# Sole Proprietorship Returns, 2005 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A3b6b88dc3051e0ca ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text 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 [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A3b6b88dc3051e0ca. Public record. Not legal advice.