# Sole Proprietorship Returns, 1999 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A1fff040a638291e2 ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Sole Proprietorship Returns, 1999 by Brian Balkovic and Michael Parisi N 6 onfarm sole proprietorship profits increased 2.8 percent for 1999 to $207.9 billion. While a majority of the principal sole proprietorship industrial sectors reported increased growth in profits, a few sectors reported a decrease in growth. The largest percentage increase in profits for a major industrial sector was 16.6 percent for the administrative and support services sector. The next largest percentage growth in profits for a major industrial sector was 11.2 percent for the finance and insurance sector, followed by 9.4-percent growth reported by the transportation and warehousing sector. There were three major industrial sectors that showed a decline in profits. Sole proprietorships in the professional, scientific, and technical services (the largest industrial sector in profits with 21.7 percent of the total) showed a 0.7-percent decrease in profit growth between 1998 and 1999. The health care and social assistance services also showed a 0.7-percent decrease in profits, while other services showed the largest percentage decrease in profit growth with a 2.8-percent decrease. The 1999 level of sole proprietorship profits coincided with growth of both receipts and deductions: total business receipts increased 5.6 percent to $969.3 billion, while total business deductions grew 6.3 percent to $761.4 billion. The finance and insurance sector reported the largest percentage increases in receipts (41.1 percent), followed by the 8.1-percent growth in receipts reported by the administrative and support services sector [1]. The finance and insurance sector also reported the largest percentage increase in deductions at 49.1 percent for 1999. When inflation is taken into account, 1999 total nonfarm sole propriThelargestpercentage etorship profits inincreaseinprofitsfora creased 1.3 percent, receipts increased 4.0 majorindustrialsector percent, and deductions was16.6percentforthe increased 4.7 percent. administrative and For the first time, Tax Year 1998 introsupportservicessector. duced the use of the This article was written by Brian Balkovic and Michael Parisi, economists with the Individual Returns Analysis Section, under the direction of Jeff Hartzok, Chief. 6 North American Industry Classification System (NAICS), but in order to maintain comparability of data to Tax Year 1997, the NAICS codes were converted to the Standard Industrial Classification (SIC) codes. This year’s article is the first one to compare data based on NAICS. However, trying to compare these data with prior-year articles may be a problem. Based on the 1998 and 1999 NAICS coding system, the comparisons did show discrepancies between 1999 data and years prior to Tax Year 1998. A reason for this was sole proprietorships under the NAICS system were classified under completely different industrial groups, which made prior-year comparisons inadequate. For example, in 1997, finance, insurance, and real estate were grouped by SIC as one industry, and, under the NAICS system, the group has been split into two industrial sectors. The industrial sectors based on the NAICS codes used for comparisons in this article with 1998 and future articles are reported in Tables 1 and 2. ReturnsandReceipts The number of individual income tax returns reporting nonfarm sole proprietorship activity for 1999 increased 1.0 percent to almost 17.6 million (Figure A)[2]. Of the two largest industrial sectors (by numbers of returns), the number of sole proprietorship returns in the professional, scientific, and technical services sector for 1999 increased 0.5 percent and decreased 1.7 percent within the retail trade sector. Total business receipts (the sum of “income from sales and operations” and “other business income”) for all nonfarm sole proprietorship industries increased 5.6 percent, from $918.3 billion to $969.3 billion [3]. Based on the 1999 NAICS industrial classification breakdown, several industrial sectors reported decreased growth in business receipts for 1999. The arts, entertainment, and recreation sector showed the largest percentage decrease in business receipts with 1.2 percent. The next largest decrease in receipts was real estate and rental leasing with 1.0 percent. The finance and insurance sector showed the largest percentage increase in receipts, an increase of $25.1 billion or 41.1 percent. The administrative and support services sector receipts increased 8.1 percent, the second largest percentage increase in receipts for 1999. Sole Proprietorship Returns, 1999 Figure A Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors, Tax Years 1998 and 1999 [Number of returns is in thousands--money amounts are in billions of dollars] Number of returns Industrial sector 1998 1999 Total business receipts Percentage 1998 1999 increase (1) (2) (3) Total business deductions Percentage 1998 1999 (7) (8) increase (4) All nonfarm industries........................................................................................................................... 17,408.8 17,575.6 1.0 918.3 (5) (6) Percentage increase (9) 969.3 5.6 716.2 761.4 6.3 154.2 7.1 117.9 125.9 6.7 Special trade contractors........................................................................................................................... 1,789.7 1,763.9 -1.4 97.6 101.1 3.7 Construction........................................................................................................................... 2,243.0 2,283.9 1.8 143.9 3.7 77.0 79.8 Wholesale trade........................................................................................................................... 376.6 360.0 -4.4 40.2 43.0 7.1 35.1 37.8 7.8 Retail trade........................................................................................................................... 2,349.5 2,309.3 -1.7 185.2 2.5 169.9 173.8 2.3 Transportation and warehousing........................................................................................................................... 790.3 790.4 (¹) 43.2 46.0 6.4 36.7 38.8 5.9 Finance and insurance........................................................................................................................... 599.0 579.4 -3.3 61.2 86.4 41.1 48.3 72.0 49.1 Real estate and rental and leasing........................................................................................................................... 871.6 851.4 -2.3 43.3 42.9 180.7 -1.0 25.7 24.6 -4.4 39.4 3.2 21.0 21.5 2.4 106.9 -0.6 62.0 61.7 -0.5 8.1 25.4 26.7 5.1 2.6 44.8 47.1 5.3 6.9 2.7 4.1 4.5 8.3 Arts, entertainment, and recreation........................................................................................................................... 986.8 1,040.2 5.4 19.7 19.5 -1.2 14.6 14.1 -3.2 -1.5 Real estate........................................................................................................................... 796.5 788.7 -1.0 38.2 Professional, scientific, and technical services........................................................................................................................... 2,431.4 2,443.7 0.5 107.5 Administrative and support and waste management and remediation services........................................................................................................................... 1,251.2 1,455.9 16.4 34.5 37.3 Health care and social assistance........................................................................................................................... 1,506.4 1,520.4 0.9 80.6 82.8 Child day care services........................................................................................................................... 618.5 606.0 -2.0 6.7 Performing arts, spectator sports, and related industries........................................................................................................................... 820.3 876.3 6.8 15.0 14.9 -0.2 10.3 10.1 65.9 -0.1 50.7 51.1 0.8 Personal and laundry services........................................................................................................................... 1,208.1 1,104.6 -8.6 28.5 27.7 -2.7 20.3 19.6 -3.5 2.1 85.0 87.8 3.2 Other services........................................................................................................................... 2,070.2 2,007.4 -3.0 66.0 All other industries........................................................................................................................... 1,932.9 1,933.5 (¹) 97.3 99.3 ¹ Less than 0.05 percent. NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. As shown in Figure B, total receipts increased 4.0 percent (in constant dollars). This was a slightly smaller percentage increase than the 4.2-percent increase in 1998 [4]. Deductions Total business deductions (“cost of sales and operations” plus business expenses, including expenses for home office) in current dollars, increased 6.3 percent from $716.2 billion for 1998 to $761.4 billion for 1999 (Figure A) [5,6]. The arts, entertainment, and recreation; real estate and rental leasing; and professional, scientific, and technical services were a few of the sole proprietorship principal sectors that did not show an increase in deductions for 1999. Sole proprietorships in the finance and insurance sector showed the largest percentage growth in deductions (49.1 percent). The wholesale trade sector reported an increase of 7.8 percent, representing the second largest growth in deductions. When allowing for inflation, business deductions increased 4.7 percent for 1999. Representing 48.6 percent of total 1999 business deductions, the cost of sales and operations was $370.1 billion (figure C), an 8.6-percent increase from the 1998 level. Total business “expenses” (total business deductions minus the cost of sales and operations) were $391.3 billion for 1999, a 4.4-percent increase from the 1998 amount. Figure D graphically presents the main components of total business expenses. The largest component, salary and wages, accounted for 15.6 percent of the total. For 1999, salary and wages totaled $61.2 billion, a 4.0-percent increase from 1998 (Figure C). The next largest components of business expenses were car and trucks (10.4 percent), rent on business property, machinery, and equipment (8.0 percent), and depreciation (7.8 percent). For 1999, these items were 7 Sole Proprietorship Returns, 1999 Figure B Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-1999 [Money amounts are in billions of dollars] Total business receipts Total business deductions Constant dollars Tax year Current 2 1 Net income less deficit Constant dollars Percentage Current increase dollars (3) (4) 1988................................................................................................. 672.0 837.8 -1989................................................................................................. 692.8 832.0 -0.7 730.6 844.5 1.5 1990................................................................................................. 2 Constant dollars 2 Percentage Current increase dollars (5) (6) (7) (8) (9) 545.7 560.2 589.2 680.3 672.8 681.1 --1.1 1.2 126.3 132.7 141.4 157.5 159.4 163.4 -1.2 2.6 1991................................................................................................. 712.6 794.8 -5.9 1992................................................................................................. 737.1 802.6 1.0 1993................................................................................................. 757.2 805.1 0.3 790.6 823.5 2.3 1994................................................................................................. 571.2 583.1 600.8 623.8 637.1 634.9 638.8 649.7 -6.5 -0.3 0.6 1.7 141.5 154.0 156.5 166.8 157.8 167.7 166.4 173.7 -3.4 6.3 -0.8 4.4 1995................................................................................................. 807.4 823.0 -0.1 1996................................................................................................. 843.2 843.2 2.5 870.4 853.7 1.2 1997................................................................................................. 638.1 666.5 683.9 650.5 666.5 670.8 0.1 2.5 0.6 169.3 176.8 186.6 172.5 176.8 183.1 -0.7 2.4 3.6 1998................................................................................................. 918.3 889.6 4.2 1999................................................................................................. 969.3 925.2 4.0 716.2 761.4 693.8 726.8 3.4 4.7 202.3 207.9 196.0 198.5 7.0 1.3 Amount dollars (1) (2) Amount Amount Percentage increase ¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses (after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or deficit. ² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic Analysis in the Survey of Current Business , August 2000. The deflator represents the annual average of current-weighted prices, based on 1996 = 100. NOTE: Percentage increases were calculated after rounding. 8 8 $40.8 billion, $31.4 billion, and $30.6 billion, respectively. Car and truck expenses showed a 2.7-percent increase from 1998; rent on business property, machinery, and equipment, a 3.1-percent increase; and depreciation, a 5.2-percent increase. The depreciation deduction first began to decline for 1986, following the enactment of the Tax Reform Act of 1986 (TRA86). TRA86 reduced the allowable depreciation deduction by lengthening the cost recovery periods and changing the depreciation methods for property placed in service after July 31, 1986. In constant dollars, the depreciation deduction dropped 9.6 percent for 1989 and continued to decline through 1992 (Figure E). Beginning with 1993, the trend reversed, and constant dollar depreciation increased every year through 1998, except for 1995, when it decreased 2.0 percent to $26.7 billion [7]. The 1999 depreciation deduction accounted for 4.0 percent of total business deductions. Depreciation deductions as a percentage of total business deductions (4.0 percent) remained well below the 1985 (pre-TRA86) level of 5.7 percent. Beginning with Tax Year 1992, certain smaller businesses could elect to not 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 sources of sole proprietorship statistics.) Taxpayers could use Schedule C-EZ if they: had business expenses of $2,500 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 will not add to the totals. Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial sector. More than 2.6 million taxpayers filed Schedule C-EZ for Tax Year 1999. Of Schedule C-EZ returns filed for 1999, taxpayers in the administrative and support services sector filed almost 390 thousand returns, or 14.6 percent. For Sole Proprietorship Returns, 1999 Figure C Components of Nonfarm Sole Proprietorship Business Deductions, Tax Years 1998 and 1999 ule C-EZ accounted for only 0.7 percent of that sector's total business deductions. ProfitsandLosses For 1999, a majority of the principal industrial sectors reported increased sole proprietorship profits (net Business deductions 1998 1999 Percentage income less deficit) for 1999, with exceptions being increase the professional, scientific, and technical services (1) (2) (3) sector; health care and social assistance sector; and Business deductions, total ¹.......................................................................................................... 716,157.4 761,427.6 6.3 other services sector. Figure B presents total profits Cost of sales and operations.......................................................................................................... 341,132.8 370,079.2 8.5 for all industries (in both current and constant dollars) Inventory, beginning of year.......................................................................................................... 30,801.7 31,540.5 2.4 since 1988, while Figure G presents profits by Cost of labor.......................................................................................................... 27,447.8 28,723.3 4.6 Purchases.......................................................................................................... 231,405.0 255,539.3 10.4 industrial sector for 1998 and 1999 [8]. Total profits Materials and supplies.......................................................................................................... 42,161.8 41,757.4 -1.0 increased 2.8 percent from $202.3 billion for 1998 to Other costs.......................................................................................................... 42,198.1 46,353.8 9.8 $207.9 billion for 1999. The administrative services 32,881.5 33,835.1 Inventory, end of year.......................................................................................................... 2.9 sector reported the largest percentage change in Business expenses, total.......................................................................................................... 375,024.6 391,348.4 4.4 Advertising expenses.......................................................................................................... 9,414.0 9,453.7 0.4 profits for 1999, increasing 16.6 percent to $10.6 Bad debts from sales or services.......................................................................................................... 925.9 1,111.2 20.0 billion. The finance and insurance sector reported Car and truck expenses.......................................................................................................... 39,715.7 40,787.0 2.7 the second largest percentage increase in profits with Commissions.......................................................................................................... 10,722.1 11,228.4 4.7 Depletion.......................................................................................................... 380.1 387.0 1.8 11.2 percent. The next largest increase was for the Depreciation.......................................................................................................... 29,135.6 30,637.6 5.2 transportation and warehousing sector, which showed Employee benefit programs.......................................................................................................... 1,560.4 1,663.5 6.6 a 9.4-percent increase in profits for 1999. The Insurance.......................................................................................................... 12,938.4 13,219.8 2.2 professional, scientific, and technical sector, the Legal and professional services.......................................................................................................... 6,669.0 6,818.4 2.2 3,796.4 4,031.5 Meals and entertainment deducted.......................................................................................................... 6.2 largest of the industrial sectors with respect to profits, 4,882.2 4,736.1 Mortgage interest.......................................................................................................... -3.0 showed a 0.7-percent decrease in profits. Other interest paid on business In constant dollars, total profits increased 1.3 6,277.2 6,488.4 indebtedness.......................................................................................................... 3.4 9,611.6 9,921.3 percent for 1999 (Figure B), marking the fourth Office expenses.......................................................................................................... 3.2 Pension and profit-sharing plans.......................................................................................................... 756.9 870.4 15.0 consecutive year of constant dollar growth in profits. Rent on machinery and equipment.......................................................................................................... 7,545.4 8,227.0 9.0 However, this growth was considerably smaller than Rent on other business property.......................................................................................................... 22,914.6 23,190.5 1.2 the 7.0-percent growth of the previous year. Figure Repairs.......................................................................................................... 11,349.8 11,697.3 3.1 Salaries and wages.......................................................................................................... 58,864.8 61,204.4 4.0 E presents net income and deficit separately between Supplies.......................................................................................................... 19,725.4 21,654.3 9.8 1988 and 1999, in current and constant dollars. For Taxes paid.......................................................................................................... 13,730.7 14,000.4 2.0 1999, net income (in constant dollars) increased 1.7 Travel.......................................................................................................... 7,624.3 8,089.6 6.1 percent, and deficit (in constant dollars) increased 4.9 Utilities.......................................................................................................... 18,431.4 18,466.2 0.2 4,138.4 4,785.8 Home office business deductions.......................................................................................................... 15.6 percent, a change from the 0.8-percent decline in 1998. [Money amounts are in millions of dollars] 72,683.5 77,357.3 Other business deductions.......................................................................................................... 6.4 ¹ Includes returns with Schedule C-EZ 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. NOTE: Percentage increases were calculated after rounding. 1999, business receipts from Schedule C-EZ filers totaled $13.9 billion, or 1.4 percent of total business receipts reported. However, the business deductions reported on Schedule C-EZ returns accounted for only 0.2 percent of total business deductions for all industries. Even in the administrative and support services sector with its higher concentration of Schedule C-EZ filers, deductions reported on Sched- IndustryTrends Using receipts as a measure of business size, Figures A and H showed that retail trade was the largest sole proprietorship industrial sector for 1999 with 19.1 percent of all business receipts. Total receipts for this sector, at $185.2 billion, were 2.5 percent more than the $180.7 billion reported for 1998, while deductions increased 2.3 percent, resulting in a 5.6percent increase in profits (Figure G). The second largest industrial sector was construction, with receipts totaling $154.2 billion. This amount was 15.9 percent of all sole proprietorship receipts for 1999, representing a 7.1-percent increase 9 Sole Proprietorship Returns, 1999 Figure D Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 1999 ¹ Type of expense Commissions 2.9 Repairs 3.0 Insurance 3.4 Taxes paid 3.6 Utilities 4.7 5.5 Supplies Depreciation 7.8 Rent on business property, machinery, and equipment 8.0 Car and truck expenses 10 10.4 15.6 Salaries and wages Other business deductions ² 35.0 0 5 10 15 20 25 30 35 40 Percent of total ¹ Total business expenses equal all business deductions minus cost of sales and operations. ² Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office deductions. Other business deductions also include all Schedule C-EZ deductions ($1.3 billion). NOTES: Percents are based on an estimated total business expense of $391.3 billion. Detail may not add to 100 percent because of rounding. from the 1998 amount. Deductions likewise increased by 6.7 percent. Construction profits increased 8.9 percent for 1999, totaling $28.3 billion. Special trade contractors reported the largest portion (75.3 percent) of these profits. As a group, they showed increases of 3.7 percent for receipts and profits. The third largest sector was professional, scientific, and technical services, which accounted for 11.0 percent of sole proprietorship receipts for 1999. Receipts decreased 0.6 percent to $106.9 billion, and 10 deductions decreased 0.5 percent to $61.7 billion, yielding a 0.7-percent decrease in profits. This decrease in profits was the second largest percentage loss behind other services in all the principal industrial sector. Figures G and I also demonstrate that the professional, scientific, and technical service sector profits fell from $45.6 billion in 1998 to $45.2 billion for 1999, but still accounted for the largest percentage of sole proprietorship profits for 1999 with 21.7 percent. Sole Proprietorship Returns, 1999 Figure E Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-1999 [Money amounts are in billions of dollars] Constant dollars Current dollars 1 Percentage increase in constant dollars 1 Depreciation Net income Deficit Depreciation (9) Tax year Net income Deficit (1) (2) Depreciation Net income (3) Deficit (4) (5) (6) (7) (8) 1988.......................................................................................................... 145.5 19.2 26.1 181.4 23.9 32.5 -- -- -- 1989.......................................................................................................... 152.4 19.7 24.5 183.0 23.7 29.4 0.9 -1.2 -9.6 1990.......................................................................................................... 161.7 20.2 23.7 1991.......................................................................................................... 162.4 20.9 23.1 186.9 181.1 23.3 23.3 27.4 25.8 2.1 -3.1 -1.3 -0.2 -6.9 -6.0 1992.......................................................................................................... 173.5 19.5 23.3 188.9 21.2 25.4 4.3 -8.9 -1.5 1993.......................................................................................................... 177.0 20.5 25.0 188.2 21.8 26.6 -0.4 2.7 4.8 1994.......................................................................................................... 187.8 21.0 26.2 195.6 21.9 27.3 3.9 0.3 2.7 1995.......................................................................................................... 191.7 22.5 26.2 195.4 22.9 26.7 -0.1 4.7 -2.0 1996.......................................................................................................... 200.1 23.4 27.4 200.1 23.4 27.4 2.4 2.0 2.3 1997.......................................................................................................... 210.5 23.8 28.6 1998.......................................................................................................... 226.2 23.9 29.1 206.4 219.1 23.4 23.2 28.1 28.2 3.2 6.1 (²) -0.8 2.6 0.5 1999.......................................................................................................... 233.4 25.5 30.6 222.8 24.3 29.2 1.7 4.9 3.6 ¹ Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic Analysis in the Survey of Current Business , August 2000. The deflator represents the annual average of current-weighted prices, based on 1996 = 100. ² Less than 0.05 percent. NOTE: Percentage increases were calculated after rounding. Figure F Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 1999 [Money amounts are in millions of dollars] Industrial sector Total (1) Number of returns Total business receipts With Percentage On Percentage Schedule of Schedule of C-EZ total C-EZ total (2) (3) (4) (5) (6) Total Total business deductions On Total Percentage Schedule of C-EZ total (7) (8) (9) 0.2 All nonfarm industries.................................................................................................. 17,575,643 2,644,479 15.0 969,347.0 13,946.3 1.4 761,427.6 1,321.3 Construction.................................................................................................. 2,283,929 317,624 13.9 154,225.4 1,829.4 1.2 125,894.8 138.5 0.1 Wholesale trade.................................................................................................. 360,035 22,264 6.2 43,039.7 209.7 0.5 37,790.6 17.1 (¹) Retail trade.................................................................................................. 2,309,272 191,113 8.3 0.1 185,175.3 893.2 0.5 173,776.3 107.4 Transportation and warehousing.................................................................................................. 790,376 72,602 9.2 45,989.3 439.9 1.0 38,829.5 51.5 0.1 Finance and insurance.................................................................................................. 579,362 62,102 10.7 86,390.6 373.4 0.4 71,981.5 33.7 (¹) Real estate and rental and leasing.................................................................................................. 851,434 64,519 7.6 42,872.7 409.9 1.0 24,606.9 48.6 0.2 2,649.3 2.5 61,708.6 208.0 0.3 Professional, scientific, and technical services.................................................................................................. 2,443,744 360,557 14.8 106,922.3 Administrative and support and waste 1,730.4 4.6 26,706.7 174.0 0.7 Health care and social assistance.................................................................................................. 1,520,435 332,535 21.9 82,760.5 management and remediation services.................................................................................................. 1,455,868 387,043 26.6 37,281.9 1,726.0 2.1 47,148.0 180.7 0.4 Arts, entertainment, and recreation.................................................................................................. 1,040,209 163,604 19,454.3 15.7 514.3 2.6 14,127.5 78.8 0.6 Other services.................................................................................................. 2,007,431 321,395 16.0 65,926.7 1,554.7 2.4 51,094.1 159.1 0.3 All other industries.................................................................................................. 4,242,820 540,234 12.7 284,483.7 2,509.2 0.9 261,539.2 231.3 0.1 ¹ Less than 0.05 percent. NOTE: Detail may not add to totals because of rounding. 11 Sole Proprietorship Returns, 1999 Figure G Nonfarm Sole Proprietorship Profits, by Selected Industrial Sectors, Tax Years 1998 and 1999 [Money amounts are in billions of dollars] Net income less deficit Industrial sector 1998 1999 (1) (2) Percentage increase (3) The fourth largest sole proprietorship industrial sector with 8.9 percent of total receipts was the finance and insurance sector. A 41.1-percent increase in receipts for this sector, accompanied by a 49.1-percent increase in deductions, led to the second largest increase in profits (11.2 percent increase). Summary Profits for nonfarm sole proprietorships for 1999 grew 2.8 percent to a level of $207.9 billion. In Construction........................................................................................................................... 26.0 28.3 8.9 constant dollars, total nonfarm sole proprietorship Special trade contractors........................................................................................................................... 20.6 21.3 3.6 Wholesale trade........................................................................................................................... 5.1 5.3 2.2 profits increased 1.3 percent, the smallest growth in Retail trade........................................................................................................................... 10.8 11.4 5.6 profits since 1995. The administrative and support Transportation and warehousing........................................................................................................................... 6.6 7.2 9.4 services sector reported the largest percentage Finance and insurance........................................................................................................................... 13.0 14.4 11.2 growth in profits at 16.6 percent. The professional, Real estate and rental and leasing........................................................................................................................... 17.6 18.3 3.6 Real estate........................................................................................................................... 17.2 17.9 4.3 scientific, and technical services sector had the Professional, scientific, and largest profits of any sector at $45.2 billion, repretechnical services........................................................................................................................... 45.6 45.2 -0.7 senting 21.7 percent of all sole proprietorship profits. Administrative and support and waste management and remediation services........................................................................................................................... 9.1 10.6 16.6 Receipts and deductions increased 5.6 percent and Health care and social assistance........................................................................................................................... 35.9 35.6 -0.7 6.3 percent, respectively. The largest sole proprietorChild day care services........................................................................................................................... 2.6 2.5 -6.5 Arts, entertainment, and recreation........................................................................................................................... 5.1 5.4 4.9 ship industrial sector, based on business receipts was Performing arts, spectator sports, the retail trade sector, accounting for 19.1 percent of and related industries........................................................................................................................... 4.7 4.8 2.7 receipts. The finance and insurance sector showed Other services........................................................................................................................... 15.3 14.8 -2.8 the largest percentage increase in both receipts and Personal and laundry services........................................................................................................................... 8.2 8.1 -0.7 All other industries........................................................................................................................... 12.3 11.5 -6.6 deductions, reporting a 41.1-percent increase in NOTE: Detail may not add to totals because of rounding. Percentage increases were receipts and a 49.1-percent increase in deductions. calculated before rounding. All nonfarm industries........................................................................................................................... 202.3 207.9 2.8 12 Figure H Nonfarm Sole Proprietorship Total Business Receipts, Tax Year 1999 All other industries 10.2% Construction 15.9% Other services 6.8% Arts, entertainment, and recreation 2.0% Wholesale trade 4.4% Health care and social assistance 8.5% $969.3 billion Administrative and support and waste management and remediation services 3.8% Retail trade 19.1% Professional, scientific, and technical services 11.0% Real estate and rental and leasing 4.4% 12 Finance and insurance 8.9% NOTE: Detail may not add to 100 percent because of rounding. Transportation and warehousing 4.7% Sole Proprietorship Returns, 1999 Figure I Nonfarm Sole Proprietorship Total Business Profits, Tax Year 1999 Other services 7.1% All other industries 5.5% Wholesale trade 2.5% Arts, entertainment, and recreation 2.6% Health care and social assistance 17.1% Construction 13.6% Retail trade 5.5% $207.9 billion Transportation and warehousing 3.5% Finance and insurance 6.9% Administrative and support and waste management and remediation services 5.1% Real estate and rental and leasing 8.8% Professional, scientific, and technical services 21.7% NOTES: Profits are a designation for "net income less deficit," shown elsewhere in this article. Detail may not add to 100 percent because of rounding. DataSourcesandLimitations The 1999 sole proprietorship estimates are based on a stratified probability sample of unaudited Individual Income Tax Returns, Forms 1040 and 1040PC (including electronically-filed returns), processed by the Internal Revenue Service during Calendar Year 2000. 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 .05 percent to 100 percent. The 1999 nonfarm sole proprietorship data are based on a sample of 50,730 returns and a population of 17,792,887 returns [9]. The corresponding sample and population for the 1998 data were 47,407 and 17,589,368 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 (CV’s) are used to measure that magnitude. Figure J presents estimated coefficients of variation for the number of returns and money amounts for selected items and industrial sectors. Generally, the smaller the coefficient of variation, the more reliable the estimate is judged to be. The Appendix to this issue of the Bulletin discusses the reliability of estimates based on samples, and the use of coefficients of variation for evaluating the precision of estimates based on samples. NotesandReferences [1] Based on the 1999 NAICS system, the full name of the administrative and support services sector is administrative and support and waste management and remediation service sector. The waste management and remediation portion makes up a small percentage of the overall numbers reported 13 Sole Proprietorship Returns, 1999 Figure J Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial Sectors, Tax Year 1999 [Coefficients of variation are in percentages] Coefficients of variation Industrial sector Total business Total business deductions Depreciation Net income (2) (3) (4) (5) 1.42 0.97 2.02 4.11 3.08 7.68 5.01 3.66 10.57 5.52 5.73 Wholesale trade........................................................................................................................... 10.79 7.35 14.18 Retail trade........................................................................................................................... 2.34 4.20 3.98 4.76 Transportation and warehousing........................................................................................................................... 3.64 3.73 5.18 5.09 8.77 Finance and insurance........................................................................................................................... 2.17 2.04 7.26 4.91 8.52 Real estate and rental and leasing........................................................................................................................... 3.72 4.10 6.21 4.53 9.59 6.46 4.64 10.92 2.60 5.97 receipts ¹ (1) 0.71 0.79 All nonfarm industries........................................................................................................................... 2.65 Construction........................................................................................................................... 2.81 Special trade contractors........................................................................................................................... 3.16 3.38 2.34 Real estate........................................................................................................................... 3.90 4.34 Professional, scientific, and technical services........................................................................................................................... 2.37 2.80 3.77 Deficit Administrative and support and waste management and remediation services........................................................................................................................... 4.26 4.95 7.12 4.44 9.75 4.25 2.90 11.00 12.63 6.91 19.44 4.53 4.82 7.24 Arts, entertainment, and recreation........................................................................................................................... 5.43 6.70 Performing arts, spectator sports, and related industries........................................................................................................................... 4.77 4.91 7.71 5.61 7.17 2.41 2.51 Health care and social assistance........................................................................................................................... Child day care services........................................................................................................................... 6.29 7.24 3.31 Other services........................................................................................................................... 3.67 Personal and laundry services........................................................................................................................... 4.63 5.23 2.91 2.95 All other industries........................................................................................................................... 5.40 3.76 8.58 8.09 5.33 11.31 3.95 3.86 5.05 ¹ Positive only. 14 under this classification, which are detailed in Table 1. [2] For 1999, the 17,573,293 nonfarm sole proprietorship returns accounted for 19,513,317 nonfarm businesses. Actually, more businesses may have existed than those counted; processing for tax administration purposes allows only three businesses (reported on separate Schedules C) per return, and combines any remaining businesses on one (or more) of the three Schedules C. Statistics of Income--1981, Sole Proprietorship Returns contains a more detailed explanation of the relationship between proprietors and proprietorships. 14 For purposes of the statistics, if a proprietor owned more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that business activity. When this occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting a deficit) yielded the profits for a specific industrial group. The North American Industry Classification System (NAICS) was used to classify data by industries for 1999. These classifications were applied on a “per business” (rather than on a “per establishment”) basis for Statistics of Income by combining various industry groups, although businesses were further combined as described above. While the wording of the industry titles used for the sole proprietorship statistics diverge somewhat from those appearing in NAICS, the definitions are consistent. [3] 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 Sole Proprietorship Returns, 1999 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 non-business-related investment income, as part of their total incomes on their Individual Income Tax Returns. [4] Based on the overall implicit price deflator for Gross Domestic Product (GDP). See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, August 2000. Indices used for this article were: Year 1988 1989 1990 1991 1992 1993 Indices 80.2 83.2 86.5 89.7 91.8 94.1 Year 1994 1995 1996 1997 1998 1999 Indices 96.0 98.1 100.0 102.0 103.2 104.8 [5] Sole proprietors report personal, i.e., non-business, income and expense items apart from business income or loss, which is reported on the attached Schedule C, Profit or Loss From Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid to owners qualify as personal income, not as a business expense, and are, therefore, part of the owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made through the business as personal expenses on Schedule A, Itemized Deductions. However, the owner of a sole proprietorship may choose to deduct any foreign taxes paid as a business expense, unless the owner elects to claim these taxes as a credit against U.S. income tax. [6] Business deductions include the home office business deduction. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use of Your Home, and the deductible portion brought forward to Schedule C. In some cases, these expenses were limited. Prior to 1990, these expenses were not limited and were included with other expenses, such as the depreciation deduction, utilities, and “other” expenses on Schedule C. [7] 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 deduction increased 32.4 percent to $13.5 billion for 1993. Again, a change in law increased the depreciation deduction amount to $18,500 for 1998, and $19,000 for 1999. [8] 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. [9] The difference between the number of returns in the population and the total number of returns in Tables 1 and 2 is mainly due to returns in which Schedule C income was moved to other income or wages to avoid double counting of taxpayers for Gross Domestic Product calculations. In addition, data from amended returns and tentative returns are not reflected in these statistics. SOURCE: IRS, Statistics of Income Bulletin, Summer 2001, Publication 1136 (Rev. 08-2001) 15 Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1 and equipment (1) (2) 1 property 1,2 Net income Payroll 1,3 less deficit 1 (3) (4) (5) (6) (7) (8) 8,227,000 23,190,502 11,224,488 89,927,731 207,946,977 137,300 142,304 362,368 1,920,963 1,244,406 17,841 18,466 34,428 -212,702 Forestry and logging (including forest nurseries, timber tracts)............................................................................................................ 54,337 7,296,277 671,297 86,418 16,786 156,429 699,169 598,768 Fishing............................................................................................................ 82,380 564,812 Agriculture, forestry, hunting, and fishing............................................................................................................ 306,905 16,652,693 1,559,696 Animal production (including breeding of cats and dogs)............................................................................................................ 35,201 786,209 117,882 1,386 2,668,631 318,034 11,587 43,682 96,614 185,335 Hunting and trapping............................................................................................................ 9,361 105,930 16,644 *1,378 *5,810 *2,123 *1,099 -9,701 Support activities for agriculture and forestry............................................................................................................ 125,625 5,795,646 435,839 36,532 Mining............................................................................................................ 117,099 4,434,500 416,299 38,401 58,185 24,849 88,736 232,343 1,000,932 276,722 303,229 -140,081 23,637 -- 204,167 *388 78,754 -- -300,328 *-355 *-25,627 Oil and gas extraction............................................................................................................ 97,173 3,232,669 Coal mining............................................................................................................ *9 *9,011 279,947 *1,170 Metal ore mining............................................................................................................ *3,017 *35,808 *15,957 23,504 *(Z) *1,064 *32 *128 *6,255 Nonmetallic mineral mining and quarrying............................................................................................................ 9,312 711,567 87,029 12,041 *200 24,224 142,660 39,069 Support activities for mining............................................................................................................ 7,587 445,445 *1,792 *980 *3,436 *49,052 147,161 Utilities............................................................................................................ 9,077 32,196 108,154 6,394 *2,833 *3,434 876 *5,335 22,907 Construction............................................................................................................ 2,283,929 154,225,367 5,083,264 1,291,853 821,707 1,348,613 23,389,656 28,330,310 Land subdivision and land development............................................................................................................ 20,349 2,938,922 95,821 22,450 8,378 83,926 429,934 393,163 Residential building construction............................................................................................................ 357,136 37,960,287 707,455 123,670 98,629 355,602 4,800,902 5,154,535 Nonresidential building construction............................................................................................................ 84,325 7,519,397 178,728 66,167 47,660 88,609 993,964 969,055 Heavy construction ............................................................................................................ 58,229 4,690,800 413,027 196,919 18,837 101,144 593,040 486,090 Special trade contractors............................................................................................................ 1,763,890 101,115,961 3,688,233 882,648 648,203 719,332 16,571,815 21,327,467 Manufacturing............................................................................................................ 359,559 27,327,211 1,011,569 260,081 752,609 347,152 3,980,045 3,608,920 Food manufacturing............................................................................................................ 30,876 3,021,165 68,910 2,909 106,748 35,756 254,320 327,209 Textile and textile product mills............................................................................................................ 6,095 136,218 *15,486 *422 *756 *517 *37,778 7,652 36,391 24,819 93,825 8,139 296,605 185,411 Apparel............................................................................................................ 27,077 1,908,086 Leather and allied products............................................................................................................ *1,652 *105,449 *8,517 *4,897 -- *244 *26,779 *36,651 Wood products............................................................................................................ 40,680 2,729,519 121,842 9,565 34,961 40,573 405,359 207,252 Paper products............................................................................................................ *4,567 *180,312 *1,534 *400 *6,798 *1,540 *40,035 *22,644 Printing and related support activities............................................................................................................ 42,951 3,364,033 92,548 73,987 113,454 50,791 533,201 415,222 Petroleum and coal products............................................................................................................ *899 *9,374 *13,187 *227 -- -- -- *-5,458 *7,862 *595 *3,140 *17,053 63,412 Plastics, rubber, clay, refractory, and glass products............................................................................................................ 19,979 834,849 25,468 *1,563 25,438 13,323 126,270 76,475 *11,498 *158 *23,252 *85,183 113,782 Chemical manufacturing............................................................................................................ 9,995 259,770 *8,190 Nonmetallic mineral products............................................................................................................ 7,091 567,982 *45,794 Primary metal industries............................................................................................................ *3,669 *381,799 *19,886 *55 *13,077 *330 *111,583 *55,626 Fabricated metal products............................................................................................................ 42,476 4,086,061 201,876 63,216 88,768 52,728 594,081 587,841 Machinery............................................................................................................ 21,804 137,174 12,847 59,225 36,171 638,994 602,813 Computer and electronic products............................................................................................................ 9,258 348,151 *13,986 *990 *16,014 *865 *31,929 14,696 Electrical equipment, appliance, and components............................................................................................................ 9,096 984,234 24,953 *4,430 *21,498 *8,153 *85,128 166,780 Transportation equipment............................................................................................................ 8,925 835,385 3,096,553 13,723 *2,011 *12,325 *14,960 *116,328 127,708 Furniture and related products............................................................................................................ 29,243 2,279,529 61,441 23,053 82,574 21,233 326,207 395,584 Medical equipment and supplies............................................................................................................ 2,418 293,351 *8,955 *498 *12,033 *2,748 *22,157 80,116 Other miscellaneous manufacturing............................................................................................................ 40,808 1,905,388 91,709 14,831 64,360 32,689 231,055 127,505 113,215 5,260,516 Wholesale trade............................................................................................................ 360,035 43,039,660 491,448 262,140 1,830,703 Durable goods, including machinery, wood, metals, etc............................................................................................................. 190,524 22,381,553 336,820 40,740 251,724 145,442 1,106,318 2,777,199 Nondurable goods, including food, fiber, chemicals, etc............................................................................................................. 169,511 20,658,107 263,971 72,475 239,724 116,699 724,384 2,483,317 Retail trade............................................................................................................ 2,309,272 185,175,311 600,791 2,908,770 752,443 5,644,091 1,866,863 11,245,417 11,404,845 Motor vehicle and parts dealers............................................................................................................ 126,034 33,371,057 353,003 65,127 365,894 352,798 1,393,125 1,424,732 Furniture and home furnishing stores............................................................................................................ 55,594 6,384,327 105,243 42,391 319,536 98,462 652,983 462,214 Electronic and appliance stores............................................................................................................ 32,785 5,257,972 103,277 15,808 190,760 47,912 667,473 484,771 Building material and garden equipment and supplier dealers............................................................................................................ 50,939 7,795,929 150,116 40,330 94,923 151,153 671,948 549,573 Food and beverage stores............................................................................................................ 108,624 31,684,545 210,445 2,101,100 1,327,840 358,075 146,982 940,109 Health and personal care stores............................................................................................................ 118,048 7,360,867 97,188 43,345 176,690 33,554 423,081 887,137 Gasoline stations............................................................................................................ 33,439 23,984,904 72,495 351,237 247,346 1,141,460 526,120 Footnotes at end of table. 16 Interest paid deduction 31,191,872 All nonfarm industries............................................................................................................ 17,575,643 969,347,038 16 on other business 272,003 Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1 and equipment (1) (2) (3) 1 (4) on other Interest paid business deduction property 1,2 Net income Payroll 1,3 less deficit 1 (5) (6) (7) (8) Retail trade--continued 38,512 817,123 120,775 904,316 1,142,628 Sporting goods, hobby, book, and music stores............................................................................................................ 150,948 8,777,446 160,938 59,427 Clothing and accessories stores............................................................................................................ 103,923 11,915,848 136,809 457,532 86,521 589,180 392,773 General merchandise stores............................................................................................................ 31,094 4,580,787 62,813 12,739 180,577 54,637 385,638 386,305 Miscellaneous store retailers............................................................................................................ 422,688 23,018,888 496,480 99,193 1,407,668 259,605 1,755,251 1,498,819 612,823 116,092 342,043 203,656 559,862 2,321,934 Transportation and warehousing............................................................................................................ 790,376 45,989,293 4,559,561 Air and rail transportation............................................................................................................ 14,574 503,643 75,643 Nonstore retailers............................................................................................................ 1,075,154 21,042,740 1,473,863 9,152 368,448 19,105 1,069,315 24,454 3,533,048 44,535 7,175,889 42,702 Water transportation............................................................................................................ 4,349 448,335 43,604 General freight trucking, local............................................................................................................ 169,027 13,456,352 1,374,724 *1,807 363,864 *12,729 75,893 5,340 261,922 5,638 1,438,281 729 2,059,052 683,903 124,905 614,141 1,547,263 2,809,939 *284 -- *273 *11,969 *193 -- -- -- -- *4,146 General freight trucking, long-distance and specialized freight trucking............................................................................................................ 250,736 21,875,973 2,612,451 Urban transit............................................................................................................ *973 *26,839 *636 Interurban and rural bus transportation............................................................................................................ *941 *6,299 -- 305,003 62,182 77,890 *12,270 787,131 School, employee, and charter bus industry............................................................................................................ 15,772 658,603 89,047 *18,656 Taxi and limousine service............................................................................................................ 107,387 3,104,899 125,133 -- 22,632 62,957 118,788 Other transit and ground passenger transportation............................................................................................................ 17,513 317,771 23,252 *29,109 *2,072 *192 *39,814 86,304 ** ** ** ** ** **3 **2,090 **1,531 **4,162 **10,867 Pipeline transportation............................................................................................................ ** ** ** Scenic and sightseeing transportation............................................................................................................ **10,255 **205,850 **19,961 Support activities for transportation (including motor vehicle towing)............................................................................................................ 37,446 1,575,197 134,468 Couriers and messengers............................................................................................................ 157,753 3,438,180 48,821 13,590 33,252 41,048 155,503 301,600 48,148 17,849 10,998 192,421 912,194 *344 *18,371 *8,894 *18,236 42,243 Information............................................................................................................ 236,546 6,987,894 Warehousing and storage facilities............................................................................................................ 3,651 371,352 11,823 368,519 101,295 229,599 49,656 506,592 1,822,737 Publishing industries............................................................................................................ 61,348 1,927,882 64,897 15,555 32,266 19,410 111,839 440,752 Motion picture and sound recording............................................................................................................ 61,930 1,972,154 181,459 42,454 117,126 14,970 91,922 554,272 Broadcasting and telecommunications............................................................................................................ 36,118 1,382,339 53,064 37,623 25,115 9,915 96,158 256,222 Information services and data processing services............................................................................................................ 77,150 1,705,519 69,098 5,663 55,093 5,362 206,672 571,491 335,328 1,012,070 669,225 3,096,853 14,415,248 Credit intermediation and related activities............................................................................................................ 54,913 3,174,011 58,364 40,448 65,696 46,642 107,656 809,014 Securities, commodity contracts, other financial investments............................................................................................................ 139,928 59,678,189 165,408 42,858 220,301 430,503 802,038 3,658,432 Finance and insurance............................................................................................................ 579,362 86,390,620 684,859 Investment bankers and securities dealers............................................................................................................ 4,672 5,566,788 8,261 *866 2,920 12,350 *57,869 34,459 Securities brokers............................................................................................................ 27,690 10,746,057 4,777 54,082 71,530 324,273 776,176 Commodity contracts brokers and dealers............................................................................................................ 4,965 4,455,966 8,608 3,064 7,923 20,752 35,161 -14,345 Securities and commodity exchanges............................................................................................................ 956 1,086,282 1,158 *565 832 *736 34,253 Other financial investment activities (investment advice)............................................................................................................ 101,645 37,823,097 121,138 33,750 154,812 325,039 383,999 2,827,889 26,244 *401 Insurance agents, brokers, and related activities............................................................................................................ 384,522 23,538,421 461,086 252,022 Insurance agencies and brokerages............................................................................................................ 326,762 20,995,816 415,616 227,932 726,072 192,080 2,187,159 9,947,802 691,710 180,912 1,963,879 8,727,558 Other insurance related activities............................................................................................................ 57,760 2,542,605 45,470 24,090 34,363 11,168 223,279 1,220,243 Real estate and rental and leasing............................................................................................................ 851,434 42,872,742 1,870,555 390,477 670,559 762,096 1,121,202 18,270,902 1,105,324 317,457 531,605 612,447 889,150 17,906,626 87,120 6,957 38,917 113,507 83,355 241,498 Real estate............................................................................................................ 788,716 39,418,222 Lessors of real estate (including miniwarehouses and self storage)............................................................................................................ 16,728 1,039,098 Offices of real estate agents, brokers, property managers, and appraisers............................................................................................................ 673,734 34,016,819 939,999 286,979 443,382 400,860 669,216 16,182,116 Other activities related to real estate............................................................................................................ 98,254 4,362,306 78,204 23,521 49,305 98,080 136,580 1,483,012 Rental and leasing services............................................................................................................ 62,718 3,454,519 765,231 73,021 138,954 149,649 232,051 364,276 Automotive equipment rental and leasing............................................................................................................ 16,736 694,034 161,134 24,137 2,109 28,283 23,829 86,985 Consumer electronics and appliances rental............................................................................................................ *1,064 *64,281 *5,932 *188 *2,454 *1,029 *20,661 -- Formal wear and costume rental............................................................................................................ *941 *41,380 *20,805 *71 *4,282 *1,333 *790 *803 Video tape and disc rental............................................................................................................ 7,476 842,856 126,779 *23,986 118,385 20,275 97,133 -16,193 General rental centers and other consumer goods rental............................................................................................................ 11,269 381,586 56,659 *12,086 5,460 7,073 *19,132 18,325 90,232 90,139 253,694 Commercial and industrial machinery and equipment rental and leasing............................................................................................................ 25,232 1,430,381 393,923 Footnotes at end of table. 12,742 8,530 17 Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1 and equipment (1) (2) (3) 1 Interest paid deduction property (4) Professional, scientific, and technical services............................................................................................................ 2,443,744 106,922,289 3,061,375 835,660 Legal services............................................................................................................ 324,484 27,649,186 on other business 1,2 Net income Payroll 1,3 less deficit 1 (5) (6) (7) (8) 2,572,881 835,169 8,235,205 45,226,603 12,522,635 461,253 216,900 1,144,430 215,293 2,996,584 Office of certified public accountants............................................................................................................ 51,079 3,063,764 103,506 27,480 111,075 42,652 458,335 1,313,133 Other accounting services............................................................................................................ 339,095 6,405,006 61,121 149,669 104,660 640,900 2,707,017 Architectural, engineering, and related services............................................................................................................ 224,099 11,203,361 409,288 78,765 210,892 88,412 1,324,981 4,501,665 93,811 45,015 781,008 1,337,721 Engineering services............................................................................................................ 95,922 4,831,303 148,220 26,468 80,282 Drafting, building inspections, and geophysical surveying............................................................................................................ 41,901 1,012,580 24,516 *10,281 *17,971 25,481 *1,515 332,025 *116,000 2,320,806 597,030 Surveying and mapping (except geophysical) services............................................................................................................ 15,034 647,042 43,165 *5,893 Testing laboratories............................................................................................................ *3,080 *72,843 *2,292 *568 *18,827 -- 15,412 *990 93,256 *2,691 195,194 *50,915 1,172,411 Architectural services............................................................................................................ 68,163 4,639,593 Specialized design services............................................................................................................ 159,875 5,025,333 286,421 191,095 35,556 229,430 56,766 101,163 25,580 213,345 Computer systems design services............................................................................................................ 234,926 7,143,506 254,165 30,712 76,576 35,930 309,582 2,878,265 Other professional, scientific, and technical services............................................................................................................ 1,110,186 46,432,133 1,317,311 363,916 779,075 322,642 2,291,478 20,131,477 Management, scientific, and technical consulting services............................................................................................................ 589,950 24,001,543 630,382 181,244 347,098 13,207,415 113,567 569,461 Scientific research and development services............................................................................................................ 33,161 564,199 10,697 *849 4,752 *2,861 28,291 237,950 Advertising and related services............................................................................................................ 92,443 4,830,733 91,542 88,342 28,984 149,480 1,228,426 33,966 Market research and public opinion polling............................................................................................................ 26,212 1,057,364 43,033 15,179 11,172 5,151 132,040 256,534 Other miscellaneous services............................................................................................................ 368,420 15,978,294 541,656 132,679 327,711 172,079 1,412,206 5,201,152 and remediation services............................................................................................................ 1,455,868 37,281,872 1,675,144 435,513 587,807 310,700 4,882,318 10,577,063 Administrative and support services............................................................................................................ 1,433,426 36,117,451 1,540,744 417,404 571,549 292,650 4,681,143 10,372,337 Waste management and remediation services............................................................................................................ 22,442 1,164,421 134,400 18,109 16,258 18,050 201,175 204,726 Administrative and support and waste management 18 Educational services............................................................................................................ 326,443 4,155,635 169,270 16,389 213,868 26,608 305,656 1,593,522 Health care and social assistance............................................................................................................ 1,520,435 82,760,451 2,135,898 597,316 3,325,035 846,969 11,295,630 35,612,599 Ambulatory health care services............................................................................................................ 758,008 72,078,082 1,748,837 512,269 3,063,565 662,661 10,363,505 31,962,741 911,638 138,702 3,038,091 13,811,392 1,111,657 Offices of physicians (except mental health specialist)............................................................................................................ 178,871 25,989,675 389,189 189,625 Offices of physicians, mental health specialist............................................................................................................ 24,409 1,978,299 59,288 7,810 87,539 10,309 152,985 Offices of dentists............................................................................................................ 95,536 25,366,750 749,311 147,567 905,777 334,635 5,371,311 9,357,972 Offices of chiropractors............................................................................................................ 28,950 3,756,135 94,058 41,671 296,557 61,958 452,507 1,433,559 Offices of optometrists............................................................................................................ 16,006 2,603,483 69,542 15,941 166,099 36,553 467,742 671,878 Offices of mental health practitioners and social therapists............................................................................................................ 143,813 5,715,529 178,648 60,805 398,966 30,066 254,661 2,909,223 Offices of podiatrists............................................................................................................ 7,650 650,945 23,121 *4,112 53,491 *8,792 75,087 261,145 Outpatient care centers and other miscellaneous 98,510 7,945 86,845 10,944 108,078 1,127,865 Medical and diagnostic laboratories............................................................................................................ 18,425 1,404,384 35,829 health practitioners............................................................................................................ 99,270 2,278,126 14,780 69,758 13,174 221,843 478,586 Home health care services............................................................................................................ 114,427 1,645,182 15,126 53,448 8,338 126,773 660,375 ambulance services, blood and organ banks)............................................................................................................ 30,651 689,575 15,965 6,887 139,089 35,375 Other ambulatory health care services (including 33,446 9,192 94,425 -- -- -- *716 -- *31,375 Nursing and residential care facilities............................................................................................................ 54,217 2,400,695 86,973 26,739 52,588 112,372 478,360 619,996 Hospitals............................................................................................................ 6,176 *103,583 Social assistance............................................................................................................ 95,996 1,246,162 28,450 7,011 102,195 *1,700 *15,649 533,361 Child day care services............................................................................................................ 606,038 6,931,928 271,638 51,298 106,687 69,519 438,116 2,465,125 Arts, entertainment, and recreation............................................................................................................ 1,040,209 19,454,338 1,166,730 198,725 Performing arts, spectator sports, and related industries............................................................................................................ 876,286 14,934,984 867,561 108,201 Museums, historical sites, and similar institutions............................................................................................................ *4,034 *41,887 *(Z) 502,822 263,620 807,479 5,350,243 358,570 119,816 384,633 4,836,517 -- -- *770 -- *22,906 Amusement, gambling, and recreation industries............................................................................................................ 159,888 4,477,467 299,169 90,524 144,251 143,035 422,846 490,820 Accommodation, food services, and drinking places............................................................................................................ 315,150 36,293,267 1,323,776 286,639 2,020,327 1,071,848 6,263,155 2,154,814 104,080 575,277 620,064 279,298 140,870 Accommodation............................................................................................................ 61,298 4,849,644 447,563 33,723 Travel accommodation 18 (including hotels, motels, and bed and breakfast inns)............................................................................................................ 32,116 3,396,910 316,749 17,777 62,520 427,577 464,652 RV (recreational vehicle) parks and recreational camps............................................................................................................ 15,791 688,232 65,697 *748 35,312 59,417 57,570 59,478 Rooming and boarding houses............................................................................................................ 13,391 764,503 65,117 *15,198 *6,248 88,282 97,842 78,950 Food services and drinking places............................................................................................................ 253,853 31,443,622 876,213 252,917 1,916,247 496,571 5,643,091 1,875,516 Footnotes at end of table. Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1 and equipment (1) (2) 1 on other Interest paid business deduction property 1,2 Net income Payroll 1,3 less deficit 1 (3) (4) (5) (6) (7) (8) 2,522,775 943,121 3,745,204 874,303 7,070,450 14,839,005 Auto repair and maintenance............................................................................................................ 326,644 23,493,350 952,551 310,622 860,301 401,532 3,239,375 2,823,464 Other services............................................................................................................ 2,007,431 65,926,666 Automotive mechanical and electrical repair 444,804 193,520 401,889 193,484 1,514,783 1,542,453 Automotive body shops............................................................................................................ 94,540 6,897,434 275,335 and maintenance............................................................................................................ 168,775 12,405,736 67,003 233,559 111,927 1,078,796 799,251 224,853 235,236 96,121 133,033 645,796 959,228 481,760 2,677,515 538,649 2,616,882 324,228 2,843,108 8,129,746 and similar organizations............................................................................................................ 210,843 2,209,867 57,156 *3,782 32,786 15,510 *28,739 1,208,280 Unclassified establishments............................................................................................................ 262,768 3,349,077 66,628 16,547 61,439 24,624 161,304 1,176,528 Other auto repair and maintenance (including oil change, lubrication, and car washes)............................................................................................................ 63,329 4,190,180 232,412 50,100 Miscellaneous repairs............................................................................................................ 365,316 12,488,692 585,498 90,069 Personal and laundry services............................................................................................................ 1,104,628 27,734,756 927,570 Religious, grantmaking, civic, professional, Footnotes at end of table. 19 Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1 and equipment (9) (10) All nonfarm industries............................................................................................................ 13,159,090 847,760,462 1 property 1,2 Payroll 1,3 Net income 1 (12) (13) (14) (15) (16) 22,542,925 6,657,600 18,921,643 7,442,731 77,393,367 233,404,991 2,383,785 98,580 79,967 238,509 1,457,811 16,150 *12,422 *27,293 95,333 42,205 5,695,445 458,867 63,327 9,276 Forestry and logging (including forest nurseries, timber tracts)............................................................................................................ 104,092 469,402 756,426 Fishing............................................................................................................ 52,716 773,969 Animal production (including breeding of cats and dogs)............................................................................................................ 12,139 564,312 35,489 *970 2,184,980 200,448 *11,363 27,274 67,399 152,478 Hunting and trapping............................................................................................................ *2,205 *70,900 *2,914 *1,361 *2,482 -- -- *21,784 Support activities for agriculture and forestry............................................................................................................ 68,929 3,939,084 176,190 21,559 Mining............................................................................................................ 62,629 2,711,913 180,912 20,643 24,785 10,184 54,595 53,568 808,638 180,752 736,272 743,704 7,101 -- 9,253 -- 34,061 -- 37,581 -- 493,636 -- Oil and gas extraction............................................................................................................ 52,802 1,742,439 Coal mining............................................................................................................ --- 89,389 -- Metal ore mining............................................................................................................ *17 *27,519 *819 *1,064 *32 *128 *5,868 *1,932 Nonmetallic mineral mining and quarrying............................................................................................................ 3,562 550,044 61,264 *10,686 *22 16,083 95,642 82,384 Support activities for mining............................................................................................................ 6,248 391,911 *29,440 165,752 *1,792 *876 *3,296 *41,661 106,640 *4,206 *2,833 *3,420 *837 *5,335 33,480 Construction............................................................................................................ 1,985,468 140,794,427 4,237,022 1,128,238 682,239 1,013,237 20,924,904 30,188,237 Utilities............................................................................................................ 5,198 Land subdivision and land development............................................................................................................ 17,316 2,515,839 76,592 21,221 6,767 40,206 393,084 519,200 Residential building construction............................................................................................................ 306,752 34,663,798 613,209 99,628 87,178 235,920 4,340,280 5,592,988 1,079,591 Nonresidential building construction............................................................................................................ 67,062 6,883,800 147,096 59,831 25,279 55,528 937,966 Heavy construction ............................................................................................................ 38,294 4,101,443 291,128 185,198 9,955 72,745 499,625 582,016 Special trade contractors............................................................................................................ 1,556,043 92,629,548 3,108,997 762,361 553,061 608,839 14,753,950 22,414,442 Manufacturing............................................................................................................ 244,201 24,124,542 716,425 225,840 612,167 271,198 3,386,360 4,280,176 Food manufacturing............................................................................................................ 23,916 2,674,668 32,672 2,401 72,983 26,215 170,464 404,690 Textile and textile product mills............................................................................................................ *3,076 *113,152 *5,868 *365 *613 *469 *33,064 *17,635 33,114 21,784 87,830 5,414 227,875 213,105 Apparel............................................................................................................ 19,775 1,703,623 Leather and allied products............................................................................................................ *1,303 *102,465 *8,324 *4,897 -- *244 *26,779 *38,822 Wood products............................................................................................................ 26,063 2,443,398 91,007 9,013 31,489 31,647 340,658 238,103 Paper products............................................................................................................ *3,456 *141,613 *1,516 *301 *6,798 *372 *25,863 *26,987 Printing and related support activities............................................................................................................ 31,206 2,738,763 56,813 54,175 87,741 34,900 434,383 499,421 Petroleum and coal products............................................................................................................ *16 *304 *1 -- -- -- -- *253 *7,270 *7,862 *595 *3,140 *17,053 76,084 Plastics, rubber, clay, refractory, and glass products............................................................................................................ 15,152 683,829 20,702 *1,286 Chemical manufacturing............................................................................................................ 5,676 248,838 Nonmetallic mineral products............................................................................................................ 7,091 567,982 *45,794 *23,269 *11,026 *80,633 113,692 *11,498 *158 *23,252 *85,183 113,782 Primary metal industries............................................................................................................ *1,506 *369,714 *19,800 *54 *12,895 *233 *98,913 *64,302 Fabricated metal products............................................................................................................ 29,575 3,719,277 139,977 60,095 73,958 31,266 536,764 690,644 Machinery............................................................................................................ 17,640 131,002 7,166 44,776 32,550 605,052 674,163 Computer and electronic products............................................................................................................ 3,278 314,178 *5,726 *416 *15,818 *559 *28,939 50,098 Electrical equipment, appliance, and components............................................................................................................ 6,687 737,220 24,142 *4,430 *14,546 *8,153 *48,989 187,646 Transportation equipment............................................................................................................ 6,994 795,511 2,834,394 *10,272 *1,973 *12,274 *12,878 *114,137 129,899 Furniture and related products............................................................................................................ 20,238 1,965,391 36,694 22,872 56,547 17,560 268,516 432,783 Medical equipment and supplies............................................................................................................ *1,639 *287,583 *8,241 *498 *12,033 *2,748 *17,872 *81,825 Other miscellaneous manufacturing............................................................................................................ 19,915 1,682,638 37,491 14,755 57,843 28,572 225,222 226,241 408,890 194,651 1,536,941 5,883,429 195,296 111,617 925,573 3,093,415 Wholesale trade............................................................................................................ 263,808 38,894,561 477,689 89,295 Durable goods, including machinery, wood, metals, etc............................................................................................................. 135,386 20,330,475 263,231 30,550 Nondurable goods, including food, fiber, chemicals, etc............................................................................................................. 128,422 18,564,086 214,458 58,745 Retail trade............................................................................................................ 1,249,322 155,293,611 1,906,780 561,856 213,594 83,034 611,368 2,790,013 4,285,785 1,155,717 9,118,637 16,262,486 Motor vehicle and parts dealers............................................................................................................ 82,903 28,510,866 275,686 44,853 279,076 242,590 1,134,491 1,820,589 Furniture and home furnishing stores............................................................................................................ 37,073 5,374,863 63,611 37,382 258,054 53,578 541,627 704,586 Electronic and appliance stores............................................................................................................ 21,914 4,818,735 69,959 14,043 147,186 27,276 635,663 593,039 Building material and garden equipment and supplier dealers............................................................................................................ 39,763 6,500,671 98,281 36,742 73,681 100,111 496,453 675,750 Food and beverage stores............................................................................................................ 79,227 26,883,233 145,770 1,638,083 1,620,649 264,417 124,413 823,347 Health and personal care stores............................................................................................................ 58,480 6,829,093 71,519 14,960 165,405 24,779 400,506 1,072,780 Gasoline stations............................................................................................................ 21,044 19,610,249 64,928 307,687 124,828 961,153 642,346 Footnotes at end of table. 20 Interest paid deduction (11) Agriculture, forestry, hunting, and fishing............................................................................................................ 178,193 12,454,721 873,908 20 on other business 179,149 Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction (9) (10) (11) 1 and equipment 1 (12) on other Interest paid business deduction property 1,2 Payroll 1,3 Net income 1 (13) (14) (15) (16) Retail trade--continued 33,906 590,985 89,729 800,813 1,424,542 Sporting goods, hobby, book, and music stores............................................................................................................ 83,077 6,888,688 101,753 35,786 Clothing and accessories stores............................................................................................................ 61,870 10,445,163 119,254 296,555 56,600 452,803 848,413 General merchandise stores............................................................................................................ 25,153 4,065,867 49,736 11,498 139,725 46,975 304,309 414,431 Miscellaneous store retailers............................................................................................................ 214,323 18,478,212 285,950 64,924 965,846 149,783 1,342,656 2,467,637 327,465 78,421 238,239 93,697 410,081 3,977,726 Transportation and warehousing............................................................................................................ 640,213 38,283,780 3,069,644 Air and rail transportation............................................................................................................ 9,456 402,563 6,777 Nonstore retailers............................................................................................................ 524,494 16,887,974 1,216,544 *8,480 309,103 *13,144 737,959 *3,840 2,504,385 *38,020 8,271,426 142,772 Water transportation............................................................................................................ 3,320 424,180 33,910 General freight trucking, local............................................................................................................ 139,936 11,240,542 950,261 *2 286,897 *10,625 62,088 *759 191,316 *4,381 1,059,690 26,458 2,334,182 544,979 102,381 440,727 1,017,341 3,216,213 *284 -- -- *11,969 *1,203 -- -- -- -- *4,146 284,338 59,950 40,725 *9,720 853,659 *4,302 -- 17,173 *60,737 148,029 Other transit and ground passenger transportation............................................................................................................ 17,119 266,217 *22,914 *28,739 *967 *65 *9,322 88,418 General freight trucking, long-distance and specialized freight trucking............................................................................................................ 195,821 17,574,745 1,751,778 Urban transit............................................................................................................ *972 *26,381 -- Interurban and rural bus transportation............................................................................................................ *941 *6,299 -Taxi and limousine service............................................................................................................ 92,699 2,783,437 80,072 School, employee, and charter bus industry............................................................................................................ 14,318 590,008 75,263 Pipeline transportation............................................................................................................ --- -- -- -- -- -- -- Scenic and sightseeing transportation............................................................................................................ *3,465 *165,388 *8,600 -- *2,051 -- *3,577 *50,309 10,955 22,664 27,569 116,417 365,266 47,227 16,862 *8,501 158,151 997,002 Support activities for transportation (including motor vehicle towing)............................................................................................................ 30,698 1,346,840 95,293 Couriers and messengers............................................................................................................ 127,833 3,097,119 34,215 Warehousing and storage facilities............................................................................................................ 3,637 360,059 *10,561 *340 *18,369 *7,283 *15,062 43,770 6,302,982 220,966 88,048 121,467 27,923 443,261 2,345,093 Publishing industries............................................................................................................ 48,971 1,753,923 Information............................................................................................................ 166,793 48,061 15,320 31,667 16,496 102,353 540,808 Motion picture and sound recording............................................................................................................ 39,551 1,624,486 96,809 31,665 27,646 3,474 60,662 717,228 Broadcasting and telecommunications............................................................................................................ 27,743 1,300,863 27,764 36,281 19,478 3,362 81,836 333,658 Information services and data processing services............................................................................................................ 50,528 1,623,709 48,332 4,782 42,676 4,591 198,410 753,399 301,191 876,129 266,427 2,851,593 16,050,820 38,086 48,825 31,616 96,873 890,777 Securities, commodity contracts, other financial investments............................................................................................................ 88,504 40,147,755 122,657 30,266 172,190 86,469 666,629 4,731,880 Finance and insurance............................................................................................................ 419,091 64,939,668 563,869 Credit intermediation and related activities............................................................................................................ 42,054 3,002,045 48,530 Investment bankers and securities dealers............................................................................................................ 3,314 3,864,573 4,315 *844 *2,582 9,610 *2,966 102,309 Securities brokers............................................................................................................ 16,629 7,495,460 4,279 28,196 5,340 310,817 990,423 Commodity contracts brokers and dealers............................................................................................................ 1,818 699,111 931 *40 *610 4,512 *4,457 157,075 Securities and commodity exchanges............................................................................................................ 565 589,264 *569 *401 *35 *159 -- 40,423 Other financial investment activities (investment advice)............................................................................................................ 66,178 27,499,347 93,919 24,702 140,767 66,847 348,389 3,441,650 22,922 Insurance agents, brokers, and related activities............................................................................................................ 288,532 21,789,868 392,683 232,839 655,114 148,342 2,088,091 10,428,163 Insurance agencies and brokerages............................................................................................................ 245,918 19,326,177 353,457 213,412 621,766 142,499 1,868,025 9,162,530 Other insurance related activities............................................................................................................ 42,614 2,463,691 39,226 19,427 33,348 5,843 220,065 1,265,632 Real estate and rental and leasing............................................................................................................ 661,748 39,904,894 1,252,178 301,858 553,330 409,421 913,035 19,782,204 876,583 273,276 465,738 343,148 756,374 19,080,663 48,617 4,285 35,479 46,958 36,876 352,455 Real estate............................................................................................................ 619,984 37,294,360 Lessors of real estate (including miniwarehouses and self storage)............................................................................................................ 11,044 835,643 Offices of real estate agents, brokers, property managers, and appraisers............................................................................................................ 536,079 32,545,258 774,705 254,088 397,588 259,625 605,177 17,034,138 Other activities related to real estate............................................................................................................ 72,861 3,913,458 53,260 14,903 32,671 36,565 114,322 1,694,070 Rental and leasing services............................................................................................................ 41,764 2,610,534 375,595 28,582 87,592 66,273 156,660 701,540 Automotive equipment rental and leasing............................................................................................................ 12,899 532,981 55,826 *16,289 *844 7,002 *7,472 151,114 Consumer electronics and appliances rental............................................................................................................ *1,056 *58,561 *5,031 -- *158 *68 -- *24,400 Formal wear and costume rental............................................................................................................ *941 *41,380 *20,805 *71 *4,282 *1,333 *790 *803 Video tape and disc rental............................................................................................................ 3,617 541,684 74,605 *3,503 *74,257 *14,374 71,869 40,192 General rental centers and other consumer goods rental............................................................................................................ 7,457 255,420 20,610 *488 *4,854 *4,122 *12,240 57,410 39,375 64,291 427,621 Commercial and industrial machinery and equipment rental and leasing............................................................................................................ 15,794 1,180,509 198,718 Footnotes at end of table. 8,231 3,197 21 Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction (9) (10) (11) 1 and equipment 1 (12) Professional, scientific, and technical services............................................................................................................ 1,841,653 100,912,238 2,380,970 668,745 Legal services............................................................................................................ 274,404 26,702,650 on other Interest paid business deduction property 1,2 Payroll 1,3 Net income 1 (13) (14) (15) (16) 2,234,217 651,092 7,645,411 48,215,911 416,248 198,532 1,071,860 183,115 2,748,135 12,904,403 Office of certified public accountants............................................................................................................ 46,609 2,920,096 88,529 27,021 101,869 28,556 427,889 1,333,846 Other accounting services............................................................................................................ 264,136 6,057,293 42,243 134,982 86,364 611,022 2,858,684 Architectural, engineering, and related services............................................................................................................ 185,297 10,735,496 348,736 63,925 193,364 77,547 1,294,243 4,666,318 86,149 36,497 754,328 1,418,271 Engineering services............................................................................................................ 76,543 4,716,807 135,510 15,849 70,416 Drafting, building inspections, and geophysical surveying............................................................................................................ 34,542 995,435 18,088 *8,088 *17,971 24,151 *1,515 330,659 *116,000 2,389,735 605,726 Surveying and mapping (except geophysical) services............................................................................................................ 14,089 640,187 41,691 *5,893 Testing laboratories............................................................................................................ *2,097 *58,241 *345 -- *18,827 -- *15,383 -- 93,256 -- 197,884 *54,702 1,342,709 Architectural services............................................................................................................ 58,025 4,324,827 235,727 153,101 34,094 Specialized design services............................................................................................................ 105,180 4,653,636 180,469 43,826 80,727 23,969 202,944 Computer systems design services............................................................................................................ 164,885 6,423,417 162,228 26,138 62,682 14,119 260,688 3,152,183 Other professional, scientific, and technical services............................................................................................................ 801,142 43,419,652 949,035 267,060 588,734 237,423 2,100,490 21,957,766 14,229,878 Management, scientific, and technical consulting services............................................................................................................ 434,066 22,671,463 430,606 127,062 250,046 65,828 468,693 Scientific research and development services............................................................................................................ 25,592 460,102 4,778 *796 *1,791 *2,380 *4,522 271,299 Advertising and related services............................................................................................................ 64,274 4,591,313 77,005 77,390 25,283 147,183 1,408,786 25,585 Market research and public opinion polling............................................................................................................ 18,694 941,456 33,767 *15,125 11,154 *3,307 *128,763 308,252 Other miscellaneous services............................................................................................................ 258,515 14,755,318 402,879 98,492 248,354 140,625 1,351,330 5,739,551 and remediation services............................................................................................................ 1,228,623 33,318,010 1,366,336 352,473 479,434 236,388 4,001,493 11,537,803 Administrative and support services............................................................................................................ 1,212,004 32,257,428 1,254,713 334,887 465,197 220,268 3,820,777 11,299,109 Waste management and remediation services............................................................................................................ 16,619 1,060,582 111,623 17,586 14,237 16,120 180,716 238,693 Administrative and support and waste management 22 Educational services............................................................................................................ 271,009 3,713,815 112,578 12,303 180,288 10,184 191,314 1,807,427 Health care and social assistance............................................................................................................ 1,281,256 79,261,609 1,860,368 506,164 3,022,723 748,413 10,752,686 36,868,731 Ambulatory health care services............................................................................................................ 640,415 70,064,293 1,600,495 438,978 2,819,829 616,209 10,082,406 32,819,858 Offices of physicians (except mental health specialist)............................................................................................................ 155,777 25,275,181 355,682 143,860 814,396 126,617 2,891,683 14,204,534 Offices of physicians, mental health specialist............................................................................................................ 20,295 1,922,141 53,320 7,598 74,000 9,503 152,966 1,142,361 Offices of dentists............................................................................................................ 87,673 24,900,126 726,462 141,055 886,937 333,293 5,320,700 9,406,329 Offices of chiropractors............................................................................................................ 23,267 3,584,456 66,687 37,050 253,840 46,949 432,302 1,490,961 Offices of optometrists............................................................................................................ 14,888 2,538,840 68,933 15,092 163,269 35,639 449,088 681,294 Offices of mental health practitioners and social therapists............................................................................................................ 126,245 5,571,140 164,144 59,510 375,434 23,038 253,060 3,003,652 Offices of podiatrists............................................................................................................ 6,042 633,250 *8,792 73,350 261,842 20,852 *4,112 50,422 Outpatient care centers and other miscellaneous 80,414 6,988 64,359 7,770 82,556 1,190,746 Medical and diagnostic laboratories............................................................................................................ 15,740 1,360,608 27,714 health practitioners............................................................................................................ 76,070 2,120,063 14,593 68,861 10,564 216,065 490,496 Home health care services............................................................................................................ 95,522 1,541,398 26,061 *3,536 *37,074 *5,831 116,211 763,341 ambulance services, blood and organ banks)............................................................................................................ 18,898 617,090 10,226 *5,583 184,301 Other ambulatory health care services (including 31,236 *8,212 94,425 -- -- -- *716 -- *46,047 Nursing and residential care facilities............................................................................................................ 43,485 2,031,060 61,698 25,092 47,404 77,743 391,255 659,609 Hospitals............................................................................................................ *5,785 *69,778 Social assistance............................................................................................................ 76,680 1,139,720 19,058 *7,010 74,707 *1,423 *14,306 625,379 Child day care services............................................................................................................ 514,892 5,956,758 179,117 35,085 80,784 52,322 264,719 2,717,838 Arts, entertainment, and recreation............................................................................................................ 625,141 16,095,155 558,757 120,264 253,230 129,528 562,164 7,408,386 181,990 63,830 269,155 6,572,322 Museums, historical sites, and similar institutions............................................................................................................ *4,032 *41,858 --- -- -- -- *23,997 Amusement, gambling, and recreation industries............................................................................................................ 116,513 3,290,923 155,384 41,500 71,240 65,698 293,009 812,067 Accommodation, food services, and drinking places............................................................................................................ 216,221 29,010,250 827,280 227,686 1,517,358 635,208 4,813,427 3,431,838 86,938 326,346 397,556 675,791 Performing arts, spectator sports, and related industries............................................................................................................ 504,596 12,762,374 403,373 78,764 Accommodation............................................................................................................ 41,229 3,629,188 251,596 25,270 Travel accommodation 22 (including hotels, motels, and bed and breakfast inns)............................................................................................................ 20,303 2,517,748 181,338 10,235 48,693 246,529 290,980 393,585 RV (recreational vehicle) parks and recreational camps............................................................................................................ 11,756 459,684 29,284 *142 *32,180 *10,425 *24,112 151,977 Rooming and boarding houses............................................................................................................ 9,169 651,757 40,974 *14,893 *6,065 69,392 82,464 130,229 Food services and drinking places............................................................................................................ 174,993 25,381,062 575,684 202,416 1,430,420 308,863 4,415,871 2,756,047 Footnotes at end of table. Sole Proprietorship Returns, 1999 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1 and equipment (9) (10) 1 on other Interest paid business deduction property 1,2 Payroll 1,3 Net income 1 (11) (12) (13) (14) (15) (16) 1,891,199 726,828 3,234,050 647,152 5,983,748 16,555,050 Auto repair and maintenance............................................................................................................ 250,678 20,757,657 748,674 276,503 720,613 288,919 2,804,951 3,343,341 376,207 175,990 344,168 145,055 1,364,190 1,785,849 Automotive body [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A1fff040a638291e2. Public record. Not legal advice.