SCorporationReturns,1997

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by Susan Wittman

ver the past 10 years, filings of S corporation

returns have increased at an average annual

rate of 10.7 percent. This growth has been

spurred by four legislative acts: the Tax Reform Act

of 1986, the Revenue Reconciliation Act of 1990, the

Revenue Reconciliation Act of 1993, and the Small

Business Job Protection Act of 1996 [1].

A total of 2.5 million S corporation returns were

filed for Tax Year 1997, an increase of 6.4 percent

over Tax Year 1996. S corporations are now the

single most popular corporate entity choice representing 52.1 percent of all corporate entities. While S

corporations have experienced continued growth,

taxable corporations have experienced decreases in

the number of returns filed. For Tax Year 1997,

there was a decline of 3.0 percent, and over the past

10 years, taxable corporations have experienced

average annual declines of 1.2 percent. The term

“taxable corporations,” used herein, refers to all

corporations other than S corporations [2].

Total net income (less deficit) of S corporations

increased by 22.2 percent to $153.1 billion for Tax

Year 1997. At the same time, S corporations remained concentrated in three industrial divisions:

services; wholesale and retail trade; and manufacturing, as these three divisions account for 70.8 percent

of total net income (less deficit).

Nearly 71 percent of the 321,000 new S corporations were newly incorporated businesses electing S

corporation status, while the remaining 93,000 new S

corporations were previously incorporated and electing treatment under subchapter S for the first time.

This compares with Tax Year 1996 when just over

76,000 out of 268,000 new S corporations were

converted from taxable corporations.

TheSmallBusinessJobProtectionActof1996

Tax legislation passed by Congress and signed into

law by President Clinton in August 1996 included

significant reform for S corporations. The Small

Business Job Protection Act of 1996 (herein referred

to as the 1996 Act) contained several major provisions relating to S corporations [3]. Some major

provisions of the 1996 Act were:

Susan Wittman is an economist with the Corporation

Special Projects Section. This article was prepared

under the direction of Doug Shearer, Chief.

Ø allow S corporations to have a maximum of

75 shareholders, up from 35, for tax years

beginning after December 31, 1996;

Ø permit certain small business trusts to hold

stock in a subchapter S corporation for tax

years beginning after December 31, 1996;

Ø enable certain tax-exempt organizations to

hold shares of S corporations for tax years

beginning after December 31, 1997;

Ø permit financial institutions that use the

specific chargeoff method of section 166 to

account for the writeoff of bad debts to elect

Subchapter S status for tax years beginning

after December 31, 1996;

Ø allow S corporations to own 100 percent of

the stock of a C or S corporation for tax

years beginning after December 31, 1996.

These provisions collectively make an S election

a more attractive choice for small businesses, similar

to the limited liability company (LLC) [4]. The limited liability company is the fastest growing type of

business entity combining the partnership taxation

rules with limited personal liability for all owners

(members) of the organization. Limited liability

companies have advantages over S corporations,

including no limit to the number of owners and allowance for corporate or foreign ownership.

SCorporationBasics

An S corporation is a corporation that retains the

main attributes of the traditional C corporation, such

as limited liability, freely transferable ownership, and

unlimited life span, but in exchange for certain

limitations, receives the benefits of a flow-through

entity for income tax purposes. Electing S corporation status allows income and expenses to pass

through the corporate structure to its shareholders,

and any resulting tax liability is the responsibility of

the shareholders. This benefit eliminates double

taxation on the corporation’s net income or capital

gains. A taxable C corporation incurs a tax liability

at the corporate level on its net income and capital

gains. When profits are distributed to shareholders in

the form of dividends, a second tax liability is incurred

on those dividends. The elimination of double taxation can result in substantial tax savings for eligible

corporations. Corporations that reported net losses

S Corporation Returns, 1997

still benefit from an S election as the losses flow

through to the individual shareholders and can

potentially offset net income from other sources.

To elect treatment under Subchapter S, an eligible corporation must meet all criteria for an election

and file Form 2553, Election by a Small Business

Corporation, with the IRS Service Center where the

corporation files its Federal tax forms. All qualified

shareholders of the corporation must consent to the

election on Form 2553, and all eligibility requirements

must be met prior to the election [5]. The criteria for

Tax Year 1997 were that the corporation:

Ø be a domestic corporation;

Ø have no more than 75 shareholders (a husband and wife (and their estates) are counted

as one shareholder for this requirement);

Ø have only individuals, estates, certain trusts,

and exempt organizations as shareholders

[6];

Ø have no nonresident alien shareholders; and

Ø have only one class of stock.

Ineligible corporations were:

Ø banks or thrift institutions that use the reserve method of accounting for bad debts

under Internal Revenue Code section 585;

Ø insurance companies subject to provisions of

Subchapter L of the Internal Revenue Code;

Ø corporations eligible to elect the possessions

tax credit;

Ø Interest-Charge Domestic International Sales

Corporations (IC-DISC) or former Domestic

International Sales Corporations (DISC); and

Ø affiliated group members eligible for inclusion

on a consolidated return.

Subsidiaries

Provisions of the 1996 Act allowed S corporations,

for the first time, to own 80 percent or more of the

stock of a C corporation. The 1996 Act allows C

corporation subsidiaries to file a consolidated return

with other affiliated C corporations, but the S corporation parent may not join in the affiliated filing. The

1996 Act also has a provision on the treatment of

dividends for an S parent that owns at least 80

percent of a C subsidiary. The S parent cannot treat

dividends received as passive income to the extent

that the dividends are attributable to the earnings and

profits of the C subsidiary’s active trade or business.

Provisions of the 1996 Act also permit an S

corporation to own 100 percent of the stock of an

eligible S corporation. The parent S corporation can

elect to treat the S subsidiary as a “qualified subchapter S subsidiary” or QSUB. If this election is made

and the S subsidiary meets and retains all criteria for

a valid S election, then all items of income or loss,

credit or deduction, and all of the assets and liabilities

of the S subsidiary are treated as those of the parent

S corporation. The QSUB is not considered to be a

separate entity for tax purposes. If the subsidiary

fails to qualify as an S corporation or the S parent

revokes the election, the subsidiary cannot make an S

election for 5 years without the consent of the Secretary of the Treasury [8]. Additionally, the parent

cannot re-elect to treat the subsidiary as a QSUB for

5 years. The provisions for ownership of subsidiaries, C or S, were effective for tax years beginning

after December 31, 1996.

S corporation data for Tax Year 1997 report that

approximately 1,900 S corporations made QSUB

elections for eligible subsidiaries owned. Many of

these S corporations made the election for multiple

subsidiaries owned. Figure A shows the number of S

corporations reporting a QSUB election by industrial

division.

Banks

Form 1120S, U.S. Tax Return for an S Corporation, must be filed before the 15th day of the 3rd

month following the close of the tax year. The tax

year for an S corporation generally must be a calendar year. While provisions exist for an exemption

from the calendar year rule, for Tax Year 1997 about

88.0 percent of all S corporations filed a calendar

year return [7].

The 1996 Act for the first time permitted certain

financial institutions to elect treatment as an S

corporation. The 104th Congress believed that if a

corporation meets all of the criteria for an S election,

the type of trade or business should not prohibit the

election as long as special corporate tax benefits do

not flow through to individual shareholders. A bank

that adheres to the specific chargeoff method of IRC

S Corporation Returns, 1997

FigureA

a trade or business,” real estate rental net income

(less deficit), net income (less deficit) from other

rental activity, and portfolio income (less loss)

distributed to shareholders (Table 1).

Total net income (less deficit) increased by 22.2

Number of

Industrial division

percent

to $153.1 million for Tax Year 1997 (Figure

returns

C). Net income (less deficit) from a trade or business comprised 73.0 percent of the total net income

All industries........................................................................................

1,901

Agriculture, forestry, and fishing...........................................................................................................

*537

(less deficit) for the same period. As in prior years,

Mining...........................................................................................................

*20

three industrial divisions comprised the vast majority

Construction...........................................................................................................

of total net income (less deficit): wholesale and retail

Manufacturing...........................................................................................................

318

trade (25.1 percent), services (23.3 percent), and

Transportation and public utilities...........................................................................................................

174

manufacturing (22.4 percent). Portfolio income (less

Wholesale trade...........................................................................................................

deficit) grew by 28.6 percent to $36.8 billion, led by

Retail trade...........................................................................................................

Finance, insurance, and real estate...........................................................................................................

528

an increase in net long-term capital gain (less loss),

Services...........................................................................................................

103

which accounted for 86.9 percent of the growth in

*Estimate should be used with caution because of the small number of returns

portfolio income (less deficit). The increase in the

on which it is based.

net long-term capital gain (less loss) can be attributed

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

to the passage of the Taxpayer Relief Act of 1997,

which was signed into law in August 1997. This

section 166 to write off bad debts is permitted to

legislation contained provisions that reduced the tax

elect subchapter S status under the 1996 Act. As a

rates on long-term capital gains for all income tax

result of the legislation, which was effective for tax

brackets and was effective for certain capital gains

years beginning after December 31, 1996, some 639

realized after May 6, 1997. Shareholders of S corpobanks or bank holding companies elected treatment

rations benefit from the reduced tax rates when gains

as an S corporation in 1997 [9]. These S corporaare realized and then flow through to the shareholder.

tions had an average number of 9.4 shareholders

S corporations reported net long-term capital gain

(compared to an average of 1.9 shareholders for all S

(less loss) totaling $23.5 billion for Tax Year 1997, an

corporations). Their average total assets were $75.0

increase of 43.4 percent over the prior year.

million, and the average net income (less deficit) from

The finance, insurance, and real estate division

a trade or business was $1.3 million for this group for

reported

$10.0 billion of the $36.8 billion in portfolio

the same period. There were also 19 savings and

income

(less

deficit) and $2.8 billion of the $3.9 billion

loan institutions that elected subchapter S status for

in real estate rental net income (less deficit). This

the first time. These savings and loan institutions had

division is unique in that more income is derived from

an average number of shareholders of 10.4, average

portfolio income (less deficit) than from trade or

total assets of $434.9 million, and average net income

business activities (Figure D). This division ac(less deficit) from a trade or business of $9.2 million.

counted for 13.3 percent of the total net income (less

S corporations that were not classified as banks, bank

deficit) with $20.4 billion and also accounted for 15.6

holding companies, or savings and loan institutions

percent of the total returns filed.

were on average much smaller, with average total

Table 2 shows S corporations that reported

assets of $510.2 thousand and average net income

positive total net income for Tax Year 1997. S

(less deficit) from a trade or business of $45.2

corporations reporting positive total net income acthousand.

counted for 63.4 percent of all returns filed. This

represents an increase of 9.0 percent over the prior

SCorporationFinancialDataforTaxYear1997

year when over 1.4 million S corporations reported

Figure B displays total net income (less deficit) for

positive total net income.

each industrial division. Total net income (less

Total assets increased by 18.8 percent to $1.3

deficit) is a comprehensive measure of S corporation

trillion, with four industries holding the majority (82.3

profits that aggregates net income (less deficit) “from

S Corporations with a Qualified Subchapter

S Subsidiary Election by Industrial Division,

Tax Year 1997

S Corporation Returns, 1997

FigureB

S Corporations: Total Net Income (Less Deficit), by Industrial Division, Tax Year 1997

[Money amounts are in thousands of dollars]

Agriculture,

Item

All industries ¹

forestry, and

Mining

Construction

Manufacturing

(3)

(4)

(5)

fishing

(1)

(2)

Total net income (less deficit)...............................................................................

153,063,011

2,834,344

14,493,088

34,344,858

Net income (less deficit) from a trade or business...............................................................................................................

111,722,678

1,081,658

1,886,453

2,450,167

12,931,027

27,970,457

Portfolio income...............................................................................................................

36,798,082

1,252,687

920,961

1,457,712

6,162,120

Dividend income.....................................................................................................

1,499,026

27,803

51,199

114,899

194,762

Interest income.....................................................................................................

9,597,533

244,741

196,038

848,100

1,414,101

Royalty income (less loss).....................................................................................................

859,503

24,831

133,928

*8,340

122,312

Net short-term capital gain (less loss).....................................................................................................

1,140,527

16,391

81,985

31,081

139,550

Net long-term capital gain (less loss).....................................................................................................

23,495,736

935,730

455,961

450,496

4,279,499

Other portfolio income (net).....................................................................................................

205,757

*3,192

1,850

4,795

11,897

10,164

94,406

162,592

Net income (less deficit) from other rental activity...............................................................................................................

688,929

24,064

16,766

9,943

49,689

Real estate rental net income (less deficit)...............................................................................................................

3,853,322

91,758

Item

Transportation

Wholesale

Finance,

and public

and retail

insurance,

utilities

trade

and real estate

(6)

Services

(7)

(8)

(9)

38,345,586

20,420,790

35,729,256

Net income (less deficit) from a trade or business.......................................................................................................................

2,914,066

28,895,377

7,590,045

28,441,549

Portfolio income....................................................................................................................... 1,360,635

8,914,747

9,997,872

6,721,405

Total net income (less deficit).......................................................................................

4,422,930

Dividend income....................................................................................................................

46,046

251,401

605,393

207,522

Interest income....................................................................................................................

461,278

1,961,745

2,775,658

1,693,544

Royalty income (less loss)....................................................................................................................

*1,772

348,935

139,718

79,667

Net short-term capital gain (less loss)....................................................................................................................

18,057

100,190

808,048

-54,776

Net long-term capital gain (less loss)....................................................................................................................

826,766

6,453,475

5,641,962

4,444,232

Other portfolio income (net)....................................................................................................................

6,714

8,218

87,144

81,947

308,506

2,797,388

302,276

Net income (less deficit) from other rental activity...............................................................................................................

61,998

226,958

35,484

264,026

Real estate rental net income (less deficit)...............................................................................................................

86,232

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

¹ Includes nature of business not allocable, not shown separately.

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

percent) of the assets (Figure E). Wholesale and

retail trade reported $371.1 billion in total assets

followed by finance, insurance, and real estate reporting $292.6 billion, manufacturers reporting $227.7

billion, and services reporting $184.4 billion (Table 3).

The largest asset item reported by all S corporations,

depreciable assets, accounted for 24.4 percent of

total assets, while the largest liability item, “mortgages, notes, and accounts payable in more than one

year,” accounted for 20.9 percent of total liabilities.

These statistics for Tax Year 1997 are consistent

with data from the prior year.

RentalRealEstateNetIncome

Table 4 shows data for rental real estate net income

as reported by S corporations on Form 8825, Rental

Real Estate Income and Expenses of a Partnership or an S Corporation. Net Rental Real Estate

Income (less deficit) increased by 34.3 percent to

$3.9 billion for Tax Year 1997. The real estate

group, within the finance, insurance, and real estate

division, earns the vast majority of this type of income

(71.4 percent). Also reported on Form 8825 and

included in the net rental real estate income (less

deficit) is the net gain (loss) from the disposition of

property from rental real estate activities. This item

reported a 261.2-percent increase to $88.1 million for

Tax Year 1997. Net income (loss) from rental real

estate activities from estates or trusts in which the S

corporation is a beneficiary increased by 206.1

percent to $512.0 million. This item is also included

in net rental real estate income (less deficit).

S Corporation Returns, 1997

FigureC

S Corporations: Income Items for Selected Industrial Divisions, Tax Years 1996 and 1997

[Money amounts are in thousands of dollars]

Percentage

Industrial division, item

1996

1997

change,

1996 to 1997

(1)

(2)

(3)

All industries ¹

Number of returns… … … … ........................................................................................................

2,304,416

Net income (less deficit) from a trade or business......................................................................................................

93,138,842

2,452,254

6.4

111,722,678

20.0

16.7

Net income… … … .....................................................................................................................

132,544,004

154,704,647

Deficit… … … … … .… .....................................................................................................................

39,405,161

42,981,970

9.1

Total net income (less deficit)......................................................................................................

125,245,496

153,063,011

22.2

Net income… … … ......................................................................................................................

161,896,380

192,122,074

18.7

Deficit… … … … … ..… .....................................................................................................................

36,650,884

39,059,063

6.6

Manufacturing

Number of returns… … … … ........................................................................................................

141,171

Net income (less deficit) from a trade or business......................................................................................................

23,778,603

153,249

8.6

27,970,457

17.6

16.3

Net income… … … .....................................................................................................................

28,863,877

33,561,802

Deficit… … … … .… … .....................................................................................................................

5,085,274

5,591,345

10.0

Total net income (less deficit)......................................................................................................

28,733,161

34,344,858

19.5

Net income… … … ......................................................................................................................

33,400,086

39,303,105

17.7

Deficit… … … … .… … .....................................................................................................................

4,666,926

4,958,247

6.2

Wholesale and retail trade

Number of returns… … … … ........................................................................................................

556,908

Net income (less deficit) from a trade or business......................................................................................................

23,439,466

583,006

4.7

28,895,377

23.3

16.4

Net income… … … .....................................................................................................................

33,187,443

38,618,119

Deficit… … … … ...… … .....................................................................................................................

9,747,977

9,722,742

-0.3

Total net income (less deficit)......................................................................................................

29,972,943

38,345,586

27.9

Net income… … … ......................................................................................................................

39,008,036

47,154,079

20.9

Deficit… … … … ..… … .....................................................................................................................

9,035,094

8,808,493

-2.5

Finance, insurance, and real estate

Number of returns… … … … ........................................................................................................

356,778

Net income (less deficit) from a trade or business......................................................................................................

6,567,588

382,153

7.1

7,590,045

15.6

17.2

Net income… … … .....................................................................................................................

12,580,546

14,748,463

Deficit… … … … … ...… .....................................................................................................................

6,012,958

7,158,418

19.0

Total net income (less deficit)......................................................................................................

15,088,860

20,420,790

35.3

Net income… … … ......................................................................................................................

20,974,039

26,888,171

28.2

Deficit… … … … ...… … .....................................................................................................................

5,885,179

6,467,381

9.9

Services

Number of returns… … … … ........................................................................................................

815,494

860,445

5.5

28,441,549

18.9

33,973,434

39,791,342

17.1

Deficit… … … … … … … ..… .....................................................................................................................

10,054,350

11,349,794

12.9

Net income (less deficit) from a trade or business......................................................................................................

23,919,085

Net income… … … .....................................................................................................................

Total net income (less deficit)......................................................................................................

31,113,590

35,729,256

14.8

Net income… … … ......................................................................................................................

40,313,108

46,255,320

14.7

Deficit… … … … … … ..… ..................................................................................................................... 9,199,517

10,526,064

14.4

¹ Includes agriculture, forestry, and fishing; mining; construction; transportation and public utilities; and nature of business not allocable.

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

S Corporation Returns, 1997

FigureD

S Corporation Total Net Income (Less Deficit), by Industrial Division, Tax Year 1997

Billions of dollars

Agriculture,

forestry, and

fishing

Mining

Construction

Manufacturing Transportation Wholesale and

Finance,

and public

retail trade

insurance, and

utilities

real estate

Services

Industrial division

Net income (less deficit) from a trade or business

Portfolio income

Real estate rental net income (less deficit)

Net income (less deficit) from other rental activity

Partnerships also report net rental real estate

income (less deficit) on Form 8825 similar to S corporations. Partnerships reported 716,000 returns with a

Form 8825 and net rental real estate (less deficit)

totaling $17.3 billion for Tax Year 1997 [10]. Much

like S corporations, the vast majority of returns and

income come from real estate.

DatabyNumberofShareholders

The 1996 Act made an S election a more attractive

choice as it lessened some restrictions on businesses

wanting the benefits of corporate structure and the

benefits of flow-through status that S election can

provide. One of the provisions of the 1996 Act

increased the maximum number of allowable shareholders from 35 to 75. This has not resulted in a

significant change in the number of returns with 10 or

fewer shareholders; for Tax Year 1997, about 98.7

percent of all S corporation returns had 10 or fewer

shareholders (Table 5). This statistic is consistent

with data from prior years. Nearly all (99.3 percent)

new S corporations reported 10 or fewer sharehold-

S Corporation Returns, 1997

FigureE

S Corporation Total Assets, by Industrial Division, Tax Year 1997

Billions of dollars

400

350

300

250

200

150

100

Agriculture,

forestry, and

fishing

Mining

Construction

Manufacturing Transportation Wholesale and

Finance,

and public

retail trade

insurance, and

utilities

real estate

Services

Industrial division

ers. S corporations reporting 10 or fewer shareholders also accounted for 89.0 percent of total assets

and 89.0 percent of total net income. While the vast

majority of S corporations continued to have 10 or

fewer shareholders, there was a significant increase

in the number of returns and number of shareholders

for returns with more than 30 shareholders. In Tax

Year 1996, less than 500 returns, or 0.02 percent of

all S corporations, reported more than 30 shareholders, and there were less than 17,000 shareholders

owning shares in these corporations. For Tax Year

1997, more than 1,200 returns reported having more

than 30 shareholders, and the total number of share-

holders exceeded 46,000. S corporations were not

permitted to have more than 35 shareholders prior to

the 1996 Act. For Tax Year 1997, there were 600 S

corporations with more than 35 shareholders and

nearly 26,000 shareholders. Thus, while the impact

of the 1996 Act on the majority S corporations was

small with respect to the number of shareholders, the

number of returns with more than 30 shareholders

more than doubled.

TaxationofSCorporations

Although S corporations generally do not pay income

tax, less than half of 1 percent reported some Federal

S Corporation Returns, 1997

income tax liability. There are four types of Federal

income tax that can apply directly to S corporations.

The most common tax reported by S corporations is

the “built-in gains” tax. Nearly three-quarters, or

$190 million, of all Federal income tax reported by S

corporations for Tax Year 1997 were from the builtin gains tax, and the total amount of this tax increased

by 18.3 percent over Tax Year 1996 (Figure F). The

built-in gains tax does not apply to an S corporation

that has had a valid S election in place since inception. S corporations that are potentially liable for this

tax are those that made an S election after 1986 and

realized a gain on the sale of an asset held at the time

of that election within 10 years from the first day of

the S corporation’s election. The gain that results in

a tax liability is built in to the extent of the appreciation of the asset that occurred while under the

taxable corporation rules [11].

The remaining taxes that can result in an income

tax liability for an S corporation are the excess net

passive income tax, the LIFO recapture tax (included

in “Adjustments to tax” in Figure F), and the recapture of prior year’s investment credit. All of these

apply only to corporations that had operated as C

corporations before their S elections. The excess net

passive income tax is imposed on S corporations that

were previously C corporations and that have subchapter C earnings and profits if their passive investment income exceeds 25 percent of gross receipts

[12]. The last-in, first-out, or LIFO recapture tax,

applies to corporations that switched from C to S

status after December 17, 1987, and that had valued

their inventory assets using LIFO. Upon conversion,

FigureF

S Corporation Taxes, Tax Years 1996 and 1997

[Money amounts are in thousands of dollars]

Items

1996

1997

Percent

change, 1996

to 1997

(1)

(2)

(3)

Total tax.............................................................................................

192,303

256,352

33.3

Built-in gains tax....................................................................................

160,682

190,016

18.3

Excess net passive income tax....................................................................................

10,703

16,494

54.1

Adjustments to tax....................................................................................

19,869

46,393

133.5

Investment credit recapture tax....................................................................................

*894

*1,042

16.6

Income tax adjustment....................................................................................

*155

*2,407

1,452.9

*Estimate should be used with caution because of the small number of sample returns

on which it is based.

these corporations are required to include in gross

income a LIFO recapture amount, which is the

amount of inventory valued under the first-in, first-out

(FIFO) method that exceeds the inventory valued

under LIFO. Similarly, if inventory is transferred in a

tax-free reorganization from a taxable C corporation

to an S corporation, there must be a LIFO recapture

adjustment made to gross income. Finally, an S

corporation is liable for recapture attributable to

credits allowed in years before the corporation was

an S corporation.

Figure F displays taxes reported by S corporations for Tax Years 1996 and 1997. The adjustments

to tax include Section 1363(d) LIFO recapture taxes

and interest due from Form 8697, Interest Computation under Look-Back Method for Completed

Long-Term Contracts. The income tax adjustment

includes Section 1291(c)(2) deferred tax of a shareholder in a passive foreign investment company.

S corporations reported total net income of

$153.1 billion and total tax liability of $256.4 million

for Tax Year 1997. This tax liability was reported by

fewer than 8,000 S corporations for this period, or

approximately 0.3 percent of all S corporations.

Summary for Tax Year 1997

S corporations continued to demonstrate steady

growth as the number of returns filed increased by

6.4 percent to 2.5 million returns. S corporations are

the most popular corporate entity, with 52.1 percent

of all U.S. corporations electing treatment under

subchapter S. The Small Business Job Protection

Act of 1996 provided significant reform and eased

many restrictions faced by S corporations. Provisions of the 1996 Act allowed S corporations to own

80 percent or more of the stock of a C corporation.

Also for the first time, S corporations could own 100

percent of the stock of an eligible S corporation and

elect to treat the S subsidiary as a “qualified subchapter S subsidiary.” Over 1,900 S corporations

reported owning at least one QSUB for Tax Year

1997. The 1996 Act also allowed certain financial

institutions to elect treatment as an S corporation for

the first time. For Tax Year 1997, some 658 banks,

bank holding companies, and savings and loan

institutions elected treatment as an S corporation.

Total net income (less deficit) for S corporations

increased to $153.1 billion, up 22.2 percent. Net

income from a trade or business comprised 73.0

S Corporation Returns, 1997

percent of total net income (less deficit) at $111.7

billion, up 20.0 percent over Tax Year 1996. Portfolio income (or loss) increased by 28.6 percent to

$36.8 billion, led by increases in net long-term capital

gain (less loss) of 43.4 percent to $23.5 billion and

representing 63.9 percent of all portfolio income (or

loss). The increase in net long-term capital gain (less

loss) was spurred by the reduction in tax rates resulting from the passage of the Taxpayer Relief Act of

1997. Total assets reported by S corporations were

$1.3 trillion, with four industries reporting 82.3 percent of all assets.

As in past years, S corporations are concentrated

in three industrial divisions when measured by the

number of returns filed: services; wholesale and

retail trade; and finance, insurance, and real estate.

These three industries accounted for 74.5 percent of

all returns filed for Tax Year 1997. Net rental real

estate income (less deficit) increased by 34.3 percent

to $3.9 billion for Tax Year 1997. Despite increases

in the maximum number of shareholders allowed,

98.7 percent of all S corporations continued to be

owned by 10 or fewer shareholders. The number of

returns that reported more than 30 shareholders more

than doubled yet still accounted for less than 1 percent of the total returns for Tax Year 1997. Nearly

all of the newly elected S corporations reported 10 or

fewer shareholders. Less than half of 1 percent of

all S corporations reported Federal income tax liability, and most reported liability for the built-in gains tax.

DataSourcesandLimitations

The statistics for Tax Year 1997 are based on a

sample of S corporation income tax returns with

accounting periods ending July 1997 through June

1998 that posted to the Internal Revenue Service

Business Master File between July 1997 and the end

of June 1999.

The estimates in this article were based on a

stratified probability sample of 24,780 S corporation

returns drawn from a total population of 2,574,150

returns. The stratification was based on combinations

of total assets and net income (less deficit) from

trade or business income. Sample rates ranged from

0.25 percent to 100 percent. The sample was selected after administrative processing, but before

audit examination. The selected sample included

24,281 active S corporation returns. Based on this

count, the number of active S corporations for Tax

Year 1997 was estimated to be 2,452,254.

Because the estimates are based on a sample,

they are subject to sampling error. Coefficients of

variation (CV's) are used to measure the magnitude

of this sampling error. The CV is defined in the

section on sampling variability in the “SOI Sampling

Methodology and Data Limitations” appendix of this

publication. Figure G presents the coefficients of

variation for S corporations for selected variables by

industrial division. The smaller the coefficient of

variation, the more reliable the estimate is judged to

be.

NotesandReferences

[1] For more information on the impact of the Tax

Reform Act of 1986 on S corporations, see Gill,

Amy, “S Corporation Returns, 1992,” Statistics

of Income Bulletin, Spring 1995, Volume 14,

Number 4; Gill, Amy and Wittman, Susan, “S

Corporation Election After the Tax Reform Act

of 1986,” Statistics of Income Bulletin, Spring

1998, Volume 17, Number 4. For more information on the impact of the Revenue Reconciliation

Act of 1993, see Wittman, Susan, “S Corporation Returns, 1994,” Statistics of Income

Bulletin, Spring 1997, Volume 16, Number 4.

[2] For purposes of this article, taxable corporation

return types include Form 1120, Form 1120-A,

Form 1120F, Form 1120L, and Form 1120-PC.

Form 1120-REIT and Form 1120-RIC, while not

taxable corporations, are included in the statistics along with all other corporations.

[3] The 1996 Act contained 17 provisions relating to

S corporations. Five of the 17 have been

highlighted, other major provisions include:

permit financial institutions to hold safe harbor

debt; grant the IRS the authority to validate

certain invalid elections; repealed TEFRA audit

procedures; allow retroactive re-elections; allow

adjustments to basis of inherited S corporation

stock; and modified rules regarding the treatment of certain real estate held by an S corporation.

[4] For more information on limited liability companies, see Zempel, Alan, “Partnership Returns,

1997,” Statistics of Income Bulletin, Fall 1999,

Volume 19, Number 2.

S Corporation Returns, 1997

FigureG

S Corporations: Coefficients of Variation for Number of Returns, Number of Shareholders, Total

Receipts, Dividends, and Interest, by Industrial Division, Tax Year 1997

Number

Industrial division

Number

Total

Dividend

Interest

returns

shareholders

receipts

income

(1)

(2)

(3)

(4)

(5)

All industries ¹.......................................................................................................................

0.26

0.90

0.68

6.30

1.53

Agriculture, forestry, and fishing.......................................................................................................................

4.68

5.86

5.13

17.44

7.02

Mining.......................................................................................................................

12.18

19.36

8.87

9.88

8.19

Construction.......................................................................................................................

1.70

2.26

1.88

7.87

3.70

Manufacturing.......................................................................................................................

3.36

4.15

1.88

8.00

3.00

Transportation and public utilities.......................................................................................................................

4.10

5.27

4.10

14.08

5.21

Wholesale and retail trade.......................................................................................................................

1.19

1.79

1.03

14.97

2.42

Finance, insurance, and real estate.......................................................................................................................

1.50

2.86

3.57

13.64

3.75

Services.......................................................................................................................

1.02

2.14

8.54

4.37

1.80

¹ Includes nature of business not allocable, not shown separately.

[5] Provisions exist to allow for late-filed election to

be considered as timely-made. See Revenue

Procedure 97-40 for extended filings. For

further details on filing an S election, see Internal Revenue Service, Internal Revenue Code,

Subchapter S [Section 1362(a), (b)].

[6] Eligible trusts are defined in the Internal

Revenue Code 1361(c)(2)(A). Eligible exempt

organizations are defined in Internal Revenue

Code 401(a) or 501(c)(3).

[7] S corporations may elect another tax year if a

business purpose can be established to the

satisfaction of the Internal Revenue Service, or

they may use an alternate tax year but make

“required payments” to the Internal Revenue

Service per Code section 1378.

[8] If the election is terminated, then the subsidiary

will be treated as a new corporation acquiring all

of its assets and liabilities immediately before the

termination of the QSUB election from the

parent S corporation in exchange for its stock.

[9] For industry definitions used to classify Statistics of Income corporation data, see Internal

Revenue Service, Statistics of Income, Corporation Source Book, Publication 1053. Banks

are assigned to Statistics of Income industry

code 6060, bank holding companies 6090, and

savings and loan associations 6120.

[10] For more information on rental real estate data

reported by partnerships, see Zempel, Alan,

“Partnership Returns, 1997,” Statistics of

Income Bulletin, Fall 1999, Volume 19, Number 2.

[11] For further detail, see Internal Revenue Service, Internal Revenue Code, Subchapter S,

Section 1374. Also see Gill, Amy, “S Corporation Returns, 1992,” Statistics of Income

Bulletin, Spring 1995, Volume 14, Number 4.

[12] “Passive investment income” means gross

receipts derived from royalties, rents, dividends,

interest (excluding interest on installment sales

of inventory to customers and income of certain

lending and financing businesses), annuities, and

sales or exchanges of stock or securities to the

extent of any gains. “Excess net passive

income” is the amount that bears the same ratio

to net passive income as the amount of passive

investment income that exceeds 25 percent of

gross receipts bears to passive investment

income.

SOURCE: IRS, Statistics of Income Bulletin, Publication

1136, Spring 2000.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group

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

Mining

Total

Metal

mining

Coal

mining

Oil

and

gas

extraction

Nonmetallic

minerals,

except fuels

(2)

(3)

(4)

(5)

(6)

(7)

88,270

16,403

*1,192

823

12,202

2,186

Number of shareholders............................................

4,656,807

214,565

Income from a trade or business:

Total receipts ¹......................................................................

2,895,237,519

51,202,714

Business receipts..........................................................

2,840,623,943

47,744,780

Interest on Government obligations:

State and local...............................................................................

943,255

37,387

Net gain, noncapital assets..........................................................

5,894,594

388,615

Other receipts..........................................................

47,775,727

3,031,931

39,142

*8,464

1,628

24,645

4,404

14,976,849

13,705,830

*216,868

*171,975

3,413,876

3,309,011

8,085,346

7,045,410

3,260,760

3,179,434

13,638

290,889

966,493

-*24,670

*20,223

*4,074

43,450

57,340

7,635

200,132

832,169

*1,929

22,637

56,761

Total deductions......................................................................

2,782,571,586

50,083,669

Cost of goods sold..........................................................

1,846,213,271

25,755,506

Compensation of officers..........................................................

108,270,276

1,321,960

Salaries and wages..........................................................

281,934,980

4,348,044

Repairs.......................................................... 18,504,868

1,198,038

Bad debts.......................................................... 5,978,012

73,078

Rent paid on business property..........................................................

58,176,400

1,816,235

Taxes paid..........................................................59,433,721

1,054,782

Interest paid..........................................................

33,534,784

1,210,241

Amortization..........................................................3,569,790

31,729

Depreciation..........................................................

48,746,061

2,198,432

Depletion..........................................................

350,952

*26,835

Advertising..........................................................27,680,184

205,788

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

10,059,851

76,317

Employee benefit programs..........................................................

19,856,378

264,681

Net loss, noncapital assets..........................................................

587,800

7,498

Other deductions..........................................................

259,674,259

10,494,503

13,076,759

6,585,430

316,202

1,088,439

343,891

21,924

300,850

533,760

326,849

32,278

692,282

135,931

21,814

*200,689

*72,255

*5,450

*6,923

*18,559

*( ² )

*8,063

*11,236

*3,799

*554

*10,014

*4,411

*155

3,335,965

1,864,414

15,789

180,375

90,076

*4,101

98,662

147,035

55,413

3,439

147,328

53,040

1,125

6,591,313

2,667,326

204,882

778,875

191,814

13,108

171,556

279,394

210,931

12,634

317,050

23,645

11,697

2,948,792

1,981,434

90,081

122,265

43,442

4,715

22,570

96,095

56,707

15,651

217,890

54,835

8,838

59,758

211,444

2,385

2,403,522

*2,728

*1,667

-*54,875

10,394

151,792

512,914

24,791

35,836

*1,329

1,646,444

21,845

22,149

*988

189,288

Total receipts less total deductions ¹...........................................................

112,665,933

1,119,045

1,900,090

*16,179

77,911

1,494,033

311,967

1,886,453

2,417,696

531,243

*16,179

*36,644

*20,465

73,836

158,307

84,470

1,486,399

1,834,837

348,438

310,039

387,908

77,869

920,961

51,199

196,038

133,928

*3,624

-*3,624

93,766

6,876

28,339

*2,861

769,494

39,555

138,322

131,067

54,077

4,767

25,753

81,985

*7,978

69,139

*4,868

455,961

1,850

---

47,257

*454

391,114

*297

17,590

*1,099

Item

All

industries

(1)

Number of returns.......................................................................

2,452,254

Net income (less deficit)

from a trade or business.........................................................

111,722,678

Net income..........................................................................

154,704,647

Deficit..........................................................................

42,981,970

Agriculture,

forestry,

and fishing

1,081,658

3,219,819

2,138,161

Portfolio income (less deficit)

distributed to shareholders.........................................................

36,798,082

1,252,687

Dividend income..........................................................................

1,499,026

27,803

Interest income..........................................................................

9,597,533

244,741

Royalty income (less loss)..........................................................................

859,503

24,831

Net short-term capital gain

(less loss).......................................................

1,140,527

16,391

Net long-term capital gain

(less loss)....................................................... 23,495,736

935,730

Other portfolio income (net)..........................................................................

205,757

*3,192

Real estate rental net income

(less deficit)......................................................... 3,853,322

Net income..........................................................................

5,713,349

Deficit..........................................................................

1,860,027

91,758

104,261

12,503

10,164

18,431

8,266

*48

*1,616

*1,627

3,992

11,860

*7,868

4,508

4,896

*388

Net income (less deficit)

from other rental activity.........................................................

688,929

Net income..........................................................................

1,065,842

Deficit..........................................................................376,913

24,064

26,541

*2,477

16,766

18,087

*1,321

*172

*1,095

2,943

4,264

*1,321

*12,557

Total net income (less deficit).......................................................................

153,063,011

2,450,167

Net income..........................................................................

192,122,074

4,371,253

Deficit..........................................................................

39,059,063

1,921,086

2,834,344

3,219,960

385,616

*20,022

*40,196

*20,174

170,314

236,272

*65,958

2,262,827

2,489,114

226,287

381,181

454,378

*73,197

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Construction

Item

Total

(8)

General

building

contractors

and

operative

builders

Heavy

construction

contractors

Total

Food and

kindred

products

Tobacco

manufactures

Textile

mill

products

(13)

(14)

(15)

(11)

(12)

9,242

150,239

153,249

9,507

2,471

Number of shareholders............................................

414,392

160,376

Income from a trade or business:

Total receipts ¹......................................................................

332,647,323 152,422,824

Business receipts..........................................................

329,955,853 151,425,313

Interest on Government obligations:

State and local...............................................................................

56,981

31,478

Net gain, noncapital assets..........................................................

320,115

59,877

Other receipts..........................................................

2,314,375

906,156

16,705

237,310

363,440

38,906

5,830

37,269,942

36,490,937

142,954,557

142,039,602

488,763,265

483,403,850

65,072,155

64,513,489

371,132

351,191

17,524,273

17,280,657

12,264

133,970

632,770

13,239

126,267

775,449

144,681

898,648

4,316,087

9,657

77,823

471,186

-12,100

7,840

5,455

31,107

207,055

Total deductions......................................................................

319,659,315 148,211,625

Cost of goods sold..........................................................

250,380,576 127,827,999

Compensation of officers..........................................................

11,018,667

3,507,915

Salaries and wages..........................................................

16,190,890

4,629,061

Repairs.......................................................... 1,482,362

327,310

Bad debts.......................................................... 420,388

89,262

Rent paid on business property..........................................................

2,757,552

639,203

Taxes paid..........................................................

6,100,848

1,614,464

Interest paid..........................................................

2,185,762

931,324

Amortization.......................................................... 57,580

21,684

Depreciation..........................................................

4,895,481

930,345

Depletion..........................................................

12,232

*189

Advertising.......................................................... 911,762

364,277

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

1,077,238

277,381

Employee benefit programs..........................................................

2,598,165

560,783

Net loss, noncapital assets..........................................................

37,379

6,393

Other deductions..........................................................

19,532,434

6,484,033

35,727,969

27,881,498

863,872

1,645,694

261,517

31,117

270,151

631,468

279,456

2,882

1,379,665

12,043

33,217

135,719,721

94,671,079

6,646,879

9,916,135

893,535

300,010

1,848,198

3,854,916

974,981

33,013

2,585,471

-514,268

460,648,128

333,190,846

15,209,291

34,390,126

2,291,760

1,115,124

4,888,213

9,919,707

5,467,421

537,352

11,331,145

154,373

4,414,546

62,271,717

48,298,504

907,538

3,699,747

316,884

79,130

437,754

936,225

589,728

63,808

1,294,076

-1,197,797

309,895

206,652

4,959

12,652

763

1,555

45,999

4,060

14,687

3,495

-3,026

16,766,781

13,269,121

384,837

818,525

77,342

52,106

112,800

318,652

228,242

7,511

393,721

-43,467

152,694

297,995

*14,695

1,970,004

647,163

1,739,386

16,290

11,078,397

2,135,671

4,943,221

76,435

30,582,897

202,078

532,555

4,651

3,711,243

251

1,730

10,043

44,991

174,781

*2,025

838,661

Total receipts less total deductions ¹...........................................................

12,988,008

4,211,199

1,541,973

7,234,836

28,115,138

2,800,437

61,237

757,493

1,529,709

1,973,085

443,375

7,221,597

8,492,503

1,270,906

27,970,457

33,561,802

5,591,345

2,790,780

3,232,866

442,086

61,237

752,038

937,635

185,597

336,373

34,975

157,506

*8,337

484,774

35,485

253,936

6,162,120

194,762

1,414,101

122,312

214,696

10,882

161,962

*7,082

211,372

220

1,308

220,628

4,314

45,660

5,935

14,524

139,550

-782

*3,692

126,308

*3,311

180,696

*130

4,279,499

11,897

34,993

*560

209,843

166,962

Net income (less deficit)

from a trade or business.........................................................

12,931,027

Net income..........................................................................

16,085,416

Deficit..........................................................................

3,154,388

4,179,721

5,619,828

1,440,107

Portfolio income (less deficit)

distributed to shareholders.........................................................

1,457,712

636,564

Dividend income..........................................................................

114,899

44,439

Interest income..........................................................................

848,100

436,657

Royalty income (less loss)..........................................................................

*8,340

-Net short-term capital gain

(less loss).......................................................

31,081

10,622

Net long-term capital gain

(less loss).......................................................

450,496

143,491

Other portfolio income (net)..........................................................................

4,795

*1,354

(10)

Special

trade

contractors

101,623

Number of returns.......................................................................

261,104

(9)

Manufacturing

Real estate rental net income

(less deficit).........................................................

94,406

Net income..........................................................................

120,624

Deficit..........................................................................

26,218

77,659

98,970

21,311

11,003

11,160

*157

5,743

10,494

4,751

162,592

181,828

19,236

6,106

7,999

1,894

4,261

4,425

*164

Net income (less deficit)

from other rental activity.........................................................

9,943

Net income..........................................................................

14,870

Deficit..........................................................................*4,927

6,157

7,949

*1,792

1,760

2,322

562

2,026

*4,599

*2,572

49,689

52,214

2,525

3,384

*3,939

*556

----

*1,387

*1,463

Total net income (less deficit).......................................................................

14,493,088

4,900,101

Net income..........................................................................

17,347,415

6,190,918

Deficit..........................................................................

2,854,327

1,290,817

1,878,845

2,225,751

346,906

7,714,142

8,930,745

1,216,604

34,344,858

39,303,105

4,958,247

3,014,966

3,431,525

416,560

272,617

978,313

1,151,819

173,506

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Apparel

and

other

textile

products

Lumber

and

wood

products

Furniture

and

fixtures

Paper

and

allied

products

Printing

and

publishing

Chemical

and

allied

products

Petroleum

(including

integrated)

and coal

products

Rubber and

miscellaneous

plastics

products

(16)

(17)

(18)

(19)

(20)

(21)

(22)

(23)

Number of returns.......................................................................

7,838

11,397

4,584

1,752

29,312

5,677

241

6,046

Number of shareholders............................................

16,290

25,000

Income from a trade or business:

Total receipts ¹......................................................................

27,962,058

27,608,834

Business receipts..........................................................

27,599,863

27,340,940

Interest on Government obligations:

State and local...............................................................................

2,994

3,074

Net gain, noncapital assets..........................................................

9,280

35,479

Other receipts..........................................................

349,921

229,341

10,969

6,025

60,788

13,597

395

15,375

12,521,683

12,396,214

19,438,958

19,262,101

41,183,068

40,120,106

20,369,712

20,233,150

2,513,564

2,478,831

30,202,085

29,997,778

4,702

25,330

95,437

8,738

44,926

123,194

20,425

117,965

924,573

6,044

5,133

125,386

*42

*597

34,094

13,731

51,636

138,941

11,881,920

8,607,972

328,461

870,361

49,017

55,198

143,117

275,314

126,864

4,466

222,333

-159,713

18,462,005

14,022,751

479,460

1,222,681

111,437

58,320

166,183

355,554

217,055

19,993

524,369

*402

52,854

39,077,360

21,158,969

2,306,193

5,286,306

271,984

207,345

767,731

1,127,098

572,177

149,097

1,226,467

*583

516,186

19,166,589

12,883,963

664,732

1,678,086

105,981

57,302

235,831

367,660

242,366

46,021

493,692

-247,796

2,458,922

1,959,184

37,436

114,795

26,109

*6,271

15,795

36,433

21,283

*2,715

45,607

*346

6,332

28,436,954

20,811,479

1,001,717

1,752,141

122,263

43,027

210,987

628,346

392,118

23,832

1,038,813

-217,780

57,302

159,246

*2,854

819,701

96,937

186,229

*1,805

945,975

248,370

487,990

6,742

4,744,119

87,732

206,193

*1,570

1,847,667

*5,619

*12,733

168,216

130,757

341,215

1,209

1,721,269

639,762

976,954

2,105,708

1,203,123

54,641

1,765,131

635,060

779,004

143,943

968,216

1,185,093

216,877

2,085,283

2,888,919

803,636

1,197,079

1,455,829

258,750

54,599

85,962

*31,363

1,751,400

2,071,865

320,465

321,155

925

28,796

114,914

4,929

61,229

1,419,259

33,050

157,170

*5,629

485,705

18,320

67,441

*3,100

7,332

7,446

153,591

8,900

81,360

*4,524

*-671

*2,500

3,594

2,665

*93

-12,565

291,522

575

46,094

132

1,213,662

*6,155

393,939

*240

*-217

71,372

(²)

Total deductions......................................................................

27,267,929

26,381,191

Cost of goods sold..........................................................

19,934,328

20,289,992

Compensation of officers..........................................................

929,331

616,781

Salaries and wages..........................................................

2,333,477

1,363,435

Repairs..........................................................

55,414

228,429

Bad debts.......................................................... 69,241

46,514

Rent paid on business property..........................................................

382,608

172,339

Taxes paid.......................................................... 655,978

543,140

Interest paid..........................................................414,192

348,509

Amortization.......................................................... 11,157

16,131

Depreciation..........................................................316,177

688,064

Depletion..........................................................

-*137,301

Advertising.......................................................... 257,657

105,654

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

76,265

87,170

Employee benefit programs..........................................................

178,527

198,490

Net loss, noncapital assets..........................................................

4,756

19,970

Other deductions..........................................................

1,648,820

1,519,273

Total receipts less total deductions ¹...........................................................

694,129

1,227,644

Net income (less deficit)

from a trade or business.........................................................

691,135

Net income..........................................................................

1,271,306

Deficit..........................................................................

580,171

1,224,569

1,587,270

362,701

Portfolio income (less deficit)

distributed to shareholders.........................................................

67,939

316,000

Dividend income..........................................................................

12,965

3,586

Interest income..........................................................................

47,121

70,436

Royalty income (less loss)..........................................................................

7,441

*178

Net short-term capital gain

(less loss).......................................................

*225

1,915

Net long-term capital gain

(less loss).......................................................

-122

236,900

Other portfolio income (net)..........................................................................

*309

*2,986

Real estate rental net income

(less deficit).........................................................

10,591

Net income..........................................................................

12,541

Deficit..........................................................................*1,950

16,620

20,019

*3,399

*657

-13

2,259

*2,272

15,278

18,059

2,780

6,388

*6,585

*197

10,522

11,416

*894

Net income (less deficit)

from other rental activity.........................................................

*611

Net income..........................................................................

*611

Deficit..........................................................................

2,329

2,361

*32

*197

----

9,680

9,684

*687

*5,077

*5,389

*312

Total net income (less deficit).......................................................................

770,276

1,559,518

Net income..........................................................................

1,324,213

1,875,184

Deficit..........................................................................

553,937

315,666

957,070

1,100,770

143,701

1,083,116

1,290,693

207,577

3,529,501

4,192,537

663,036

1,689,859

1,924,917

235,058

61,973

93,336

*31,363

1,920,589

2,211,665

291,075

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Leather

and

leather

products

Stone,

clay, and

glass

products

Primary

metal

industries

Fabricated

metal

products

Machinery,

except

electrical

Electrical

and

electronic

equipment

Motor

vehicles and

equipment

(24)

(25)

(26)

(27)

(28)

(29)

(30)

4,751

1,811

21,438

11,719

10,562

1,213

Number of shareholders............................................1,099

10,069

Income from a trade or business:

Total receipts ¹......................................................................

2,466,240

13,057,099

Business receipts..........................................................

2,461,613

12,884,988

Interest on Government obligations:

State and local...............................................................................

*525

*2,542

Net gain, noncapital assets..........................................................

*62

73,074

Other receipts.......................................................... 4,040

96,495

5,536

47,124

25,813

22,599

3,302

23,299,581

23,230,568

65,605,093

64,935,252

31,405,898

31,071,539

31,671,408

31,445,155

12,001,015

11,898,580

3,168

5,823

60,021

26,445

186,323

457,072

8,571

51,394

274,393

10,298

31,861

184,094

5,957

16,375

80,103

Total deductions......................................................................

2,346,501

12,029,313

Cost of goods sold..........................................................

1,723,107

7,937,533

Compensation of officers..........................................................

94,928

359,778

Salaries and wages..........................................................

171,676

1,020,626

Repairs..........................................................

4,044

114,030

Bad debts..........................................................

3,762

42,985

Rent paid on business property..........................................................

18,122

183,005

Taxes paid.......................................................... 46,214

330,861

Interest paid.......................................................... 34,487

178,427

Amortization.......................................................... *1,246

15,598

Depreciation.......................................................... 22,220

555,033

Depletion..........................................................

-14,948

Advertising.......................................................... 45,170

68,467

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

*4,398

63,683

Employee benefit programs..........................................................

39,914

119,177

Net loss, noncapital assets..........................................................

*609

Other deductions..........................................................

136,605

1,024,553

22,431,552

19,541,023

306,941

602,835

60,361,806

44,306,834

2,578,450

4,022,519

28,840,271

20,186,880

1,169,169

2,401,573

29,396,734

20,912,987

966,860

2,789,949

11,253,376

9,383,009

148,099

476,888

81,392

42,850

56,873

253,324

200,642

9,622

417,276

*591

31,101

291,921

106,372

640,652

1,468,667

683,592

37,619

1,685,765

-305,181

121,876

76,862

321,010

786,658

359,930

24,848

756,559

-237,075

109,429

63,317

324,025

597,762

283,120

20,553

610,289

*202

318,551

29,716

10,664

50,918

209,406

81,480

6,801

193,457

-53,116

81,500

159,592

318,116

768,307

212,599

488,480

146,697

309,960

41,239

124,088

*1,699

644,290

4,738

3,143,073

14,775

1,681,977

3,213

1,939,818

*108

444,386

Total receipts less total deductions ¹...........................................................

119,739

1,027,785

868,029

5,243,286

2,565,627

2,274,674

747,639

864,860

1,032,041

167,181

5,216,841

5,576,438

359,597

2,557,056

2,935,907

378,851

2,264,377

2,629,570

365,193

741,682

792,239

*50,557

116,927

1,174

46,214

547

585,263

24,293

176,207

1,272

551,049

15,636

129,880

10,531

555,834

23,777

93,592

4,966

38,363

*7,408

23,580

*3,408

*4,323

7,416

802

3,480

*2,189

64,668

375,708

*367

394,166

*34

429,510

*510

1,778

4,739

5,881

*1,142

40,101

41,009

*908

9,050

9,286

*236

2,874

4,512

*1,637

*124

*232

108

Item

Number of returns.......................................................................

609

Net income (less deficit)

from a trade or business.........................................................

119,214

Net income..........................................................................

144,720

Deficit..........................................................................

*25,506

1,025,244

1,172,791

147,547

Portfolio income (less deficit)

distributed to shareholders.........................................................

12,275

73,551

Dividend income..........................................................................

*5,423

*3,517

Interest income..........................................................................

5,726

47,171

Royalty income (less loss)..........................................................................

*99

*63

Net short-term capital gain

(less loss).......................................................

*-2

*326

Net long-term capital gain

(less loss).......................................................

*1,026

22,474

Other portfolio income (net)..........................................................................

-Real estate rental net income

(less deficit).........................................................

*712

Net income..........................................................................

*865

Deficit.......................................................................... *153

Net income (less deficit)

from other rental activity.........................................................

*507

Net income..........................................................................

*507

Deficit..........................................................................

8,567

8,582

*15

*126

*4,019

9,330

*1,322

*2,010

*1,716

*442

316

Total net income (less deficit).......................................................................

132,708

1,107,487

Net income..........................................................................

156,011

1,229,917

Deficit..........................................................................

*23,303

122,429

*4,028

990,545

1,148,416

157,871

10,173

*843

5,851,535

6,185,087

333,553

*1,524

*201

3,118,477

3,451,790

333,313

*2,185

*175

2,825,095

3,128,419

303,324

*1,716

-781,885

827,132

*45,247

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Transportation

equipment,

except

motor

vehicles

Instruments

and

products

Miscellaneous

manufacturing

and

manufacturing

not allocable

Total

Transportation

Communication

(31)

(32)

(33)

(34)

(35)

(36)

16,619

105,803

83,951

14,500

7,352

Number of shareholders............................................ 5,384

10,433

Income from a trade or business:

Total receipts ¹......................................................................

8,814,639

7,472,538

Business receipts..........................................................

8,648,688

7,321,119

Interest on Government obligations:

State and local...............................................................................

*2,002

4,782

Net gain, noncapital assets..........................................................

26,091

24,154

Other receipts..........................................................137,858

122,483

38,892

212,346

152,109

42,425

17,812

28,202,234

27,932,029

114,202,022

111,864,882

88,209,868

86,645,561

16,138,938

15,624,180

9,853,216

9,595,141

5,529

72,114

192,562

36,597

673,535

1,627,007

24,465

489,266

1,050,575

6,886

167,259

340,613

*5,246

17,010

235,819

Total deductions......................................................................

8,277,833

6,753,747

Cost of goods sold..........................................................

6,222,988

3,936,576

Compensation of officers..........................................................

232,014

431,971

Salaries and wages..........................................................

545,757

908,690

Repairs..........................................................

22,678

34,457

Bad debts..........................................................

15,463

13,589

Rent paid on business property..........................................................

88,774

110,121

Taxes paid.......................................................... 197,976

184,160

Interest paid.......................................................... 82,162

58,429

Amortization..........................................................

7,564

14,625

Depreciation.......................................................... 145,834

145,676

Depletion..........................................................

--Advertising..........................................................

56,345

69,054

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

40,360

62,663

Employee benefit programs..........................................................

102,686

85,912

Net loss, noncapital assets..........................................................

*2,574

*102

Other deductions..........................................................

514,659

697,722

26,475,731

17,596,996

1,259,639

2,297,408

116,594

64,784

448,012

554,279

348,558

39,458

552,220

-422,224

111,251,359

49,517,356

3,059,545

16,030,871

2,017,352

326,375

4,823,501

3,460,505

1,964,927

326,784

5,454,071

*231

744,014

86,041,741

37,470,920

2,227,294

12,512,974

1,764,431

148,794

4,333,294

2,723,569

1,275,100

80,735

4,353,721

*231

415,748

15,724,947

6,903,200

595,066

2,556,279

120,487

162,309

314,856

442,068

444,878

209,232

627,762

-298,152

9,484,672

5,143,236

237,185

961,617

132,435

15,272

175,350

294,869

244,948

36,818

472,588

-30,114

126,943

265,414

2,376

2,380,827

358,526

1,081,429

40,726

22,045,148

297,207

887,490

6,998

17,543,236

27,383

97,363

*13,169

2,912,743

33,936

96,576

*20,558

1,589,169

Total receipts less total deductions ¹...........................................................

536,806

718,791

1,726,503

2,950,663

2,168,127

413,991

368,545

1,720,974

2,212,680

491,705

2,914,066

6,248,166

3,334,101

2,143,662

4,020,709

1,877,048

407,105

1,448,295

1,041,190

363,299

779,162

415,863

477,279

8,856

90,596

71,684

1,360,635

46,046

461,278

*1,772

488,015

26,044

247,073

*1,772

757,431

17,283

117,345

115,189

2,719

96,860

119,336

18,057

16,593

979

*485

186,781

826,766

6,714

194,726

1,807

617,871

*3,952

14,169

*956

Net income (less deficit)

from a trade or business.........................................................

534,804

Net income..........................................................................

623,218

Deficit.......................................................................... 88,414

714,009

885,212

171,204

Portfolio income (less deficit)

distributed to shareholders.........................................................

126,525

92,465

Dividend income..........................................................................

2,124

4,455

Interest income..........................................................................

32,126

39,080

Royalty income (less loss)..........................................................................

602

*1,149

Net short-term capital gain

(less loss).......................................................

*252

*762

Net long-term capital gain

(less loss).......................................................

91,421

47,019

Other portfolio income (net)..........................................................................

---

Electric,

gas, and

sanitary

services

3,292

Number of returns.......................................................................

2,406

Transportation and public utilities

(37)

Real estate rental net income

(less deficit).........................................................

2,373

Net income..........................................................................

*2,448

Deficit..........................................................................

*1,714

*3,049

*1,335

21,919

21,994

*75

86,232

92,717

6,485

75,266

79,390

*4,124

7,028

7,337

*308

3,938

*5,990

*2,053

Net income (less deficit)

from other rental activity.........................................................

*3,936

Net income..........................................................................

*3,936

Deficit..........................................................................

*460

*2,870

61,998

130,813

68,815

38,099

105,745

67,646

17,922

19,091

*1,169

*5,977

Total net income (less deficit).......................................................................

667,638

808,647

Net income..........................................................................

747,527

968,562

Deficit.......................................................................... 79,888

159,915

2,223,042

2,590,969

367,927

4,422,930

7,560,131

3,137,201

2,745,041

4,534,436

1,789,395

1,189,486

2,152,136

962,650

488,403

873,559

385,156

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Wholesale and retail trade

Wholesale trade

Item

Total

(38)

Total

Groceries

and

products

Machinery,

equipment,

and

supplies

Retail trade

Miscellaneous

wholesale

trade

Total

Building

materials,

garden

supplies,

and mobile

home dealers

General

merchandise

stores

(39)

(40)

(41)

(42)

(43)

(44)

164,477

13,111

23,203

128,162

416,942

19,258

5,730

Number of shareholders............................................

1,094,792

309,337

Income from a trade or business:

Total receipts ¹......................................................................

1,337,278,598 571,323,647

Business receipts..........................................................

1,320,780,014 565,511,148

Interest on Government obligations:

State and local...............................................................................

172,748

118,618

Net gain, noncapital assets..........................................................

1,292,822

505,982

Other receipts..........................................................

15,033,014

5,187,899

26,899

42,063

240,376

782,574

36,490

11,328

79,054,274

78,710,478

54,686,489

53,721,838

437,582,884

433,078,832

763,668,540

752,999,754

35,768,720

35,445,767

9,755,375

9,639,689

3,141

13,428

327,227

9,263

195,143

760,244

106,213

297,411

4,100,428

54,130

785,568

9,829,088

*1,033

22,055

299,865

*1,656

*515

113,514

78,034,098

68,267,312

1,393,063

3,283,954

234,096

95,473

560,884

523,348

351,523

50,996

375,883

-203,227

52,060,148

39,573,811

1,591,264

4,055,231

239,483

99,067

555,925

634,739

539,016

27,670

810,468

162

231,198

424,797,838

346,477,972

8,826,813

26,163,927

1,421,422

1,058,169

4,234,086

5,806,525

3,265,616

248,702

3,202,211

*10,215

2,516,101

751,119,473

568,422,157

13,654,744

61,913,996

4,190,169

974,421

18,216,395

12,052,386

6,305,889

637,741

7,333,549

*9,074

11,195,518

34,945,069

25,775,035

912,524

3,328,836

173,627

105,878

590,146

641,043

439,763

19,572

349,739

1,109

369,358

9,611,482

6,165,598

259,077

1,253,442

57,827

21,775

447,032

202,909

90,354

8,529

94,661

-181,233

111,312

169,531

*1,983

2,411,512

202,192

321,209

627

3,178,086

977,585

1,497,586

30,642

19,060,266

844,641

3,095,912

117,613

42,155,267

76,987

174,701

*19,291

1,967,459

13,999

38,323

358

776,363

Total receipts less total deductions ¹...........................................................

29,068,124 16,431,563

1,020,176

2,626,340

12,785,047

12,549,066

823,651

143,893

1,017,035

1,303,131

286,097

2,617,077

2,878,955

261,878

12,678,833

15,240,879

2,562,045

12,494,937

19,098,167

6,603,230

822,618

1,183,313

360,695

142,236

336,060

193,824

408,644

12,431

78,227

*14,709

271,690

23,534

126,274

768

4,337,727

122,654

732,137

96,281

3,894,201

92,782

1,022,622

27,960

132,745

18,217

84,558

*327

84,795

*440

10,106

*371

Number of returns.......................................................................

583,006

Total deductions......................................................................

1,308,210,474 554,892,083

Cost of goods sold..........................................................

1,024,343,917 454,319,095

Compensation of officers..........................................................

25,524,258 11,811,140

Salaries and wages..........................................................

95,575,159 33,503,112

Repairs.......................................................... 6,092,926

1,895,001

Bad debts.......................................................... 2,230,183

1,252,709

Rent paid on business property..........................................................

23,612,081

5,350,895

Taxes paid..........................................................

19,050,111

6,964,612

Interest paid..........................................................

10,499,512

4,156,156

Amortization.......................................................... 966,845

327,369

Depreciation..........................................................

11,760,628

4,388,561

Depletion..........................................................

19,451

*10,377

Advertising..........................................................

14,164,518

2,950,526

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

2,140,324

1,291,089

Employee benefit programs..........................................................

5,091,153

1,988,327

Net loss, noncapital assets..........................................................

150,864

33,252

Other deductions..........................................................

66,988,541 24,649,863

Net income (less deficit)

from a trade or business.........................................................

28,895,377 16,312,945

Net income..........................................................................

38,618,119 19,422,965

Deficit..........................................................................

9,722,742

3,110,020

(45)

Portfolio income (less deficit)

distributed to shareholders.........................................................

8,914,747

5,018,060

Dividend income..........................................................................

251,401

158,619

Interest income..........................................................................

1,961,745

936,638

Royalty income (less loss)..........................................................................

139,718

111,758

Net short-term capital gain

(less loss).......................................................

100,190

44,251

Net long-term capital gain

(less loss)....................................................... 6,453,475

3,759,908

Other portfolio income (net)..........................................................................

8,218

6,887

-931

-401

45,583

55,939

*-599

304,059

*148

121,205

*311

3,334,644

6,427

2,693,568

1,331

30,223

*19

*73,879

Real estate rental net income

(less deficit).........................................................

308,506

Net income..........................................................................

419,352

Deficit..........................................................................

110,846

92,742

169,994

77,252

13,521

16,707

*3,186

7,062

7,676

*615

72,159

145,611

73,451

215,764

249,358

33,594

20,189

24,123

*3,934

3,785

*7,259

*3,474

Net income (less deficit)

from other rental activity.........................................................

226,958

Net income..........................................................................

256,602

Deficit..........................................................................29,644

108,133

119,262

*11,129

*12,637

73,988

84,298

*10,310

21,508

22,327

*819

118,784

137,299

18,515

*7,564

*7,670

106

----

Total net income (less deficit).......................................................................

38,345,586 21,531,880

Net income..........................................................................

47,154,079 24,284,843

Deficit..........................................................................

8,808,493

2,752,963

1,451,836

1,664,018

212,182

2,969,817

3,210,697

240,881

17,110,227

19,410,127

2,299,900

16,723,686

22,769,958

6,046,272

983,116

1,310,889

327,774

230,817

398,302

167,485

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Wholesale and retail trade--continued

Retail trade--continued

Wholesale

Automotive

dealers

and

service

stations

Apparel

and

accessory

stores

Furniture

and

home

furnishing

stores

(47)

(48)

(49)

(50)

(51)

(52)

56,119

20,536

24,201

130,344

121,762

1,587

Number of shareholders............................................

69,856

99,380

Income from a trade or business:

Total receipts ¹......................................................................

81,149,339

388,586,521

Business receipts..........................................................

80,030,769

382,947,477

Interest on Government obligations:

State and local...............................................................................

8,768

5,093

Net gain, noncapital assets..........................................................

58,367

311,530

Other receipts..........................................................

1,051,436

5,322,421

33,340

43,255

267,157

221,769

2,881

13,813,227

13,577,572

31,613,613

31,097,460

84,484,686

83,239,790

118,497,059

117,021,229

2,286,412

2,269,112

*754

*362

234,538

6,241

40,436

469,476

3,674

208,946

1,032,276

26,911

143,357

1,305,562

-*1,272

*16,027

Total deductions......................................................................

79,959,321

384,873,634

Cost of goods sold..........................................................

60,154,506

334,566,057

Compensation of officers..........................................................

1,007,061

3,635,005

Salaries and wages..........................................................

7,402,672

18,393,551

Repairs..........................................................

640,004

1,005,823

Bad debts.......................................................... 78,217

319,186

Rent paid on business property..........................................................

1,955,315

3,626,047

Taxes paid..........................................................1,270,742

3,346,889

Interest paid..........................................................486,645

2,799,427

Amortization.......................................................... 85,264

89,336

Depreciation..........................................................

1,080,780

1,798,711

Depletion..........................................................

--Advertising.......................................................... 793,264

3,627,569

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

124,730

202,905

Employee benefit programs..........................................................

478,401

1,246,314

Net loss, noncapital assets..........................................................

2,151

17,071

Other deductions..........................................................

4,399,570

10,199,743

13,687,596

8,448,341

470,107

1,410,090

75,364

22,335

916,865

308,170

142,946

20,249

161,317

*7,081

352,883

30,533,083

19,524,266

940,437

3,396,379

176,495

115,068

1,238,677

660,171

210,626

14,836

399,319

-1,117,960

82,569,604

34,726,233

2,641,746

15,571,481

1,499,661

55,804

5,731,446

3,577,419

1,128,760

283,194

2,025,542

-2,465,769

114,939,683

79,062,121

3,788,787

11,157,545

561,368

256,158

3,710,867

2,045,042

1,007,368

116,762

1,423,479

*884

2,287,481

2,198,917

1,602,666

58,374

158,050

7,757

*3,053

44,791

33,114

37,467

*1,735

38,518

-18,474

35,735

36,880

*8,188

1,271,045

54,901

153,692

*443

2,529,811

58,053

495,850

45,356

12,263,290

277,330

471,750

24,755

8,747,986

*4,594

6,915

-183,410

Total receipts less total deductions ¹...........................................................

1,190,017

3,712,887

125,630

1,080,530

1,915,081

3,557,376

87,494

124,877

456,686

331,809

1,074,289

1,355,908

281,619

1,911,408

3,925,556

2,014,148

3,530,465

5,090,176

1,559,710

87,494

96,987

*9,493

95,021

2,147

14,719

*138

1,155,099

6,075

71,016

1,078

574,003

13,324

162,357

*3,797

742,180

28,705

175,555

*21,336

*2,485

-*2,485

*228

*421

15,638

47,865

*77,789

1,076,489

*21

378,662

*225

468,699

*20

---

Item

Food

stores

(46)

Number of returns.......................................................................

38,992

Net income (less deficit)

from a trade or business.........................................................

1,181,249

Net income..........................................................................

1,700,602

Deficit..........................................................................

519,353

3,707,794

5,049,865

1,342,071

Portfolio income (less deficit)

distributed to shareholders.........................................................

152,444

957,914

Dividend income..........................................................................

10,613

13,262

Interest income..........................................................................

105,439

398,873

Royalty income (less loss)..........................................................................

*844

Net short-term capital gain

(less loss).......................................................

-1,043

-6,571

Net long-term capital gain

(less loss).......................................................

37,366

550,460

Other portfolio income (net)..........................................................................

(²)

*1,046

Eating

and

drinking

places

Miscellaneous

retail

stores

and

retail

trade

not

allocable

Real estate rental net income

(less deficit).........................................................

33,793

Net income..........................................................................

38,305

Deficit..........................................................................*4,512

56,540

62,837

6,296

*385

*482

*97

10,607

11,166

*559

24,815

28,393

*3,579

65,650

76,793

11,143

----

Net income (less deficit)

from other rental activity.........................................................

*21,640

Net income..........................................................................

*21,640

Deficit..........................................................................

8,059

25,895

17,835

*-30

*392

*422

*18,031

23,022

23,174

*152

40,497

*41

Total net income (less deficit).......................................................................

1,389,126

4,730,308

Net income..........................................................................

1,874,273

5,901,918

Deficit..........................................................................

485,147

1,171,610

220,252

531,989

311,737

2,258,026

2,469,610

211,584

2,533,248

4,461,589

1,928,341

4,378,793

5,821,386

1,442,594

90,020

99,278

*9,258

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Finance, insurance, and real estate

Total

Banking

Credit

agencies

other

than

banks

(53)

(54)

Item

Security,

commodity

brokers,

and

services

Insurance

agents,

brokers,

and

services

(57)

Real

estate

Holding

and other

investment

companies,

except bank

holding

companies

(55)

(56)

(58)

(59)

(60)

758

15,468

15,029

43,990

281,126

25,782

Number of shareholders............................................

877,115

8,789

Income from a trade or business:

Total receipts ¹......................................................................

104,017,724

4,230,536

Business receipts..........................................................

91,985,536

1,748,776

Interest on Government obligations:

State and local...............................................................................

372,152

104,297

Net gain, noncapital assets..........................................................

549,630

25,805

Other receipts..........................................................

11,110,406

2,351,659

30,260

24,729

73,316

679,769

60,251

8,475,315

6,258,146

12,766,071

10,885,289

---

18,818,469

18,456,348

55,610,126

52,377,961

4,117,207

2,259,015

12,993

103,637

2,100,538

78,346

33,712

1,768,723

----

10,768

32,084

319,270

87,741

292,527

2,851,896

78,006

61,865

1,718,320

7,665,605

-581,882

2,210,333

49,326

397,552

267,689

273,419

1,238,099

36,400

142,076

*670

206,292

11,723,136

-2,441,596

3,215,787

38,631

48,158

324,141

362,068

729,509

13,058

121,937

-141,712

--------------

16,901,231

2,980,396

2,577,225

5,014,080

125,752

34,446

659,329

595,250

193,577

73,107

221,402

*717

361,786

52,629,072

20,398,526

3,238,613

10,742,028

556,132

202,485

1,635,503

1,411,201

1,754,766

92,911

751,623

*290

948,472

3,864,123

503,122

201,679

740,435

22,642

59,213

69,817

114,924

251,260

8,330

71,710

*167

21,705

50,426

83,986

26,629

2,100,826

126,793

84,168

*5,887

4,069,691

-----

193,666

249,226

*280

3,620,993

282,137

371,926

81,792

10,160,668

19,752

39,180

6,684

1,733,502

809,710

1,042,934

1,917,238

2,981,054

253,084

796,716

1,422,766

626,050

964,588

2,436,812

1,472,224

----

1,906,470

2,222,966

316,495

2,893,312

6,305,329

3,412,017

175,077

1,487,046

1,311,969

370,186

5,407

239,385

*55

2,279,685

95,320

320,162

*67

-----

482,877

31,378

199,373

3,379,348

101,576

1,428,594

15,623

3,445,834

368,137

568,102

63,917

12,457

564,663

6,620

40,710

183,550

100,649

*12,233

1,282,643

16,831

---

241,286

*4,219

1,776,105

16,741

2,227,281

34,847

Number of returns.......................................................................

382,153

Total deductions......................................................................

96,055,527

3,272,359

Cost of goods sold..........................................................

23,882,044

-Compensation of officers..........................................................

9,313,186

272,191

Salaries and wages..........................................................

22,346,609

423,946

Repairs..........................................................

837,098

44,616

Bad debts.......................................................... 816,840

74,985

Rent paid on business property..........................................................

3,001,827

45,347

Taxes paid..........................................................

2,853,392

96,530

Interest paid..........................................................

5,721,291

1,554,081

Amortization..........................................................

247,669

23,863

Depreciation..........................................................

1,397,146

88,398

Depletion..........................................................

1,850

Advertising..........................................................

1,708,921

28,954

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

699,111

26,337

Employee benefit programs..........................................................

887,491

59,006

Net loss, noncapital assets..........................................................

124,439

3,166

Other deductions..........................................................

22,216,612

530,933

Total receipts less total deductions ¹...........................................................

7,962,197

958,177

Net income (less deficit)

from a trade or business.........................................................

7,590,045

Net income..........................................................................

14,748,463

Deficit..........................................................................

7,158,418

853,880

873,543

*19,663

Portfolio income (less deficit)

distributed to shareholders.........................................................

9,997,872

39,943

Dividend income..........................................................................

605,393

3,575

Interest income..........................................................................

2,775,658

20,042

Royalty income (less loss)..........................................................................

79,667

Net short-term capital gain

(less loss).......................................................

808,048

Net long-term capital gain

(less loss)....................................................... 5,641,962

14,000

Other portfolio income (net)..........................................................................

87,144

*2,274

Real estate rental net income

(less deficit).........................................................2,797,388

Net income..........................................................................

4,362,852

Deficit..........................................................................

1,565,463

-651

3,701

4,352

2,075

5,133

3,058

2,869

*4,576

*1,707

----

3,952

*5,874

*1,922

2,752,593

4,268,635

1,516,041

36,550

74,933

38,383

Net income (less deficit)

from other rental activity.........................................................

35,484

Net income..........................................................................

82,201

Deficit..........................................................................

46,717

155

936

*781

648

*1,338

*690

3,221

3,258

----

*1,398

*1,553

*156

31,778

68,443

36,665

-1,716

6,673

*8,389

Total net income (less deficit).......................................................................

20,420,790

893,327

Net income..........................................................................

26,888,171

905,732

Deficit..........................................................................

6,467,381

*12,406

1,169,626

1,642,823

473,197

3,250,364

3,864,630

614,266

----

2,394,697

2,666,147

271,451

9,057,032

13,087,133

4,030,100

3,655,745

4,721,707

1,065,962

Footnotes at end of table.

S Corporation Returns, 1997

Table 1.--All Returns: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Services

Hotels

Item

Total

and other

lodging

Personal

services

Business

services

places

(61)

Auto repair;

Amusement

miscellaneous

repair

and

recreation

services

Nature of

Other

services

business

not

allocable

(62)

(63)

(64)

(65)

(66)

(67)

(68)

Number of returns.......................................................................

860,445

19,480

60,188

261,096

83,119

73,351

363,210

*1,821

Number of shareholders............................................

1,434,631

Income from a trade or business:

51,530

96,516

426,167

126,758

144,886

588,775

*6,384

Total receipts ¹......................................................................

451,975,219

13,989,534

Business receipts..........................................................

441,010,668

13,677,658

Interest on Government obligations:

State and local...............................................................................

109,073

7,360

Net gain, noncapital assets..........................................................

1,480,340

40,010

Other receipts..........................................................

9,375,138

264,506

17,057,821

16,876,169

165,324,219

161,289,106

36,724,473

36,241,725

37,993,094

36,240,530

180,886,077

176,685,480

*173,806

*172,529

*746

29,106

151,800

33,598

661,234

3,340,281

*392

241,068

241,289

19,195

228,285

1,505,083

47,782

280,638

3,872,178

--*1,277

Total deductions......................................................................

423,424,597

13,629,782

Cost of goods sold..........................................................

132,434,305

2,047,841

Compensation of officers..........................................................

42,498,717

409,590

Salaries and wages..........................................................

91,959,318

2,786,994

Repairs.......................................................... 4,241,291

531,146

Bad debts.......................................................... 974,099

22,801

Rent paid on business property..........................................................

16,972,342

591,188

Taxes paid..........................................................

16,459,162

868,728

Interest paid..........................................................

6,158,781

1,182,648

Amortization..........................................................

1,369,553

63,771

Depreciation..........................................................

11,014,245

1,063,206

Depletion..........................................................

*49

-Advertising..........................................................

5,508,822

355,393

Pension, profit-sharing, stock

bonus, and annuity plans......................................................

3,512,907

9,335

Employee benefit programs..........................................................

4,778,794

119,034

Net loss, noncapital assets..........................................................

148,074

5,875

Other deductions..........................................................

85,394,139

3,572,232

16,220,995

4,886,858

1,163,467

3,254,440

307,319

63,026

1,446,785

745,892

240,863

51,824

591,630

-440,637

154,603,330

63,843,249

12,242,839

31,783,857

977,210

284,235

4,054,370

5,289,929

1,438,791

271,472

3,377,065

*49

1,646,328

35,358,708

17,165,633

1,989,997

4,833,274

404,679

65,947

1,867,016

1,287,483

600,081

53,096

1,549,601

-538,472

36,352,495

10,147,855

2,817,150

6,381,207

699,936

85,592

1,715,655

1,574,558

900,186

656,647

1,920,962

-792,357

167,259,287

34,342,868

23,875,675

42,919,546

1,321,001

452,497

7,297,327

6,692,572

1,796,212

272,742

2,511,782

*( ² )

1,735,635

*161,759

*123,291

*8,449

*5,526

*148

-*3,800

*1,454

--*2,630

---

61,801

121,120

*218

2,845,114

1,043,214

1,723,010

33,478

26,594,234

64,595

338,579

21,411

4,578,845

137,377

240,052

38,939

8,244,021

2,196,585

2,236,998

48,153

39,559,694

---*16,462

836,825

10,720,889

1,365,765

1,640,599

13,626,790

*12,047

836,080

1,327,227

491,147

10,687,291

13,992,529

3,305,238

1,365,374

2,026,234

660,860

1,621,404

3,799,273

2,177,869

13,579,009

17,559,363

3,980,354

*12,047

*13,825

*1,778

117,787

6,719

50,777

3,320,921

95,848

626,362

41,978

85,571

6,529

53,863

*10,596

821,997

20,800

248,861

219,519

2,185,320

68,161

548,321

76,843

*9,943

-*2,329

2,134

11,023

*3,321

-76,765

5,476

58,083

*73

2,470,992

74,718

10,628

*634

406,454

*3,129

1,484,418

2,100

*7,615

Total receipts less total deductions ¹...........................................................

28,550,622

359,752

Net income (less deficit)

from a trade or business.........................................................

28,441,549

Net income..........................................................................

39,791,342

Deficit..........................................................................

11,349,794

352,392

1,086,717

734,325

Portfolio income (less deficit)

distributed to shareholders.........................................................

6,721,405

189,810

Dividend income..........................................................................

207,522

9,464

Interest income..........................................................................

1,693,544

165,361

Royalty income (less loss)..........................................................................

348,935

-Net short-term capital gain

(less loss).......................................................

-54,776

Net long-term capital gain

(less loss)....................................................... 4,444,232

13,657

Other portfolio income (net)..........................................................................

81,947

*1,294

Real estate rental net income

(less deficit)......................................................... 302,276

Net income..........................................................................

413,284

Deficit..........................................................................

111,008

43,525

62,343

18,818

26,087

*30,295

*4,208

98,488

117,620

19,132

39,819

48,167

*8,348

59,890

69,318

9,429

34,468

85,542

51,074

----

Net income (less deficit)

from other rental activity.........................................................

264,026

Net income..........................................................................

484,512

Deficit..........................................................................

220,486

*3,359

*615

*623

171,369

313,733

142,364

26,718

96,611

69,893

-278

5,826

*6,104

62,244

64,360

*2,116

----

Total net income (less deficit).......................................................................

35,729,256

589,086

Net income..........................................................................

46,255,320

1,264,566

Deficit..........................................................................

10,526,064

675,480

980,568

1,443,755

463,187

14,278,068

17,371,367

3,093,299

1,517,482

2,217,648

700,167

2,503,013

4,436,497

1,933,484

15,861,040

19,521,487

3,660,447

*21,991

*22,638

*648

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

¹ Includes interest on Government obligations: State and local, which is not reflected in net income (less deficit) from a trade or business.

² Less than $500.

NOTE: Detail may not add to total due to rounding.

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group

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

Mining

Item

All

Agriculture,

industries

forestry,

and fishing

(1)

(2)

Oil

Total

(3)

Metal

Coal

and

mining

gas

minerals,

extraction

except fuels

(4)

(5)

Nonmetallic

(6)

(7)

Number of returns.....................................................................................

1,555,396

52,681

8,905

*378

304

6,915

1,308

Number of shareholders......................................................................

2,959,804

129,538

20,083

*720

978

15,745

2,640

37,964,683

12,923,864

*214,536

2,780,697

6,973,569

2,955,062

Business receipts....................................................................

2,347,208,788

35,354,050

Interest on Government obligations:

State and local............................................................................

816,487

22,901

Net gain, noncapital assets....................................................................

5,026,520

310,069

Other receipts....................................................................

40,538,128

2,277,663

Total deductions......................................................................

2,241,516,528

34,810,557

11,797,676

*169,759

2,684,753

6,068,026

2,875,138

11,243

249,279

865,666

10,607,355

-*24,670

*20,108

*177,892

*1,699

*43,352

50,893

2,632,923

7,635

159,592

738,316

5,230,782

*1,909

21,666

56,349

2,565,757

Cost of goods sold....................................................................

1,525,662,198

19,154,893

5,540,279

Compensation of officers....................................................................

89,391,084

1,135,413

270,930

Salaries and wages....................................................................

219,392,089

2,945,847

922,423

Repairs....................................................................

13,874,102

773,748

274,751

Bad debts....................................................................

3,886,180

38,958

15,402

Rent paid on business property....................................................................

43,035,555

1,017,956

243,986

Taxes paid....................................................................

46,973,862

719,800

436,392

Interest paid....................................................................

22,687,280

691,743

258,424

Amortization....................................................................

2,295,708

13,987

19,144

Depreciation....................................................................

34,608,054

1,297,123

597,385

Depletion....................................................................

211,633

*798

119,318

Advertising....................................................................

21,962,219

159,401

19,919

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

8,952,730

70,733

47,649

Employee benefit programs....................................................................

16,193,063

192,645

188,450

Net loss, noncapital assets....................................................................

243,186

5,155

*1,471

Other deductions....................................................................

192,147,585

6,592,356

1,651,431

Total receipts less total deductions ¹......................................................................

152,073,395

3,154,126

2,316,509

*71,955

*5,450

*1,308

*18,029

*( ² )

*5,402

*9,695

*2,934

-*8,047

*4,411

*155

1,661,086

*15,207

155,451

56,593

*4,101

65,050

104,756

46,562

3,439

128,114

43,502

1,093

2,028,931

167,023

656,213

168,852

6,759

157,808

242,308

162,874

11,763

274,328

*21,227

10,370

1,778,307

83,249

109,451

31,276

4,542

15,726

79,632

46,056

3,942

186,896

50,178

8,302

*2,728

*1,667

-*46,111

*36,644

10,073

141,303

196,524

147,774

17,818

25,261

*1,315

1,277,932

1,742,786

17,030

20,220

*88

130,864

389,304

Income from a trade or business:

Total receipts ¹......................................................................

2,393,589,923

Net income (less deficit)

from a trade or business....................................................................

151,256,908

3,131,225

2,305,266

*36,644

146,074

1,735,152

387,396

Net income....................................................................

154,605,010

Deficit....................................................................3,348,103

Portfolio income (less deficit)

3,219,819

88,594

2,416,555

111,289

*36,644

158,307

*12,232

1,833,696

98,544

387,908

*512

distributed to shareholders....................................................................

34,938,205

1,156,974

881,352

*3,504

87,608

739,353

50,886

Dividend income......................................................................

1,341,751

21,904

Interest income......................................................................

8,230,825

178,909

Royalty income (less loss)......................................................................

789,568

12,827

Net short-term capital gain

(less loss)....................................................................................

1,297,395

14,440

Net long-term capital gain

(less loss)....................................................................................

23,098,916

926,269

Other portfolio income (net)......................................................................

179,750

*2,625

Real estate rental net income

46,678

175,854

124,561

-*3,504

*6,271

26,885

*1,607

36,131

119,975

122,954

4,276

25,491

81,870

*7,874

69,128

*4,868

450,553

1,837

---

44,531

441

390,869

*297

15,153

*1,099

(less deficit)....................................................................

5,084,640

68,020

16,244

*48

*1,510

11,147

3,539

Net income......................................................................

5,383,626

Deficit...................................................................... 298,986

Net income (less deficit)

73,372

5,352

17,356

*1,112

*48

*1,521

11,860

*713

3,927

*388

from other rental activity....................................................................

842,321

15,034

17,098

1,079

3,463

*12,557

17,377

*278

3,219,960

--*40,196

1,079

-236,272

*3,741

*278

2,489,114

*12,557

-454,378

Net income......................................................................

948,440

Deficit...................................................................... 106,119

Total net income.......................................................................

192,122,074

15,179

*145

4,371,253

Footnotes at end of table.

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Construction

Manufacturing

General

building

Item

Total

contractors

Heavy

Special

and

construction

trade

operative

contractors

(10)

(11)

Total

Food and

Tobacco

kindred

manufac-

Textile

mill

products

tures

products

(13)

(14)

builders

(8)

(9)

(12)

(15)

Number of returns.....................................................................................

182,159

66,089

6,517

109,552

99,616

5,904

1,928

Number of shareholders......................................................................

292,496

103,002

12,061

177,434

245,320

31,153

4,468

Income from a trade or business:

Total receipts ¹......................................................................

276,760,967 124,507,265

31,748,831

120,504,870

425,580,248

56,446,022

371,132

14,074,391

Business receipts....................................................................

274,441,993 123,766,422

Interest on Government obligations:

State and local............................................................................

48,856

25,592

Net gain, noncapital assets....................................................................

269,576

50,185

Other receipts....................................................................

2,000,542

665,067

Total deductions......................................................................

260,768,521 118,912,771

31,014,052

119,661,520

421,174,658

55,932,706

351,191

13,956,816

10,111

105,378

619,290

29,830,260

13,152

114,013

716,185

112,025,490

134,534

820,693

3,450,364

392,282,211

8,909

67,308

437,099

53,210,238

-12,100

7,840

309,895

5,438

30,988

81,149

13,138,863

Cost of goods sold....................................................................

207,734,250 104,594,563

23,673,068

Compensation of officers....................................................................

8,897,481

2,656,346

731,004

Salaries and wages....................................................................

12,591,912

3,425,393

1,337,641

Repairs....................................................................

1,112,160

246,465

167,912

Bad debts....................................................................

328,619

61,529

23,289

Rent paid on business property....................................................................

2,108,102

448,447

204,146

Taxes paid....................................................................

4,957,392

1,257,156

503,423

Interest paid....................................................................

1,515,293

608,537

190,942

Amortization....................................................................

40,278

11,432

2,425

Depreciation....................................................................

3,647,887

697,633

969,749

Depletion....................................................................

11,834

*189

11,645

Advertising....................................................................

681,144

260,587

25,964

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

973,072

240,058

143,533

Employee benefit programs....................................................................

2,122,932

462,196

243,473

Net loss, noncapital assets....................................................................

29,980

3,445

*14,695

Other deductions....................................................................

14,016,186

3,938,797

1,587,350

Total receipts less total deductions ¹......................................................................

15,992,445

5,594,494

1,918,571

79,466,619

5,510,131

7,828,877

697,783

243,801

1,455,510

3,196,812

715,813

26,422

1,980,506

-394,593

286,791,333

13,032,683

28,786,727

1,951,059

792,402

3,888,977

8,489,945

4,035,755

398,297

9,228,656

59,035

3,720,201

41,439,178

771,069

3,137,258

265,431

51,305

335,850

810,836

440,832

41,062

1,060,818

-1,065,417

206,652

4,959

12,652

763

1,555

45,999

4,060

14,687

3,495

-3,026

10,445,651

329,618

660,477

68,995

31,490

97,506

253,432

155,616

6,355

315,489

-39,323

589,481

1,417,264

11,839

8,490,038

8,479,380

1,981,748

4,244,752

28,778

24,851,863

33,298,038

189,645

449,143

4,377

3,148,016

3,235,784

251

1,730

10,043

61,237

41,212

140,925

*1,577

551,198

935,528

Net income (less deficit)

from a trade or business....................................................................

15,943,590

5,568,902

1,908,459

8,466,228

33,163,504

3,226,875

61,237

930,090

Net income....................................................................

16,082,675

Deficit....................................................................139,085

Portfolio income (less deficit)

5,617,926

49,024

1,973,085

64,625

8,491,663

25,436

33,542,825

379,320

3,232,866

*5,991

61,237

937,635

*7,545

distributed to shareholders....................................................................

1,331,715

564,392

310,678

456,645

5,968,295

198,189

211,372

218,058

Dividend income......................................................................

106,726

38,987

Interest income......................................................................

725,892

360,687

Royalty income (less loss)......................................................................

*8,292

-Net short-term capital gain

(less loss)....................................................................................

25,755

5,091

Net long-term capital gain

(less loss)....................................................................................

460,235

158,254

Other portfolio income (net)......................................................................

4,815

*1,374

Real estate rental net income

34,240

136,427

*8,289

33,499

228,778

165,525

1,290,429

91,956

10,359

147,905

*7,082

220

1,308

4,314

43,090

5,948

14,716

154,846

-53

*3,692

122,462

*3,311

179,519

*130

4,253,802

11,736

32,339

*558

209,843

166,962

(less deficit)....................................................................

66,391

54,340

6,311

5,740

130,241

4,957

2,285

Net income......................................................................

76,440

Deficit...................................................................... 10,050

Net income (less deficit)

62,197

7,857

6,405

*94

7,838

2,098

142,258

12,016

6,395

1,439

*2,351

from other rental activity....................................................................

5,720

3,284

Net income......................................................................

10,057

Deficit...................................................................... *4,337

Total net income.......................................................................

17,347,415

Footnotes at end of table.

4,879

1,595

6,190,918

303

*2,133

41,065

*1,504

*1,387

*865

562

2,225,751

*4,312

*2,179

8,930,745

43,388

2,324

39,303,105

*2,060

*556

3,431,525

--272,617

*1,463

1,151,819

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Apparel

Lumber

and

Paper

Furniture

and

Printing

Chemical

Petroleum

Rubber and

and

(including

miscellaneous

other

wood

and

allied

and

allied

integrated)

plastics

textile

products

fixtures

products

publishing

products

and coal

products

(16)

products

(17)

(18)

(19)

(20)

(21)

(22)

(23)

Number of returns.....................................................................................

4,971

7,745

3,608

1,426

17,732

3,424

4,804

Number of shareholders......................................................................

9,106

18,838

8,554

5,136

35,826

9,628

137

12,550

Income from a trade or business:

Total receipts ¹......................................................................

22,261,464

24,043,169

10,722,185

17,273,291

34,879,107

17,990,653

2,376,893

25,021,799

Business receipts....................................................................

21,975,384

23,794,202

Interest on Government obligations:

State and local............................................................................

2,747

3,067

Net gain, noncapital assets....................................................................

5,520

33,286

Other receipts....................................................................

277,814

212,613

Total deductions......................................................................

20,992,962

22,492,245

10,612,504

17,118,918

34,239,221

17,848,202

2,342,199

24,838,400

4,576

25,289

79,815

9,939,224

8,738

44,028

101,608

16,083,265

19,024

105,385

515,477

32,073,113

6,044

5,014

131,393

16,536,398

*42

*597

34,055

2,290,889

9,349

50,492

123,558

22,973,908

Cost of goods sold....................................................................

15,721,615

17,524,624

7,278,542

Compensation of officers....................................................................

781,667

542,851

291,676

Salaries and wages....................................................................

1,616,262

1,168,524

735,658

Repairs....................................................................

39,663

191,214

42,146

Bad debts....................................................................

44,823

30,424

30,673

Rent paid on business property....................................................................

238,939

138,403

110,300

Taxes paid....................................................................

468,711

461,122

231,841

Interest paid....................................................................

258,798

261,065

90,246

Amortization....................................................................

7,312

8,803

2,958

Depreciation....................................................................

211,733

556,181

178,267

Depletion.................................................................... -*41,962

-Advertising....................................................................

202,443

96,369

94,181

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

67,021

78,144

56,472

Employee benefit programs....................................................................

139,615

172,155

132,395

Net loss, noncapital assets....................................................................

*795

1,287

*2,423

Other deductions....................................................................

1,193,564

1,219,117

661,447

Total receipts less total deductions ¹......................................................................

1,268,502

1,550,923

782,961

12,418,257

430,868

1,058,944

67,396

22,210

140,437

313,674

148,045

14,780

408,887

*402

45,075

17,785,195

1,685,238

4,244,991

230,880

161,229

619,576

939,161

446,407

115,927

972,952

*583

457,383

11,269,096

605,688

1,378,588

97,416

40,302

196,702

309,384

194,025

36,458

412,805

-215,343

1,855,366

*35,952

110,396

26,081

*6,271

*15,568

29,007

*18,039

*2,026

40,523

*346

6,083

16,718,137

859,296

1,466,540

107,555

36,352

175,094

535,443

244,613

15,682

798,280

-198,000

90,671

165,060

*418

758,142

1,190,026

204,486

401,903

2,842

3,804,360

2,805,994

86,629

175,169

*759

1,518,031

1,454,256

*5,519

*12,384

127,281

86,004

123,411

299,288

663

1,395,553

2,047,891

Net income (less deficit)

from a trade or business....................................................................

1,265,756

1,547,856

778,385

1,181,288

2,786,970

1,448,212

85,962

2,038,542

Net income....................................................................

1,271,306

Deficit.................................................................... *5,550

Portfolio income (less deficit)

1,587,270

*39,414

779,004

619

1,185,093

*3,805

2,888,919

101,949

1,455,829

*7,617

85,962

2,054,869

*16,327

distributed to shareholders....................................................................

52,365

307,913

321,531

109,543

1,379,800

474,979

7,332

163,093

Dividend income......................................................................

9,259

3,521

Interest income......................................................................

37,595

63,554

Royalty income (less loss)......................................................................

*4,809

*125

Net short-term capital gain

(less loss)....................................................................................

*225

*1,507

Net long-term capital gain

(less loss)....................................................................................

168

236,221

Other portfolio income (net)......................................................................

*309

*2,985

Real estate rental net income

910

26,648

4,929

55,950

23,291

141,988

*1,286

12,057

63,815

*3,100

7,446

8,780

75,559

*4,524

*-673

*2,500

3,915

2,525

*93

1,848

294,063

575

46,094

1,203,165

*6,155

393,243

*240

*-217

72,382

(²)

(less deficit)....................................................................

5,481

17,179

*657

-138

16,116

*1,039

8,615

Net income......................................................................

5,481

Deficit......................................................................

-Net income (less deficit)

19,937

*2,758

*657

1,926

*2,064

17,969

*1,853

*1,236

*197

9,182

*567

from other rental activity....................................................................

*611

2,237

Net income......................................................................

*611

Deficit......................................................................

-Total net income.......................................................................

1,324,213

*2,269

*32

1,875,184

*197

9,651

*687

*1,414

*197

-1,100,770

--1,290,693

9,655

4,192,537

*687

-1,924,917

-93,336

*1,727

*312

2,211,665

Footnotes at end of table.

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Leather

Stone,

and

clay, and

Primary

Fabricated

Machinery,

Electrical

and

Motor

leather

glass

metal

except

electronic

vehicles and

products

industries

products

electrical

equipment

(24)

(25)

(26)

(27)

(28)

(29)

(30)

Number of returns.....................................................................................

203

3,682

1,244

16,429

7,773

5,753

526

Number of shareholders......................................................................

626

7,917

3,860

36,636

18,162

13,092

1,701

12,266,256

20,977,773

60,338,575

28,155,380

27,699,038

11,086,024

Business receipts....................................................................

1,925,605

12,100,597

Interest on Government obligations:

State and local............................................................................

*525

*2,542

Net gain, noncapital assets....................................................................

*62

71,479

Other receipts....................................................................

3,533

91,638

Total deductions......................................................................

1,784,481

11,107,659

20,908,991

59,700,234

27,840,026

27,501,514

10,989,262

1,968

5,801

61,013

19,949,940

26,327

179,065

432,949

54,758,204

7,400

47,308

260,647

25,227,238

9,908

29,870

157,747

25,111,710

5,802

16,108

74,851

10,292,267

Cost of goods sold....................................................................

1,335,655

7,373,234

17,583,262

Compensation of officers....................................................................

56,873

337,836

256,208

Salaries and wages....................................................................

141,428

963,883

530,387

Repairs.................................................................... 3,195

110,642

76,138

Bad debts....................................................................

*1,979

35,969

16,534

Rent paid on business property....................................................................

*13,482

171,189

43,659

Taxes paid....................................................................

37,754

305,645

222,249

Interest paid....................................................................

23,934

140,024

160,861

Amortization....................................................................

*1,182

13,637

8,966

Depreciation....................................................................

15,033

491,013

319,661

Depletion....................................................................

-14,948

*591

Advertising....................................................................

18,752

60,985

29,403

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

*3,582

63,140

74,169

Employee benefit programs....................................................................

36,861

108,228

135,797

Net loss, noncapital assets....................................................................

-*94

*1,678

Other deductions....................................................................

94,772

917,193

490,377

Total receipts less total deductions ¹......................................................................

145,245

1,158,597

1,027,833

40,362,503

2,428,987

3,523,750

264,073

97,249

547,402

1,351,452

570,755

35,294

1,504,190

-269,660

17,667,475

1,046,515

2,158,093

99,789

54,665

264,169

701,441

289,932

18,147

659,630

-175,278

18,178,988

812,992

2,320,465

95,666

54,141

261,251

496,107

199,323

13,107

474,551

*202

267,264

8,558,026

143,617

454,750

29,006

10,571

48,639

196,938

66,910

5,652

177,554

-45,685

310,533

708,300

4,314

2,779,740

5,580,370

204,680

417,023

*363

1,470,037

2,928,143

128,438

259,600

3,213

1,546,403

2,587,328

40,806

118,975

*108

395,032

793,757

Income from a trade or business:

Total receipts ¹......................................................................

1,929,726

Net income (less deficit)

from a trade or business....................................................................

144,720

1,156,055

1,025,865

5,554,044

2,920,743

2,577,420

787,955

Net income....................................................................

144,720

Deficit....................................................................

-Portfolio income (less deficit)

1,172,791

*16,736

1,032,041

*6,176

5,576,438

22,395

2,935,371

*14,628

2,628,125

*50,705

792,239

*4,285

distributed to shareholders....................................................................

10,924

66,262

113,446

583,734

521,147

545,330

37,389

Dividend income......................................................................

*5,423

*1,222

Interest income......................................................................

4,375

42,181

Royalty income (less loss)......................................................................

*99

*58

Net short-term capital gain

(less loss)....................................................................................

*-2

*326

Net long-term capital gain

(less loss)....................................................................................

*1,026

22,474

Other portfolio income (net)......................................................................

-Real estate rental net income

1,068

43,077

547

21,782

171,988

*1,229

12,747

114,324

5,976

23,294

84,223

*4,913

*7,404

22,864

3,171

*4,303

7,360

802

3,948

*2,189

64,449

381,007

*367

387,263

*34

428,509

*443

1,761

(less deficit)....................................................................*-140

7,799

5,716

38,258

8,554

4,478

*113

Net income...................................................................... 13

Deficit......................................................................

*153

Net income (less deficit)

7,814

*15

5,881

*166

39,166

*908

8,790

*236

4,479

*221

108

from other rental activity....................................................................

*507

*-199

*3,390

9,052

*1,346

*1,190

*1,675

*117

316

1,229,917

*3,399

1,148,416

*9,896

*843

6,185,087

*1,346

-3,451,790

*1,366

*175

3,128,419

*1,675

-827,132

Net income......................................................................*507

Deficit......................................................................

-Total net income.......................................................................

156,011

Footnotes at end of table.

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Transportation and public utilities

Transportation

Instruments

Miscellaneous

Electric,

equipment,

and

manufacturing

gas, and

except

and

motor

products

manufacturing

vehicles

Total

Transportation

Communication

sanitary

services

not allocable

(33)

(34)

(35)

(36)

Number of returns.....................................................................................

1,892

1,735

(31)

(32)

8,760

60,211

47,095

8,416

(37)

4,701

Number of shareholders......................................................................

3,809

4,476

19,634

123,373

89,002

22,533

11,839

Income from a trade or business:

Total receipts ¹......................................................................

7,909,406

6,674,225

23,083,741

83,317,693

66,337,868

10,235,779

6,744,046

Business receipts....................................................................

7,776,214

6,544,201

Interest on Government obligations:

State and local............................................................................

*2,002

4,782

Net gain, noncapital assets....................................................................

19,998

23,476

Other receipts....................................................................

111,191

101,766

Total deductions......................................................................

7,288,351

5,786,127

22,878,271

81,288,611

65,030,824

9,748,863

6,508,925

5,344

47,518

152,608

20,935,235

30,805

523,889

1,474,388

77,135,009

21,952

354,515

930,577

62,341,129

6,728

154,126

326,063

8,817,868

*2,125

15,248

217,749

5,976,012

Cost of goods sold....................................................................

5,582,328

3,500,750

13,986,798

Compensation of officers....................................................................

207,956

319,861

1,082,957

Salaries and wages....................................................................

423,884

765,144

1,914,654

Repairs....................................................................

20,215

32,695

82,101

Bad debts....................................................................

12,225

9,793

44,178

Rent paid on business property....................................................................

79,305

83,567

306,383

Taxes paid....................................................................

170,549

158,770

450,431

Interest paid....................................................................

62,348

37,834

222,090

Amortization....................................................................

4,938

7,251

24,072

Depreciation....................................................................

124,013

105,714

397,869

Depletion.................................................................... ---Advertising....................................................................

48,297

64,632

317,602

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

36,245

52,134

124,561

Employee benefit programs....................................................................

97,744

75,253

197,201

Net loss, noncapital assets....................................................................

*2,574

*102

*1,141

Other deductions....................................................................

415,731

572,626

1,783,199

Total receipts less total deductions ¹......................................................................

621,054

888,098

2,148,506

33,573,781

2,234,697

11,610,418

1,248,099

204,317

3,274,759

2,436,953

1,056,624

205,330

3,293,899

*154

514,983

27,372,163

1,722,340

9,229,323

1,049,732

92,122

2,972,398

1,943,745

732,177

34,702

2,602,668

*154

279,738

3,168,594

348,928

1,717,060

102,489

99,752

164,051

273,385

212,809

146,436

393,303

-214,525

3,033,024

163,428

664,035

95,878

12,443

138,310

219,823

111,638

24,192

297,928

-20,720

291,671

795,906

17,642

16,375,775

6,182,684

238,848

654,554

*1,772

13,414,694

3,996,739

24,532

69,683

*1,864

1,880,456

1,417,912

28,291

71,669

*14,007

1,080,625

768,034

Net income (less deficit)

from a trade or business....................................................................

619,052

883,316

2,143,162

6,151,879

3,974,786

1,411,184

765,909

Net income....................................................................

623,218

Deficit.................................................................... *4,166

Portfolio income (less deficit)

885,212

*1,896

2,212,680

*69,518

6,248,166

96,287

4,020,709

45,923

1,448,295

37,111

779,162

*13,253

distributed to shareholders....................................................................

122,166

84,000

439,724

1,229,811

413,629

715,909

100,273

Dividend income......................................................................

2,124

3,978

Interest income......................................................................

28,593

31,154

Royalty income (less loss)......................................................................

602

*1,149

Net short-term capital gain

(less loss)....................................................................................

*252

*762

Net long-term capital gain

(less loss)....................................................................................

90,595

46,957

Other portfolio income (net)......................................................................

--Real estate rental net income

8,833

82,793

*53,249

41,488

376,963

*1,772

22,505

201,513

*1,772

16,597

90,777

2,386

84,674

119,325

20,221

18,520

1,217

*485

175,498

785,898

3,468

166,958

*2,362

607,168

*151

11,772

*956

(less deficit)....................................................................

2,373

*786

6,106

81,257

71,733

7,192

*2,332

Net income......................................................................

*2,448

Deficit......................................................................

Net income (less deficit)

*2,121

*1,335

6,181

*75

84,450

3,193

72,731

*998

7,334

*142

*4,385

*2,053

from other rental activity....................................................................

*3,936

Net income......................................................................

*3,936

Deficit......................................................................

-Total net income.......................................................................

747,527

*460

*1,977

97,183

74,287

17,851

*5,045

*460

-968,562

*1,977

-2,590,969

116,927

*19,744

7,560,131

94,010

*19,723

4,534,436

17,872

2,152,136

*5,045

-873,559

Footnotes at end of table.

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Wholesale and retail trade

Wholesale trade

Retail trade

Building

Item

Total

Groceries

Machinery,

Miscellaneous

and

equipment,

wholesale

and

trade

products

supplies

Total

materials,

General

garden

merchandise

supplies,

stores

and mobile

home dealers

(40)

(41)

(42)

(43)

(44)

(45)

Number of returns.....................................................................................

349,620

107,431

(38)

(39)

9,058

16,994

81,379

240,908

12,365

3,319

Number of shareholders......................................................................

653,286

211,991

18,019

31,930

162,042

439,604

23,910

7,149

Total receipts ¹......................................................................

1,112,029,763 503,784,203

70,654,286

49,858,685

383,271,232

606,495,198

27,810,241

6,333,014

Business receipts....................................................................

1,098,266,978 498,620,394

Interest on Government obligations:

State and local............................................................................

161,423

113,941

Net gain, noncapital assets....................................................................

1,083,030

417,237

Other receipts....................................................................

12,518,332

4,632,632

Total deductions......................................................................

1,073,818,130 484,499,095

70,325,165

48,992,677

379,302,552

597,911,116

27,541,348

6,260,510

3,141

12,362

313,618

69,418,568

9,263

151,717

705,029

46,978,332

101,536

253,159

3,613,985

368,102,195

47,483

665,729

7,870,870

587,665,661

*1,033

11,307

256,553

26,639,480

*1,656

*344

70,503

6,013,272

Cost of goods sold....................................................................

851,812,543 398,115,490 60,936,416

Compensation of officers....................................................................

21,234,349

10,471,855

1,164,270

Salaries and wages....................................................................

76,753,920

29,527,595

2,898,316

Repairs....................................................................

4,789,231

1,641,145

203,566

Bad debts....................................................................

1,548,243

865,820

78,983

Rent paid on business property....................................................................

17,554,941

4,488,572

485,484

Taxes paid....................................................................

15,088,483

6,081,629

449,773

Interest paid....................................................................

7,478,599

3,303,266

279,162

Amortization....................................................................

599,312

229,648

40,938

Depreciation....................................................................

8,647,492

3,715,159

327,412

Depletion....................................................................

*18,635

*10,377

-Advertising....................................................................

11,188,452

2,519,426

198,263

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

1,970,281

1,223,794

109,294

Employee benefit programs....................................................................

4,156,956

1,748,078

150,722

Net loss, noncapital assets....................................................................

53,136

20,417

*1,880

Other deductions....................................................................

50,923,559

20,536,825

2,094,089

Total receipts less total deductions ¹......................................................................

38,211,633

19,285,109

1,235,718

36,007,498

1,422,042

3,662,031

198,676

77,352

470,200

576,978

462,728

14,288

680,324

162

205,068

301,171,577

7,885,544

22,967,248

1,238,902

709,485

3,532,889

5,054,877

2,561,376

174,421

2,707,423

*10,215

2,116,095

452,453,299

10,722,787

47,122,836

3,142,937

681,177

13,030,860

8,987,289

4,153,895

368,987

4,904,583

*8,259

8,655,534

19,774,407

786,080

2,493,627

139,375

80,796

404,310

466,122

289,442

4,579

259,649

1,109

270,738

4,016,751

187,881

671,121

32,860

12,765

252,439

123,915

55,736

4,580

53,293

-96,533

195,202

287,569

627

2,717,587

2,880,353

919,298

1,309,787

17,910

15,725,149

15,169,038

742,569

2,404,112

32,719

30,253,819

18,829,537

68,878

132,376

*3,685

1,464,307

1,170,761

12,245

27,770

358

465,026

319,742

Income from a trade or business:

Net income (less deficit)

from a trade or business....................................................................

38,050,209

19,171,168

1,232,576

2,871,090

15,067,502

18,782,054

1,169,728

318,085

Net income....................................................................

38,611,826

Deficit....................................................................561,616

Portfolio income (less deficit)

19,422,965

251,797

1,303,131

70,555

2,878,955

7,865

15,240,879

173,377

19,091,874

309,819

1,183,115

*13,386

336,060

*17,975

distributed to shareholders....................................................................

8,640,676

4,926,507

406,103

263,384

4,257,021

3,711,919

120,063

81,301

Dividend income......................................................................

227,611

144,214

Interest income......................................................................

1,741,691

844,748

Royalty income (less loss)......................................................................

134,966

107,366

Net short-term capital gain

(less loss)....................................................................................

120,610

53,865

Net long-term capital gain

(less loss)....................................................................................

6,407,431

3,769,428

Other portfolio income (net)......................................................................

8,368

6,887

Real estate rental net income

12,428

75,688

*14,709

23,481

118,407

768

108,305

650,653

91,889

83,397

894,692

27,600

15,612

72,731

163

*439

6,783

*371

-931

-401

55,196

66,745

*124

304,059

*148

120,818

*311

3,344,550

6,427

2,638,004

1,481

31,415

*19

*73,707

(less deficit)....................................................................

262,372

84,508

12,702

4,024

67,782

177,864

18,877

*-1,084

Net income......................................................................

351,777

Deficit...................................................................... 89,406

Net income (less deficit)

153,704

69,196

15,750

*3,048

4,565

*541

133,388

65,606

198,074

20,210

20,197

*1,320

*2,390

*3,474

from other rental activity....................................................................

200,822

102,660

*12,637

72,200

17,823

98,121

*2,221

*12,637

-1,664,018

82,510

*10,310

3,210,697

18,642

*819

19,410,127

106,981

8,860

22,769,958

*2,327

106

1,310,889

--398,302

Net income......................................................................

220,811

Deficit...................................................................... 19,989

Total net income.......................................................................

47,154,079

Footnotes at end of table.

113,789

*11,129

24,284,843

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Wholesale and retail trade--continued

Retail trade--continued

Wholesale

Item

Food

stores

Automotive

Apparel

Furniture

Eating

dealers

and

accessory

home

service

stores

furnishing

stations

(46)

(47)

and

Miscellaneous

retail

drinking

retail

trade

places

stores

not

allocable

(48)

(49)

(50)

(51)

(52)

Number of returns.....................................................................................

25,823

35,660

9,051

16,338

69,610

68,742

1,282

Number of shareholders......................................................................

47,381

62,732

13,271

29,705

138,083

117,372

1,692

320,104,789

10,068,996

27,746,003

61,978,787

94,565,119

1,750,361

Business receipts....................................................................

57,068,234

315,492,637

Interest on Government obligations:

State and local............................................................................

8,282

3,961

Net gain, noncapital assets....................................................................

54,790

258,664

Other receipts....................................................................

756,943

4,349,527

Total deductions......................................................................

56,198,726

315,136,851

9,922,046

27,349,117

60,867,293

93,409,929

1,735,468

*754

*214

145,983

9,626,927

3,790

40,284

352,812

26,435,226

2,362

178,639

930,492

58,082,115

25,645

121,487

1,008,058

89,533,064

-*64

*14,829

1,653,374

Cost of goods sold....................................................................

42,987,817

275,225,015

6,153,403

Compensation of officers....................................................................

717,954

3,010,478

278,816

Salaries and wages....................................................................

5,043,952

14,970,753

958,396

Repairs....................................................................

431,479

834,747

49,340

Bad debts....................................................................

43,298

210,065

10,927

Rent paid on business property....................................................................

1,245,835

2,815,303

610,317

Taxes paid....................................................................

865,801

2,706,317

230,203

Interest paid....................................................................

266,684

2,026,310

102,657

Amortization....................................................................

49,410

59,876

9,301

Depreciation....................................................................

656,654

1,349,195

96,634

Depletion.................................................................... --*7,081

Advertising....................................................................

519,950

2,848,868

272,967

Pension, profit-sharing, stock

bonus, and annuity plans............................................................................

112,962

182,215

17,286

Employee benefit programs....................................................................

342,757

1,020,074

25,849

Net loss, noncapital assets....................................................................

*751

12,779

-Other deductions....................................................................

2,913,422

7,864,856

803,749

Total receipts less total deductions ¹......................................................................

1,689,522

4,967,938

442,070

17,107,629

759,472

2,958,809

147,548

75,133

1,047,623

546,120

152,959

7,225

332,691

-974,851

24,589,217

1,922,413

11,354,742

1,072,041

36,950

4,014,581

2,477,144

597,210

156,679

1,218,973

-1,858,298

62,599,059

3,059,692

8,671,436

435,548

211,244

2,640,453

1,571,667

662,895

77,336

937,495

*68

1,813,329

1,243,754

*39,707

103,490

5,149

*1,246

35,508

19,565

*21,439

*677

27,749

-13,493

50,321

135,638

*396

2,138,810

1,310,777

57,045

345,081

1,862

8,379,879

3,896,672

241,616

374,567

12,888

6,223,771

5,032,055

*3,918

*4,766

-132,915

96,987

Income from a trade or business:

Total receipts ¹......................................................................

57,888,248

Net income (less deficit)

from a trade or business....................................................................

1,681,241

4,963,976

441,316

1,306,988

3,894,310

5,006,410

96,987

Net income....................................................................

1,699,046

Deficit....................................................................17,805

Portfolio income (less deficit)

5,045,581

81,605

456,686

*15,370

1,355,908

*48,921

3,925,556

31,246

5,089,921

83,511

96,987

distributed to shareholders....................................................................

139,432

875,263

89,885

1,151,584

530,605

723,786

*2,250

Dividend income......................................................................

10,086

11,104

Interest income......................................................................

94,428

344,926

Royalty income (less loss)......................................................................

*844

Net short-term capital gain

(less loss)....................................................................................

-806

3,705

Net long-term capital gain

(less loss)....................................................................................

35,712

513,638

Other portfolio income (net)......................................................................

(²)

*1,046

Real estate rental net income

2,063

9,806

5,867

67,956

1,078

10,775

141,366

*3,797

27,451

156,696

*21,336

-*2,250

*228

*421

15,246

47,827

*77,789

1,076,241

*21

359,046

*376

470,456

*20

---

(less deficit)....................................................................

33,864

50,195

*396

11,039

13,882

50,694

Net income......................................................................

35,062

Deficit...................................................................... *1,198

Net income (less deficit)

54,939

4,744

*482

*85

11,166

*127

14,934

*1,051

58,904

8,210

---

from other rental activity....................................................................

*19,737

12,483

*392

22,792

40,497

*41

*392

-531,989

--2,469,610

*22,944

*152

4,461,589

40,497

-5,821,386

*41

-99,278

Net income......................................................................

*19,737

Deficit......................................................................

-Total net income.......................................................................

1,874,273

21,084

8,602

5,901,918

Footnotes at end of table.

S Corporation Returns, 1997

Table 2.--Returns With Net Income: Total Receipts and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Finance, insurance, and real estate

Holding

Item

Total

Banking

Credit

Security,

agencies

commodity

other

brokers,

Insurance

and other

agents,

Real

investment

brokers,

estate

companies,

than

and

banks

services

except bank

holding

companies

(58)

(59)

(60)

Number of returns.....................................................................................

240,955

719

(53)

(54)

(55)

9,268

11,270

(56)

(57)

32,492

170,936

16,271

Number of shareholders......................................................................

576,316

8,424

19,286

19,675

52,650

432,712

43,569

4,160,530

7,269,351

10,976,978

15,737,819

43,917,624

3,573,510

Business receipts....................................................................

75,176,688

1,713,598

Interest on Government obligations:

State and local............................................................................

304,298

104,212

Net gain, noncapital assets....................................................................

483,785

24,341

Other receipts....................................................................

9,671,039

2,318,377

Total deductions......................................................................

72,003,974

3,184,016

5,355,254

9,773,011

15,384,213

41,118,189

1,832,423

12,385

85,516

1,816,195

5,929,486

47,972

33,711

1,122,283

9,077,473

-----

10,768

31,378

311,460

13,526,765

58,452

252,521

2,488,462

38,005,367

70,509

56,317

1,614,261

2,280,869

Cost of goods sold....................................................................

17,796,873

--Compensation of officers....................................................................

7,545,356

262,004

466,110

Salaries and wages....................................................................

17,794,154

412,994

1,796,816

Repairs....................................................................

625,921

43,689

39,979

Bad debts..........

This text is long and has been trimmed here. Open the source document for the complete record.

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