Sole Proprietorship Returns, 2005
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Sole Proprietorship Returns, 2005
by Jeff Curry and Justin Bryan
F
or Tax Year 2005, there were approximately
21.5 million individual income tax returns that
reported nonfarm sole proprietorship activity. Nearly every sole proprietor industrial sector
reported an increase in profits. Total profits for all
nonfarm sole proprietorships were $269.9 billion, a
9.0-percent increase from Tax Year 2004. When adjusted for inflation, profits increased by 5.5 percent,
the highest percentage increase in profits since 1998.
The largest percentage increase in profits for a major
industrial sector was 19.4 percent for the real estate
and rental and leasing sector, followed by a 15.5-percent and 14.6-percent increase for the transportation
and warehousing sector and the retail trade sector, respectively. The only major industrial sector to show
a decline in profits for 2005 was the wholesale trade
sector, showing a 3.5-percent decline.
In addition to an increase in profits for sole proprietorships in Tax Year 2005, there was an increase
of both receipts and deductions reported on these
returns: total business receipts increased 7.3 percent
to $1,222.9 billion, and total business deductions
grew 6.8 percent to $953.4 billion. The real estate
and rental and leasing sector reported the largest
percentage increase in both receipts and deductions,
with a 17.6-percent increase in business receipts and
a 16.4-percent increase in deductions. The wholesale
trade sector reported the second largest growth in
receipts at 13.3 percent. For 2005, when inflation is
taken into account, receipts and deductions increased
3.9 percent and 3.4 percent, respectively. For 2005,
profits as a percentage of receipts rose to their highest level in over 18 years to 23.07 percent. Also, for
2005, depreciation had its largest real decline in over
18 years, decreasing by 11.8 percent.
Jeff Curry and Justin Bryan are economists with the Individual Research Section and the Individual Returns Analysis Section, respectively. This article was prepared under
the direction of Carl Greene, Former Chief of Individual
Research Section, and Jeff Hartzok, Chief of Individual
Returns Analysis Section.
Returns and Receipts
The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2005
increased 4.3 percent to almost 21.5 million (Figure
A).1 However, despite the overall increase, the largest sector (in terms of number of returns), professional, scientific, and technical services, decreased
2.3 percent to almost 2.9 million returns. Conversely,
the construction sector, which was the second largest
sector, reported 2.8 million returns, an increase of 9.0
percent. The largest reported increase in number of
returns for any industrial sector was in the real estate
and rental and leasing sector with a 14.4-percent increase to almost 1.3 million returns.
Total business receipts (the sum of “income from
sales and operations” and “other business income”)
for all nonfarm sole proprietorship industries increased 7.3 percent, from $1,139.5 billion to $1,222.9
billion.2 Just as with number of returns, the real estate and rental and leasing sector showed the largest
percentage increase in receipts, reporting an increase
of $12.4 billion or 17.6 percent. The second largest
percentage increase in receipts for 2005 was in the
wholesale trade sector with an increase of 13.3 per-
For 2005, the 21,467,566 nonfarm sole proprietorship returns accounted for an estimated 23,893,733 nonfarm businesses. For purposes of the statistics, if a proprietor
owned more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that
business activity. When this occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting
a deficit) yielded the profits for a specific industrial group. The North American Industry Classification System (NAICS) was used to classify data by industries for 2005.
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.
2 Statistics for “business receipts, total” in Table 2 represent the total receipts of the business, mainly gross receipts from sales and operations. Business receipts also
include miscellaneous business receipts, such as incidental sales of scrap, shown separately in the statistics as “other business income.” However, business receipts exclude
incidental investment income received through the business. Examples of such incidental investment income are interest, dividends, income or loss from rents or royalties,
and capital or ordinary gain or loss from the sale of investment and business property. Sole proprietors report incidental investment income, in combination with non business-related investment income, as part of their total incomes on their individual income tax returns.
1
The North American Industry Classification System (NAICS) for industrial coding was introduced for
the first time in Tax Year 1998. Because of the coding changes, comparisons between data by industries
from 1998-2005 with 1997 and prior years may show
inconsistencies. A reason for this was that many sole
proprietorships under the NAICS system were classified in completely different industrial groups, which
makes prior-year comparisons inappropriate. For
example, in 1997, finance, insurance, and real estate
were grouped by Standard Industrial Classification
(SIC) codes as one industry, while, under the NAICS
system, the group has been split into two industrial
sectors. The industrial sectors based on the NAICS
codes are reported in Tables 1 and 2.
Sole Proprietorship Returns, 2005
Figure A
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors,
Tax Years 2004 and 2005
[Number of returns is in thousands—money amounts are in billions of dollars]
Industrial sector
Number of returns
Percentage
2004
2005
increase
(1)
(2)
(3)
All nonfarm industries............................. 20,590.7
Construction................................................. 2,586.8
Specialty trade contractors....................... 2,084.0
Wholesale trade (merchant wholesalers).....
350.8
Retail trade................................................... 2,399.4
Transportation and warehousing.................
982.8
Finance and insurance.................................
672.7
Real estate and rental and leasing.............. 1,179.4
Real estate................................................ 1,113.9
Professional, scientific, and
technical services....................................... 2,951.0
Administrative and support and waste
management and remediation services..... 1,994.8
Health care and social assistance............... 1,778.0
Child day care services.............................
694.1
Arts, entertainment, and recreation.............. 1,132.2
Performing arts, spectator sports,
and related industries.............................
963.5
Other services.............................................. 2,089.3
Personal and laundry services.................. 1,338.7
All other industries....................................... 2,473.4
Total business receipts
Percentage
2004
2005
increase
(4)
(5)
(6)
Total business deductions [1]
Percentage
2004
2005
increase
(7)
(8)
(9)
21,467.6
2,820.6
2,235.2
347.9
2,473.6
1,043.1
705.5
1,349.6
1,284.3
4.3
9.0
7.3
-0.8
3.1
6.1
4.9
14.4
15.3
1,139.5
198.4
134.7
40.8
187.1
65.3
73.1
70.5
66.6
1,222.9
222.1
149.0
46.3
197.3
72.3
72.4
82.9
78.7
7.3
11.9
10.6
13.3
5.5
10.8
-1.0
17.6
18.2
892.4
167.3
110.2
35.7
179.0
56.6
55.6
42.6
38.6
953.4
187.3
122.6
41.4
188.0
62.3
52.9
49.6
45.7
6.8
11.9
11.3
15.8
5.0
10.0
-4.7
16.4
18.3
2,883.4
-2.3
137.7
145.1
5.4
80.9
84.2
4.0
1,915.5
1,768.7
674.2
1,157.2
-4.0
-0.5
-2.9
2.2
50.0
104.2
10.0
26.4
52.0
106.7
9.8
27.4
3.9
2.5
-2.0
3.9
35.9
62.2
6.4
20.6
37.5
63.7
6.2
20.9
4.3
2.4
-4.1
1.6
971.1
2,315.2
1,488.5
2,687.3
0.8
10.8
11.2
8.6
19.3
73.0
33.6
113.1
20.0
78.1
37.8
120.2
3.8
7.0
12.6
6.3
13.8
56.6
23.0
99.4
14.2
60.3
26.7
105.3
2.8
6.7
15.8
6.0
[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.
NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.
cent. This was followed closely by the 11.9-percent
growth in the construction sector, as well as the 10.8percent growth in the transportation and warehousing
sector. Overall, in constant dollar terms, total business receipts had the fourth largest annual increase
over Tax Years 1988-2005 of 3.9 percent (Figure B).3
Deductions
Total business deductions (“cost of sales and operations” plus business expenses, including expenses
for home office) in current dollars increased 6.8 percent from $892.4 billion for 2004 to $953.4 billion
for 2005 (Figure A).4,5 The wholesale trade sector
showed the largest percentage increase in deductions
with 15.8 percent. As shown in Figure B, when accounting for inflation, business deductions increased
3.4 percent, the fifth largest increase in deductions
from Tax Years 1988-2005 and the second straight
increase after 3 years of decreases.
Representing 41.6 percent of total 2005 business
deductions, the cost of sales and operations was approximately $396.9 billion (Figure C), a 7.0-percent
increase from the 2004 level. Total business “expenses” (total business deductions minus the cost of
sales and operations) were $556.5 billion for 2005, a
6.7-percent increase from the 2004 amount. Figure
D graphically presents the main components of total
business expenses. The largest component, salaries
Based on the overall implicit price deflator for Gross Domestic Product (GDP). See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business. Indices by year used for this article were: 1988 (75.7); 1989 (78.6); 1990 (81.6); 1991 (84.4); 1992 (86.4); 1993 (88.4); 1994 (90.3); 1995 (92.1); 1996 (93.9); 1997
(95.4); 1998 (96.5); 1999 (97.9); 2000 (100.0); 2001 (102.4); 2002 (103.9); 2003 (106.0); 2004 (109.1); 2005 (112.7).
4 Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from business income or loss, which is reported on the attached Schedule C, Profit or
Loss From Business (or, to a lesser extent, on Schedule C-EZ, Net Profit From Business). Salaries paid to owners qualify as personal income, not as a business expense, and
are, therefore, part of the owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made through the business as personal expenses on Schedule
A, Itemized Deductions. However, the owner of a sole proprietorship may choose to deduct any foreign taxes paid as a business expense, unless the owner elects to claim
these taxes as a credit against U.S. income tax.
5 Business deductions include home office business deductions. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use of
Your Home, and the deductible portion brought forward to Schedule C. In some cases, these expenses were limited. Prior to 1990, these expenses were not limited and were
included with other expenses, such as depreciation deductions, utilities, and “other” expenses on Schedule C.
3
Sole Proprietorship Returns, 2005
Figure B
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2005
[Money amounts are in billions of dollars]
Total business receipts
Tax year
1988.......................
1989.......................
1990.......................
1991.......................
1992.......................
1993.......................
1994.......................
1995.......................
1996.......................
1997.......................
1998.......................
1999.......................
2000.......................
2001.......................
2002.......................
2003.......................
2004.......................
2005.......................
Total business deductions [1]
Current
dollars
(1)
Constant dollars [2]
Percentage
Amount
increase
(2)
(3)
672.0
692.8
730.6
712.6
737.1
757.2
790.6
807.4
843.2
870.4
918.3
969.3
1,021.0
1,016.8
1,029.7
1,050.2
1,139.5
1,222.9
887.8
881.9
895.5
843.9
853.3
856.8
876.0
876.6
898.5
912.2
951.8
990.5
1,021.0
993.3
990.6
990.8
1,044.5
1,084.7
0
-0.7
1.5
-5.8
1.1
0.4
2.2
0.1
2.5
1.5
4.3
4.1
3.1
-2.7
-0.3
[3]
5.4
3.9
Net income less deficit (profits)
Current
dollars
(4)
Constant dollars [2]
Percentage
Amount
increase
(5)
(6)
Current
dollars
(7)
Constant dollars [2]
Percentage
Amount
increase
(8)
(9)
545.7
560.2
589.2
571.2
583.1
600.8
623.8
638.1
666.5
683.9
716.2
761.4
806.4
799.6
808.9
820.2
892.4
953.4
720.9
713.1
722.1
676.4
675.0
679.7
691.2
692.8
710.1
716.7
742.3
778.0
806.4
781.1
778.2
773.8
818.0
845.7
126.3
132.7
141.4
141.5
154.0
156.5
166.8
169.3
176.8
186.6
202.3
207.9
214.7
217.4
221.1
230.3
247.6
269.9
166.9
168.9
173.3
167.6
178.3
177.0
184.8
183.8
188.3
195.6
209.7
212.5
214.7
212.3
212.7
217.3
226.9
239.4
0
-1.1
1.3
-6.3
-0.2
0.7
1.7
0.2
2.5
0.9
3.6
4.8
3.6
-3.1
-0.4
-0.6
5.7
3.4
0
1.2
2.6
-3.3
6.4
-0.7
4.4
-0.6
2.5
3.9
7.2
1.3
1.1
-1.1
0.2
2.1
4.4
5.5
[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses
(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or
deficit.
[2] Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis, in the Survey of Current Business . The deflator represents the annual average of current-weighted prices, based on 2000 = 100.
[3] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.
and wages, accounted for 13.5 percent of the total.
For 2005, salaries and wages totaled $75.1 billion,
a 5.7-percent increase from 2004. The next largest components of business expenses were cars and
trucks (12.8 percent), rent on business property, machinery, and equipment (7.1 percent), and depreciation (7.0 percent). For 2005, these items were $71.0
billion, $39.5 billion, and $39.1 billion, respectively.
Car and truck expenses showed a 20.4-percent increase from 2004; rent on business property, machinery, and equipment showed a 7.1-percent increase
while depreciation declined by 8.9 percent. Car and
truck expenses showed the largest increase in percentage share of business expenses at 1.5 percentage
points, up from 11.3 percent in 2004, while depreciation showed the largest decrease at 1.2 percentage
points, down from 8.2 percent for 2004.
The increase in the depreciation deduction for 1993 may be attributed, in part, to a provision of the Omnibus Budget Reconciliation Act of 1993 (OBRA93). The cost of
certain tangible property (as described in Internal Revenue Code section 179) may be treated as a current expense rather than a capital expenditure subject to depreciation
deductions. The provision of OBRA93 (related to these expenses) increased the maximum amount of investment certain small businesses could immediately deduct on
property placed in service after 1992, from $10,000 to $17,500. Following the enactment of this provision, the 179 deduction for all individuals (not just sole proprietors)
filing Form 4562, Depreciation and Amortization, increased 32.4 percent to $13.5 billion for 1993.
6
Depreciation deductions began to decline for
Tax Year 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, depreciation deductions dropped 9.6 percent for 1989 and continued
to decline through 1992 (Figure E). Beginning
with 1993, constant dollar depreciation increased
every year through 2003, except for 1995, when it
decreased 1.9 percent to $28.5 billion.6 The largest
increases occurred in 2002 and 2003 (8.0 percent and
11.7 percent. respectively). However, for 2004 and
again in 2005, constant dollar depreciation showed a
decrease. In real terms, depreciation decreased 11.8
Sole Proprietorship Returns, 2005
Figure C
Components of Nonfarm Sole Proprietorship
Business Deductions, Tax Years 2004 and 2005
[Money amounts are in millions of dollars]
Business deductions
2004
(1)
2005
Percentage
increase
(2)
(3)
Business deductions, total [1,2].......... 892,402.4
953,391.5
6.8
Cost of sales and operations, total..... 370,951.2
Inventory, beginning of year................ 35,761.1
Cost of labor........................................ 31,768.7
Purchases........................................... 238,922.5
Materials and supplies......................... 53,267.9
Other costs.......................................... 50,186.7
Inventory, end of year.......................... 38,955.7
Business expenses, total [1]............... 521,451.2
Advertising expenses.......................... 12,888.3
Car and truck expenses...................... 58,980.3
Commissions....................................... 13,267.0
Contract labor...................................... 24,686.7
Depletion.............................................
775.6
Depreciation [3]................................... 42,900.8
Employee benefit programs................
2,617.8
Home office business deductions [3]...
7,807.0
Depreciation, Form 8829.....................
1,093.4
Insurance............................................. 18,864.2
Legal and professional services..........
8,959.1
Meals and entertainment deducted.....
5,997.8
Mortgage interest................................
5,167.4
Other interest paid on business
indebtedness.....................................
5,856.4
Office expenses................................... 12,362.7
Pension and profit-sharing plans.........
1,202.2
Rent on machinery and equipment.....
8,728.4
Rent on other business property......... 28,139.2
Repairs................................................ 14,762.5
Supplies............................................... 27,302.9
Salaries and wages............................. 71,068.5
Taxes paid........................................... 16,036.2
Travel.................................................. 10,317.6
Utilities................................................. 21,477.5
Other business deductions.................. 98,293.2
396,875.8
38,101.7
32,163.0
252,887.7
55,902.0
59,845.9
42,024.5
556,515.7
14,449.5
71,013.1
15,439.7
28,223.6
1,061.8
39,080.2
2,798.3
8,801.1
1,260.2
19,000.9
9,836.9
6,802.2
5,543.7
7.0
6.5
1.2
5.8
4.9
19.2
7.9
6.7
12.1
20.4
16.4
14.3
36.9
-8.9
6.9
12.7
15.3
0.7
9.8
13.4
7.3
6,565.9
12,835.6
1,251.9
9,135.7
30,349.0
14,976.1
28,858.6
75,091.2
16,797.5
11,308.3
22,910.3
101,044.7
12.1
3.8
4.1
4.7
7.9
1.4
5.7
5.7
4.7
9.6
6.7
2.8
[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.
[2] Total business deductions are before subtraction of nonallowable "passive"
activity losses and any "passive loss" carryover from the prior years.
[3] Depreciation claimed on Form 8829 is included in "home office business
deductions" and excluded from depreciation shown above.
NOTES: Detail may not add to totals because of rounding. Percentage increases were
calculated before rounding.
percent in 2005, making it the largest decrease since
before 1988.7, 8
Beginning with Tax Year 1992, certain smaller
businesses could elect not to itemize depreciation
and other business deductions by filing Schedule
C-EZ, Net Profit From Business, a simplified version of Schedule C, Profit or Loss From Business.
(Schedule C and Schedule C-EZ are the source of
sole proprietorship statistics.) For Tax Year 2005,
taxpayers could use Schedule C-EZ if they: had business expenses of $5,000 or less; used the cash accounting method; had no inventories; did not report a
deficit from the business; had only one business as a
sole proprietor; had no employees; were not required
to file Form 4562, Depreciation and Amortization,
for the business; claimed no deduction for home
business expenses; and had no prior-year disallowed
passive activity losses from the business. Since taxpayers using Schedule C-EZ did not itemize business
deductions, the detailed deductions in Table 2 are
slightly understated and do not add to the totals.
Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on
Schedule C-EZ by industrial sector. Approximately
3.9 million taxpayers filed Schedule C-EZ for Tax
Year 2005, representing a 4.5-percent increase from
the number filed for 2004. Of the returns filed for
2005 in the administrative and support services sector (the largest filers of this schedule), taxpayers filed
approximately 580 thousand Schedule C-EZ returns,
or 30.3 percent of the total for that sector.9 For 2005,
business receipts from Schedule C-EZ filers totaled
$26.0 billion, or 2.1 percent of total business receipts
reported. Business deductions reported on Schedule
C-EZ returns accounted for only 0.4 percent of total
business deductions for all industries, or $3.3 billion
of the total $953.4 billion. Even in the administrative
and support services sector with its higher concentration of Schedule C-EZ filers, deductions reported on
Schedule C-EZ accounted for just 1.2 percent of that
sector’s total business deductions.
Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of section 179 deduction (the amount of depreciable property that one can
expense for the cost of certain qualifying property) increased from $24,000 for 2002 to $100,000 for 2003, $102,000 for 2004 and $105,000 for 2005. For all tax returns that
filed Form 4562, Depreciation and Amortization, the section 179 property deducted as an expense increased by 3.8 percent to $41.3 billion for 2005. The Jobs Creation and
Worker Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the bonus percentage to
50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as advantageous as immediate expensing and therefore likely had less effect on their depreciation deductions.
8 For 2005, $21.5 billion were deducted as section 179 property on returns that had a Schedule C, up from $19.9 billion in 2004. This number does not reflect depreciation
solely deducted on Schedule C as this could also include depreciation taken on Schedule E, Supplemental Income and Loss, and Schedule F, Profit or Loss from Farming.
9 Based on the NAICS system, the full name of the administrative and support services sector is the administrative and support and waste management and remediation
services sector. The waste management and remediation services portion make up a small percentage of the overall numbers reported under this classification, which are
detailed in Table 1.
7
Sole Proprietorship Returns, 2005
Figure D
Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2005 [1]
Type of expenses
Travel
2.0
Total interest
2.2
Office expenses
2.3
Advertising expenses
2.6
Repairs
2.7
Commissions
2.8
Taxes paid
3.0
Insurance
3.4
Utilities
4.1
Contract labor
5.1
Supplies
5.2
Depreciation [2]
7.0
Rent paid on machinery, equipment
and other business property
7.1
Car and truck expenses
12.8
Salaries and wages
13.5
24.2
24.2
Other business deductions [3]
0
5
10
15
20
25
Percent of total
[1] Total business expenses equals all business deductions minus cost of sales and operations.
[2] Depreciation claimed on Form 8829 is included in "home office business deductions" and excluded from "depreciation" shown above. See
footnote #3 below.
[3] Other business deductions includes; depletion; employee benefit programs; legal and professional services; pension and profit-sharing plans
meals, and entertainment; and home office business deductions. Other business deductions also includes all Schedule C-EZ deductions ($3.3
billion).
NOTES: Percentages are based on an estimated total business expense of $556.5 billion. Detail may not add to 100 percent because of
rounding.
Profits and Losses
For 2005, all but one of the largest principal industrial sectors reported increased sole proprietorship
profits (net income less deficit). Figure B presents
total profits for all industries (in both current and
constant dollars) since 1988, while Figure G presents
profits by industrial sector for 2004 and 2005.10 Total
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.
10
10
profits increased 9.0 percent from $247.6 billion for
2004 to $269.9 billion for 2005. The real estate and
rental and leasing sector reported the largest percentage change in profits for 2005, increasing 19.4
percent to $33.3 billion. The real estate portion of
this sector provided for most of the increase, with an
income of $33.0 billion for 2005. The transportation
Sole Proprietorship Returns, 2005
Figure E
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2005
[Money amounts are in billions of dollars]
Current dollars
Tax year
Net income
1988.................
1989.................
1990.................
1991.................
1992.................
1993.................
1994.................
1995.................
1996.................
1997.................
1998.................
1999.................
2000.................
2001.................
2002.................
2003.................
2004.................
2005.................
Constant dollars [1]
Deficit
Depreciation [2]
(1)
(2)
145.5
152.4
161.7
162.4
173.5
177.0
187.8
191.7
200.1
210.5
226.2
233.4
245.2
250.2
257.3
269.1
290.5
314.8
19.2
19.7
20.2
20.9
19.5
20.5
21.0
22.5
23.4
23.8
23.9
25.5
30.5
32.8
36.2
38.8
42.9
44.8
Percentage increase in constant dollars [1]
Net income
Deficit
Depreciation [2]
Net income
Deficit
Depreciation [2]
(3)
(4)
(5)
(6)
(7)
(8)
(9)
26.1
24.5
23.7
23.1
23.3
25.0
26.2
26.2
27.4
28.6
29.1
30.6
32.2
33.4
36.6
41.8
42.9
39.1
192.2
194.0
198.2
192.3
200.8
200.3
208.1
208.2
213.2
220.6
234.5
238.5
245.2
244.4
247.5
253.9
266.3
279.2
25.4
25.1
24.8
24.8
22.6
23.2
23.3
24.4
24.9
25.0
24.8
26.0
30.5
32.0
34.8
36.6
39.3
39.8
34.5
31.2
29.0
27.4
27.0
28.3
29.0
28.5
29.2
30.0
30.2
31.3
32.2
32.7
35.3
39.4
39.3
34.7
-0.9
2.2
-3.0
4.4
-0.3
3.9
[3]
2.4
3.4
6.3
1.7
2.8
-0.3
1.3
2.6
4.9
4.9
--1.1
-1.3
[3]
-8.8
2.8
0.3
4.8
2.1
0.3
-0.7
4.9
17.3
5.0
8.7
5.1
7.5
1.1
--9.6
-6.9
-5.8
-1.4
4.9
2.6
-1.9
2.4
2.9
0.7
3.7
2.8
1.4
8.0
11.7
-0.2
-11.8
[1] Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis, in the Survey of Current Business . The deflator represents the annual average of current-weighted prices, based on 2000=100.
[2] Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home .
[3] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.
Figure F
Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2005
[Money amounts are in millions of dollars]
Industrial sector
Number of returns
With
Percentage
Total
Schedule
of
C-EZ
total
(1)
(2)
(3)
Total business receipts
On
Percentage
Total
Schedule
of
C-EZ
total
(4)
(5)
(6)
Total business deductions [1]
On
Percentage
Total
Schedule
of
C-EZ
total
(7)
(8)
(9)
All nonfarm industries.............................. 21,467,566
2,820,568
347,893
2,473,554
1,043,120
705,528
1,349,577
3,871,974
457,719
33,799
239,788
125,731
73,086
115,451
18.0
16.2
9.7
9.7
12.1
10.4
8.6
1,222,880.2
222,064.3
46,281.9
197,288.9
72,341.7
72,415.2
82,914.6
25,970.7
3,150.4
275.3
1,195.9
835.6
679.6
1,223.2
2.1
1.4
0.6
0.6
1.2
0.9
1.5
953,391.5
187,312.7
41,387.3
188,013.4
62,258.1
52,940.1
49,594.3
3,340.0
410.8
19.7
217.6
124.4
54.8
164.9
0.4
0.2
[2]
0.1
0.2
0.1
0.3
2,883,419
486,663
16.9
145,110.0
4,954.1
3.4
84,200.6
487.0
0.6
1,915,541
1,768,679
1,157,201
2,315,191
2,687,295
579,786
436,386
218,960
446,809
657,796
30.3
24.7
18.9
19.3
24.5
51,960.5
106,744.3
27,376.4
78,147.8
120,234.6
3,245.8
3,088.8
877.8
3,201.3
3,242.9
6.2
2.9
3.2
4.1
2.7
37,492.2
63,672.4
20,897.9
60,341.1
105,281.5
464.2
340.6
178.7
463.5
413.7
1.2
0.5
0.9
0.8
0.4
Construction..................................................
Wholesale trade (merchant wholesalers).....
Retail trade...................................................
Transportation and warehousing..................
Finance and insurance.................................
Real estate and rental and leasing...............
Professional, scientific, and
technical services....................................
Administrative and support and waste
management and remediation services...
Health care and social assistance................
Arts, entertainment, and recreation..............
Other services...............................................
All other industries........................................
[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.
[2] Less than 0.05 percent.
NOTES: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit from Business . See the text of this article for a full
list of the requirements to be eligible to file Schedule C-EZ.
11
Sole Proprietorship Returns, 2005
Figure G
Nonfarm Sole Proprietorship Profits, by Selected
Industrial Sectors, Tax Years 2004 and 2005
[Money amounts are in billions of dollars]
Industrial sector
Net income less deficit (profits)
Percentage
2004
2005
increase
(1)
(2)
(3)
All nonfarm industries................................
247.6
269.9
9.0
Construction....................................................
Specialty trade contractors..........................
31.0
24.5
34.8
26.4
12.2
7.7
Wholesale trade (merchant wholesalers)........
5.1
4.9
-3.5
Retail trade......................................................
Transportation and warehousing....................
Finance and insurance....................................
Real estate and rental and leasing.................
Real estate...................................................
Professional, scientific, and
technical services..........................................
Administrative and support and waste
management and remediation services........
Health care and social assistance..................
Child day care services................................
Arts, entertainment, and recreation.................
Performing arts, spectator sports,
and related industries................................
Other services.................................................
Personal and laundry services.....................
All other industries..........................................
8.1
8.8
17.6
27.9
27.9
9.3
10.1
19.5
33.3
33.0
14.6
15.5
10.7
19.4
18.0
56.9
61.0
7.3
14.1
42.0
3.6
5.8
14.5
43.1
3.6
6.5
2.9
2.7
1.9
11.9
5.5
16.5
10.6
13.9
5.8
17.8
11.2
15.1
6.3
8.3
5.7
8.5
NOTES: Detail may not add to totals because of rounding. Percentage increases were
calculated before rounding.
and warehousing sector reported the second largest
percentage increase in profits with 15.5 percent. Interestingly, the wholesale trade sector, which had the
largest growth in profits for 2004, was the only sector
decline for 2005, reporting a 3.5-percent decrease
in profits.
In constant dollars, total profits increased 5.5
percent for 2005 (Figure B). Profits as a percentage
of business receipts also increased for 2005. Figure
H displays net income less deficits as a percentage of
business receipts for 1988 through 2005. In general,
this percentage has been increasing from a low of
18.79 percent for 1988. This trend continued for Tax
Year 2005 when profit as a percentage of business
receipts was 22.07 percent, above the 21.73 percent
for 2004. This was the highest percentage for the
entire 18-year period shown in the figure, surpassing
12
the previous high of 22.03 percent for 1998. Figure
E presents net income and deficit separately for 1988
through 2005, in current and constant dollars. For
2005, net income (in constant dollars) increased 4.9
percent, and deficit (in constant dollars) increased
only 1.1 percent.
Industries
Using receipts as a measure of business size, Figures
A and I show that construction was the largest sole
proprietorship industrial sector for 2005 with 18.2
percent of all business receipts (the second year in a
row that this sector was largest). Total receipts for
the construction sector, at $222.1 billion, were 11.9
percent higher than the $198.4 billion reported for
2004, while deductions also increased by 11.9 percent, leading to a 12.2-percent increase in profits (to
$34.8 billion). The second largest industrial sector
was retail trade, with receipts totaling $197.3 billion.
This amount was 16.1 percent of all sole proprietorship receipts for 2005, and it represented a 5.5-percent increase from the 2004 amount. Deductions
also increased in this sector by 5.0 percent. Retail
trade profits increased 14.6 percent for 2005, totaling
$9.3 billion.
The third largest sector was professional, scientific, and technical services, which accounted
for 11.9 percent of sole proprietorship receipts for
2005. Receipts increased 5.4 percent to $145.1 billion, and deductions increased 4.0 percent to $84.2
billion. Although this sector was the third largest
sector in terms of business receipts, the professional,
scientific, and technical services sector had the largest percentage of sole proprietorship profits with 22.6
percent (Figure J). For 2005, the professional, scientific, and technical services sector’s profits went from
$56.9 billion to $61.0 billion, a 7.3-percent increase
from 2004 profits. The sector with the second largest
profits was health care and social assistance. These
profits rose to $43.1 billion for 2005, a 2.7-percent
increase from 2004 levels and represented 16.0 percent of all sole proprietorship profits. This was followed by construction (12.9 percent, as cited above)
and real estate and rental and leasing (12.3 percent)
in terms of overall sole proprietor profits.
Sole Proprietorship Returns, 2005
Figure H
Nonfarm Sole Proprietorship Net Income Less Deficit (Profits) as a Percentage of Business Receipts,
Tax Years 1988-2005
Percent
23
22.03
22
21.44
21.10
20.89
21
21.73
21.38
21.47
21.45
20.96
22.07
21.93
21.03
20.96
20.66
20
19.86
19.15
19
19.35
18.79
18
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Tax year
Tax Year 2001 is the first year in which data
became available on the number of Limited Liability Companies (LLCs) among sole proprietorship
returns. LLC entities have the limited liability of
corporations, but are taxed as sole proprietorships—
income and expenses flow through to the owner to
be taxed. In 2001, there were approximately 126
thousand sole proprietorship returns that indicated
status as an LLC (Figure K). This increased by 15.3
percent for 2002, 51.3 percent for 2003, and 40.4
percent for 2004. For Tax Year 2005, the number of
these sole proprietorships rose to approximately 456
thousand, a 47.2-percent increase from 2004.11 The
2005 level of LLCs among sole proprietorship returns counts for 2.1 percent of the total nonfarm sole
proprietorships, with the total number of LLCs having more than tripled since 2001.
Summary
Profits for the 21.5 million returns with sole proprietorship activity for Tax Year 2005 grew 9.0 percent
to $269.9 billion. In constant dollars, total nonfarm
sole proprietorship profits increased 5.5 percent, the
largest increase since 1998. The real estate and rental and leasing sector reported the largest percentage
growth in profits at 19.4 percent. The professional,
scientific, and technical services sector had the largest profits of any sector at $61.0 billion, representing
22.6 percent of total sole proprietorship profits, followed by the health care and social assistance sector
at $43.1 billion or 16.0 percent of total profits. For
all sole proprietorships, receipts and deductions
increased 7.3 percent and 6.8 percent, respectively.
The largest sole proprietorship industrial sector,
based on business receipts, was the construction sector, accounting for 18.2 percent of receipts. This sector reported a 12.2-percent increase in profits. The
real estate and rental and leasing sector showed the
largest percentage increase in both receipts and deductions, reporting a 17.6-percent increase in receipts
and a 16.4-percent increase in deductions. Filings
of Schedules C-EZ increased 4.5 percent in 2005,
13
Sole Proprietorship Returns, 2005
Figure I
Nonfarm Sole Proprietorship Total Business Receipts by Selected Industrial Sectors,
Tax Year 2005
Arts, entertainment, and recreation
2.2
Wholesale trade (merchant wholesalers)
Administrative and support and waste management and
remediation services
Transportation and warehousing
3.8
4.2
5.9
Finance and insurance
5.9
Other services
6.4
Real estate and rental and leasing
6.8
Health care and social assistance
8.7
9.8
All other industries
11.9
Professional, scientific, and technical services
Retail trade
16.1
18.2
Construction
0
5
10
Percent of total
15
20
NOTES: Percentages are based on an estimated total business receipts of $1.2 trillion. Detail may not add to 100 percent because of rounding.
Figure J
Nonfarm Sole Proprietorship Total Business Profits by Selected Industrial Sectors,
Tax Year 2005
Wholesale trade (merchant wholesalers)
1.8
Arts, entertainment, and recreation
2.4
Retail trade
3.4
Transportation and warehousing
Administrative and support and waste management and
remediation services
All other industries
3.7
5.4
5.6
6.6
Other services
7.2
Finance and insurance
Real estate and rental and leasing
12.3
Construction
12.9
16.0
Health care and social assistance
22.6
Professional, scientific, and technical services
0
5
10
15
20
25
Percent of total
14
NOTES: Percentages are based on an estimated total business profits of $269.9 billion. Detail may not add to 100 percent because of rounding.
Profits is a designation for "net income less deficit," shown elsewhere in this article.
Sole Proprietorship Returns, 2005
Figure K
Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs), Tax
Years 2001-2005
Tax year
455,734
2005
309,665
2004
220,615
2003
145,839
2002
126,437
2001
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Number of LLCs
substantially less than the 25.1-percent increase for
2004, the first year in which allowable expenses were
doubled to $5,000 on this form.
Data Sources and Limitations
The 2005 sole proprietorship estimates are based on a
stratified probability sample of unaudited Individual
Income Tax Returns, Form 1040 (including electronically-filed returns), processed by the Internal Revenue Service during Calendar Year 2006. Returns in
the sample were stratified based on: (1) the presence
or absence of Schedule C, Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net
Profit From Business, and Schedule F, Farm Income
and Expenses; (2) the larger of positive income or
negative income (i.e., “adjusted gross income” before
statutory adjustments); and (3) tax year. The returns
were selected at rates that ranged from 0.05 percent
to 100 percent. The 2005 nonfarm sole proprietor-
ship data are based on a sample of 82,689 returns
and a population of 21,756,709 returns.11 The corresponding sample and population for the 2004 data
were 62,926 and 20,848,447 returns, respectively.
Since the data presented in this article are estimates based on a sample of returns filed, they are
subject to sampling error. To properly use the statistical data estimates provided, the magnitude of
the potential sampling error must be known; coefficients of variation (CVs) are used to measure that
magnitude. Figure L presents estimated coefficients
of variation for the number of returns and money
amounts for selected items and industrial sectors.
Generally, the smaller the coefficient of variation, the
more reliable the estimate is judged to be. 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.
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.
11
15
Sole Proprietorship Returns, 2005
Figure L
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial
Sectors, Tax Year 2005
[Coefficients of variation are in percentages]
Coefficients of variation
Industrial sector
All nonfarm industries........................................................................
Construction............................................................................................
Specialy trade contractors...................................................................
Wholesale trade (merchant wholesalers)................................................
Retail trade..............................................................................................
Transportation and warehousing............................................................
Finance and insurance............................................................................
Real estate and rental and leasing.........................................................
Real estate...........................................................................................
Professional, scientific, and technical services......................................
Administrative and support and waste management and
remediation services............................................................................
Health care and social assistance..........................................................
Child day care services........................................................................
Arts, entertainment, and recreation.........................................................
Performing arts, spectator sports, and related industries....................
Other services.........................................................................................
Personal and laundry services.............................................................
All other industries..................................................................................
[1] Excludes depreciation claimed on Form 8829.
16
Total business
receipts
Total business
deductions
Depreciation [1]
Net income
Deficit
(1)
(2)
(3)
(4)
(5)
0.56
0.63
1.26
0.74
1.44
1.91
2.31
4.68
2.10
2.68
2.48
2.41
2.47
1.78
2.01
2.45
4.81
2.10
2.74
2.58
2.78
2.87
2.05
3.41
4.02
10.29
4.11
4.16
7.87
4.66
4.76
3.59
2.17
2.55
6.47
3.29
3.60
3.65
2.82
2.86
2.06
5.13
6.40
10.23
3.55
6.60
5.96
5.23
5.60
4.77
3.15
1.91
5.08
3.50
3.88
2.71
3.30
2.13
3.67
2.04
6.43
3.66
4.12
3.00
3.67
2.20
6.04
4.11
11.87
6.47
7.92
4.89
7.02
3.44
3.13
2.28
4.89
4.27
4.57
2.98
3.71
2.78
6.72
7.31
17.31
5.18
5.79
5.75
7.43
3.65
Sole Proprietorship Returns, 2005
Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2005
[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
on other
Interest paid
Payroll
Net income
of returns
receipts
deduction
business
deduction
[1,4]
less deficit
(7)
(8)
[1,2]
(1)
and
equipment [1] property [1]
[1,3]
(2)
(3)
(4)
(5)
(6)
All nonfarm industries............................................................ 21,467,566
Agriculture, forestry, hunting, and fishing.................................
267,733
Animal production (including breeding of cats and dogs).............
40,485
Forestry and logging (including forest nurseries, timber tracts)...
55,831
1,222,880,231
16,425,957
2,234,570
6,026,299
40,340,396
1,539,804
194,782
708,864
9,135,688
96,011
3,721
46,943
30,349,041
122,469
16,169
16,932
12,109,510
247,072
27,531
113,492
107,254,163 269,919,995
1,813,400
827,412
76,483
-353,415
587,197
481,976
Fishing..........................................................................................
Hunting and trapping....................................................................
Support activities for agriculture and forestry...............................
Mining.............................................................................................
Oil and gas extraction...................................................................
Coal mining..................................................................................
Metal ore mining...........................................................................
Nonmetallic mineral mining and quarrying...................................
Support activities for mining.........................................................
Utilities...........................................................................................
Construction..................................................................................
Residential building construction..................................................
Nonresidential building construction.............................................
Heavy and civil engineering construction ...................................
Specialty trade contractors...........................................................
Manufacturing................................................................................
Food manufacturing.....................................................................
Textile and textile product mills....................................................
Apparel.........................................................................................
Leather and allied products..........................................................
Wood products.............................................................................
68,511
9,067
93,837
121,449
106,198
43
* 1,297
2,456
11,456
10,510
2,820,568
431,664
95,587
58,087
2,235,229
340,288
27,902
4,396
17,883
* 3,129
43,249
2,314,035
260,454
5,590,599
11,442,593
8,861,781
661,649
* 51,101
454,907
1,413,156
237,975
222,064,346
53,871,031
10,791,943
8,404,584
148,996,788
24,626,888
2,926,094
125,092
1,523,868
* 93,120
2,481,609
258,083
49,726
328,349
702,702
529,383
30,151
* 14,307
41,959
86,901
77,721
7,672,218
1,240,399
399,413
556,402
5,476,002
917,994
69,151
* 5,247
33,982
* 2,888
139,392
10,940
369
34,039
32,302
10,007
* 4,092
* 1,369
8,933
7,902
* 6,092
1,527,613
242,769
93,172
119,144
1,072,528
144,113
9,157
*2
* 3,081
* 481
6,033
43,958
1,571
43,839
49,045
43,868
* 38
* 14
3,477
1,648
* 5,064
1,365,183
163,113
58,079
39,799
1,104,192
746,005
80,717
* 29
59,462
1,467
39,398
41,187
24,720
40,142
143,758
105,040
* 16,452
* 514
13,312
8,439
* 16,671
1,712,598
511,044
98,430
198,779
904,345
275,492
23,917
* 116
12,819
* 1,871
39,164
196,597
3,566
949,557
454,970
156,283
96,406
* 15,880
63,841
122,560
* 11,315
27,843,791
5,568,688
1,458,315
732,120
20,084,668
2,853,557
265,949
* 8,979
129,196
* 2,822
310,601
430,286
-21,134
289,699
1,880,567
1,468,084
-28,612
* -8,685
40,881
408,899
-15,919
34,810,773
6,376,059
1,096,717
910,655
26,427,342
3,054,455
156,174
37,753
115,751
* 12,434
283,703
Paper products.............................................................................
Printing and related support activities..........................................
Petroleum and coal products........................................................
Chemical manufacturing...............................................................
Plastics, rubber, clay, refractory, and glass products...................
Nonmetallic mineral products.......................................................
Primary metal industries...............................................................
Fabricated metal products............................................................
Machinery.....................................................................................
Computer and electronic products...............................................
Electrical equipment, appliances, and components.....................
Transportation equipment............................................................
Furniture and related products.....................................................
Medical equipment and supplies..................................................
Other miscellaneous manufacturing.............................................
Wholesale trade (merchant wholesalers)....................................
Durable goods, including machinery, wood, metals, etc............
Nondurable goods, including food, fiber, chemicals, etc............
Wholesale electronic markets and agents and brokers..............
Retail trade.....................................................................................
Motor vehicle and parts dealers.................................................
Furniture and home furnishing stores.........................................
Electronic and appliance stores.................................................
Building material and garden equipment and supplies dealers..
Food and beverage stores.........................................................
Health and personal care stores................................................
Gasoline stations........................................................................
Clothing and accessories stores................................................
Sporting goods, hobby, book, and music stores........................
General merchandise stores......................................................
Miscellaneous store retailers......................................................
* 670
32,849
430
12,054
12,176
5,104
7,599
42,668
20,201
8,599
11,130
9,129
22,309
6,823
51,988
347,893
164,131
125,157
58,606
2,473,554
158,658
51,323
37,838
46,589
107,726
143,216
20,365
122,840
111,276
42,889
522,993
* 4,695
2,922,051
261,152
592,171
584,114
1,020,391
354,662
3,341,870
2,317,305
255,686
848,560
929,024
1,569,700
502,105
1,973,621
46,281,884
20,324,209
20,322,677
5,634,998
197,288,923
40,588,397
5,844,514
4,405,793
7,611,407
29,469,296
9,523,185
25,727,866
10,648,749
7,202,258
4,474,583
27,376,015
* 552
68,878
* 2,919
9,974
17,904
51,749
46,193
151,009
162,260
1,450
12,138
26,179
51,885
4,628
59,616
626,874
362,964
210,085
53,825
3,136,295
406,516
79,991
57,405
126,149
363,784
164,001
262,866
161,767
168,868
74,296
578,900
*4
27,065
*4
1,470
* 3,076
10,600
* 289
27,954
3,692
* 214
8,820
* 10,745
14,608
* 9,765
7,053
135,452
65,208
38,475
31,768
768,700
55,866
15,982
19,373
18,384
102,616
92,772
33,240
118,249
25,618
12,837
154,479
0
136,633
* 78
5,398
17,040
* 13,749
* 21,001
110,993
63,406
10,892
34,137
19,215
57,366
22,400
52,622
578,449
304,250
235,209
38,990
6,085,600
548,041
353,627
184,273
92,500
811,652
286,432
300,868
893,737
394,244
209,397
1,643,236
*1
36,324
* 1,766
3,081
23,385
19,489
*1815
35,024
28,376
*964
2,652
16,860
11,191
*725
15,955
292,085
141,337
119,003
31,744
1,713,026
369,067
59,752
44,219
86,601
181,736
48,626
200,250
83,958
103,010
36,153
309,119
1,830
306,817
2,870
62,164
106,721
139,111
* 65,306
503,425
364,153
17,211
94,650
79,370
159,661
39,971
192,748
1,695,838
933,501
700,704
61,633
11,205,659
1,453,508
606,735
438,934
738,625
1,875,804
660,401
863,011
699,221
537,555
237,686
2,039,795
*-612
357,174
270
121,466
35,246
67,198
34,935
344,792
520,024
50,588
170,442
43,427
321,800
120,173
261,717
4,948,556
2,061,747
1,859,591
1,027,217
9,285,087
1,477,143
297,413
399,014
505,360
1,038,280
768,382
175,834
729,640
190,140
94,667
1,644,441
Nonstore retailers.......................................................................
Footnotes at end of table.
1,107,840
24,416,859
691,751
119,285
367,592
190,534
1,054,383
1,964,773
17
Sole Proprietorship Returns, 2005
Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2005—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
Interest
Business
Depreciation on machinery
on other
paid
Payroll
Net income
of returns
receipts
deduction
business
deduction
[1,4]
less deficit
(7)
(8)
[1,2]
(1)
18
Rent paid
Number
and
equipment [1] property [1]
(4)
[1,3]
(2)
(3)
(5)
(6)
Transportation and warehousing.................................................................... 1,043,120
Air and rail transportation.................................................................................
14,830
Water transportation.........................................................................................
3,912
General freight trucking, local.......................................................................... 243,267
72,341,709
1,368,830
381,892
19,280,255
5,410,491
341,084
39,052
1,619,558
1,884,245
12,931
* 22
311,482
634,181
46,066
* 4,236
120,590
979,338
65,063
8,318
237,209
3,996,803 10,112,631
66,193
-237,518
14,032
124,773
1,525,120 2,821,485
General freight trucking, long distance and specialized freight trucking..........
Urban transit.....................................................................................................
Interurban and rural bus transportation............................................................
Taxi and limousine service...............................................................................
School, employee, and charter bus industry....................................................
Other transit and ground passenger transportation.........................................
Pipeline transportation.....................................................................................
Scenic and sightseeing transportation.............................................................
Support activities for transportation (including motor vehicle towing)..............
Couriers and messengers................................................................................
Warehousing and storage facilities..................................................................
Information........................................................................................................
Publishing industries (except internet).............................................................
Motion picture and sound recording.................................................................
Broadcasting (except internet) and telecommunications.................................
Internet publishing and broadcasting...............................................................
Internet service providers, web search portals, and data processing..............
Finance and insurance.....................................................................................
Credit intermediation and related activities......................................................
Securities, commodity contracts, and other financial investments...................
Investment bankers and securities dealers....................................................
329,126
0
* 2,463
149,298
13,429
23,288
* 749
* 8,266
37,288
209,856
* 7,349
335,407
91,867
85,482
50,767
23,970
83,321
705,528
118,385
160,575
6,706
36,332,627
0
* 41,061
4,412,464
636,715
748,984
* 39,588
258,951
2,473,831
5,824,380
542,131
9,421,847
2,796,414
2,058,710
1,613,990
922,425
2,030,308
72,415,215
6,385,793
35,260,356
3,260,083
2,731,810
0
* 3,389
147,567
72,736
34,429
*6
131,237
133,216
117,329
39,079
424,932
58,562
258,079
39,388
17,366
51,537
1,124,023
220,475
301,068
9,157
926,216
0
* 1,603
516,279
3,643
* 17,649
0
* 4,865
20,896
67,933
728
126,123
6,123
88,585
6,729
13,631
11,055
305,547
48,541
70,304
818
201,104
0
0
98,199
4,087
* 7,792
0
* 10,912
62,884
46,937
31,374
212,387
59,019
89,025
28,853
12,436
23,054
1,383,260
129,169
365,412
18,721
460,062
0
* 11
72,257
25,430
* 9,849
0
15,761
42,188
29,917
13,273
73,042
35,268
16,432
13,140
* 2,541
5,660
638,421
111,164
286,789
9,383
1,665,903 4,264,384
0
0
* 1,171
* 901
79,896 1,212,278
69,208
111,483
* 87,628
136,669
0
* 23,972
* 18,335
-115,776
224,392
316,215
183,178 1,409,459
61,746
44,307
740,762 2,376,337
299,451
801,833
110,466
19,409
129,444
273,817
* 13,297
454,792
188,104
826,486
4,056,095 19,479,833
299,107 1,954,586
989,621 5,016,314
29,557
318,716
Securities brokers..........................................................................................
21,625
Commodity contracts brokers and dealers.....................................................
10,457
Securities and commodity exchanges............................................................
995
Other financial investment activities (investment advice)............................... 120,792
Insurance agents, brokers, and related activities............................................. 426,568
Insurance agencies and brokerages.............................................................. 338,352
Other insurance related activities...................................................................
88,217
Real estate and rental and leasing.................................................................. 1,349,577
Real estate....................................................................................................... 1,284,270
Lessors of real estate (including miniwarehouses and self storage)..............
34,985
Offices of real estate agents, brokers, property managers, and appraisers.. 1,009,929
Other activities related to real estate.............................................................. 239,356
Rental and leasing services.............................................................................
65,308
Automotive equipment rental and leasing......................................................
16,321
Consumer electronics and appliances rental.................................................
796
Formal wear and costume rental....................................................................
304
Video tape and disc rental..............................................................................
8,225
General rental centers and other consumer goods rental..............................
20,142
Commercial and industrial machinery and equipment rental and leasing......
19,519
Professional, scientific, and technical services............................................. 2,883,419
Legal services.................................................................................................. 337,715
Office of certified public accountants...............................................................
42,250
Other accounting services................................................................................ 313,281
Architectural, engineering, and related services.............................................. 285,877
Architectural services..................................................................................... 108,357
Engineering services......................................................................................
98,756
Drafting, building inspections, and geophysical surveying.............................
58,784
Surveying and mapping (except geophysical) services.................................
16,319
Testing laboratories........................................................................................
3,661
Specialized design services............................................................................. 209,249
Computer systems design services................................................................. 243,230
3,777,546
845,521
1,290,552
26,086,654
30,769,066
27,014,913
3,754,152
82,914,620
78,677,446
1,896,046
60,468,718
16,312,681
4,237,174
730,271
62,240
4,981
649,340
1,325,032
1,465,311
145,109,981
37,953,215
3,383,146
8,686,941
14,804,451
7,069,843
5,278,371
1,498,281
794,948
163,008
8,173,483
8,597,146
38,066
6,051
765
247,029
602,480
516,845
85,635
3,059,991
2,203,884
218,551
1,534,754
450,579
856,107
199,350
* 3,103
* 948
57,321
94,208
501,178
4,069,420
578,842
91,049
297,711
549,925
293,535
155,285
43,998
51,293
* 5,814
296,260
295,768
23,905
634
* 62
44,885
186,702
149,330
37,373
554,117
444,987
10,913
372,817
61,257
109,130
28,482
* 836
* 696
* 12,532
22,518
44,067
829,337
202,064
17,423
52,472
76,477
50,558
9,666
7,055
* 9,123
* 75
52,617
54,188
44,787
44,700
* 230
256,974
888,679
838,171
50,508
1,125,778
995,252
41,155
775,128
178,970
130,526
14,097
* 238
0
65,201
9,594
41,395
3,580,247
1,661,362
146,166
289,295
240,610
125,426
89,887
16,706
* 4,695
* 3,897
213,727
102,510
Other professional, scientific, and technical services....................................... 1,451,817
Footnotes at end of table.
63,511,598
1,959,866
374,096
926,576
23,257
210,873
884,554
14,017
25,027
238,876
2,988
* 13,426
13,014
237,144
710,737 3,561,154
240,469 2,767,366 12,508,933
216,819 2,639,984 10,818,548
23,650
127,382 1,690,386
1,402,298 2,786,407 33,320,113
1,228,499 2,491,175 32,978,070
357,848
121,228
72,284
526,476 1,572,767 28,572,784
344,176
797,180 4,333,002
173,799
295,231
342,043
22,659
62,508
30,969
* 454
* 823
* 27,220
* 149
0
* 669
25,129
72,127
78,069
14,273
74,757
139,255
111,134
85,017
65,862
959,789 12,073,365 61,023,166
229,837 4,096,074 16,489,814
46,692
560,538 1,362,581
94,478
928,408 3,650,771
78,567 1,805,696 4,928,487
45,682 1,025,501 1,802,649
22,814
527,306 2,079,534
6,733
115,687
675,127
* 3,181
129,229
301,973
* 156
* 7,973
69,203
41,567
484,156 2,073,650
47,266
487,833 4,380,404
421,383
3,710,660 28,137,458
Sole Proprietorship Returns, 2005
Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2005—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
on other
Interest paid
Payroll
Net income
of returns
receipts
deduction
and
business
deduction
[1,4]
less deficit
[1,2]
equipment [1]
property [1]
[1,3]
(3)
(4)
(5)
(6)
(7)
(8)
177,238
4,242
16,566
20,838
155,213
430,957
20,666
86,504
45,523
342,927
235,727
4,669
28,304
3,943
148,740
1,664,287
84,674
163,532
104,438
1,693,730
18,202,381
424,833
1,737,245
638,866
7,134,133
(1)
(2)
Professional, scientific, and technical service
—Continued
Management, scientific, and technical consulting services...........
Scientific research and development services..............................
Advertising and related services...................................................
Market research and public opinion polling...................................
Other miscellaneous services.......................................................
Administrative and support and waste management
and remediation services..............................................................
Administrative and support services...............................................
Waste management and remediation services...............................
Educational services.......................................................................
Health care and social assistance..................................................
Ambulatory health care services.....................................................
Offices of physicians (except mental health specialists)...............
Offices of physicians, mental health specialists............................
Offices of dentists.........................................................................
Offices of chiropractors.................................................................
Offices of optometrists..................................................................
Offices of mental health practitioners and social therapists..........
Offices of podiatrists.....................................................................
Outpatient care centers and
other miscellaneous health practitioners.....................................
Medical and diagnostic laboratories..............................................
Home health care services...........................................................
Other ambulatory health care services
(including ambulance services, blood and organ banks)............
Hospitals.........................................................................................
Nursing and residential care facilities.............................................
Social assistance............................................................................
Child day care services...................................................................
Arts, entertainment, and recreation...............................................
Performing arts, spectator sports, and related industries...............
Museums, historical sites, and similar institutions..........................
Amusement, gambling, and recreation industries...........................
Accommodation, food services, and drinking places..................
Accommodation..............................................................................
Travel accommodation
(including hotels, motels, and bed and breakfast inns)...............
RV (recreational vehicle) parks and recreational camps..............
Rooming and boarding houses.....................................................
Food services and drinking places..................................................
Other services..................................................................................
Auto repair and maintenance..........................................................
Automotive mechanical and electrical repair and maintenance....
Automotive body shops.................................................................
Other auto repair and maintenance
(including oil change, lubrication, and car washes)....................
Miscellaneous repairs.....................................................................
Personal and laundry services........................................................
Religious, grantmaking, civic, professional
and similar organizations.............................................................
Unclassified establishments...........................................................
762,557
25,177
34,763,483
1,002,566
113,510
30,888
519,685
5,893,679
1,527,502
20,324,368
976,282
32,226
126,257
17,836
807,266
1,915,541
1,890,977
24,564
552,218
1,768,679
891,060
186,042
32,970
89,162
42,247
15,546
164,854
6,365
51,960,458
50,197,327
1,763,131
6,975,660
106,744,305
90,135,345
32,221,684
2,967,163
28,704,600
4,909,738
3,040,214
8,243,429
1,071,266
2,310,432
2,071,445
238,988
229,565
2,798,057
2,274,212
576,227
46,639
934,108
162,314
110,279
144,740
23,499
544,322
526,569
17,753
41,385
689,507
574,389
200,488
20,543
125,546
70,119
12,783
82,068
13,568
605,306
586,436
18,870
377,175
4,590,849
4,123,717
1,241,121
167,092
1,125,478
433,209
186,422
535,812
92,930
367,521
334,826
32,695
35,695
1,124,063
764,319
140,222
12,169
394,566
76,123
22,569
39,895
8,450
5,834,591
5,646,267
188,324
358,475
15,090,216
13,295,488
4,058,989
189,088
6,342,793
518,836
533,704
525,797
128,658
14,476,143
14,255,863
220,280
2,230,202
43,090,991
37,822,631
15,346,326
1,754,975
9,892,958
1,770,660
800,657
4,426,530
371,593
125,107
27,533
176,810
3,361,098
1,598,984
3,454,361
77,510
78,220
102,345
8,594
14,882
19,511
196,567
55,714
71,233
22,184
13,016
32,272
204,961
273,770
491,997
1,430,506
518,913
1,241,923
24,425
16,628
61,362
125,384
674,246
1,157,201
971,069
3,843
182,290
392,320
55,924
562,809
613,205
3,536,460
2,672,393
9,786,903
27,376,360
20,042,905
63,241
7,270,214
43,117,518
5,522,843
18,330
11,872
135,725
72,180
304,068
1,585,448
1,158,089
* 2,158
425,200
1,538,933
569,960
6,289
* 478
23,725
21,919
68,997
203,712
133,928
0
69,784
321,282
24,472
18,140
* 24,786
119,186
147,120
176,040
848,006
470,498
* 28
377,479
2,872,030
135,595
* 2,852
* 7,367
201,722
9,958
140,697
204,088
117,227
*4
86,857
1,030,121
603,568
26,897
* 119,723
882,473
168,593
623,938
1,593,838
876,677
* 549
716,612
7,574,697
817,675
267,591
255,651
336,552
1,047,274
3,628,883
6,484,281
5,811,366
43,137
629,778
1,213,244
-37,736
33,710
9,258
12,956
336,396
2,315,191
337,784
172,443
85,875
4,034,930
516,693
971,219
37,594,675
78,147,800
22,760,458
11,940,054
6,609,797
402,418
58,352
109,189
968,974
2,936,829
929,946
488,194
247,198
16,212
2,269
5,991
296,810
858,734
161,992
71,662
44,493
103,860
* 2,243
29,492
2,736,435
5,060,755
834,554
481,777
180,075
486,993
44,963
71,612
426,553
824,973
349,101
171,378
89,554
629,155
30,327
158,193
6,757,022
7,086,739
2,684,764
1,308,552
974,077
-43,014
50,572
-45,294
1,250,980
17,818,889
2,822,264
1,424,132
862,353
79,466
488,927
1,488,481
4,210,607
17,562,692
37,824,651
194,554
723,747
1,283,136
45,837
152,725
544,017
172,703
341,283
3,884,918
88,168
143,847
332,025
402,135
1,304,583
3,097,392
535,779
3,812,833
11,183,792
244,212
423,157
3,536,438
4,449,754
45,066
133,600
6,569
60,524
50,559
56,693
15,227
54,231
51,101
132,544
1,708,644
1,794,590
Footnotes at end of table.
19
Sole Proprietorship Returns, 2005
Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2005—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Industrial sector
Business
Depreciation on machinery
on other
Interest paid
Payroll
of returns
receipts
deduction
and
business
deduction
[1,4]
[1,2]
equipment [1]
property [1]
[1,3]
(9)
(10)
All nonfarm industries............................................................... 15,750,475 1,047,830,449
159,045
12,772,007
Agriculture, forestry, hunting, and fishing.................................
Animal production (including breeding of cats and dogs)............
9,843
1,468,496
Forestry and logging
20
Rent paid
Number
(11)
(12)
(13)
(14)
Net income
(15)
(16)
27,723,379
909,226
55,760
6,977,952
52,422
* 2,507
23,337,781
74,962
11,922
7,432,423
135,582
8,577
87,781,271
1,510,443
57,171
314,756,510
2,230,135
124,475
(including forest nurseries, timber tracts)...................................
Fishing.........................................................................................
Hunting and trapping...................................................................
Support activities for agriculture and forestry..............................
Mining............................................................................................
Oil and gas extraction..................................................................
Coal mining..................................................................................
Metal ore mining..........................................................................
Nonmetallic mineral mining and quarrying...................................
Support activities for mining.........................................................
Utilities...........................................................................................
Construction..................................................................................
Residential building construction.................................................
Nonresidential building construction............................................
Heavy and civil engineering construction ..................................
Specialty trade contractors..........................................................
Manufacturing...............................................................................
Food manufacturing.....................................................................
Textile and textile product mills....................................................
Apparel........................................................................................
Leather and allied products.........................................................
37,838
43,934
4,862
62,567
92,540
80,964
** 20
**
1,867
9,689
6,494
2,350,699
350,801
80,198
40,504
1,879,196
224,481
16,760
* 3,364
11,628
* 1,787
5,001,566
1,786,632
184,706
4,330,608
8,797,585
7,009,532
** 92,692
**
348,513
1,346,848
166,501
197,709,559
47,564,413
8,375,884
6,589,347
135,179,916
20,527,587
2,304,160
* 116,862
1,063,366
* 70,672
516,330
122,886
* 11,179
203,072
408,360
327,901
** 4,327
**
26,673
49,459
* 4,847
6,060,809
1,023,878
287,407
388,502
4,361,022
616,943
35,294
* 4,485
20,234
* 1,619
23,644
* 5,924
0
20,347
16,191
5,123
** 2,384
**
* 810
7,874
* 2,271
1,171,036
158,545
78,039
77,989
856,463
92,066
1,482
0
* 3,040
* 454
14,896
22,643
* 27
25,473
27,222
22,553
** 37
**
* 3,112
1,520
0
1,061,892
117,803
39,251
25,391
879,447
585,968
59,936
0
47,842
* 314
74,815
20,336
* 5,339
26,516
84,828
67,848
** 688
**
8,418
7,873
0
1,184,621
323,938
59,169
101,207
700,306
164,045
7,653
* 90
6,692
* 1,871
447,034
* 162,015
* 794
843,429
281,009
102,862
** 23,806
**
39,304
115,036
0
23,871,566
4,830,416
1,068,793
566,949
17,405,409
2,347,617
194,874
* 6,868
98,801
0
741,815
711,868
43,259
608,719
2,877,267
2,351,395
** 8,382
**
69,933
447,556
91,314
39,253,965
7,450,156
1,354,001
1,331,372
29,118,435
3,974,217
294,638
* 46,732
216,652
* 15,971
Wood products.............................................................................
Paper products............................................................................
Printing and related support activities..........................................
Petroleum and coal products.......................................................
Chemical manufacturing..............................................................
Plastics, rubber, clay, refractory, and glass products..................
Nonmetallic mineral products......................................................
Primary metal industries..............................................................
Fabricated metal products...........................................................
Machinery....................................................................................
Computer and electronic products...............................................
Electrical equipment, appliances, and components.....................
Transportation equipment............................................................
Furniture and related products.....................................................
Medical equipment and supplies.................................................
Other miscellaneous manufacturing............................................
Wholesale trade (merchant wholesalers)...................................
Durable goods, including machinery, wood, metals, etc..............
Nondurable goods, including food, fiber, chemicals, etc.............
Wholesale electronic markets and agents and brokers...............
Retail trade....................................................................................
Motor vehicle and parts dealers...................................................
Furniture and home furnishing stores..........................................
Electronic and appliance stores...................................................
Building material and garden equipment and supplies dealers...
Food and beverage stores...........................................................
Health and personal care stores..................................................
Gasoline stations.........................................................................
Clothing and accessories stores..................................................
Sporting goods, hobby, book, and music stores..........................
General merchandise stores........................................................
25,812
* 667
21,708
414
9,586
7,158
3,795
3,975
26,148
18,065
5,821
8,275
6,860
15,156
6,466
31,037
229,125
102,356
81,374
45,396
1,256,246
103,189
30,567
27,294
31,034
69,628
62,419
14,162
73,187
50,754
20,094
2,207,439
* 4,539
2,379,126
15,025
557,664
360,319
808,323
339,310
2,910,547
2,179,944
153,426
796,602
832,812
1,439,311
486,389
1,501,750
39,167,889
17,395,707
16,896,321
4,875,861
157,607,826
33,031,079
4,496,907
3,697,979
6,334,541
24,590,156
8,443,654
19,527,337
8,527,537
4,555,669
3,835,676
84,711
0
48,450
* 45
7,678
8,940
28,164
* 42,065
91,586
130,859
* 806
11,028
17,485
36,333
4,012
43,149
425,668
250,241
127,020
48,406
1,895,060
275,897
51,942
51,743
86,758
243,046
89,157
184,827
84,573
91,515
34,838
5,308
0
21,662
*4
1,470
* 449
3,395
* 289
17,835
3,524
* 192
* 5,650
* 10,735
5,056
* 7,302
4,221
95,454
42,296
27,706
25,451
513,381
34,399
11,428
2,847
13,331
92,917
74,621
19,324
73,096
17,228
8,613
22,433
0
117,448
* 53
* 5,176
3,752
* 12,450
* 16,661
75,476
62,801
* 2,513
* 32,023
* 18,798
52,161
18,921
37,210
394,384
200,837
174,661
18,885
4,064,737
377,746
215,523
139,114
56,327
615,758
229,791
232,934
589,221
204,337
140,137
24,771
0
28,694
* [5]
* 2,174
* 3,409
* 13,284
* 1,815
23,711
18,860
* 215
* 2,027
* 8,233
7,056
* 647
12,843
157,172
72,556
72,830
11,786
1,032,207
254,232
44,915
34,913
66,513
126,600
28,424
117,950
57,880
37,939
23,311
254,993
0
275,890
* 622
59,065
53,911
111,257
* 65,306
400,633
339,096
* 3,341
82,863
* 67,997
148,504
* 36,868
146,729
1,298,530
727,348
533,513
37,669
8,427,675
1,067,388
376,853
305,914
556,606
1,509,616
596,141
602,581
523,620
285,366
205,118
375,875
* 4,527
428,147
11,803
139,394
79,838
82,616
57,627
485,488
532,899
74,567
182,486
82,629
363,926
125,302
373,098
6,116,417
2,566,328
2,426,840
1,123,249
17,273,702
2,127,558
506,782
498,019
662,249
1,543,224
1,232,527
423,747
1,297,819
662,750
325,382
Miscellaneous store retailers.......................................................
Nonstore retailers........................................................................
Footnotes at end of table.
268,426
505,491
21,025,033
19,542,256
315,351
385,412
99,295
66,282
1,005,572
258,277
142,133
97,398
1,479,736
918,736
3,604,866
4,388,779
Sole Proprietorship Returns, 2005
Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2005—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Industrial sector
Business
Depreciation on machinery
on other
Interest paid
Payroll
of returns
receipts
deduction
and
business
deduction
[1,4]
[1,2]
equipment [1]
property [1]
[1,3]
(9)
Transportation and warehousing........................................................
Air and rail transportation.....................................................................
Water transportation............................................................................
General freight trucking, local..............................................................
General freight trucking, long-distance
and specialized freight trucking..........................................................
Urban transit........................................................................................
Interurban and rural bus transportation................................................
Taxi and limousine service...................................................................
School, employee, and charter bus industry........................................
Other transit and ground passenger transportation.............................
Pipeline transportation.........................................................................
Scenic and sightseeing transportation.................................................
Support activities for transportation
(including motor vehicle towing).......................................................
Couriers and messengers....................................................................
Warehousing and storage facilities......................................................
Information............................................................................................
Publishing industries (except internet).................................................
Motion picture and sound recording.....................................................
Broadcasting (except internet) and telecommunications.....................
Internet publishing and broadcasting...................................................
Internet service providers, web search portals,and data processing...
Finance and insurance.........................................................................
Credit intermediation and related activities..........................................
Securities, commodity contracts, and other financial investments.......
Investment bankers and securities dealers........................................
Securities brokers..............................................................................
Commodity contracts brokers and dealers........................................
Securities and commodity exchanges...............................................
Other financial investment activities (investment advice)..................
Insurance agents, brokers, and related activities.................................
Insurance agencies and brokerages..................................................
Other insurance related activities.......................................................
Real estate and rental and leasing......................................................
Real estate...........................................................................................
Lessors of real estate
(including miniwarehouses and self storage)...................................
Offices of real estate agents, brokers,
property managers, and appraisers.................................................
Other activities related to real estate.................................................
Rental and leasing services.................................................................
Automotive equipment rental and leasing..........................................
Consumer electronics and appliances rental.....................................
Formal wear and costume rental.......................................................
Video tape and disc rental.................................................................
General rental centers and other consumer goods rental..................
Commercial and industrial machinery
and equipment rental and leasing....................................................
Professional, scientific, and technical services................................
Legal services......................................................................................
Office of certified public accountants...................................................
Other accounting services...................................................................
Architectural, engineering, and related services..................................
Architectural services.........................................................................
Engineering services..........................................................................
Drafting, building inspections, and geophysical surveying.................
Surveying and mapping (except geophysical) services.....................
Testing laboratories...........................................................................
Specialized design services.................................................................
Computer systems design services.....................................................
Footnotes at end of table.
Rent paid
Number
Net income
(10)
(11)
(12)
(13)
(14)
(15)
(16)
848,315
9,506
2,692
202,004
60,471,864
612,475
338,503
16,546,791
3,608,271
18,090
11,017
1,146,888
1,628,976
2,130
0
259,263
447,058
6,909
* 2,957
92,793
646,734
8,608
* 2,650
166,019
2,964,499
16,256
* 9,095
1,280,844
12,288,415
145,890
178,202
3,274,149
263,954
0
* 1,446
133,679
11,015
20,364
* 749
2,958
30,158,293
0
* 39,382
4,072,877
501,494
588,026
* 39,588
145,205
2,016,288
0
* 2,804
124,442
53,143
26,937
*6
* 2,102
798,309
0
* 1,603
480,739
* 744
* 14,101
0
* 3,410
144,915
0
0
91,706
* 1,551
* 6,676
0
* 3,795
316,946
0
* 11
68,618
10,575
* 9,155
0
* 14
1,159,024
0
* 1,171
56,995
* 53,090
* 35,402
0
* 11,601
4,908,472
0
* 4,934
1,333,672
158,277
162,252
* 23,972
38,884
27,757
166,589
5,602
229,105
70,592
45,663
34,137
16,816
61,896
496,418
87,604
1,991,784
5,079,664
357,782
8,155,428
2,473,599
1,522,009
1,440,723
804,748
1,914,349
52,249,209
5,706,359
103,116
77,456
25,982
190,349
41,281
78,984
22,271
15,778
32,036
841,261
122,581
12,273
55,916
* 486
75,202
5,216
45,006
* 3,030
* 12,693
9,258
251,886
38,175
49,010
41,070
* 5,676
130,253
38,162
41,454
16,713
* 11,747
22,176
1,224,485
113,158
31,946
27,679
* 4,514
34,333
20,752
6,527
* 1,698
* 775
4,582
367,921
81,069
155,641
144,393
40,987
554,300
207,863
80,711
83,937
* 4,416
177,372
3,561,930
243,128
377,404
1,610,090
72,218
3,391,272
942,279
559,473
419,484
518,927
951,108
21,827,048
2,322,886
94,426
4,760
17,480
6,293
* 361
65,531
314,388
251,635
62,753
971,259
931,021
18,083,207
765,105
2,513,476
670,484
* 292,403
13,841,737
28,459,643
24,899,321
3,560,322
74,278,979
71,180,568
219,055
5,622
31,130
980
* 463
180,861
499,625
447,197
52,428
1,925,855
1,575,926
55,805
* 443
20,546
* 574
* 62
34,180
157,906
129,477
28,429
430,416
368,270
311,965
18,186
42,627
38,955
* 76
212,120
799,363
756,545
42,817
915,294
823,439
85,381
5,099
13,117
743
* 574
65,848
201,472
178,262
23,209
543,760
480,146
754,946
21,392
158,938
10,572
* 6,229
557,814
2,563,857
2,437,749
126,108
2,061,949
1,861,496
6,227,270
361,128
978,693
348,786
* 25,277
4,513,385
13,276,892
11,435,356
1,841,536
36,822,850
36,076,435
14,947
1,153,944
67,624
8,390
16,944
74,568
75,371
420,855
753,118
162,956
40,238
10,054
* 787
* 304
5,073
13,271
57,007,631
13,018,993
3,098,411
425,265
* 62,231
* 4,981
531,294
1,203,035
1,236,095
272,207
349,929
53,289
* 2,968
* 948
* 45,679
53,875
312,551
47,328
62,146
* 9,171
* 836
* 696
* 3,835
* 22,416
652,145
154,350
91,855
* 1,320
* 37
0
57,233
8,119
280,648
124,930
63,614
7,121
* 454
* 149
* 16,776
10,653
1,221,548
564,577
200,453
* 41,536
* 588
0
* 62,314
62,782
30,367,390
5,288,189
746,415
93,145
* 28,144
* 669
106,992
205,255
10,749
871,605
2,134,235 134,486,357
264,361 36,233,041
33,420
3,284,563
251,744
8,166,888
217,767 13,919,803
83,042
6,753,736
73,141
4,852,890
193,170
2,981,496
504,501
79,761
205,572
424,957
231,560
110,471
25,192
656,416
180,174
17,423
40,727
51,172
29,636
7,419
25,146
3,016,252
1,530,068
133,325
248,694
197,069
113,371
63,351
28,461
671,754
190,704
31,005
76,656
56,447
34,654
12,426
33,232
10,304,610
3,787,288
541,719
866,739
1,691,096
982,668
483,715
312,210
66,086,332
17,031,934
1,423,219
3,896,373
5,343,857
2,010,662
2,196,728
27,229
51,015
* 4,683
223,035
208,452
* 5,318
* 8,791
*8
38,923
42,574
11,755
* 4,695
* 3,897
154,198
87,179
* 6,105
* 3,181
* 80
24,157
19,807
87,923
129,229
* 7,560
425,736
395,038
753,857
313,021
69,589
2,513,808
4,739,849
43,416
14,508
3,660
146,769
179,492
1,386,926
769,493
156,757
7,515,453
8,116,759
21
Sole Proprietorship Returns, 2005
Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2005—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
on other
Interest paid
Payroll
of returns
receipts
deduction
and
business
deduction
[1,4]
Net income
[1,2]
equipment [1]
property [1]
[1,3]
(11)
(12)
(13)
(14)
(15)
(16)
(9)
(10)
1,040,683
553,905
16,604
87,170
23,938
57,249,851
30,965,631
912,124
5,551,492
1,500,533
1,335,218
663,656
22,375
92,331
7,722
285,423
128,494
3,617
10,090
20,499
665,719
286,886
14,177
68,387
41,934
272,976
133,897
* 664
24,524
3,795
2,596,993
881,126
64,557
144,009
101,967
31,137,292
19,946,620
514,164
1,930,881
695,818
359,065
18,320,070
549,134
122,723
254,336
110,096
1,405,334
8,049,809
1,561,511
1,543,555
17,956
447,749
1,466,138
734,362
155,388
28,531
81,577
34,942
13,800
130,572
5,194
45,877,374
44,250,972
1,626,403
5,702,834
100,134,405
86,557,639
31,180,541
2,906,144
28,125,904
4,607,290
2,842,101
7,853,826
1,068,415
1,735,439
1,516,846
218,593
133,675
2,326,813
1,984,690
536,144
41,488
860,575
126,092
81,595
121,746
23,330
408,787
393,080
15,707
20,695
568,097
488,888
179,117
20,408
110,655
47,244
12,571
78,807
13,452
457,402
439,900
17,502
256,151
4,048,300
3,715,367
1,177,219
158,709
1,063,781
383,172
170,121
452,316
92,882
249,038
219,860
29,178
22,343
891,655
657,891
112,829
11,759
372,066
60,873
19,745
35,914
8,446
4,717,314
4,555,526
161,788
276,805
13,562,109
12,453,019
3,812,615
179,204
6,173,797
468,419
488,521
481,662
128,658
16,421,175
16,172,624
248,552
2,774,802
44,905,668
38,910,133
15,622,382
1,773,571
9,995,847
1,870,035
808,548
4,573,340
376,874
91,155
23,564
3,032,118
1,421,711
63,841
67,013
4,912
7,499
129,473
41,461
17,636
4,655
183,783
224,726
1,570,117
565,987
Home health care services...........................................................
152,549
3,015,477
53,073
Other ambulatory health care services
(including ambulance services, blood and organ banks)............
17,089
504,112
9,793
Hospitals.........................................................................................
15,312
474,194
* 10,678
Nursing and residential care facilities.............................................
44,536
2,555,048
84,688
Social assistance............................................................................
90,880
2,157,104
56,821
Child day care services...................................................................
581,048
8,390,421
189,935
Arts, entertainment, and recreation...............................................
696,774
21,633,289
712,452
Performing arts, spectator sports, and related industries...............
577,078
16,550,897
527,928
Museums, historical sites, and similar institutions..........................
3,315
56,663
* 2,053
Amusement, gambling, and recreation industries...........................
116,381
5,025,730
182,471
Accommodation, food services, and drinking places..................
246,979
32,487,249
803,307
Accommodation..............................................................................
25,889
3,488,693
234,810
Travel accommodation
(including hotels, motels, and bed and breakfast inns)...............
15,014
2,452,781
169,667
RV (recreational vehicle) parks and recreational camps..............
5,461
380,456
35,788
Rooming and boarding houses.....................................................
5,414
655,457
29,355
Food services and drinking places..................................................
221,089
28,998,556
568,497
Other services..................................................................................
1,824,281
68,536,568
2,067,482
253,694
19,100,540
673,648
Auto repair and maintenance..........................................................
Automotive mechanical and electrical repair and maintenance....
129,440
9,704,732
356,471
Automotive body shops.................................................................
66,485
5,838,578
190,957
Other auto repair and maintenance
(including oil change, lubrication, and car washes)....................
57,769
3,557,230
126,220
Miscellaneous repairs.....................................................................
382,244
15,462,230
545,166
Personal and laundry services........................................................
1,188,343
33,973,798
848,668
Religious, grantmaking, civic, professional
and similar organizations.............................................................
184,823
3,249,931
27,103
Unclassified establishments...........................................................
324,260
3,818,009
48,963
* Estimate should be used with caution because of the small number of sample returns on which it is based.
** Data combined to prevent disclosure of taxpayer information
10,586
36,304
12,938
293,853
1,435,023
* 3,638
* 426
20,818
13,173
44,792
119,295
81,731
0
37,564
169,181
11,204
9,928
* 6,727
73,543
113,320
139,343
496,173
289,373
* 11
206,789
1,978,354
73,406
* 1,030
* 1,948
143,879
* 4,534
83,403
78,845
42,533
*4
36,308
545,393
298,170
* 17,782
* 43,983
511,897
91,338
461,873
874,181
476,401
* 98
397,681
5,244,273
416,836
318,409
261,054
503,201
1,195,788
4,035,492
9,585,960
8,216,788
44,283
1,324,889
3,782,110
641,928
6,474
* 213
* 4,517
157,976
659,357
127,733
54,589
40,947
60,339
* 2,108
* 10,960
1,904,947
4,076,107
667,413
413,295
130,026
248,910
21,159
28,100
247,223
607,344
259,538
136,775
73,873
306,568
17,042
93,226
4,827,437
5,781,298
2,195,134
1,034,650
833,592
438,021
88,570
115,338
3,140,182
20,785,006
3,516,634
1,739,362
1,083,714
32,197
111,055
420,570
124,092
231,525
3,177,169
48,890
107,035
240,771
326,892
1,096,988
2,489,177
693,558
4,376,655
12,891,717
5,958
40,864
37,874
44,913
* 1,244
13,605
* 45,060
96,103
1,969,196
2,299,659
Professional, scientific, and technical service
—Continued
Other professional, scientific, and technical services.....................
Management, scientific, and technical consulting services...........
Scientific research and development services..............................
Advertising and related services...................................................
Market research and public opinion polling...................................
Other miscellaneous services.......................................................
Administrative and support and waste management
and remediation services..............................................................
Administrative and support services...............................................
Waste management and remediation services...............................
Educational services.......................................................................
Health care and social assistance..................................................
Ambulatory health care services.....................................................
Offices of physicians (except mental health specialists)...............
Offices of physicians, mental health specialists............................
Offices of dentists.........................................................................
Offices of chiropractors.................................................................
Offices of optometrists..................................................................
Offices of mental health practitioners and social therapists..........
Offices of podiatrists.....................................................................
Outpatient care centers and
other miscellaneous health practitioners.....................................
Medical and diagnostic laboratories..............................................
22
[1] Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly
understated.
[2] Includes depreciation claimed on Form 8829.
[3] Interest paid is the sum of mortgage interest and other interest paid on business indebtedness.
[4] Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations.
[5] Less than $500
NOTE: Detail may not add to totals because of rounding.
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Agriculture, forestry, hunting, and fishing
Animal
All
Net income status, item
nonfarm
Total
industries
Mining
Forestry
production
and logging
(including
(including forest
breeding
nurseries,
of cats and
timber tracts)
Support
Hunting
Fishing
activities
and
for
trapping
agriculture
Total
and forestry
dogs)
BUSINESSES WITH AND
WITHOUT NET INCOME
(1)
Number of returns [1]..................................................
21,467,566
Business receipts, total [1]......................................... 1,222,880,231
Income from sales and operations [1]........................ 1,204,827,487
Other business income...............................................
18,052,744
Business deductions, total [1,2] ................................ 953,391,489
Cost of sales and operations, total.............................
396,875,774
Inventory, beginning of year....................................
38,101,650
Cost of labor............................................................
32,163,009
Purchases................................................................ 252,887,700
Materials and supplies.............................................
55,902,012
Other costs..............................................................
59,845,901
Inventory, end of year..............................................
42,024,497
Advertising expenses.................................................
14,449,493
Car and truck expenses..............................................
71,013,061
Commissions..............................................................
15,439,663
Contract labor.............................................................
28,223,647
Depletion....................................................................
1,061,786
Depreciation...............................................................
39,080,205
2,798,308
Employee benefit programs........................................
Insurance....................................................................
19,000,895
Legal and professional services.................................
9,836,870
Meals and entertainment deducted............................
6,802,217
Mortgage interest........................................................
5,543,658
Other interest paid on business indebtedness...........
6,565,852
Office expenses..........................................................
12,835,599
Pension and profit-sharing plans................................
1,251,915
Rent on machinery and equipment.............................
9,135,688
Rent on other business property................................
30,349,041
Repairs.......................................................................
14,976,142
Supplies......................................................................
28,858,613
Salaries and wages....................................................
75,091,154
Taxes paid..................................................................
16,797,524
Travel..........................................................................
11,308,328
Utilities........................................................................
22,910,257
Other business deductions......................................... 101,044,695
Home office business deductions...............................
8,801,078
Depreciation, Form 8829 [3]....................................
1,260,190
Casualty loss, Form 8829 [3]...................................
24,248
Excess—casualty depreciations, Form 8829 [3].....
1,222,508
Net income less deficit [1,2].......................................
269,919,995
Net income [1,2].........................................................
314,756,510
44,836,514
Deficit [2].....................................................................
Footnotes at end of table.
(2)
267,733
16,425,957
16,066,626
359,331
15,609,864
5,686,336
447,652
424,869
4,287,240
162,991
782,258
418,673
81,123
804,864
143,724
451,159
* 18,559
1,535,296
14,685
435,528
99,367
57,720
83,977
163,094
62,450
15,161
96,011
122,469
636,306
401,919
1,388,531
271,943
112,559
191,696
2,654,123
52,204
4,508
* 191
3,449
827,412
2,230,135
1,402,723
(3)
(4)
(5)
(6)
(7)
40,485
2,234,570
2,186,266
48,303
2,588,762
1,357,122
87,954
27,337
1,229,940
17,402
92,332
97,842
15,753
97,848
27,937
18,757
* 37
193,064
2,767
39,453
25,358
6,719
13,986
13,545
20,491
* 8,205
3,721
16,169
27,790
63,318
49,146
12,863
31,242
20,226
509,536
11,990
* 1,718
0
* 1,533
-353,415
124,475
477,890
55,831
6,026,299
5,836,539
189,760
5,544,698
1,785,192
160,535
153,048
1,048,808
70,771
491,417
139,386
17,381
270,104
84,735
245,559
* 18,522
707,815
5,950
179,621
27,161
9,351
25,262
88,229
15,735
2,674
46,943
16,932
330,744
69,955
434,149
82,694
14,447
60,705
995,897
5,548
1,049
0
* 719
481,976
741,815
259,839
68,511
2,314,035
2,275,888
38,148
1,893,338
408,452
* 35,185
* 186,602
138,542
56,555
12,405
* 20,838
19,290
145,919
* 1,887
50,357
0
257,160
* 189
63,869
12,802
29,282
17,485
23,702
9,471
0
10,940
43,958
112,922
119,259
9,995
36,818
35,772
31,034
426,469
13,781
* 923
0
* 20
430,286
711,868
281,582
9,067
260,454
258,660
* 1,793
279,944
71,968
* 37,959
0
* 14,600
* 5,397
* 30,554
* 16,541
1,737
8,408
* 1,199
3,789
0
49,726
* 71
6,833
2,490
344
* 16,137
* 8,583
615
0
* 369
* 1,571
12,811
13,156
3,566
6,868
* 2,476
9,556
56,398
* 151
0
0
* 501
-21,134
43,259
64,392
93,837
5,590,599
5,509,273
81,326
5,303,122
2,063,601
126,019
57,881
1,855,350
12,866
155,551
144,066
26,963
282,584
27,967
132,697
*1
327,531
5,708
145,752
31,555
12,024
11,107
29,035
16,138
* 4,282
34,039
43,839
152,039
136,230
891,675
132,699
28,621
70,175
665,824
20,732
* 818
* 191
* 677
289,699
608,719
319,019
(8)
121,449
11,442,593
10,923,315
519,278
9,563,120
2,455,768
153,298
114,771
536,640
297,960
1,495,377
142,278
18,431
242,803
26,413
170,651
889,629
700,675
17,921
106,083
106,463
25,355
35,030
108,728
44,096
3,776
32,302
49,045
130,392
85,304
340,199
308,602
49,322
80,802
3,496,530
18,368
2,027
0
932
1,880,567
2,877,267
996,699
23
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Agriculture, forestry, hunting, and fishing
Animal
All
Net income status, item
nonfarm
Total
industries
Mining
Forestry
production
and logging
(including
(including forest
breeding
nurseries,
of cats and
timber tracts)
Support
Hunting
Fishing
activities
and
for
trapping
agriculture
Total
and forestry
dogs)
(1)
BUSINESSES WITH NET INCOME
Number of returns [1]..................................................
15,750,475
Business receipts, total [1]........................................ 1,047,830,449
Income from sales and operations [1]....................... 1,033,271,519
Other business income...............................................
14,558,931
Business deductions, total [1,2]................................. 733,019,011
Cost of sales and operations, total.............................
308,242,888
23,733,070
Inventory, beginning of year....................................
Cost of labor............................................................
27,162,118
Purchases................................................................ 194,194,476
Materials and supplies.............................................
46,901,345
Other costs..............................................................
42,907,202
Inventory, end of year..............................................
26,655,324
Advertising expenses.................................................
11,331,082
Car and truck expenses..............................................
54,619,396
Commissions..............................................................
12,504,088
Contract labor.............................................................
23,231,875
Depletion....................................................................
833,229
Depreciation...............................................................
26,949,944
2,359,406
Employee benefit programs........................................
Insurance....................................................................
15,168,691
Legal and professional services.................................
7,175,102
Meals and entertainment deducted............................
5,388,127
Mortgage interest........................................................
3,327,399
Other interest paid on business indebtedness...........
4,105,024
Office expenses..........................................................
10,179,678
Pension and profit-sharing plans................................
1,182,702
Rent on machinery and equipment.............................
6,977,952
Rent on other business property................................
23,337,781
Repairs.......................................................................
11,009,973
Supplies......................................................................
22,417,324
Salaries and wages....................................................
60,619,153
Taxes paid..................................................................
13,014,100
Travel..........................................................................
8,469,702
Utilities........................................................................
17,253,560
Other business deductions.........................................
73,350,412
Home office business deductions...............................
6,721,335
Depreciation, Form 8829 [3]....................................
773,436
15,711
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
217,786
Net income [1,2]........................................................... 314,756,510
Returns with Schedule C-EZ:
Number of returns.......................................................
3,871,974
Business receipts.......................................................
25,970,745
Business deductions...................................................
3,340,026
Net income.................................................................
22,630,719
Footnotes at end of table.
24
(2)
(3)
(4)
(5)
(6)
(7)
(8)
159,045
12,772,007
12,509,056
262,951
10,542,381
4,145,374
225,556
361,117
3,071,461
129,895
583,617
226,273
53,828
522,209
110,504
290,946
* 18,405
907,447
11,523
296,408
49,474
45,452
45,173
90,409
43,688
6,663
52,422
74,962
394,706
215,416
1,149,326
193,245
71,088
123,903
1,563,351
38,675
1,779
0
* 27
2,230,135
9,843
1,468,496
1,439,416
29,079
1,344,277
923,738
54,263
* 24,566
842,750
* 12,522
48,887
59,250
5,314
38,312
4,915
* 597
0
55,578
* 1,943
16,460
5,137
4,021
* 3,227
5,350
13,404
* 47
* 2,507
11,922
9,653
28,040
32,606
5,865
21,710
8,839
142,262
* 2,012
* 182
0
0
124,475
37,838
5,001,566
4,863,689
137,876
4,260,003
1,533,802
81,807
130,799
943,703
69,596
377,978
70,080
15,058
211,388
83,326
175,419
* 18,405
515,814
4,882
127,564
18,201
8,293
21,567
53,249
12,544
2,334
23,644
14,896
228,202
42,713
316,235
54,233
11,329
46,749
711,910
4,855
* 516
0
* 27
741,815
43,934
1,786,632
1,760,829
25,803
1,074,764
222,434
* 645
* 161,524
* 17,404
* 34,810
* 8,478
* 427
15,664
79,451
* 1,754
* 16,362
0
121,983
0
33,349
6,989
27,486
* 7,017
13,318
7,337
0
* 5,924
22,643
62,999
46,969
* 491
18,335
24,551
21,089
292,707
13,423
* 903
0
0
711,868
4,862
184,706
184,637
* 69
141,447
* 54,638
* 28,856
0
* 8,668
* 1,616
* 24,275
* 8,777
* 1,260
* 1,525
* 1,199
* 1,741
0
* 11,179
*1
* 2,606
* 515
* 215
* 4,419
* 920
* 206
0
0
* 27
* 3,191
* 4,272
* 794
* 4,403
0
* 3,654
* 43,563
0
0
0
0
43,259
62,567
4,330,608
4,260,485
70,123
3,721,889
1,410,761
59,984
* 44,228
1,258,936
11,351
124,000
87,738
16,532
191,533
19,310
96,828
*1
202,894
4,697
116,429
18,632
5,437
8,944
17,572
10,197
* 4,282
20,347
25,473
90,660
93,423
799,201
110,409
13,498
43,572
372,910
18,385
* 178
0
0
608,719
92,540
8,797,585
8,441,615
355,969
5,920,439
1,375,534
118,221
39,318
375,248
272,556
681,909
111,719
14,477
184,271
23,489
107,244
689,115
406,660
12,887
79,012
69,039
21,070
26,958
57,870
30,572
3,305
16,191
27,222
99,704
60,434
241,691
232,369
31,213
63,238
2,008,522
18,021
1,700
0
* 469
2,877,267
41,884
184,990
29,061
155,929
* 2,655
* 3,608
* 1,719
* 1,889
* 5,449
* 34,260
* 3,392
* 30,867
10,119
46,013
12,525
33,488
* 1,816
* 13,124
* 1,120
* 12,004
21,845
87,984
10,304
77,680
22,079
138,045
20,432
117,613
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Mining--continued
Oil
Net income status, item
Metal
Nonmetallic
Support
and
Coal
ore
mineral
activities for
gas extraction
mining
mining
mining and
mining
Utilities
Construction
Total
Total
(14)
(15)
quarrying
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total, total....................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income less deficit [1,2].......................................
Net income [1,2].........................................................
Deficit [2].....................................................................
Footnotes at end of table.
(9)
(10)
106,198
8,861,781
8,366,647
495,133
7,393,085
1,407,826
65,277
6,081
206,549
38,394
1,148,962
57,437
12,169
123,955
21,655
109,465
876,195
527,945
6,609
54,424
95,359
13,988
27,571
77,469
28,764
2,049
10,007
43,868
73,863
50,582
150,202
260,066
40,012
55,563
3,292,278
10,993
1,438
0
695
1,468,084
2,351,395
883,311
43
661,649
648,761
* 12,888
691,966
* 441,458
* 6,033
* 61,325
* 89,392
* 2,618
* 291,184
* 9,093
* 86
21,589
0
* 43,338
* 957
30,151
* 4,833
12,122
2,744
*5
* 58
* 16,394
* 208
*5
* 4,092
* 38
* 13,204
* 7,268
35,081
7,240
* 228
2,306
48,560
0
0
0
0
-28,612
* 2,444
* 31,056
(11)
* 1,297
* 51,101
* 50,823
* 278
* 59,786
* 6,027
0
0
0
* 6,027
0
0
* 135
* 1,861
* 29
* 295
0
* 14,089
* 1,046
* 736
* 108
* 15
0
* 514
* 24
* 177
* 1,369
* 14
* 10,727
* 63
* 15,880
* 3,343
* 39
* 129
* 3,118
* 48
* 218
0
* 218
* -8,685
* 5,938
* 14,623
(12)
2,456
454,907
451,633
3,274
414,026
136,918
60,005
* 16,408
76,432
* 3,282
36,246
* 55,454
2,041
15,714
* 104
5,909
7,361
41,957
* 551
14,150
3,729
167
* 6,542
6,770
1,730
* 321
8,933
3,477
17,334
8,277
47,433
12,768
2,524
4,946
64,347
* 23
*2
0
0
40,881
69,933
29,052
(13)
11,456
1,413,156
1,405,451
7,704
1,004,257
463,538
* 21,983
* 30,958
* 164,268
* 247,640
18,984
* 20,294
3,999
79,684
4,626
11,644
5,117
86,533
4,881
24,651
4,523
11,180
* 859
7,580
13,370
* 1,224
7,902
1,648
15,264
19,115
91,603
25,185
6,518
17,857
88,228
* 7,304
* 368
0
* 19
408,899
447,556
38,657
10,510
237,975
237,879
* 97
293,532
* 6,685
* 447
* 6,440
* 233
* 11
0
* 447
* 1,604
32,859
* 14
* 24,152
* 31
77,721
0
* 4,895
3,217
* 448
* 14,524
* 2,147
* 6,262
0
* 6,092
* 5,064
* 6,845
* 20,066
* 4,875
1,076
* 6,181
5,992
59,657
0
0
0
0
-15,919
91,314
107,234
2,820,568
222,064,346
220,329,864
1,734,483
187,312,718
98,644,310
5,130,247
16,792,295
29,974,204
34,269,469
19,269,477
6,791,382
1,122,860
13,618,337
1,029,100
11,524,517
26,912
7,557,391
399,878
4,489,981
1,071,946
575,434
685,577
1,027,022
1,114,619
55,082
1,527,613
1,365,183
2,099,850
7,711,347
11,051,496
2,218,615
810,383
2,453,691
13,673,204
1,047,533
114,827
1,655
57,894
34,810,773
39,253,965
4,443,192
25
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Mining--continued
Oil
Net income status, item
Metal
Nonmetallic
Support
and
Coal
ore
mineral
activities for
gas extraction
mining
mining
mining and
mining
Utilities
Construction
Total
Total
(14)
(15)
quarrying
(9)
BUSINESSES WITH NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income [1,2]...........................................................
Returns with Schedule C-EZ:
Number of returns.......................................................
Business receipts.......................................................
Business deductions...................................................
Net income.................................................................
Footnotes at end of table.
26
(10)
(11)
(12)
(13)
80,964
7,009,532
6,664,056
345,475
4,658,257
835,411
39,227
* 5,031
168,870
20,393
640,286
38,397
9,708
101,076
19,137
97,145
677,455
326,553
5,290
43,815
63,837
10,470
22,839
45,009
16,514
1,616
5,123
22,553
56,094
33,683
97,831
195,602
23,341
41,224
1,876,100
10,725
1,348
0
* 469
2,351,395
** 20
** 92,692
** 92,320
** 371
** 84,309
** 11,802
** 637
** 161
** 1,963
** 8,645
** 989
** 593
** 55
** 692
** 0
** 1,188
** 701
** 4,327
** 2,294
** 2,795
** 520
** 12
** 0
** 688
** 70
** 181
** 2,384
** 37
** 14,776
** 1,794
** 23,645
** 4,429
** 31
** 834
** 11,052
** 0
** 0
** 0
** 0
** 8,382
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
**
1,867
348,513
345,531
* 2,983
278,581
105,554
* 59,040
* 9,601
* 60,450
* 1,997
* 29,228
* 54,761
897
* 5,576
* 104
* 2,549
7,206
26,671
* 422
8,549
562
* 103
* 3,260
5,159
741
* 321
* 810
* 3,112
14,176
7,027
29,702
8,232
1,360
3,695
42,772
* 23
*2
0
0
69,933
9,689
1,346,848
1,339,709
7,140
899,292
422,767
* 19,317
* 24,524
* 143,966
* 241,521
* 11,406
* 17,967
3,816
76,928
* 4,248
6,362
3,753
49,110
4,880
23,852
4,120
10,484
* 859
7,014
13,246
* 1,188
7,874
1,520
14,657
17,931
90,512
24,107
6,481
17,485
78,598
* 7,274
* 349
0
0
447,556
6,494
166,501
166,417
* 84
75,187
* 49
* 447
0
* 38
* 11
0
* 447
* 872
* 21,402
0
* 24,151
* 28
* 4,847
0
*3
* 1,299
* 28
0
0
* 357
0
* 2,271
0
* 1,918
* 10,210
0
* 37
* 553
* 3,268
* 769
0
0
0
0
91,314
2,350,699
197,709,559
196,281,560
1,428,000
158,451,619
85,215,107
3,614,279
14,939,875
25,393,423
29,643,029
16,175,302
4,550,801
930,917
11,356,243
903,842
9,999,534
23,391
5,969,290
335,831
3,769,668
787,152
481,699
477,948
706,673
923,724
52,969
1,171,036
1,061,892
1,611,885
6,618,300
8,931,692
1,806,181
620,423
1,999,943
11,377,165
917,228
91,520
* 1,075
12,249
39,253,965
20,982
100,898
20,208
80,691
** 0
** 0
** 0
** 0
**
**
**
**
* 304
* 33,812
0
* 33,812
* 793
* 3,334
* 225
* 3,110
* 1,017
* 6,521
* 3,124
* 3,397
457,719
3,150,362
410,837
2,739,525
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Construction—continued
Net income status, item
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income less deficit [1,2].......................................
Net income [1,2].........................................................
Deficit [2].....................................................................
Footnotes at end of table.
Manufacturing
Residential
Nonresidential
Heavy and
Specialty
building
building
civil engineering
trade
construction
construction
construction
contractors
(16)
(17)
(18)
(19)
(20)
(21)
431,664
53,871,031
53,436,583
434,448
47,554,043
32,048,715
2,842,081
3,874,330
8,538,121
10,954,359
9,953,301
4,113,477
159,442
1,953,227
301,264
2,282,041
* 472
1,220,918
69,992
796,947
217,216
77,784
241,928
269,116
190,699
8,238
242,769
163,113
267,541
1,617,028
1,694,359
361,396
113,734
394,724
2,590,351
196,624
19,482
* 659
5,508
6,376,059
7,450,156
1,074,097
95,587
10,791,943
10,762,475
29,468
9,695,225
5,824,262
150,146
953,789
1,507,353
1,386,939
1,999,123
173,089
29,471
529,534
20,427
511,103
*3
397,539
7,572
176,349
48,088
32,546
41,463
56,967
53,116
2,034
93,172
58,079
85,298
257,067
504,526
101,678
57,320
118,891
651,551
29,308
1,874
0
* 912
1,096,717
1,354,001
257,284
58,087
8,404,584
8,287,522
117,062
7,491,387
4,098,720
989,961
374,819
1,771,508
898,320
1,354,580
1,290,470
35,132
291,207
69,609
191,637
* 2,435
554,852
15,435
184,657
108,063
18,498
99,434
99,345
35,986
2,700
119,144
39,799
175,939
146,528
357,301
106,961
42,967
76,642
590,377
26,007
1,550
0
* 490
910,655
1,331,372
420,718
2,235,229
148,996,788
147,843,284
1,153,504
122,572,062
56,672,613
1,148,058
11,589,357
18,157,221
21,029,850
5,962,473
1,214,347
898,816
10,844,369
637,800
8,539,736
24,002
5,384,082
306,879
3,332,028
698,579
446,606
302,751
601,594
834,818
42,110
1,072,528
1,104,192
1,571,072
5,690,724
8,495,311
1,648,580
596,362
1,863,434
9,840,925
795,594
91,921
* 996
50,984
26,427,342
29,118,435
2,691,093
340,288
24,626,888
24,260,974
365,914
21,577,814
11,597,010
1,241,903
1,224,193
6,876,412
1,927,093
1,705,661
1,378,252
211,470
874,805
103,114
370,532
4,679
904,409
87,647
361,307
169,322
62,071
125,376
150,116
243,088
15,304
144,113
746,005
309,684
683,757
1,629,364
404,825
194,827
539,662
1,466,675
133,057
13,585
0
10,131
3,054,455
3,974,217
919,762
27,902
2,926,094
2,896,945
29,148
2,770,190
1,770,122
205,948
46,768
1,348,225
232,968
194,507
258,294
22,441
58,216
11,185
14,621
*4
68,572
7,046
35,329
19,529
2,481
11,079
12,839
11,154
734
9,157
80,717
63,219
37,790
219,181
82,475
10,810
65,735
146,419
* 4,751
* 579
0
* 528
156,174
294,638
138,464
Total
Food
Textile
manufacturing
and textile
product mills
(22)
4,396
125,092
125,088
*4
87,339
* 52,848
* 11,644
* 7,312
* 29,880
* 507
* 9,860
* 6,354
* 81
* 6,099
* 66
* 4,763
0
* 5,247
0
* 915
* 712
* 974
* 77
* 39
* 1,368
0
*2
* 29
* 278
* 1,881
* 1,667
* 1,410
* 977
* 2,944
* 2,500
* 662
0
0
0
37,753
* 46,732
* 8,978
27
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Construction--continued
Net income status, item
BUSINESSES WITH NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income [1,2]...........................................................
Returns with Schedule C-EZ:
Number of returns.......................................................
Business receipts.......................................................
Business deductions...................................................
Net income.................................................................
Footnotes at end of table.
28
Manufacturing
Residential
Nonresidential
Heavy and
Specialty
building
building
civil engineering
trade
construction
construction
construction
contractors
(16)
(17)
(18)
(19)
(20)
(21)
(22)
350,801
47,564,413
47,250,226
314,187
40,114,404
27,619,742
2,096,338
3,548,929
7,128,083
9,245,195
8,467,731
2,866,535
135,253
1,565,343
267,905
1,809,686
* 444
1,006,602
60,556
656,055
154,656
67,006
182,931
141,007
159,981
8,142
158,545
117,803
208,516
1,469,299
1,281,486
283,238
68,929
307,466
2,130,557
180,091
17,276
* 659
* 2,410
7,450,156
80,198
8,375,884
8,337,631
38,253
7,021,882
4,129,701
97,620
755,636
815,794
1,097,876
1,460,554
97,778
22,188
431,615
14,603
435,823
*3
285,967
4,068
115,902
33,972
28,073
27,731
31,438
45,017
* 1,997
78,039
39,251
55,783
211,168
313,157
65,974
51,442
79,776
486,055
25,275
1,440
0
* 293
1,354,001
40,504
6,589,347
6,526,085
63,261
5,257,974
2,984,290
614,983
344,506
1,190,827
659,128
987,768
812,923
25,935
234,657
47,137
131,503
*4
387,339
10,532
139,074
56,101
12,529
44,253
56,954
25,393
1,692
77,989
25,391
133,024
103,479
222,442
66,593
31,209
57,159
357,864
23,420
* 1,163
0
0
1,331,372
1,879,196
135,179,916
134,167,618
1,012,298
106,057,359
50,481,374
805,338
10,290,803
16,258,719
18,640,830
5,259,249
773,565
747,540
9,124,628
574,197
7,622,522
22,940
4,289,381
260,674
2,858,636
542,423
374,091
223,032
477,274
693,333
41,139
856,463
879,447
1,214,562
4,834,355
7,114,606
1,390,376
468,843
1,555,542
8,402,688
688,441
71,640
* 416
9,546
29,118,435
224,481
20,527,587
20,423,713
103,874
16,553,240
9,093,278
820,908
998,304
5,373,273
1,635,262
1,168,074
902,541
148,417
641,700
82,071
285,933
2,823
608,371
78,943
278,362
120,993
43,658
83,490
80,555
171,196
13,774
92,066
585,968
217,319
537,868
1,349,313
335,813
122,190
404,922
1,048,731
79,989
8,571
0
* 549
3,974,217
16,760
2,304,160
2,285,459
18,700
2,009,521
1,373,921
99,892
18,657
1,055,836
175,261
151,767
127,492
10,180
34,704
4,319
5,554
0
35,288
5,662
21,980
11,062
1,203
5,134
2,519
3,849
* 721
1,482
59,936
32,213
19,245
176,216
72,264
4,219
45,748
77,498
* 21
*6
0
0
294,638
* 3,364
* 116,862
* 116,862
0
* 70,130
* 40,509
* 4,071
* 5,421
* 26,777
* 156
* 9,028
* 4,944
* 80
* 6,071
* 66
* 4,492
0
* 4,485
0
* 392
* 337
* 849
* 77
* 12
* 1,350
0
0
0
* 25
* 1,806
* 1,447
* 466
* 629
* 2,713
* 1,859
* 662
0
0
0
* 46,732
63,781
547,319
74,405
472,914
11,204
55,484
7,863
47,621
5,538
78,252
2,012
76,241
377,195
2,469,308
326,558
2,142,750
46,929
356,493
45,596
310,897
* 3,602
* 46,138
* 4,583
* 41,555
* 757
* 4,069
* 1,801
* 2,269
Total
Food
Textile
manufacturing
and textile
product mills
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued
Plastics,
Leather
Net income status, item
Apparel
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income less deficit [1,2].......................................
Net income [1,2].........................................................
Deficit [2].....................................................................
Footnotes at end of table.
Petroleum
rubber, clay, Nonmetallic
and
Wood
Paper
and related
and coal
Chemical
refractory,
mineral
allied
products
products
support
products
manufacturing
and glass
products
products
BUSINESSES WITH AND
WITHOUT NET INCOME
Printing
activities
(23)
(24)
(25)
17,883
1,523,868
1,521,561
* 2,307
1,408,964
867,513
126,126
32,008
601,184
24,849
201,010
117,664
12,228
24,551
12,864
25,366
0
32,837
* 1,198
13,750
10,029
1,894
* 1,817
11,001
13,795
* 127
* 3,081
59,462
7,216
23,769
97,188
20,718
8,346
23,923
118,718
* 10,670
* 1,145
0
0
115,751
216,652
100,901
* 3,129
* 93,120
* 92,647
* 473
* 80,686
* 41,851
* 28,825
0
*2
* 37,981
* 194
* 25,151
* 3,074
* 552
0
* 322
* 19
* 2,888
0
* 869
* 108
* 231
* 1,478
* 393
* 814
0
* 481
* 1,467
* 92
* 8,942
* 2,822
* 306
* 1,122
* 3,270
* 9,187
* 398
0
0
0
* 12,434
* 15,971
* 3,536
43,249
2,481,609
2,441,459
40,149
2,197,776
1,288,019
138,600
188,118
787,128
262,239
109,303
197,369
16,058
95,842
7,418
33,131
* 1,719
135,417
7,663
40,720
12,432
3,176
15,937
23,228
11,266
* 509
6,033
39,398
55,525
39,642
122,483
26,839
6,714
39,843
133,858
29,591
3,975
0
* 5,589
283,703
375,875
92,172
(26)
* 670
* 4,695
* 4,695
0
* 5,307
* 2,531
* 21
* 1,830
0
* 672
* 85
* 78
*6
* 34
0
* 75
0
* 552
* 204
* 21
* 128
* [4]
0
*1
0
0
*4
0
* 362
* 39
0
* 25
* 46
* 678
* 599
0
0
0
0
* -612
* 4,527
* 5,139
products
(27)
(28)
(29)
(30)
(31)
32,849
2,922,051
2,919,612
2,439
2,568,188
1,315,960
51,463
172,252
756,771
92,596
305,263
62,385
37,638
112,069
5,962
41,451
* 365
67,292
9,264
36,863
33,108
11,709
20,165
16,159
70,214
* 2,402
27,065
136,633
25,319
92,358
134,565
43,463
44,411
89,719
174,381
17,939
* 1,586
0
* 455
357,174
428,147
70,973
430
261,152
56,203
* 204,949
260,881
* 246,999
0
* 423
* 50,222
* 1,028
* 205,595
* 10,269
* 36
* 54
* 150
* 12
* 679
* 2,913
* 267
* 15
* 249
* 186
* 1,501
* 265
* 89
* 111
*4
* 78
*4
*3
* 2,447
* 428
* 142
* 162
3,888
* 18
*6
0
*6
270
11,803
* 11,533
12,054
592,171
587,898
4,273
472,439
206,700
17,536
* 21,517
60,425
96,171
* 27,768
16,718
3,524
10,851
* 3,189
* 64,770
0
9,645
* 2,977
14,399
3,627
618
* 959
2,122
13,514
* 137
1,470
5,398
5,113
16,534
40,647
4,010
6,972
8,758
42,250
* 1,000
* 328
0
*1
121,466
139,394
* 17,929
12,176
584,114
572,472
* 11,642
541,514
201,890
42,352
* 20,343
144,343
43,795
* 5,995
54,938
14,367
22,029
* 590
7,568
0
17,497
* 5,278
10,460
4,583
2,661
* 2,502
20,883
5,152
* 638
* 3,076
17,040
3,362
18,356
86,378
19,417
9,663
22,658
41,339
* 2,125
* 407
0
* 836
35,246
79,838
44,593
5,104
1,020,391
1,014,309
* 6,083
953,194
498,033
33,079
* 43,143
190,744
143,232
137,204
49,369
6,210
24,364
* 561
* 23,189
*1
51,749
* 10,835
20,326
6,518
1,738
* 17,343
* 2,145
3,999
* 427
10,600
* 13,749
18,939
41,853
95,968
22,766
2,505
14,584
64,791
0
0
0
0
67,198
82,616
15,418
29
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued
Plastics,
Leather
Net income status, item
Apparel
30
Petroleum
rubber, clay, Nonmetallic
and
Wood
Paper
and related
and coal
Chemical
refractory,
mineral
allied
products
products
support
products
manufacturing
and glass
products
products
BUSINESSES WITH NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income [1,2]...........................................................
Returns with Schedule C-EZ:
Number of returns.......................................................
Business receipts.......................................................
Business deductions...................................................
Net income.................................................................
Footnotes at end of table.
Printing
activities
(23)
(24)
(25)
(26)
(27)
11,628
1,063,366
1,061,276
* 2,090
846,714
450,180
50,704
* 14,668
240,328
* 12,629
196,580
64,729
5,840
15,678
4,891
* 14,918
0
19,089
* 1,115
9,603
5,463
202
* 452
6,240
6,153
* 127
* 3,040
47,842
5,379
22,066
84,133
17,454
1,721
18,617
89,126
* 10,483
* 1,145
0
0
216,652
* 1,787
* 70,672
* 70,199
* 473
* 54,701
* 37,930
* 16,795
0
*2
* 37,981
* 194
* 17,041
* 384
* 307
0
* 16
* 19
* 1,619
0
* [4]
* 108
* 98
* 1,478
* 393
* 622
0
* 454
* 314
0
* 128
0
* 228
* 1,122
* 1,309
* 7,774
* 398
0
0
0
* 15,971
25,812
2,207,439
2,178,245
29,195
1,831,435
1,153,728
98,100
155,176
698,865
239,849
101,838
140,100
9,908
74,696
* 7,252
31,747
* 1,718
82,967
6,445
29,492
8,222
2,579
10,140
14,632
7,134
* 509
5,308
22,433
45,054
25,595
99,818
21,604
5,445
29,398
112,301
17,998
* 1,744
0
0
375,875
* 667
* 4,539
* 4,539
0
* 12
0
0
0
0
0
0
0
*2
0
0
0
0
0
0
0
*3
0
0
0
0
0
0
0
0
*2
0
0
0
*4
0
0
0
0
0
* 4,527
21,708
2,379,126
2,381,847
-2,721
1,950,979
1,017,692
30,861
166,234
631,510
73,974
146,317
31,203
30,651
74,864
5,515
30,754
* 365
47,128
8,806
24,797
25,903
6,861
* 15,197
13,496
51,418
* 2,368
21,662
117,448
19,389
73,993
109,656
35,322
24,181
58,939
122,493
10,365
* 1,322
0
0
428,147
* 3,284
* 57,893
* 6,902
* 50,991
* 658
* 1,973
0
* 1,973
* 4,386
* 26,711
* 5,314
* 21,397
*6
* 116
*2
* 114
* 834
* 3,980
* 1,714
* 2,266
products
(28)
(29)
(30)
(31)
414
15,025
15,025
0
3,222
* 1,565
0
* 423
0
* 1,028
* 115
0
* 16
* 48
* 150
0
* 208
* 45
0
0
* 62
0
0
* [4]
* 21
0
*4
* 53
*2
0
* 199
* 18
* 49
* 49
* 551
0
0
0
0
11,803
9,586
557,664
556,055
* 1,609
418,269
184,331
* 11,367
* 20,697
* 41,598
96,109
* 25,595
* 11,036
2,942
10,820
* 3,189
* 64,749
0
7,351
* 2,818
14,237
2,612
489
* 426
* 1,748
12,577
* 28
1,470
* 5,176
4,919
15,950
38,368
3,275
4,843
8,385
23,313
* 997
* 327
0
0
139,394
7,158
360,319
358,918
* 1,401
280,481
118,228
* 24,355
* 5,666
* 105,615
* 4,144
* 5,621
* 27,173
10,935
7,167
0
* 2,481
0
8,940
* 4,860
6,132
1,808
* 1,169
* 1,875
* 1,534
2,626
* 248
* 449
3,752
* 993
11,123
* 48,245
11,425
3,805
13,881
16,185
* 617
0
0
0
79,838
3,795
808,323
803,849
* 4,474
725,707
438,238
* 23,793
* 39,101
* 154,674
* 135,249
* 125,919
* 40,498
4,229
* 15,678
* 21
* 7,895
*1
28,164
* 10,551
16,296
3,903
1,444
* 12,249
* 1,035
2,218
* 427
3,395
* 12,450
6,153
13,147
72,155
16,957
2,023
11,540
45,537
0
0
0
0
82,616
* 80
* 9,723
* 181
* 9,543
* 5,166
* 46,259
* 3,256
* 43,003
* 984
* 9,996
* 2,002
* 7,995
* 985
* 8,259
0
* 8,259
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued
Net income status, item
Primary
Fabricated
metal
metal
industries
products
Machinery
Computer and
Electrical
Transportation
Furniture
electronic
equipment,
equipment
and related
products
appliances, and
products
components
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income less deficit [1,2].......................................
Net income [1,2].........................................................
Deficit [2].....................................................................
Footnotes at end of table.
(32)
7,599
354,662
332,238
* 22,424
319,727
* 71,589
*1
0
* 33,979
* 30,511
* 7,098
0
* 189
* 14,577
* 36
* 9,376
*1
46,126
* 570
* 9,154
* 1,519
* 1,052
0
* 1,815
* 3,529
0
* 289
* 21,001
* 8,018
* 8,757
* 65,306
* 6,970
* 2,729
* 13,893
* 23,330
* 9,901
* 67
0
* 67
34,935
57,627
* 22,692
(33)
(34)
42,668
3,341,870
3,331,667
10,202
3,002,997
1,572,532
97,951
249,212
811,026
275,234
232,733
93,625
18,813
127,379
11,147
42,462
0
149,800
15,057
62,813
17,783
7,372
12,432
22,592
28,671
2,517
27,954
110,993
45,568
74,442
254,213
71,348
18,918
70,095
221,066
14,672
* 1,210
0
* 1,060
344,792
485,488
140,696
20,201
2,317,305
2,304,885
12,420
1,797,281
883,190
84,035
174,519
435,645
174,146
108,673
93,829
8,310
79,703
4,027
13,962
*2
160,838
13,857
35,970
14,587
6,509
15,411
12,965
19,135
* 5,041
3,692
63,406
20,090
32,375
189,634
38,110
3,806
54,568
109,521
* 6,765
* 1,423
0
* 27
520,024
532,899
* 12,875
(35)
8,599
255,686
255,557
* 129
205,098
99,841
* 6,455
* 12,372
80,819
* 2,814
* 5,484
* 8,103
3,888
18,857
* 11
* 1,016
0
1,211
* 739
* 1,489
1,225
1,905
0
* 964
2,690
* 28
* 214
10,892
* 760
15,313
* 4,839
716
* 1,679
6,733
26,137
* 1,047
* 239
0
0
50,588
74,567
23,979
(36)
(37)
(38)
11,130
848,560
847,349
* 1,212
678,944
443,096
60,790
* 48,243
266,143
* 111,551
* 12,020
55,650
8,847
22,253
* 3,667
* 6,594
* 510
12,027
* 2,411
4,972
3,412
2,331
* 724
1,929
5,026
* 429
8,820
34,137
3,296
10,273
46,407
5,645
5,201
13,599
29,089
* 1,047
* 111
0
0
170,442
182,486
* 12,044
9,129
929,024
926,663
* 2,360
885,778
516,688
80,268
* 52,983
292,403
* 146,695
* 18,604
74,265
7,172
58,484
* 481
* 8,272
* 1,377
25,862
* 1,790
20,926
2,974
1,501
* 9,212
* 7,648
5,751
0
* 10,745
19,215
20,312
50,602
26,387
10,138
5,381
23,536
47,790
* 1,533
* 317
0
* 871
43,427
82,629
39,202
22,309
1,569,700
1,567,099
2,601
1,248,094
544,740
59,077
65,833
401,201
76,987
16,187
74,544
14,452
71,081
9,185
38,452
0
51,491
* 463
28,893
10,647
5,128
* 7,450
3,741
20,072
* 422
14,608
57,366
11,341
142,629
93,828
21,067
13,507
29,336
53,755
* 3,307
* 394
0
0
321,800
363,926
42,126
31
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued
Net income status, item
Primary
Fabricated
metal
metal
industries
products
Machinery
Computer and
Electrical
Transportation
Furniture
electronic
equipment,
equipment
and related
products
appliances, and
products
components
(32)
BUSINESSES WITH NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs.......................................................................
Supplies......................................................................
Salaries and wages....................................................
Taxes paid..................................................................
Travel..........................................................................
Utilities........................................................................
Other business deductions.........................................
Home office business deductions...............................
Depreciation, Form 8829 [3]....................................
Casualty loss, Form 8829 [3]...................................
Excess—casualty depreciations, Form 8829 [3].....
Net income [1,2]...........................................................
Returns with Schedule C-EZ:
Number of returns.......................................................
Business receipts.......................................................
Business deductions...................................................
Net income.................................................................
Footnotes at end of table.
32
(33)
(34)
3,975
339,310
316,533
* 22,777
281,683
* 63,908
*1
0
* 33,818
* 22,992
* 7,098
0
* 189
* 8,570
* 36
* 9,376
*1
* 42,065
* 570
* 9,054
* 1,118
* 223
0
* 1,815
* 3,097
0
* 289
* 16,661
* 8,018
* 8,677
* 65,306
* 6,813
* 125
* 12,442
* 23,045
* 285
0
0
0
57,627
26,148
2,910,547
2,902,118
8,428
2,425,059
1,371,669
81,712
189,255
743,597
236,716
199,145
78,755
13,575
79,902
9,654
32,738
0
91,437
14,090
47,000
13,024
6,589
9,931
13,781
22,326
* 2,315
17,835
75,476
29,873
57,159
211,378
59,269
16,835
48,096
169,895
* 8,851
* 150
0
0
485,488
18,065
2,179,944
2,174,399
5,545
1,647,044
842,258
82,532
174,519
396,869
173,856
105,711
91,230
6,900
77,926
* 3,377
12,434
0
129,436
13,676
31,649
13,980
6,473
10,486
8,375
18,128
* 5,023
3,524
62,801
18,810
30,325
164,576
33,935
3,635
49,549
91,197
* 6,765
* 1,423
0
* 27
532,899
* 654
* 8,284
0
* 8,284
* 6,009
* 18,154
* 2,359
* 15,795
* 2,794
* 6,122
* 1,807
* 4,316
(35)
(36)
(37)
(38)
5,821
153,426
153,335
* 91
78,859
* 33,792
* 6,394
* 1,282
* 31,448
* 1,819
* 533
* 7,685
* 3,537
* 9,363
* 11
* 668
0
* 567
0
* 426
* 542
* 594
0
* 215
* 1,652
0
* 192
* 2,513
* 681
* 6,489
* 2,059
* 385
* 1,014
* 3,505
* 6,707
* 1,047
* 239
0
0
74,567
8,275
796,602
795,570
* 1,032
614,116
418,373
* 52,990
* 45,943
* 240,182
* 111,551
* 11,478
* 43,771
8,794
14,736
* 3,202
* 4,924
* 510
10,917
* 1,465
4,649
2,863
1,736
* 256
* 1,772
4,453
* 429
* 5,650
* 32,023
2,784
8,730
* 36,920
4,005
3,742
12,356
24,580
* 1,047
* 111
0
0
182,486
6,860
832,812
832,654
* 158
750,182
451,572
* 76,294
* 44,530
* 290,180
* 100,952
* 9,590
* 69,974
6,143
45,490
* 425
* 8,272
0
17,387
* 1,521
19,631
2,431
* 1,310
* 4,313
* 3,920
5,026
0
* 10,735
* 18,798
14,814
44,611
* 23,467
9,043
* 5,037
19,822
33,559
* 851
* 97
0
0
82,629
15,156
1,439,311
1,436,714
* 2,597
1,075,386
484,664
41,844
* 63,850
350,089
72,063
14,357
57,540
9,279
61,259
9,077
22,086
0
35,938
* 422
24,379
9,483
4,837
* 4,326
2,730
11,196
* 422
5,056
52,161
10,765
142,025
84,653
18,508
12,943
23,863
42,641
* 1,540
* 394
0
0
363,926
* 2,265
* 14,419
* 2,904
* 11,516
* 2,332
* 50,422
* 3,203
* 47,220
* 2,432
* 10,621
* 2,002
* 8,620
* 984
* 1,230
* 1,131
* 98
Sole Proprietorship Returns, 2005
Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2005—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued
Wholesale trade (merchant wholesalers)
Durable goods,
Net income status, item
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]..................................................
Business receipts, total [1].........................................
Income from sales and operations [1]........................
Other business income...............................................
Business deductions, total [1,2].................................
Cost of sales and operations, total.............................
Inventory, beginning of year....................................
Cost of labor............................................................
Purchases................................................................
Materials and supplies.............................................
Other costs..............................................................
Inventory, end of year..............................................
Advertising expenses.................................................
Car and truck expenses..............................................
Commissions..............................................................
Contract labor.............................................................
Depletion....................................................................
Depreciation...............................................................
Employee benefit programs........................................
Insurance....................................................................
Legal and professional services.................................
Meals and entertainment deducted............................
Mortgage interest........................................................
Other interest paid on business indebtedness...........
Office expenses..........................................................
Pension and profit-sharing plans................................
Rent on machinery and equipment.............................
Rent on other business property................................
Repairs..
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