300

9,219

* 12,275

-21,372

118,662

34,952,031

193,091

36,355

316,129

266,197

957,440

4,322,180

428,938

31,536,743

565,711

153,056

894,871

257,747

2,766,058

12,622,319

345,052

27,879,993

467,180

119,784

213,134

2,631,726

11,159,905

Securities and commodity exchanges

Other financial investment activities (investment advice)

Insurance agents, brokers, and related activities

Insurance agencies and brokerages

840,530

Other insurance related activities

83,887

3,656,750

98,531

33,272

54,341

44,613

134,332

1,462,414

Real estate and rental and leasing

1,381,330

77,157,455

3,132,288

540,240

1,297,781

1,645,385

2,261,411

27,151,639

1,318,113

73,470,771

2,046,219

474,303

1,192,205

1,446,915

1,955,923

27,065,200

37,787

1,951,530

261,362

15,817

37,398

340,902

104,651

-8,769

1,060,597

56,574,366

1,445,905

378,559

980,350

677,599

1,314,741

23,796,425

219,730

14,944,875

338,952

79,927

174,457

428,413

536,532

3,277,545

63,217

3,686,684

1,086,069

65,937

105,576

198,471

305,488

86,439

19,064

681,316

197,686

11,874

12,378

29,680

31,496

-69,987

Consumer electronics and appliances rental

* 801

* 43,930

* 7,394

* 49

* 99

* 626

* 23,994

* 7,526

Formal wear and costume rental

* 338

* 5,856

* 984

* 590

* 708

Video tape and disc rental

6,799

585,240

26,545

* 4,435

44,812

6,471

81,472

94,556

Real estate

Lessors of real estate (including miniwarehouses and self storage)

Offices of real estate agents, brokers, property managers,

and appraisers

Other activities related to real estate

Rental and leasing services

Automotive equipment rental and leasing

General rental centers and other consumer goods rental

Commercial and industrial machinery and equipment rental

and leasing

Professional, scientific, and technical services

15,071

654,657

91,251

1,867

6,006

15,718

40,088

69,411

21,145

1,715,686

762,208

47,122

42,281

145,976

128,437

-15,776

2,929,675

156,060,278

4,196,938

963,379

3,655,399

1,143,603

11,756,820

67,030,526

349,419

37,108,451

515,667

224,181

1,550,234

279,788

4,044,831

16,343,088

Office of certified public accountants

42,853

3,603,419

92,241

22,173

136,823

51,910

524,405

1,552,401

Other accounting services

327,538

8,881,136

244,807

74,980

283,426

117,020

979,936

3,745,547

Architectural, engineering, and related services

285,030

15,715,344

566,031

Legal services

103,677

256,667

89,227

1,824,367

5,345,255

Architectural services

105,346

7,269,495

300,441

63,200

149,794

36,763

876,499

2,097,573

Engineering services

96,441

5,448,902

170,916

30,494

64,554

33,857

566,700

2,132,176

Drafting, building inspections, and geophysical surveying

61,719

1,885,486

60,099

5,058

17,426

10,232

191,702

780,431

Surveying and mapping (except geophysical) services

11,564

840,610

23,371

4,808

16,401

6,455

161,385

281,478

Testing laboratories

9,960

270,851

11,204

* 116

* 8,493

* 1,921

* 28,082

53,598

226,092

8,776,772

297,685

42,028

205,291

45,346

302,791

2,375,698

Specialized design services

Computer systems design services

Other professional, scientific, and technical services

240,530

10,200,170

307,916

77,543

105,944

51,095

601,575

4,980,382

1,458,214

71,774,986

2,172,592

418,798

1,117,014

509,217

3,478,915

32,688,156

Footnotes at end of table.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors, Tax Year 2006—Continued

[All figures are estimates based on samples—money amounts are in thousands of dollars]

Businesses with net income

Industrial sector

Number of

returns

(9)

Transportation and warehousing

Business

receipts

(10)

(11)

Rent paid on

machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction

[1, 3]

Payroll

[1, 4]

Net income

(12)

(13)

(14)

(15)

(16)

1,565,173

405,067

670,926

3,279,417

13,120,269

26,724

14,208

23,808

6,507

* 88,998

190,678

24,641

* 1,141

9,188

3,735

39,748

276,784

17,115,773

1,184,830

357,656

95,335

196,614

1,241,901

3,316,892

30,497,572

1,907,281

634,796

136,950

331,111

1,124,305

5,220,522

880,116

63,480,511

3,566,964

Air and rail transportation

11,566

1,141,971

Water transportation

3,827

568,482

General freight trucking, local

General freight trucking, long distance and specialized freight

trucking

Urban transit

200,101

281,871

* 1,044

* 760

* 602

Interurban and rural bus transportation

* 1,744

* 8,573

* 67

* 11

* 203

* 3,684

Taxi and limousine service

133,232

4,400,629

125,062

452,111

59,460

66,386

70,959

1,406,415

School, employee, and charter bus industry

11,849

611,561

40,189

* 620

* 5,094

12,106

* 66,836

171,933

** 16,919

** 899,753

** 26,485

** 8,162

** 3,370

** 7,055

** 41,410

** 257,748

Other transit and ground passenger transportation

Pipeline transportation

Scenic and sightseeing transportation

Support activities for transportation (including motor vehicle

towing)

Couriers and messengers

Warehousing and storage facilities

4,455

199,997

* 10,973

* 16

* 10,347

* 2,935

* 25,386

58,838

32,864

2,229,570

140,066

20,835

25,348

27,295

191,534

348,278

174,648

5,426,188

67,842

75,186

32,591

12,073

348,642

1,758,282

5,996

379,683

12,805

* 441

* 3,576

5,098

39,496

109,613

231,274

9,460,500

198,693

54,777

140,636

45,476

602,367

3,521,752

Publishing industries (except internet)

65,656

2,752,712

31,146

11,776

38,079

28,521

182,534

1,036,320

Motion picture and sound recording

55,074

2,077,869

95,396

32,937

55,235

8,927

91,771

761,703

Broadcasting (except internet) and telecommunications

31,621

1,900,491

21,505

4,514

24,635

* 3,512

75,059

527,405

Information

Internet publishing and broadcasting

Internet service providers, web search portals, and data processing

Finance and insurance

14,482

800,313

23,873

* 2,025

* 1,398

* 138,931

374,723

64,441

1,929,116

26,772

5,547

20,663

3,118

114,071

821,601

487,018

54,189,929

732,242

218,753

1,274,260

407,864

3,696,613

21,925,487

Credit intermediation and related activities

75,719

5,151,357

76,633

24,823

105,873

86,330

280,259

1,600,212

Securities, commodity contracts, and other financial investments

87,963

20,192,245

165,134

53,194

344,671

109,697

953,688

6,868,918

Investment bankers and securities dealers

4,555

1,556,493

13,439

* 2,758

24,728

6,338

25,921

444,869

Securities brokers

14,341

3,093,538

18,466

14,705

28,767

13,653

141,639

975,321

Commodity contracts brokers and dealers

4,938

464,545

6,387

* 9,087

36,240

1,191

43,890

210,956

Securities and commodity exchanges

Other financial investment activities (investment advice)

Insurance agents, brokers, and related activities

* 18

* 366,568

* 158

* 56

* 98

* 173

* 1,221

* 5,264

64,112

14,711,101

126,683

26,588

254,838

88,342

741,016

5,232,508

323,336

28,846,327

490,476

140,735

823,717

211,837

2,462,665

13,456,357

Insurance agencies and brokerages

259,887

25,671,759

408,324

111,892

778,351

173,834

2,350,913

11,831,530

Other insurance related activities

63,449

3,174,568

82,152

28,843

45,365

38,003

111,752

1,624,826

Real estate and rental and leasing

947,938

67,119,922

1,731,446

414,786

950,662

623,965

1,524,430

31,715,764

910,365

64,600,647

1,352,086

391,008

898,104

540,810

1,297,458

31,080,884

16,242

1,245,651

58,893

6,641

23,952

63,491

53,382

446,214

751,116

51,607,984

1,097,972

315,272

750,565

319,362

976,428

26,136,439

143,007

11,747,011

195,221

69,095

123,586

157,958

267,648

4,498,230

37,572

2,519,275

379,360

23,778

52,558

83,155

226,972

634,881

10,355

375,670

64,339

* 9,259

* 936

17,721

* 18,797

72,503

* 790

* 43,890

* 7,322

* 49

* 626

* 23,954

* 7,780

Real estate

Lessors of real estate (including miniwarehouses and self storage)

Offices of real estate agents, brokers, property managers,

and appraisers

Other activities related to real estate

Rental and leasing services

Automotive equipment rental and leasing

Consumer electronics and appliances rental

Formal wear and costume rental

* 299

* 5,807

* 924

* 590

* 720

Video tape and disc rental

5,180

493,472

* 18,041

* 4,397

* 34,714

* 2,588

* 58,424

102,757

122,816

General rental centers and other consumer goods rental

Commercial and industrial machinery and equipment rental

and leasing

Professional, scientific, and technical services

10,320

585,218

30,627

* 1,666

* 3,447

7,099

* 34,430

10,628

1,015,217

258,107

7,816

13,462

55,121

91,367

328,305

2,190,984

144,948,840

3,108,974

802,445

3,066,320

814,053 10,141,602

72,112,319

Legal services

279,851

35,427,000

447,215

193,727

1,404,983

224,473

3,654,032

16,882,598

Office of certified public accountants

34,404

3,498,330

77,848

18,811

128,571

43,496

507,459

1,607,069

Other accounting services

264,348

8,377,202

186,836

70,397

228,824

85,490

920,214

3,997,529

Architectural, engineering, and related services

212,396

14,211,901

443,078

60,376

1,551,634

5,826,663

71,312

213,925

Architectural services

75,327

6,692,080

247,106

55,024

122,913

32,294

756,786

2,295,538

Engineering services

74,797

4,785,256

124,925

12,163

57,287

13,468

444,665

2,292,747

Drafting, building inspections, and geophysical surveying

46,223

1,766,872

43,042

* 1,207

16,880

9,393

167,257

859,053

Surveying and mapping (except geophysical) services

8,940

752,305

20,925

* 2,887

14,990

4,259

160,120

293,728

Testing laboratories

7,110

215,388

* 7,079

* 30

* 1,856

* 962

* 22,807

85,597

148,076

7,994,338

212,760

29,842

136,377

27,151

287,098

2,761,358

Specialized design services

Computer systems design services

Other professional, scientific, and technical services

Footnotes at end of table.

Depreciation

deduction

[1, 2]

182,664

9,474,515

186,046

68,743

94,655

23,545

460,110

5,300,473

1,069,245

65,965,554

1,555,190

349,613

858,986

349,523

2,761,057

35,736,629

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors, Tax Year 2006—Continued

[All figures are estimates based on samples—money amounts are in thousands of dollars]

Businesses with and without net income

Industrial sector

Number of

returns

(1)

Business

receipts

Depreciation

deduction

[1, 2]

(2)

(3)

799,528

40,337,777

1,045,189

Scientific research and development services

34,582

1,324,796

Advertising and related services

123,065

6,895,856

Management, scientific, and technical consulting services

Market research and public opinion polling

Other miscellaneous services

Administrative and support and waste management and

remediation services

Administrative and support services

Waste management and remediation services

Rent paid on Rent paid

on other

machinery

business

and

equipment [1] property [1]

Interest paid

deduction

[1, 3]

Payroll

[1, 4]

Net income

less deficit

(4)

(5)

(6)

(7)

(8)

200,963

505,447

269,107

1,215,589

22,085,494

46,188

6,924

20,354

12,455

118,516

648,957

164,073

34,650

95,630

32,116

207,721

1,956,461

45,285

1,877,702

23,624

18,452

37,846

15,057

91,420

594,518

455,755

21,338,856

893,517

157,809

457,738

180,481

1,845,669

7,402,726

2,140,672

57,226,846

2,427,711

478,905

620,978

409,575

6,399,215

16,214,830

2,117,987

54,956,120

2,186,122

458,683

606,056

369,221

6,204,320

15,927,115

22,685

2,270,726

241,589

20,223

14,923

40,354

194,894

287,715

607,402

8,870,058

367,262

82,081

467,640

58,598

450,578

2,853,853

Health care and social assistance

1,873,520

110,437,177

2,552,593

595,116

4,666,161

1,100,056 15,737,080

44,502,812

Ambulatory health care services

913,825

91,368,332

1,934,995

485,291

4,088,503

735,041 13,457,928

38,361,919

Offices of physicians (except mental health specialists)

185,771

31,770,442

525,709

186,538

1,238,581

164,991

15,121,140

Offices of physicians, mental health specialists

32,269

3,274,443

51,738

17,348

151,001

13,962

214,194

1,855,833

Offices of dentists

87,600

29,384,751

800,493

111,328

1,117,438

328,515

6,347,805

10,611,688

Offices of chiropractors

43,782

4,561,513

127,778

31,916

426,136

72,525

547,433

1,569,890

Offices of optometrists

20,136

3,415,924

90,906

21,768

178,035

28,794

580,790

916,620

Offices of mental health practitioners and social therapists

159,338

7,810,047

125,047

46,897

525,502

37,270

553,580

4,148,568

Educational services

Offices of podiatrists

3,971,824

6,066

883,229

10,566

4,631

84,560

7,084

106,447

324,056

126,781

3,913,772

67,141

24,029

204,494

20,804

241,751

1,705,147

Medical and diagnostic laboratories

27,697

1,488,692

57,471

15,319

54,577

17,454

263,561

470,755

Home health care services

Other ambulatory health care services (including ambulance

services, blood and organ banks)

200,236

4,010,748

60,579

22,991

91,130

34,133

566,734

1,378,234

Outpatient care centers and other miscellaneous health practitioners

24,149

854,773

17,569

2,526

17,049

9,509

63,810

259,988

9,680

692,556

10,959

* 634

28,826

* 9,196

* 136,150

307,614

Nursing and residential care facilities

77,643

4,199,699

170,152

25,157

144,363

232,910

1,075,795

517,535

Social assistance

157,053

3,231,968

71,699

23,404

183,287

11,059

257,185

1,335,983

Hospitals

Child day care services

Arts, entertainment, and recreation

Performing arts, spectator sports, and related industries

715,320

10,944,621

364,789

60,630

221,182

111,850

810,021

3,979,762

1,238,273

30,006,027

1,529,868

236,184

977,770

305,762

1,520,002

7,118,042

5,993,583

1,039,525

21,662,248

1,130,192

159,499

535,992

143,542

849,988

Museums, historical sites, and similar institutions

2,150

45,090

* 1,626

* 40

* 494

* 833

* 1,246

27,693

Amusement, gambling, and recreation industries

196,597

8,298,690

398,050

76,645

441,284

161,387

668,768

1,096,766

390,488

45,255,787

1,823,805

324,912

2,954,930

1,058,030

7,675,745

1,648,246

60,878

5,680,723

564,923

28,544

106,663

544,840

918,107

143,241

Accommodation, food services, and drinking places

Accommodation

Travel accommodation (including hotels, motels, and bed and

breakfast inns)

32,100

3,944,827

400,584

22,350

74,693

411,303

736,220

115,743

RV (recreational vehicle) parks and recreational camps

16,273

617,782

85,313

646

* 5,164

47,482

34,660

35,021

Rooming and boarding houses

12,505

1,118,114

79,027

5,547

26,806

86,055

147,227

-7,522

Food services and drinking places

329,610

39,575,064

1,258,882

296,368

2,848,268

513,190

6,757,638

1,505,005

18,023,952

Other services

2,281,767

81,837,548

3,060,927

865,982

5,202,158

947,140

7,409,260

370,285

25,056,465

1,162,024

228,442

947,232

419,437

2,679,298

2,743,445

Automotive mechanical and electrical repair and maintenance

186,077

12,693,685

583,826

65,719

425,196

219,441

1,189,455

1,351,785

Automotive body shops

Other auto repair and maintenance (including oil change,

lubrication, and car washes)

105,438

8,039,127

329,034

74,894

314,861

87,525

1,043,367

933,804

Auto repair and maintenance

Miscellaneous repairs

Personal and laundry services

Religious, grantmaking, civic, professional and similar

organizations

Unclassified establishments

Footnotes at end of table.

78,771

4,323,653

249,164

87,829

207,175

112,471

446,476

457,856

510,049

18,612,207

643,062

160,127

338,877

187,175

1,549,713

3,934,763

1,401,432

38,168,877

1,255,842

477,413

3,916,049

340,528

3,180,249

11,345,744

261,919

3,783,951

94,220

31,556

31,718

5,683

118,378

1,744,269

354,383

4,668,310

165,584

44,591

53,784

49,952

99,124

1,562,123

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors, Tax Year 2006—Continued

[All figures are estimates based on samples—money amounts are in thousands of dollars]

Businesses with net income

Industrial sector

Number of

returns

Business

receipts

Depreciation

deduction

[1, 2]

Rent paid on

machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction

[1, 3]

(11)

(12)

(13)

758,574

156,606

333,406

Payroll

[1, 4]

Net income

(14)

(15)

(16)

165,771

792,819 23,929,107

(9)

(10)

Management, scientific, and technical consulting services

592,494

36,790,508

Scientific research and development services

25,755

1,181,067

34,134

6,872

10,943

11,453

52,929

711,249

Advertising and related services

95,363

6,493,980

111,387

32,188

83,094

21,697

173,165

2,160,997

Market research and public opinion polling

Other miscellaneous services

Administrative and support and waste management and

remediation services

Administrative and support services

Waste management and remediation services

31,700

1,829,934

16,502

15,037

34,177

* 7,405

90,252

673,430

323,934

19,670,065

634,594

138,910

397,366

143,197

1,651,893

8,261,845

1,745,131

50,687,235

1,766,937

319,216

439,267

259,541

5,231,458 18,548,626

1,729,754

48,719,132

1,554,592

303,044

426,482

223,220

5,070,824 18,241,969

15,377

1,968,102

212,345

16,172

12,786

36,321

160,634

306,657

482,200

7,748,425

179,092

48,201

349,928

30,225

343,407

3,551,313

Health care and social assistance

1,566,487

103,316,476

2,086,750

520,756

4,110,399

Ambulatory health care services

755,697

87,601,145

1,700,777

441,586

3,732,119

614,434 12,654,705 39,590,601

Offices of physicians (except mental health specialists)

155,277

30,570,191

457,681

165,272

1,157,047

133,801

Offices of physicians, mental health specialists

26,373

3,184,394

47,080

17,262

148,600

12,299

Offices of dentists

79,849

28,853,005

748,713

109,545

1,071,927

303,362

Offices of chiropractors

36,575

4,293,796

106,564

30,713

376,711

40,753

514,017

Offices of optometrists

16,729

3,241,021

77,742

20,573

161,282

24,414

532,119

956,905

Offices of mental health practitioners and social therapists

129,019

7,563,564

111,775

44,854

480,009

36,357

529,779

4,291,555

Educational services

814,628 14,091,772 46,515,681

3,733,809 15,464,963

195,333

1,884,883

6,185,481 10,708,678

1,637,889

Offices of podiatrists

4,533

872,394

9,929

* 4,552

80,032

7,005

106,447

329,304

Outpatient care centers and other miscellaneous health practitioners

96,108

3,589,855

50,133

19,289

164,017

11,458

195,965

1,892,992

Medical and diagnostic laboratories

25,126

1,361,715

42,971

8,314

48,682

12,857

218,165

502,973

Home health care services

Other ambulatory health care services (including ambulance

services, blood and organ banks)

167,084

3,307,556

35,843

19,635

29,514

22,860

385,371

1,634,796

285,663

19,027

763,654

12,345

* 1,577

14,298

9,267

58,220

Hospitals

8,358

533,143

8,308

* 557

* 7,103

* 2,937

* 49,690

317,078

Nursing and residential care facilities

58,460

2,801,230

82,079

15,006

86,407

122,768

608,163

694,165

Social assistance

129,118

2,936,614

61,692

19,625

150,241

* 8,504

221,783

1,443,366

Child day care services

614,853

9,444,345

233,894

43,981

134,529

65,985

557,429

4,470,472

Arts, entertainment, and recreation

783,925

24,129,585

693,508

157,834

599,236

124,984

811,264 10,678,744

Performing arts, spectator sports, and related industries

642,812

18,120,543

513,773

104,519

321,000

68,335

472,043

Museums, historical sites, and similar institutions

* 2,100

* 42,107

* 1,436

* 668

* 29,878

Amusement, gambling, and recreation industries

139,012

5,966,936

178,299

53,315

278,236

55,980

339,220

1,875,301

239,858

34,511,801

916,699

208,554

2,069,239

555,410

5,455,884

4,020,679

30,289

3,677,395

241,273

14,929

71,562

281,776

405,764

692,046

460,365

Accommodation, food services, and drinking places

Accommodation

Travel accommodation (including hotels, motels, and bed and

breakfast inns)

8,773,565

15,924

2,429,027

181,239

10,635

49,308

229,181

279,395

RV (recreational vehicle) parks and recreational camps

9,263

424,192

33,439

* 552

* 3,451

19,750

19,548

81,005

Rooming and boarding houses

5,101

824,176

26,595

* 3,742

* 18,803

32,845

106,821

150,677

209,569

30,834,405

675,426

193,625

1,997,676

273,634

5,050,120

3,328,633

1,797,001

71,166,134

2,100,302

685,978

4,140,279

626,764

5,835,139 21,179,950

Food services and drinking places

Other services

Auto repair and maintenance

274,085

21,012,115

795,106

190,324

731,747

276,965

2,064,960

3,749,425

Automotive mechanical and electrical repair and maintenance

138,480

10,736,326

417,632

43,756

305,723

152,464

996,467

1,829,655

Automotive body shops

Other auto repair and maintenance (including oil change,

lubrication, and car washes)

79,821

6,540,185

243,257

67,565

243,679

58,558

706,751

1,225,223

Miscellaneous repairs

Personal and laundry services

Religious, grantmaking, civic, professional and similar

organizations

55,785

3,735,605

134,216

79,003

182,346

65,942

361,742

694,546

397,073

16,565,122

488,964

126,525

228,160

127,635

1,342,197

4,472,783

1,125,843

33,588,896

816,233

369,129

3,180,371

222,165

2,427,981 12,957,743

202,989

3,571,180

44,586

28,291

21,864

* 3,460

118,287

2,010,227

Unclassified establishments

268,689

3,671,602

109,694

31,114

40,503

25,377

72,853

2,227,360

* Estimate should be used with caution because of the small number of sample returns on which it is based.

** Data combined to prevent disclosure of taxpayer information.

[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] Includes depreciation claimed on Form 8829, Expenses for Business Use of Your Home.

[3] Interest paid is the sum of mortgage interest and other interest paid on business indebtedness.

[4] Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations.

NOTE: Detail may not add to totals because of rounding.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2006

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Agriculture, forestry, hunting, and fishing

Net income status, item

All

nonfarm

industries

(1)

Mining

Total

Animal

production

(including

breeding of

cats and dogs)

Forestry and

logging

(including

forest

nurseries,

timber tracts)

Fishing

Hunting and

trapping

Support

activities for

agriculture and

forestry

Total

(2)

(3)

(4)

(5)

(6)

(7)

(8)

40,387

1,503,592

1,407,345

96,247

1,893,162

758,264

84,653

* 26,143

657,683

18,939

66,981

96,135

17,079

104,553

10,770

9,698

* 78

185,788

1,216

39,392

14,079

5,345

18,913

8,058

8,477

* 6,523

6,840

9,448

40,693

52,841

27,846

12,532

15,474

27,362

504,857

5,757

* 973

* 1,705

-358,695

101,101

-459,796

45,817

4,927,168

4,731,024

196,144

4,597,434

1,492,556

121,164

192,422

796,413

78,859

455,657

151,958

12,737

259,347

53,625

226,607

* 1,287

471,948

7,303

146,260

26,789

9,023

12,324

79,698

13,350

2,251

53,723

58,697

252,896

94,028

382,355

72,889

15,257

49,682

786,810

3,609

* 392

* 366

330,074

553,476

-223,402

69,764

2,307,587

2,291,942

15,645

2,099,532

430,069

* 20,827

* 99,645

239,402

58,772

41,591

* 30,168

21,573

111,935

7,374

119,281

314,637

* 116

50,334

16,258

18,287

15,120

34,095

9,633

13,278

45,410

129,728

158,112

11,869

33,365

29,134

26,112

478,822

* 12,573

* 877

208,056

541,099

-333,043

8,673

324,115

312,613

11,503

296,732

64,920

* 15,652

* 36,043

* 743

* 23,229

* 10,747

2,595

16,421

* 253

2,049

40,125

5,311

1,724

3,343

8,589

3,534

1,679

* 3,165

* 15,987

11,937

22,761

* 2,721

6,330

3,818

9,526

68,371

* 71

* 86

27,879

58,112

-30,233

110,025

6,087,176

5,910,209

176,967

5,748,485

1,865,217

107,401

78,134

1,728,993

21,726

50,373

121,410

54,645

329,931

31,646

282,282

466,703

9,618

138,878

39,989

15,352

25,674

44,776

24,449

* 2,605

48,015

63,222

170,645

170,746

781,902

124,162

34,158

77,983

895,791

29,691

2,086

* 943

* 2,105

345,281

760,471

-415,190

BUSINESSES WITH AND

WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Footnotes at end of table.

22,074,953

1,278,359,791

1,258,697,676

19,662,115

1,001,097,557

409,660,968

41,101,650

31,743,915

259,992,655

59,699,442

61,626,532

44,503,226

15,274,111

75,402,429

15,634,322

34,577,865

1,058,351

39,004,511

2,867,672

19,083,862

10,092,910

7,306,309

6,297,485

7,214,467

13,024,662

1,276,851

9,350,344

31,229,159

15,726,040

32,136,896

77,038,713

17,660,030

11,861,197

23,842,787

110,762,743

10,119,539

1,639,685

256,377

1,104,694

278,032,643

326,769,239

-48,736,596

274,667

15,149,638

14,653,133

496,506

14,635,344

4,611,024

349,698

396,343

3,458,534

179,038

637,829

410,418

108,629

822,187

103,668

639,916

1,365

1,479,201

18,262

380,176

98,840

51,350

80,620

170,161

57,588

11,379

125,020

192,764

605,899

498,488

1,206,693

249,277

97,842

190,664

2,734,651

51,700

4,414

* 943

4,262

552,595

2,014,259

-1,461,664

135,021

12,553,376

12,026,503

526,872

10,332,053

2,154,825

189,231

43,305

645,501

105,497

1,317,402

146,112

20,054

345,099

13,151

128,156

966,241

690,324

16,290

117,198

101,608

23,640

40,118

149,803

48,302

6,342

38,737

56,272

206,620

109,915

428,000

346,016

48,679

92,343

4,151,539

12,813

1,235

661

2,228,432

3,267,413

-1,038,981

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Agriculture, forestry, hunting, and fishing

Net income status, item

BUSINESSES WITH NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income [1,2]

Returns with Schedule C-EZ:

Number of returns

Business receipts

Business deductions

Net income

Footnotes at end of table.

All

nonfarm

industries

(1)

Mining

Total

Animal

production

(including

breeding of

cats and dogs)

Forestry and

logging

(including

forest

nurseries,

timber tracts)

Fishing

Hunting and

trapping

Support

activities for

agriculture and

forestry

Total

(2)

(3)

(4)

(5)

(6)

(7)

(8)

16,207,401

1,086,041,069

1,069,801,403

16,239,666

759,338,643

316,416,573

25,783,017

27,022,089

197,200,540

159,446

11,780,204

11,429,992

350,211

9,765,748

3,819,222

155,132

354,707

2,850,532

10,829

1,144,304

1,082,675

61,629

1,043,006

714,585

34,852

* 24,604

625,969

28,272

3,975,003

3,806,650

168,353

3,421,526

1,331,600

53,972

161,380

729,958

42,289

1,915,780

1,907,741

8,040

1,374,681

330,075

* 19,964

* 97,539

* 181,960

4,753

264,579

262,226

* 2,353

206,467

* 48,059

* 8,127

* 22,854

73,302

4,480,537

4,370,700

109,837

3,720,066

1,394,902

38,217

* 71,184

1,289,791

100,099

9,988,365

9,599,325

389,040

6,721,381

1,507,686

118,110

30,280

562,184

49,294,918

45,152,683

28,036,673

11,585,567

57,138,534

12,154,895

28,470,494

793,674

26,458,059

2,353,554

15,209,038

7,247,028

5,721,647

3,614,061

4,419,487

10,264,521

1,179,701

7,169,152

23,867,916

11,600,522

24,151,060

62,317,825

13,673,058

8,896,088

17,822,266

75,456,088

7,822,259

888,769

217,525

148,765

326,769,239

119,516

522,101

182,766

34,035

503,870

81,767

388,421

* 206

759,433

10,636

245,140

51,005

36,830

32,469

84,561

34,659

4,584

87,326

91,366

369,709

308,026

927,160

181,320

47,280

113,654

1,477,092

33,022

1,454

* 943

2,014,259

* 12,038

59,690

42,567

7,539

44,049

* 5,305

* 1,741

30,165

* 407

15,989

4,669

2,485

5,394

* 2,140

5,223

* 39

* 551

4,815

9,608

19,793

* 14,352

* 4,783

3,817

10,135

131,613

* 2,535

* 174

101,101

34,441

418,325

66,476

5,967

162,188

* 53,542

163,306

* 206

297,193

6,319

99,729

19,258

7,979

5,211

33,657

8,833

2,227

42,964

27,112

166,148

71,524

237,263

51,245

11,467

36,141

565,920

2,144

* 286

553,476

* 52,830

* 7,115

* 29,333

* 9,369

72,252

* 6,893

91,564

189,642

* 57

22,342

5,735

16,593

* 5,728

24,754

2,830

* 7,703

28,636

77,457

72,468

* 1,181

* 23,081

12,786

16,468

335,314

* 10,487

* 877

541,099

* 459

* 20,460

* 3,840

* 539

* 5,139

* 585

* 21,983

* 3,122

* 861

* 1,048

* 5,528

* 1,106

* 771

* 2,949

* 14,725

7,134

17,728

* 1,234

* 3,718

* 124

5,086

63,532

58,112

19,748

16,511

40,550

10,620

220,242

16,026

131,227

220,450

3,853

103,957

20,481

8,724

10,608

22,903

17,002

* 2,318

33,157

16,078

109,361

126,513

673,130

98,493

19,085

45,824

380,714

17,855

* 118

* 943

760,471

89,927

774,349

67,164

15,680

307,539

7,916

95,135

728,720

441,251

12,949

95,728

59,064

19,759

20,533

57,066

35,026

2,944

25,925

31,113

151,715

93,992

319,082

251,370

34,836

69,546

2,305,730

11,105

678

* 110

3,267,413

4,027,039

28,303,359

3,593,336

39,412

219,553

47,979

* 1,627

* 2,289

* 1,280

5,743

42,418

12,382

6,523

40,374

12,418

* 1,268

* 14,808

* 1,494

24,251

119,665

20,406

21,763

131,772

19,970

24,710,023

171,574

* 1,008

30,036

27,956

* 13,314

99,259

111,802

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Mining—continued

Net income status, item

Utilities

Construction

Oil

and

gas

extraction

Coal

mining

Metal

ore

mining

Nonmetallic

mineral mining

and quarrying

Support

activities for

mining

Total

(9)

(10)

(11)

(12)

(13)

(14)

(15)

113,181

9,722,236

9,215,649

506,587

8,228,561

1,529,225

77,397

17,100

268,912

44,498

1,220,049

98,731

12,450

142,107

8,853

83,623

951,442

538,666

7,264

54,682

86,710

12,969

26,914

117,187

36,826

4,988

13,572

31,222

125,932

41,002

178,874

295,802

31,917

60,283

3,812,182

11,526

1,036

661

1,500,370

2,478,768

-978,398

1,161

320,222

316,057

* 4,164

308,400

* 5,968

* 98

* 5,876

* 75

* 82

* 80

* 34,374

* 216

* 1,521

15,905

* 3,764

7,864

873

* 105

* 13,483

* 289

* 2,446

* 53

* 24,367

* 13,606

* 41,800

7,229

* 39

1,906

132,496

11,822

15,674

* -3,853

2,728

513,295

511,135

2,159

471,132

150,425

32,371

13,334

64,474

* 17,181

53,198

30,132

2,527

14,746

* 171

3,951

8,825

50,562

* 1,479

12,289

3,280

305

* 9,565

10,958

2,801

* 679

7,025

14,040

26,553

14,678

55,942

11,853

1,393

10,737

56,316

* 30

42,163

65,389

-23,226

16,938

1,996,910

1,983,064

13,846

1,320,622

468,753

* 79,364

* 12,872

306,239

43,819

43,626

* 17,167

4,997

153,379

* 4,119

40,365

4,453

84,750

3,781

42,304

10,729

10,360

* 3,534

8,175

8,364

* 668

15,692

10,934

29,765

40,608

151,044

30,913

15,296

19,403

149,354

* 1,258

* 197

676,703

707,582

-30,880

13,962

389,979

386,078

3,901

379,078

* 70,163

* 1,802

* 4,611

* 16,185

* 663

* 47,882

* 980

5,186

76,569

* 650

* 44,788

* 2,534

60,775

* 33

4,979

850

* 1,197

* 4,860

* 3,480

3,517

* 24

* 7,978

* 1,955

4,178

5,567

* 9,129

4,021

11,445

10,625

36,789

* 961

* 356

* 258

10,883

81,869

-70,986

BUSINESSES WITH AND

WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Footnotes at end of table.

* 1,013

* 713

* 597

* 116

* 3,338

* 454

* 494

* 440

* 61

* 16

* 22

* 24

* 21

* 341

* 220

* 34

* 15

* 1,190

* -2,625

2,915,823

236,421,496

234,778,955

1,642,541

199,049,275

102,098,638

6,785,440

17,307,951

32,996,275

34,629,523

18,764,204

8,384,754

1,198,707

14,736,623

910,953

14,919,302

11,151

7,397,451

374,839

4,447,322

957,105

663,898

831,844

1,111,931

1,110,688

84,762

1,571,914

1,399,443

2,158,725

9,157,365

11,355,502

2,420,149

917,546

2,564,746

14,969,386

1,172,520

140,147

44,469

75,943

37,593,450

42,280,514

-4,687,064

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Mining—continued

Net income status, item

BUSINESSES WITH NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income [1,2]

Returns with Schedule C-EZ:

Number of returns

Business receipts

Business deductions

Net income

Footnotes at end of table.

Utilities

Construction

Oil

and

gas

extraction

Coal

mining

Metal

ore

mining

Nonmetallic

mineral mining

and quarrying

Support

activities for

mining

Total

(9)

(10)

(11)

(12)

(13)

(14)

(15)

83,341

7,442,983

7,071,428

371,555

4,964,644

1,012,086

21,430

13,814

249,581

1,143

295,698

291,542

* 4,156

* 280,024

* 4,936

1,615

390,565

388,840

* 1,726

325,177

101,875

* 17,316

* 3,595

* 46,263

14,000

1,859,119

1,847,515

11,603

1,151,536

388,789

* 79,364

* 12,872

261,404

9,251

307,085

304,213

* 2,873

225,185

* 36,516

* 1,355

* 4,611

* 16,185

2,431,039

210,267,828

208,846,358

1,421,470

167,993,243

87,952,882

4,657,160

16,036,080

27,296,626

40,106

722,286

35,130

10,668

119,385

4,205

62,318

715,372

328,303

4,102

40,825

47,454

10,128

11,455

35,297

25,941

1,593

8,047

20,261

82,834

31,934

94,685

208,202

19,267

40,381

2,007,735

9,817

479

* 110

2,478,768

* 13

* 34,311

* 15

* 574

* 12,146

* 3,764

* 7,303

* 696

* 11,490

* 41

* 1,690

* 12

* 21,275

* 13,408

* 38,738

* 5,754

* 23

* 1,742

* 122,083

15,674

* 6,003

44,935

* 16,237

1,188

* 13,592

* 3,911

* 8,619

32,165

* 1,302

8,240

1,860

* 94

* 6,329

* 4,519

1,276

* 679

* 5,907

* 733

18,027

10,198

47,418

7,828

* 1,051

9,187

39,148

* 30

65,389

43,819

7,128

* 15,798

3,811

140,251

* 3,704

28,890

4,156

68,637

3,781

39,360

9,053

9,536

* 2,749

5,761

7,768

* 668

10,282

10,107

29,578

38,452

138,242

29,585

14,496

18,235

136,765

* 1,258

* 197

707,582

* 663

* 14,235

* 533

* 63

* 46,178

* 109

* 44,782

* 369

* 34,172

* 33

* 1,986

* 231

* 19

* 2,823

* 506

237

* 15

* 6,242

* 296

4,018

* 4,031

* 8,325

* 2,568

* 5,472

9,837

8,675

* 856

* 98

81,869

29,952,105

15,464,599

5,453,687

929,375

12,332,422

839,552

12,899,721

5,720

5,971,344

297,851

3,735,662

741,762

533,853

578,214

820,823

899,300

67,610

1,279,893

1,105,193

1,731,678

7,367,953

9,499,712

1,980,924

748,493

2,103,577

12,079,977

984,680

108,127

31,992

23,198

42,280,514

18,070

63,978

12,345

* 299

* 33,212

* 3,394

* 34,581

* 7,624

5,485

22,774

6,826

490,220

3,989,569

506,764

51,633

* 33,212

* 26,957

15,948

3,482,805

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Construction—continued

Net income status, item

Manufacturing

Residential

building

construction

Nonresidential

building

construction

Heavy and civil

engineering

construction

Specialty trade

contractors

Total

Food

manufacturing

Textile and

textile product

mills

(16)

(17)

(18)

(19)

(20)

(21)

(22)

463,281

56,984,737

56,592,330

392,408

50,490,365

32,925,604

4,284,399

4,170,344

10,275,454

10,447,112

8,863,411

5,115,116

187,494

2,156,968

337,660

3,080,008

* 35

1,112,956

45,155

768,282

215,312

103,762

286,860

319,068

234,050

13,446

241,133

223,689

271,414

1,741,403

1,737,663

431,562

128,052

428,707

3,205,509

215,155

23,591

* 1,026

12,002

6,498,939

7,717,196

-1,218,256

97,016

11,336,311

11,310,241

26,070

10,213,727

6,347,598

145,332

779,626

2,184,272

1,548,556

1,883,240

193,428

39,586

500,523

28,310

583,050

* 3,059

253,918

15,057

212,126

57,035

43,996

35,754

76,775

41,811

2,835

86,674

96,738

87,209

213,374

554,581

112,594

64,305

106,843

599,355

22,805

4,445

* 3,144

1,135,331

1,401,606

-266,275

68,498

9,736,691

9,636,787

99,903

8,472,066

4,601,244

1,244,487

406,463

2,282,465

1,019,598

1,210,570

1,562,339

50,439

311,059

58,522

190,548

5,697

620,934

16,423

198,088

78,075

18,938

139,651

107,582

37,862

4,143

108,344

50,734

257,305

116,063

389,369

134,317

51,187

88,645

808,748

18,606

2,352

859

1,259,983

1,647,597

-387,614

325,370

25,918,270

25,560,142

358,128

22,778,362

11,925,458

1,291,120

1,026,122

6,784,574

2,568,671

1,726,770

1,471,798

240,597

858,841

129,234

509,484

325

1,059,010

92,853

363,426

163,827

73,490

158,807

174,803

212,411

13,200

135,165

792,154

308,345

832,076

2,005,595

421,792

163,782

559,138

1,377,246

178,510

21,027

* 14,369

13,891

3,141,732

4,234,636

-1,092,904

26,529

2,600,252

2,560,770

39,483

2,475,611

1,470,197

214,375

39,574

1,151,101

204,804

124,329

263,985

32,169

48,665

15,601

15,402

* 89

111,527

8,430

30,601

17,480

4,429

23,328

13,227

12,739

490

7,368

72,471

45,815

38,932

225,485

74,751

11,980

72,321

113,312

* 3,801

* 830

* 33

* 554

123,678

255,772

-132,094

BUSINESSES WITH AND

WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Footnotes at end of table.

2,287,028

158,363,757

157,239,598

1,124,160

129,873,117

58,224,193

1,111,221

11,951,518

18,254,084

21,614,256

6,806,984

1,513,870

921,187

11,768,074

486,461

11,065,696

2,361

5,409,644

298,204

3,268,826

606,682

497,201

369,579

608,506

796,965

64,338

1,135,763

1,028,282

1,542,797

7,086,526

8,673,889

1,741,676

674,002

1,940,552

10,355,774

915,955

109,759

43,440

59,939

28,699,197

31,514,116

-2,814,919

3,399

165,265

164,915

* 350

151,915

99,607

* 29,017

* 10,630

* 34,169

* 37,957

* 18,181

* 30,347

* 3,006

* 4,947

* 101

* 3,934

11,091

* 761

* 551

* 979

* 111

* 391

* 311

* 50

* 3,832

* 318

1,187

* 4,426

* 2,429

* 1,075

2,700

7,377

* 2,730

* 733

13,350

* 33,544

-20,194

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Construction—continued

Net income status, item

Manufacturing

Residential

building

construction

Nonresidential

building

construction

Heavy and civil

engineering

construction

Specialty trade

contractors

Total

Food

manufacturing

Textile and

textile product

mills

(16)

(17)

(18)

(19)

(20)

(21)

(22)

377,884

48,497,062

48,139,109

357,953

40,779,866

27,164,392

3,029,627

3,858,077

7,613,790

8,821,474

7,182,476

3,341,052

140,119

1,727,161

313,695

2,407,726

903,970

33,808

629,440

163,378

83,820

179,987

217,227

176,446

11,646

180,070

165,086

216,684

1,284,038

1,367,611

320,393

96,254

336,133

2,424,644

157,407

16,621

* 401

* 670

7,717,196

79,108

9,173,024

9,154,629

18,395

7,771,418

4,929,114

99,577

662,531

1,646,741

1,345,660

1,291,527

116,923

28,444

367,564

21,725

449,416

* 70

203,070

11,801

145,248

41,322

32,029

28,804

48,640

29,304

2,810

64,789

61,394

73,404

131,675

394,231

79,682

50,814

79,941

447,980

20,336

3,998

* 2,762

1,401,606

51,529

8,174,288

8,129,425

44,863

6,526,634

3,672,470

749,217

353,599

1,690,550

815,486

969,742

906,125

42,988

240,902

51,134

152,110

* 4,321

501,811

12,303

162,807

42,491

15,419

61,585

65,884

27,430

2,980

92,160

43,251

197,984

83,495

300,618

93,111

38,452

67,056

528,899

15,426

1,531

* 33

1,647,597

1,922,517

144,423,455

143,423,196

1,000,259

112,915,325

52,186,906

778,738

11,161,872

16,345,545

18,969,485

6,020,853

1,089,587

717,823

9,996,795

452,999

9,890,469

1,326

4,362,493

239,939

2,798,167

494,572

402,585

307,839

489,072

666,121

50,174

942,874

835,462

1,243,606

5,868,745

7,437,253

1,487,738

562,973

1,620,447

8,678,454

791,511

85,977

31,591

19,733

31,514,116

212,967

22,223,495

22,073,264

150,231

17,986,933

9,852,603

834,109

886,876

5,623,906

2,163,280

1,291,774

947,343

167,238

665,954

75,555

411,555

204

703,858

77,289

286,608

111,275

57,367

113,203

93,056

168,257

12,656

110,670

589,051

236,992

551,298

1,602,405

343,396

116,837

424,925

1,063,605

122,281

12,199

* 14,336

* 2,248

4,234,636

16,102

2,248,542

2,212,637

35,905

1,990,845

1,287,949

147,269

33,366

1,018,511

165,543

86,643

163,383

16,947

33,802

8,459

6,802

67,298

6,944

22,884

11,447

2,784

18,071

4,363

5,586

* 469

3,939

52,626

26,642

19,362

186,341

65,452

5,946

50,622

80,512

* 594

* 372

255,772

* 1,312

* 123,168

* 123,137

* 31

* 89,624

* 64,405

* 4,993

* 5,521

* 14,386

* 33,832

* 8,693

* 3,021

* 1,979

* 4,665

* 72

* 8,308

* 401

* 192

* 776

* 72

* 56

* 134

* 68

* 160

* 1,881

* 289

* 153

* 1,003

* 2,328

* 2,682

* 733

* 33,544

77,518

720,397

79,417

20,342

143,534

27,815

10,451

125,041

9,545

381,909

3,000,598

389,986

48,022

277,842

28,796

* 6,216

* 29,491

* 5,003

640,979

115,718

115,495

2,610,612

249,046

* 24,488

BUSINESSES WITH NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income [1,2]

Returns with Schedule C-EZ:

Number of returns

Business receipts

Business deductions

Net income

Footnotes at end of table.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Manufacturing—continued

Apparel

Leather and

allied

products

Wood

products

Paper

products

Printing and

support

activities

Petroleum

and coal

products

Chemical

manufacturing

Plastics,

rubber, clay,

refractory,

and glass

products

Nonmetallic

mineral

products

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

23,467

1,212,652

1,211,560

* 1,091

1,092,529

525,078

81,796

* 14,963

358,193

45,144

106,353

81,371

10,708

29,371

12,114

43,854

22,520

* 1,656

11,839

8,500

2,855

* 227

8,292

13,802

* 144

* 3,234

65,821

7,311

20,991

148,599

13,155

10,269

26,141

81,936

19,757

* 3,857

* 1,074

120,123

176,903

-56,780

4,099

208,383

* 189,865

* 68,157

* 24,407

* 5,909

* 34,850

* 51,397

* 151

* 48,557

* 4,521

* 6,561

* 13

* 20,501

* 4,160

* 1,235

* 929

* 138

* 3,628

* 373

* 716

* 268

* 16,925

* 46,047

* 2,246

* 1,243

* 1,018

* 2,506

* 8,627

* 52

18,518

* 29,458

* -10,940

38,706

2,785,434

2,746,549

38,885

2,503,723

1,498,876

236,501

152,787

977,507

174,846

184,567

227,331

21,157

93,067

6,428

41,336

* 28

132,860

7,122

37,412

18,700

2,782

22,671

29,474

13,787

* 1,022

9,263

35,036

51,618

58,680

176,103

30,433

10,064

45,431

134,487

24,193

* 3,514

* 1,653

281,240

421,111

-139,870

* 24

* 40,871

* 40,760

* 111

* 40,075

* 24,854

* 2,613

* 1,259

* 19,190

* 257

* 3,887

* 2,351

* 26

* 234

* 95

* 70

* 1,193

* 311

* 640

* 546

* 33

* 675

* 390

* 122

* 132

* 854

* 316

* 367

* 4,912

* 626

* 462

* 343

* 2,868

* 797

* 5,427

* -4,630

32,253

2,534,859

2,531,003

3,856

2,190,646

999,663

49,028

* 43,580

761,464

81,720

125,957

62,085

54,400

94,436

11,947

22,294

* [4]

105,095

11,237

34,421

15,813

6,432

* 21,408

12,700

39,392

* 838

29,049

110,158

24,907

87,292

176,820

55,262

21,377

73,202

160,076

22,281

1,400

* 3,544

* 930

345,153

445,762

-100,609

418

252,607

109,136

* 143,470

240,585

* 198,062

* 4,479

* 926

* 41,969

* 157,333

* 6,646

* 702

* 2,611

* 5,724

191

2,766

* 153

* 2,145

* 289

* 17

* 287

* 336

* 1,536

* 2,621

* 813

* 119

* 9,859

1,326

* 111

* 1,119

9,777

* 20

12,022

12,995

* -972

11,785

1,011,168

1,000,301

10,867

936,292

436,766

17,821

33,768

194,376

117,523

100,149

26,872

11,590

24,095

* 6,295

74,461

* 16

31,133

4,741

19,821

7,510

2,487

* 4,574

11,379

20,665

* 772

6,467

23,786

15,512

31,035

94,578

9,993

14,209

21,718

56,493

* 5,723

* 1,529

* 277

70,529

131,821

-61,292

10,900

490,960

455,612

35,349

534,548

180,735

46,634

* 11,554

145,065

19,343

* 5,880

47,741

7,412

25,569

* 1,687

* 2,880

20,600

* 6,139

7,786

4,108

3,134

* 3,186

29,160

3,740

* 284

1,438

19,166

5,478

21,102

93,814

20,768

4,807

17,305

49,163

* 1,628

* 597

* 2,316

-56,363

33,775

-90,139

5,250

1,233,093

1,226,574

* 6,519

1,099,852

638,159

* 39,358

* 108,261

213,809

206,927

* 116,643

* 46,838

4,021

41,560

* 1,983

* 12,408

50,426

* 7,100

24,809

3,265

1,848

* 12,784

* 1,298

12,454

* 1,800

13,920

* 6,550

12,995

17,210

146,775

21,972

713

22,423

42,416

* 966

* 75

* 426

133,241

142,244

* -9,003

Net income status, item

BUSINESSES WITH AND

WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Footnotes at end of table.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Manufacturing—continued

Apparel

Leather and

allied

products

Wood

products

Paper

products

Printing and

support

activities

Petroleum

and coal

products

Chemical

manufacturing

Plastics,

rubber, clay,

refractory,

and glass

products

Nonmetallic

mineral

products

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

16,190

969,053

967,966

* 1,088

792,150

423,055

70,926

* 12,143

272,943

39,228

* 101,160

73,344

4,171

21,388

* 2,994

35,398

11,174

* 1,564

11,596

4,295

676

* 205

* 4,060

11,558

* 144

* 3,233

54,410

6,504

13,798

81,162

11,184

2,663

19,268

50,651

* 12,645

* 1,786

176,903

* 3,088

* 189,512

* 160,053

* 50,642

* 23,567

* 4,524

* 33,828

* 36,414

* 27

* 47,717

* 2,605

* 108

* 13

* 20,501

* 2,890

* 1,034

* 869

* 136

* 3,628

* 364

* 688

* 152

* 16,881

* 46,047

* 2,188

* 978

* 995

* 2,466

* 6,816

* 52

* 29,458

30,191

2,343,349

2,332,259

11,090

1,922,239

1,185,243

129,937

117,509

766,216

133,617

170,700

132,737

13,293

84,256

* 2,701

33,527

* 27

76,380

* 2,683

28,252

10,130

2,491

15,109

15,939

12,170

* 981

7,825

23,248

44,292

33,948

130,338

19,770

8,443

32,324

116,893

* 20,279

* 2,793

* 391

421,111

* 12

* 20,567

* 20,456

* 111

* 15,140

* 11,464

* 357

* 1,259

* 9,533

* 257

* 450

* 391

* 20

* 224

* 22

* 396

* 311

* 106

* 13

* 390

* 39

* 132

* 21

* 1,173

* 147

* 18

* 654

* 5,427

20,473

2,035,933

2,035,503

430

1,590,171

727,573

25,996

* 28,248

558,200

47,878

104,932

37,680

40,979

68,893

7,144

20,777

49,363

9,606

19,157

12,790

5,823

* 19,982

9,123

28,900

* 804

28,153

86,881

20,486

54,796

131,850

41,117

17,175

49,058

122,681

16,915

* 822

* 3,544

445,762

365

109,511

108,895

* 617

96,516

* 54,219

* 4,479

* 926

* 41,969

* 13,490

* 6,646

* 702

* 2,610

* 5,724

* 160

* 2,733

* 153

* 2,145

* 284

* 14

* 286

* 331

* 1,536

* 2,621

* 813

* 119

* 9,833

* 1,310

* 111

* 1,119

* 9,693

12,995

8,015

858,043

852,516

5,527

726,222

314,815

* 9,616

* 32,930

130,306

112,551

42,767

13,355

11,026

18,607

* 6,256

74,308

* 16

14,278

* 4,671

18,100

4,123

1,276

* 3,727

6,590

20,145

* 720

6,289

20,505

12,611

28,023

81,531

8,484

11,144

19,640

34,144

* 4,716

* 1,252

131,821

4,174

366,086

346,779

* 19,306

332,310

131,473

* 24,968

* 8,527

* 104,493

* 15,673

* 2,043

* 24,232

2,100

10,870

* 454

* 916

14,241

* 5,825

6,244

1,439

* 2,235

* 1,014

* 3,234

* 2,057

* 233

* 364

* 3,955

* 2,298

* 13,124

* 65,085

* 13,950

* 3,259

8,925

35,532

* 26

33,775

5,002

1,192,877

1,186,364

* 6,513

1,050,633

624,870

* 39,358

* 107,612

213,775

* 193,957

* 116,634

* 46,467

3,423

41,287

* 316

* 12,395

43,127

* 6,964

23,680

2,528

* 1,842

* 10,732

* 889

12,253

* 1,789

13,794

* 6,148

10,186

11,099

141,973

19,973

* 629

21,885

37,886

* 966

* 75

* 426

142,244

* 5,779

* 34,647

* 4,354

* 979

* 7,820

* 3,233

* 15,861

* 1,693

* 32

* 3,563

* 10,381

* 145

* [4]

* 2,271

* 6,105

* 476

* 1,620

* 5,203

* 3,458

* 982

* 2,278

* 30,293

* 7,820

* 14,167

* 30

* 10,236

* 5,629

* 1,744

* 2,278

Net income status, item

BUSINESSES WITH NET INCOME

Number of returns [1]

Business receipts, total [1]

Income from sales and operations [1]

Other business income

Business deductions, total [1,2]

Cost of sales and operations, total

Inventory, beginning of year

Cost of labor

Purchases

Materials and supplies

Other costs

Inventory, end of year

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depletion

Depreciation

Employee benefit programs

Insurance

Legal and professional services

Meals and entertainment deducted

Mortgage interest

Other interest paid on business indebtedness

Office expenses

Pension and profit-sharing plans

Rent on machinery and equipment

Rent on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business deductions

Home office business deductions, total

Depreciation, Form 8829 [3]

Casualty loss, Form 8829 [3]

Excess—casualty depreciations, Form 8829 [3]

Net income [1,2]

Returns with Schedule C-EZ:

Number of returns

Business receipts

Business deductions

Net income

Footnotes at end of table.

Sole Proprietorship Returns, 2006

Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year

2006—Continued

[All figures are estimates based on samples —money amounts are in thousands of dollars]

Manufacturing—continued

Net income status, item

Primary

Fabricated metal

metal industries

products

Machinery

Computer and

electronic

products

Electrical

equipment,

appliances, and

components

Transportation

equipment

Furniture and