Sole Proprietorship Returns, 2002

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Sole Proprietorship Returns, 2002

by Kevin Pierce and Michael Parisi

N

6

onfarm sole proprietorship profits increased

1.7 percent for Tax Year 2002 to $221.1

billion. While a majority of the principal sole

proprietorship industrial sectors reported increased

profits, a few sectors reported a decrease in profits.

The largest percentage increase in profits for a major

industrial sector was 13.7 percent for wholesale

trade. The next largest percentage growth in profits

for a major industrial sector was 12.9 percent for

finance and insurance, followed by a 10.6-percent

growth reported by real estate and rental and leasing.

Four major industrial sectors showed a decline in

profits for 2002. The largest percentage decrease in

profits was in retail trade, with a 20.8-percent

decrease, followed by transportation and warehousing with a 5.4-percent decrease.

In addition to sole proprietorship growth in profits,

Tax Year 2002 showed growth in both receipts and

deductions: total business receipts increased 1.3

percent to $1,029.7 billion, and total business deductions grew 1.2 percent to $808.9 billion. With a 14.1percent increase, administrative and support services

[1] reported the largest percentage increase in receipts, followed by an 8.6-percent growth reported by

real estate and rental and leasing. Administrative and

support services also reported the largest percentage

increase in deductions at 16.2 percent for 2002.

When inflation is taken into account, 2002 total nonfarm sole proprietorship profits increased 0.2 percent,

receipts decreased 0.3 percent, and deductions decreased 0.4 percent. Despite the overall increase in

net income less deficits, sole proprietorship deficits

increased by 8.7 percent in real terms from 2001.

The North American Industry Classification

System (NAICS) for industrial coding was introduced

for the first time in Tax Year 1998. Because of the

coding changes, comparisons between data from

1998–2002 with 1997 and prior years may show

inconsistencies. One reason is that many sole

proprietorships under the NAICS system were classiKevin Pierce and Michael Parisi are economists with the

Individual Research Section and Individual Returns

Analysis Section. This article was written under the

direction of Carl Greene, Chief of Individual Research

Section, and Jeff Hartzok, Chief of Individual Returns

Analysis Section.

6

fied in completely different industrial groups, which

makes prior-year comparisons inappropriate. For

example, in 1997, finance, insurance and real estate

were grouped by Standard Industrial Classification

(SIC) code as one industry while, under the NAICS

system, the group split into two industrial sectors.

The industrial sectors based on the NAICS codes,

used for comparisons in this article with 2001 and

future articles, are reported in Tables 1 and 2.

ReturnsandReceipts

The number of individual income tax returns reporting

nonfarm sole proprietorship activity for 2002 increased 3.2 percent to over 18.9 million (Figure

A)[2]. The two largest industrial sectors (in numbers of returns) showed an increase in the number of

returns for Tax Year 2002: professional, scientific,

and technical services increased 3.1 percent, and

retail trade increased 3.0 percent. The number of

returns in construction, the second largest sector for

2001, declined 4.0 percent. This was the largest

decline in number of returns for all major sectors.

The largest growth was found in finance and insurance services (12.3 percent). Total business

receipts (the sum of “income from sales and operations” and “other business income”) for all nonfarm

sole proprietorship industries increased 1.3 percent,

from $1,016.8 billion to $1,029.7 billion [3]. Administrative and support services showed the largest

percentage growth in receipts, reporting an increase

of $5.6 billion or 14.1 percent. Real estate and

rental and leasing receipts increased 8.6 percent, the

second largest percentage increase for 2002. Professional, scientific, and technical services, reported

the largest dollar increase in receipts of $6.1 billion.

Several industrial sectors reported drops in business

receipts for 2002, the largest being wholesale trade

with an 8.4-percent decrease. The next two largest

percentage decreases in receipts were found in

finance and insurance with 7.6 percent, and retail

trade with 2.9-percent.

As shown in Figure B, total receipts dropped for

the second straight year, decreasing 0.3 percent (in

constant dollars). This was a smaller percentage

decrease than the 2.7-percentage decrease in 2001,

which was the first decrease in business receipts

since 1991 [4].

Sole Proprietorship Returns, 2002

Figure A

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

Tax Years 2001 and 2002

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

Number of returns

Industrial sector

2001

2002

Total business receipts

Percentage

2001

2002

increase

(1)

(2)

(3)

Total business deductions ¹

Percentage

2001

2002

(7)

(8)

Percentage

increase

(4)

(5)

increase

(6)

(9)

All nonfarm industries...........................................................................................................................

18,338.2

18,925.5

3.2

1,016.8

1,029.7

1.3

799.6

808.9

1.2

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

2,372.9

2,278.2

-4.0

164.2

168.5

Specialty trade contractors...........................................................................................................................

1,854.8

1,708.4

-7.9

108.2

107.6

2.6

-0.5

135.7

86.5

140.4

86.9

3.4

0.5

Wholesale trade (merchant wholesalers)...........................................................................................................................

310.4

308.0

-0.8

38.8

35.5

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

2,254.2

2,321.2

3.0

184.8

179.4

Transportation and warehousing...........................................................................................................................

939.5

949.4

1.1

52.7

54.9

-8.4

-2.9

4.2

34.8

175.2

44.6

31.0

171.8

47.3

-11.0

-1.9

5.9

Finance and insurance...........................................................................................................................

576.6

647.3

12.3

82.6

76.4

Real estate and rental and leasing...........................................................................................................................

968.1

1,015.5

4.9

49.2

53.4

Real estate...........................................................................................................................

895.9

960.1

7.2

44.9

49.3

Professional, scientific, and

-7.6

8.6

9.8

68.8

28.8

24.6

60.7

30.8

26.9

-11.7

7.0

9.4

technical services...........................................................................................................................

2,592.3

2,672.4

3.1

118.8

124.9

5.2

Administrative and support and waste

management and remediation services...........................................................................................................................

1,567.3

1,754.5

11.9

39.3

44.9

14.1

70.0

76.4

9.1

28.0

32.6

16.2

Health care and social assistance...........................................................................................................................

1,679.0

1,722.5

2.6

93.5

97.1

Child day care services...........................................................................................................................

704.9

677.0

-4.0

8.8

8.9

Arts, entertainment, and recreation...........................................................................................................................

1,037.3

1,105.7

6.6

21.2

23.0

Performing arts, spectator sports,

3.8

1.4

8.4

53.8

5.4

15.9

55.8

5.6

17.5

3.6

4.0

10.2

and related industries...........................................................................................................................

879.6

946.1

7.6

16.1

17.9

Other services...........................................................................................................................

1,853.3

1,968.9

6.2

68.8

72.3

Personal and laundry services...........................................................................................................................

1,143.5

1,225.1

7.1

30.3

33.4

10.6

5.0

10.3

11.3

54.1

21.4

12.5

56.8

23.8

10.1

5.1

10.8

All other industries...........................................................................................................................

2,187.3

2,181.9

-0.2

102.9

-3.3

90.1

87.9

-2.4

99.5

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

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

Figure B

Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2002

[Money amounts are in billions of dollars]

Total business receipts

Tax year

Total business deductions

Constant dollars

Current

dollars

Amount

2

(2)

Net income less deficit (profits)

Constant dollars

Percentage

Current

dollars

Amount

increase

(1)

1

(3)

2

Constant dollars

Percentage

Current

dollars

Amount

(7)

(8)

increase

(4)

(5)

(6)

2

Percentage

increase

(9)

1988.......................................................................

672.0

887.8

--

545.7

720.9

--

126.3

166.9

--

1989.......................................................................

692.8

881.9

1990.......................................................................

730.6

895.5

1991.......................................................................

712.6

843.9

737.1

853.3

1992.......................................................................

-0.7

1.5

-5.8

1.1

560.2

589.2

571.2

583.1

713.1

722.1

676.4

675.0

-1.1

1.3

-6.3

-0.2

132.7

141.4

141.5

154.0

168.9

173.3

167.6

178.3

1.2

2.6

-3.3

6.4

1993.......................................................................

757.2

856.8

1994.......................................................................

790.6

876.0

807.4

876.6

1995.......................................................................

843.2

898.5

1996.......................................................................

0.4

2.2

0.1

2.5

600.8

623.8

638.1

666.5

679.7

691.2

692.8

710.1

0.7

1.7

0.2

2.5

156.5

166.8

169.3

176.8

177.0

184.8

183.8

188.3

-0.7

4.4

-0.6

2.5

1997.......................................................................

870.4

912.2

1998.......................................................................

918.3

951.8

969.3

990.5

1999.......................................................................

1,021.0

2000.......................................................................

1,021.0

993.3

2001.......................................................................

1,016.8

1.5

4.3

4.1

683.9

716.2

761.4

716.7

742.3

778.0

0.9

3.6

4.8

186.6

202.3

207.9

195.6

209.7

212.5

3.9

7.2

1.3

3.1

-2.7

-0.3

806.4

799.6

808.9

806.4

781.1

778.2

3.6

-3.1

-0.4

214.7

217.4

221.1

214.7

212.3

212.7

1.1

-1.1

0.2

990.6

2002.......................................................................

1,029.7

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

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

net income or deficit.

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

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

NOTE: Percentage increases were calculated before rounding.

7

Sole Proprietorship Returns, 2002

Deductions

8

8

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

home offices) in current dollars increased 1.2 percent

from $799.6 billion for 2001 to $808.9 billion for 2002

(Figure A) [5,6]. Administrative and support services

showed the largest percentage increase in deductions

with 16.2 percent. Wholesale trade, retail trade, and

finance and insurance were the sole proprietorship

principal sectors that did not show an increase in

deductions for 2002. Sole proprietorships in finance

and insurance showed the largest percentage decrease in deductions (11.7 percent), followed by

wholesale trade (11.0 percent). When accounting for

inflation, business deductions decreased 0.4 percent

for 2002, a smaller decrease than the 3.1-percent

decrease for 2001 (Figure B).

Representing 43.5 percent of total 2002 business

deductions, the cost of sales and operations was

$351.8 billion (Figure C), a 3.2-percent decrease

from the 2001 level. Total business “expenses” (total

business deductions minus the cost of sales and

operations) were $457.1 billion for 2002, a 4.8-percent increase from the 2001 amount. Figure D

graphically presents the main components of total

business expenses. The largest component, salaries

and wages, accounted for 14.5 percent of the total.

For 2002, salaries and wages totaled $66.1 billion, a

3.5-percent increase from 2001 (Figure C). The next

largest components of business expenses were cars

and trucks (11.0 percent), depreciation (8.0 percent),

and rent on business property, machinery, and equipment (7.6 percent). For 2002, these items were

$50.5 billion, $36.6 billion, and $34.9 billion, respectively. Car and truck expenses showed a 6.6-percent

increase from 2001; depreciation, a 9.6-percent

increase; and rent on business property, machinery,

and equipment, a 3.6-percent increase.

Depreciation deductions began to decline for Tax

Year 1986, following the enactment of the Tax Reform Act of 1986 (TRA86). TRA86 reduced the

allowable depreciation deduction by lengthening the

cost recovery periods and changing the depreciation

methods for property placed in service after July 31,

1986. In constant dollars, depreciation deductions

dropped 9.6 percent for 1989 and continued to decline through 1992 (Figure E). Beginning with 1993,

the trend reversed, and constant dollar depreciation

increased every year through 2002, except for 1995,

Figure C

Components of Nonfarm Sole Proprietorship

Business Deductions, Tax Years 2001 and 2002

[Money amounts are in millions of dollars]

Business deductions

2001

2002

(1)

(2)

Percentage

increase

(3)

Business deductions, total ¹..........................................................................................................

799,633.1

808,900.7

1.2

Cost of sales and operations, total........................................................................................................

363,355.6

351,785.0

-3.2

Inventory, beginning of year..........................................................................................................

34,176.3

34,291.7

0.3

Cost of labor..........................................................................................................

28,022.3

30,389.0

8.4

Purchases..........................................................................................................

246,541.1

227,085.8

-7.9

Materials and supplies..........................................................................................................

43,798.3

45,589.2

4.1

Other costs..........................................................................................................

46,550.1

50,709.1

8.9

Inventory, end of year..........................................................................................................

35,732.5

36,279.8

1.5

Business expenses, total..........................................................................................................

436,277.5

457,115.6

4.8

Advertising expenses..........................................................................................................

10,774.1

11,238.0

4.3

Bad debts from sales or services..........................................................................................................

1,176.3

1,055.7

-10.3

Car and truck expenses..........................................................................................................

47,351.9

50,489.4

6.6

Commissions..........................................................................................................

12,130.1

14,066.8

16.0

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

693.7

461.9

-33.4

Depreciation ²..........................................................................................................

33,425.6

36,642.0

9.6

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

2,040.6

2,284.4

11.9

Home office business deductions ²..........................................................................................................

5,981.4

6,474.1

8.2

Insurance..........................................................................................................

14,367.0

16,004.3

11.4

Legal and professional services..........................................................................................................

7,482.6

8,365.9

11.8

Meals and entertainment deducted.........................................................................................................

4,735.3

5,088.1

7.4

Mortgage interest..........................................................................................................

5,456.2

5,006.9

-8.2

Other interest paid on business

indebtedness..........................................................................................................

7,053.3

6,432.7

-8.8

Office expenses..........................................................................................................

10,604.8

11,331.7

6.9

Pension and profit-sharing plans..........................................................................................................

991.9

1,085.2

9.4

Rent on machinery and equipment.........................................................................................................

8,522.0

8,543.3

0.2

Rent on other business property..........................................................................................................

25,119.1

26,311.5

4.7

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

12,129.8

12,669.1

4.4

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

63,826.0

66,068.0

3.5

Supplies..........................................................................................................

23,074.8

24,615.8

6.7

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

14,214.1

14,901.4

4.8

Travel..........................................................................................................

8,657.3

9,110.2

5.2

Utilities..........................................................................................................

20,482.7

20,674.7

0.9

Other business deductions..........................................................................................................

94,612.3

96,803.8

2.3

¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for

business deductions on Schedule C-EZ, the totals shown in the statistics exceed the sum

of the detailed deductions; the detailed deductions are, therefore, slightly understated.

² Depreciation claimed on Form 8829 is included in "home office business deductions"

and excluded from "depreciation" shown above.

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

calculated before rounding.

when it decreased 1.9 percent to $28.5 billion [7].

For 2002, depreciation increased (in real terms) by

8.0 percent, the largest percentage increase in depreciation since the enactment of TRA86. The 2002

depreciation deductions accounted for 4.5 percent of

total business deductions, but remained below the

1985 (pre-TRA86) level of 5.7 percent.

Sole Proprietorship Returns, 2002

Figure D

Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2002 ¹

Type of expenses

Repairs

2.8

Commissions

3.1

Taxes paid

3.3

Insurance

3.5

4.5

Utilities

5.4

Supplies

Rent on business property,

machinery, and equipment

7.6

Depreciation ²

8.0

11.0

Car and truck expenses

14.5

Salaries and wages

36.3

Other business deductions ³

0

5

10

15

20

25

30

35

40

Percent of total

¹ Total business expenses equal all business deductions minus cost of sales and operations.

² Depreciation claimed on Form 8829 is included in "home office business deductions" and excluded from "depreciation" shown above.

³ Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional

services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office business deductions. Other business

deductions also include all Schedule C-EZ deductions ($1.4 billion).

NOTES: Percents are based on an estimated total business expense of $457.1 billion. Detail may not add to 100 percent because of rounding.

Beginning with Tax Year 1992, certain smaller

businesses could elect not to itemize depreciation and

other business deductions by filing Schedule C-EZ,

Net Profit From Business, a simplified version of

Schedule C, Profit or Loss From Business. (Schedules C and C-EZ are the source of sole proprietorship

statistics.) Taxpayers could use Schedule C-EZ if

they: had business expenses of $2,500 or less; used

the cash accounting method; had no inventories; did

not report a deficit from the business; had only one

business as a sole proprietor; had no employees; were

not required to file Form 4562, Depreciation and

Amortization, for the business; claimed no deduction

for home business expenses; and had no prior-year

disallowed passive activity losses from the business.

Since taxpayers using Schedule C-EZ did not itemize

business deductions, the detailed deductions in Table

2 are slightly understated and do not add to the totals.

9

Sole Proprietorship Returns, 2002

Figure E

Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2002

[Money amounts are in billions of dollars]

Current dollars

Tax year

Constant dollars ¹

Net income

Deficit

Depreciation ²

(1)

(2)

(3)

Percentage increase in constant dollars ¹

Net income

Deficit

Depreciation ²

Net income

Deficit

Depreciation ²

(9)

(4)

(5)

(6)

(7)

(8)

1988.............................................................................................................

145.5

19.2

26.1

192.2

25.4

34.5

--

--

--

1989.............................................................................................................

152.4

19.7

24.5

194.0

25.1

31.2

0.9

-1.1

-9.6

1990.............................................................................................................

161.7

20.2

23.7

198.2

24.8

29.0

2.2

-1.3

-6.9

1991.............................................................................................................

162.4

20.9

23.1

192.3

24.8

27.4

-3.0

(³)

-5.8

1992.............................................................................................................

173.5

19.5

23.3

200.8

22.6

27.0

4.4

-8.8

-1.4

1993.............................................................................................................

177.0

20.5

25.0

200.3

23.2

28.3

-0.3

2.8

4.9

1994.............................................................................................................

187.8

21.0

26.2

208.1

23.3

29.0

3.9

0.3

2.6

1995.............................................................................................................

191.7

22.5

26.2

208.2

24.4

28.5

(³)

4.8

-1.9

1996.............................................................................................................

200.1

23.4

27.4

213.2

24.9

29.2

2.4

2.1

2.4

1997.............................................................................................................

210.5

23.8

28.6

220.6

25.0

30.0

3.4

0.3

2.9

1998.............................................................................................................

226.2

23.9

29.1

234.5

24.8

30.2

6.3

-0.7

0.7

1999.............................................................................................................

233.4

25.5

30.6

238.5

26.0

31.3

1.7

4.9

3.7

2000.............................................................................................................

245.2

30.5

32.2

245.2

30.5

32.2

2.8

17.3

2.8

2001.............................................................................................................

250.2

32.8

33.4

244.4

32.0

32.7

-0.3

5.0

1.4

2002.............................................................................................................

257.3

36.2

36.6

247.5

34.8

35.3

1.3

8.7

8.0

¹ Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau

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

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

³ Less than 0.05 percent.

10

Figure F presents the numbers and percentages

of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial sector. Over 2.7 million taxpayers filed Schedule C-EZ for Tax Year 2002. Of

the returns filed for 2002 in the administrative and

support services sector (the largest filers of this

schedule), taxpayers filed approximately 430 thousand Schedule C-EZ returns, or 24.5 percent of the

total for that sector. For 2002, business receipts from

Schedule C-EZ filers totaled $16.2 billion, or 1.6

percent of total business receipts reported. However, the business deductions reported on Schedule

C-EZ returns accounted for only 0.2 percent of total

business deductions for all industries. Even in the

administrative and support services sector with its

higher concentration of Schedule C-EZ filers, deductions reported on Schedule C-EZ accounted for only

0.6 percent of that sector’s total business deductions.

ProfitsandLosses

For 2002, a little over half of the principal industrial

sectors reported increased sole proprietorship profits

(net income less deficit). Figure B presents total

10

profits for all industries (in both current and constant

dollars) since 1988, while Figure G presents profits by

industrial sector for 2001 and 2002 [8]. Total profits

increased 1.7 percent from $217.4 billion for 2001 to

$221.1 billion for 2002. Retail trade reported the

largest percentage change in profits for 2002, decreasing 20.8 percent to $7.6 billion. Transportation

and warehousing reported the second largest percentage decrease in profits with 5.4 percent. The

largest percentage increase was for wholesale trade,

which showed a 13.7- percent increase in profits for

2002. Finance and insurance had the second largest

percentage increase, with 12.9 percent. This was

followed by sole proprietors in real estate and rental

and leasing who reported increased gains of $2.2

billion, representing a 10.6-percent increase from

2001 levels. Professional, scientific, and technical

services, the largest of the industrial sectors with

respect to profits, showed a 0.4-percent decrease

in profits.

In constant dollars, total profits increased 0.2

percent for 2002 (Figure B). Figure E presents net

income and deficit separately between 1988 and

Sole Proprietorship Returns, 2002

Figure F

Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2002

[Money amounts are in millions of dollars]

Industrial sector

Number of returns

Total business receipts

With

Percentage

On

Percentage

Schedule

of

Schedule

of

C-EZ

total

C-EZ

total

(2)

(3)

(5)

(6)

Total

(1)

Total

(4)

Total business deductions ¹

On

Total

Percentage

Schedule

of

C-EZ

total

(7)

(8)

(9)

All nonfarm industries..................................................................................................

18,925,517

2,748,893

14.5

1,029,691.8

16,196.1

1.6

808,900.7

1,390.7

0.2

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

2,278,208

285,878

1,953.8

1.2

140,389.6

144.8

0.1

Wholesale trade (merchant wholesalers)..................................................................................................

308,015

24,043

7.8

35,488.4

151.6

0.4

30,958.5

10.8

(²)

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

2,321,152

171,142

7.4

179,426.5

665.8

0.4

171,836.8

84.3

(²)

Transportation and warehousing...............

10.5

54,882.1

552.7

1.0

47,252.0

65.8

0.1

76,355.7

489.5

0.6

60,721.9

21.3

(²)

Real estate and rental and leasing..................................................................................................

1,015,488

58,457

5.8

53,356.5

593.8

1.1

30,768.4

33.2

0.1

2,704.5

2.2

76,381.9

213.3

0.3

949,446

99,288

12.5

Finance and insurance..................................................................................................

647,338

58,503

9.0

168,481.3

Professional, scientific, and

technical services..................................................................................................

2,672,368

380,980

14.3

124,946.1

Administrative and support and waste

management and remediation services..................................................................................................

1,754,486

429,817

24.5

44,878.4

2,251.1

5.0

32,561.8

200.0

0.6

Health care and social assistance.............

2,406.9

2.5

55,809.8

196.7

0.4

1,722,464

367,942

21.4

97,076.9

Arts, entertainment, and recreation..................................................................................................

1,105,714

154,810

22,999.0

14.0

633.6

2.8

17,472.2

91.5

0.5

Other services..................................................................................................

1,968,943

300,858

15.3

72,260.4

1,961.1

2.7

56,844.9

167.7

0.3

All other industries..................................................................................................

2,181,895

417,175

19.1

99,540.4

1,831.8

1.8

87,903.0

161.3

0.2

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

² Less than 0.05 percent.

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

the requirements to be eligible to file Schedule C-EZ.

Figure G

Nonfarm Sole Proprietorship Profits, by Selected

Industrial Sectors, Tax Years 2001 and 2002

2002, in current and constant dollars. For 2002, net

income (in constant dollars) increased 1.3 percent,

and net deficit (in constant dollars) increased

8.7 percent.

[Money amounts are in billions of dollars]

Net income less deficit (profits)

IndustryTrends

Using receipts as a measure of business size, Figures

A and H show that retail trade was the largest sole

(1)

(2)

(3)

proprietorship industrial sector for 2002 with 17.4

All nonfarm industries...........................................................................................................................

217.4

221.1

1.7

percent of all business receipts. Total receipts for

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

28.5

28.1

-1.5

this sector, at $179.4 billion, were 2.9 percent less

Specialty trade contractors...........................................................................................................................

21.7

20.7

-4.7

Wholesale trade (merchant wholesalers)...........................................................................................................................

4.0

4.5

13.7

than the $184.8 billion reported for 2001, while

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

9.6

7.6

-20.8

deductions also decreased by 1.9 percent. This

Transportation and warehousing...........................................................................................................................

8.1

7.7

-5.4

Finance and insurance...........................................................................................................................

13.9

15.7

12.9

resulted in a 20.8-percent decline in profits, the

Real estate and rental and leasing...........................................................................................................................

20.4

22.6

10.6

largest decrease in profits for all sectors (Figure G).

Real estate...........................................................................................................................

20.3

22.4

10.3

Professional, scientific, and

The second largest industrial sector was contechnical services...........................................................................................................................

48.8

48.6

-0.4

struction,

with receipts totaling $168.5 billion. This

Administrative and support and waste

amount was 16.4 percent of all sole proprietorship

management and remediation services...........................................................................................................................

11.3

12.3

8.9

Health care and social assistance...........................................................................................................................

39.7

41.3

4.0

receipts for 2002, representing a 2.6-percent increase

Child day care services...........................................................................................................................

3.4

3.3

-2.8

from the 2001 amount. Deductions increased even

Arts, entertainment, and recreation...........................................................................................................................

5.3

5.6

4.1

Performing arts, spectator sports,

more, by 3.4 percent. Thus, construction profits

and related industries...........................................................................................................................

4.8

5.4

12.5

decreased 1.5 percent for 2002, totaling $28.1 billion.

Other services...........................................................................................................................

14.8

15.4

4.3

Special trade contractors reported the largest portion

Personal and laundry services...........................................................................................................................

8.8

9.7

9.2

All other industries...........................................................................................................................

12.9

11.7

-9.0

(73.7 percent) of these profits. As a group, special

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

trade contractors showed a decrease of 0.5 percent

were calculated before rounding.

Industrial sector

2001

2002

Percentage

increase

11

Sole Proprietorship Returns, 2002

Figure H

Nonfarm Sole Proprietorship Total Business Receipts by Selected Industrial Sectors, Tax Year 2002

Arts, entertainment, and recreation

2.2

Wholesale trade (merchant wholesalers)

3.4

Administrative and support and waste management and

remediation services

12

4.4

Real estate and rental and leasing

5.2

Transportation and warehousing

5.3

Other services

7.0

Finance and insurance

7.4

Health care and social assistance

9.4

All other industries

9.7

12.1

Professional, scientific, and technical services

16.4

Construction

17.4

Retail trade

0

5

10

15

20

Percent of total

NOTES: Percents are based on an estimated total business receipts of $1,029.7 billion. Detail may not add to 100 percent because of rounding.

12

for receipts and a decrease of 4.7 percent for profits.

The third largest sector was professional, scientific, and technical services, which accounted for 12.1

percent of sole proprietorship receipts for 2002.

Receipts increased 5.2 percent to $124.9 billion, and

deductions increased 9.1 percent to $76.4 billion,

yielding a decrease in profits of 0.4 percent. Figures

G and I also demonstrate that, despite the decline in

profits from $48.8 billion in 2001 to $48.6 billion for

2002, professional, scientific, and technical service

accounted for the largest percentage of sole proprietorship profits for 2002, with 22.0 percent.

The fourth largest sole proprietorship industrial

sector with 9.4 percent of total receipts was health

care and social assistance. A 3.8-percent increase in

receipts for this sector, accompanied by a 3.6-percent increase in deductions, led to an increase in

profits of 4.0 percent. This sector had the second

largest amount of profits for 2002, reporting 18.7

percent of all sole proprietorship profits.

Summary

Profits for nonfarm sole proprietorships for Tax Year

2002 grew 1.7 percent to $221.1 billion. In constant

Sole Proprietorship Returns, 2002

Figure I

Nonfarm Sole Proprietorship Total Business Profits by Selected Industrial Sectors, Tax Year 2002

Wholesale trade (merchant wholesalers)

2.1

Arts, entertainment, and recreation

2.5

Retail trade

3.4

Transportation and warehousing

3.5

All other industries

Administrative and support and waste management and

remediation services

Other services

5.3

5.6

7.0

Finance and insurance

7.1

Real estate and rental and leasing

10.2

Construction

12.7

Health care and social assistance

18.7

Professional, scientific, and technical services

22.0

0

5

10

15

20

25

Percent of total

NOTES: Percents are based on an estimated total business profits of $221.1 billion. Detail may not add to 100 percent because of rounding.

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

dollars, total nonfarm sole proprietorship profits

increased 0.2 percent. Wholesale trade reported the

largest percentage growth in profits at 13.7 percent,

while finance and insurance had the second largest

percentage increase, at 12.9 percent. Professional,

scientific, and technical services had the largest

profits of any sector at $48.6 billion, or 22.0 percent

of total sole proprietorship profits, followed by health

care and social assistance at 18.7 percent. For all

sole proprietorships, receipts and deductions increased

1.3 percent and 1.2 percent, respectively. The largest

sole proprietorship industrial sector based on business

receipts was retail trade, accounting for 17.4 percent of

receipts. This sector reported a 20.8-percent decrease

in profits. Administrative and support services showed

the largest percentage increase in both receipts and

deductions, with a 14.1-percent increase in receipts

and a 16.2-percent increase in deductions.

DataSourcesandLimitations

The 2002 sole proprietorship estimates are based on

a stratified probability sample of unaudited Individual

Income Tax Returns, Form 1040 (including electronically-filed returns), processed by the Internal Revenue

Service during Calendar Year 2003. Returns in the

sample were stratified based on: (1) the presence or

13

Sole Proprietorship Returns, 2002

Figure J

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

Sectors, Tax Year 2002

[Coefficients of variation are in percentages]

Coefficients of variation

Industrial sector

Total business

receipts

¹

Total business

deductions

Depreciation ²

Net income

Deficit

(2)

(3)

(4)

(5)

(1)

0.69

0.76

All nonfarm industries...........................................................................................................................

1.41

0.97

1.80

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

2.55

4.05

3.21

6.72

4.89

3.90

8.47

6.02

6.13

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

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

2.34

2.32

10.94

9.56

12.67

4.60

3.68

4.54

3.45

3.50

Transportation and warehousing...........................................................................................................................

Finance and insurance...........................................................................................................................

2.95

3.11

5.11

4.78

7.64

8.06

4.65

7.14

Real estate and rental and leasing...........................................................................................................................

3.33

3.32

5.64

4.24

6.93

3.47

Real estate...........................................................................................................................

Professional, scientific, and

2.65

Special trade contractors...........................................................................................................................

3.12

3.27

3.43

6.33

4.34

7.73

2.23

2.55

technical services...........................................................................................................................

Administrative and support and waste

4.07

2.62

5.74

3.89

4.42

6.61

management and remediation services...........................................................................................................................

Health care and social assistance...........................................................................................................................

2.20

2.33

4.01

4.45

8.14

2.64

9.45

14.07

6.40

18.92

4.51

4.46

6.72

Arts, entertainment, and recreation...........................................................................................................................

Performing arts, spectator sports,

6.29

6.34

5.09

4.96

and related industries...........................................................................................................................

Other services...........................................................................................................................

3.25

3.52

7.68

6.77

7.11

5.31

3.87

7.22

4.36

4.90

Personal and laundry services...........................................................................................................................

All other industries...........................................................................................................................

2.80

2.88

8.16

5.20

10.16

3.77

3.76

4.85

Child day care services...........................................................................................................................

5.77

6.95

14

¹ Positive only.

² Excludes depreciation claimed on Form 8829.

absence of Schedule C, Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net

Profit From Business, and Schedule F, Farm Income

and Expenses; (2) the larger of positive income or

negative income (i.e., “adjusted gross income” before

statutory adjustments); and (3) tax year. The returns

were selected at rates that ranged from 0.05 percent

to 100 percent. The 2002 nonfarm sole proprietorship

data are based on a sample of 49,752 returns and a

population of 18,925,517 returns [9]. The corresponding sample and population for the 2001 data were

51,275 returns and 18,338,190 returns, respectively.

Since the data presented in this article are estimates based on a sample of returns filed, they are

subject to sampling error. To properly use the statistical data estimates provided, the magnitude of the

potential sampling error must be known; coefficients

of variation (CV’s) are used to measure that magnitude. Figure J presents estimated coefficients of

14

variation for the number of returns and money

amounts for selected items and industrial sectors.

Generally, the smaller the coefficient of variation, the

more reliable the estimate is judged to be. The Appendix to this issue of the Bulletin discusses the

reliability of estimates based on samples, and the use

of coefficients of variation for evaluating the precision of estimates based on samples.

NotesandReferences

[1] Based on the 2002 NAICS system, the full

name of the administrative and support services

sector is administrative and support and waste

management and remediation services sector.

The waste management and remediation

services portion makes up a small percentage of

the overall numbers reported under this classification, which are detailed in Table 1.

Sole Proprietorship Returns, 2002

[2] For 2002, the 18,925,517 nonfarm sole proprietorship returns accounted for 20,972,642

nonfarm businesses. Actually, more businesses

may have existed than those counted; processing for tax administration purposes allows only

three businesses (reported on separate Schedules C) per return, and combines any remaining

businesses on one (or more) of the three Schedules C. Statistics of Income--1981, Sole

Proprietorship Returns contains a more

detailed explanation of the relationship between

proprietors and proprietorships. It is estimated

that 21,782 individual tax returns have four or

more sole proprietorships attached (with an

average of 4.61 businesses).

For purposes of the statistics, if a proprietor

owned more than one business, the statistics for

each business were combined with those of the

proprietor’s dominant business and included in

the industrial group for that business activity.

When this occurred, the sum of net incomes (for

businesses reporting a positive net income)

reduced by the sum of net deficits (for businesses reporting a deficit) yielded the profits for

a specific industrial group.

The North American Industry Classification

System (NAICS) was used to classify data by

industries for 2002. These classifications were

applied on a “per business” (rather than on a

“per establishment”) basis for Statistics of

Income by combining various industry groups,

although businesses were further combined as

described above. While the wording of the

industry titles used for the sole proprietorship

statistics diverges somewhat from titles appearing in NAICS, the definitions are consistent.

[3] Statistics for “business receipts, total” in Table 2

represent the total receipts of the business,

mainly gross receipts from sales and operations.

Business receipts also include miscellaneous

business receipts, such as incidental sales of

scrap, shown separately in the statistics as

“other business income.” However, business

receipts exclude incidental investment income

received through the business. Examples of

such incidental investment income are interest,

dividends, income or loss from rents or royalties,

and capital or ordinary gain or loss from the sale

of investment and business property. Sole

proprietors report incidental investment income,

in combination with nonbusiness-related investment income, as part of their total incomes on

their Individual Income Tax Returns.

[4] Based on the overall implicit price deflator for

Gross Domestic Product (GDP). See U.S.

Department of Commerce, Bureau of Economic

Analysis, Survey of Current Business, February 2004. Indices used for this article were:

Year Indices

Year Indices

Year Indices

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

75.7

78.6

81.6

84.4

86.4

88.4

90.3

92.1

93.9

95.4

96.5

97.9

100.0

102.4

104.0

105.7

In previous articles, this deflator had 1996 as a

base. Resulting from the change in the deflator,

some of the year-to-year changes in percentages have been altered.

[5] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from

business income or loss, which is reported on the

attached Schedule C, Profit or Loss From

Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid

to owners qualify as personal income, not as a

business expense, and are, therefore, part of the

owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made

through the business as personal expenses on

Schedule A, Itemized Deductions. However,

the owner of a sole proprietorship may choose

to deduct any foreign taxes paid as a business

expense, unless he or she elects to claim these

taxes as a credit against U.S. income tax.

[6] Business deductions include home office business deductions. After 1990, home office

expenses were calculated separately on Form

8829, Expenses for Business Use of Your

Home, and the deductible portion brought

15

Sole Proprietorship Returns, 2002

forward to Schedule C. In some cases, these

expenses were limited. Prior to 1990, these

expenses were not limited and were included

with other expenses, such as depreciation

deductions, utilities, and “other” expenses on

Schedule C.

[7] The increase in the depreciation deduction for

1993 may be attributed, in part, to a provision of

the Omnibus Budget Reconciliation Act of 1993

(OBRA93). The cost of certain tangible

property (as described in Internal Revenue

Code section 179) may be treated as a current

expense rather than a capital expenditure

subject to depreciation deductions. The provision of OBRA93 (related to these expenses)

increased the maximum amount of investment

certain small businesses could immediately

deduct on property placed in service after 1992,

from $10,000 to $17,500. Following the enactment of this provision, the deduction increased

32.4 percent to $13.5 billion for 1993. Again, a

change in law increased the “179” depreciation

deduction amount to $20,000 for 2000, and

$24,000 for 2001 and 2002.

[8] Net income minus deficit (loss) before Federal

income tax yields profits. Proprietors compute

their tax on total “taxable income,” which includes

their business profits, plus any other income.

[9] The difference between the number of returns

in the population and the total number of returns

in Tables 1 and 2 is mainly due to returns in which

Schedule C income was moved to other income

or wages to avoid double counting of taxpayers

for Gross Domestic Product calculations. In

addition, data from amended returns and tentative returns are not reflected in these statistics.

Source: IRS Statistics of Income Bulletin, Summer 2004, Publication 1136 (Rev. 09-2004.)

16

16

Sole Proprietorship Returns, 2002

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

Income, by Industrial Sectors Classified with the North American Industry Classification System

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

Businesses with and without net income

Rent paid

Industrial sector

Number

of returns

Business

receipts

equipment

(1)

Rent paid

Depreciation on machinery

1,2

deduction

and

(2)

(3)

on other

business

1

property

1

(4)

Interest paid

1,3

deduction

Payroll

1,4

Net income

less deficit

(5)

(6)

(7)

(8)

26,311,497

199,992

11,439,538

260,050

96,456,993

1,768,469

221,113,286

735,764

Animal production (including breeding of cats and dogs)........................................................................................................................

40,892

1,109,069

194,792

2,305

21,933

29,647

103,204

-384,751

Forestry and logging (including forest nurseries, timber tracts)........................................................................................................................

46,890

5,746,918

580,955

113,379

22,061

117,296

704,287

210,816

Fishing........................................................................................................................

79,543

2,094,768

342,438

*663

40,167

43,098

139,319

286,388

Hunting and trapping........................................................................................................................

6,763

304,252

54,778

*873

47,919

4,475

8,521

-6,441

Support activities for agriculture and forestry........................................................................................................................

130,668

5,540,909

271,225

27,314

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

109,851

6,332,751

551,302

39,256

67,911

44,414

65,534

148,115

813,138

340,893

629,753

501,591

195,389

All nonfarm industries........................................................................................................................

18,925,517 1,029,691,760

37,333,601

8,543,257

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

304,757

14,795,915

1,444,188

144,534

Oil and gas extraction........................................................................................................................

86,387

4,327,809

330,230

6,524

38,346

107,384

161,489

Coal mining........................................................................................................................

*377

*166,733

*10,056

*1,308

*370

*2,640

*14,712

*-5,962

Metal ore mining........................................................................................................................

*2,012

*13,113

*781

*7,545

Nonmetallic mineral mining and quarrying........................................................................................................................

4,943

644,255

95,718

15,946

*5

1,289

*13

28,981

*5,408

66,407

*-15,478

26,498

301,144

Support activities for mining........................................................................................................................

16,131

1,180,843

114,516

*7,933

4,404

9,097

92,877

145,838

27,828

*1,763

*2,664

*6,368

*2,112

-15,063

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

2,278,208

168,481,326

6,488,543

1,165,225

1,033,265

1,415,454

24,923,553

28,091,981

187,775

69,114

148,496

79,998

318,036

111,248

4,734,447

1,509,840

5,125,165

1,107,241

Utilities........................................................................................................................

6,913

Residential building construction........................................................................................................................

376,956

41,608,464

1,161,562

Nonresidential building construction........................................................................................................................

116,473

10,646,909

426,096

Heavy and civil engineering construction ........................................................................................................................

76,401

8,620,887

646,353

141,894

93,230

199,388

1,039,329

1,190,535

Specialty trade contractors........................................................................................................................

1,708,377

107,605,066

4,254,531

766,443

711,541

786,782

17,639,938

20,669,041

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

310,319

23,475,114

1,011,812

209,929

677,154

289,408

3,324,229

2,681,496

Food manufacturing........................................................................................................................

26,753

3,348,106

107,636

Textile and textile product mills........................................................................................................................

7,680

353,446

*17,661

14,584

*234

134,087

*531

24,928

*1,523

336,152

*9,582

153,396

84,748

Apparel........................................................................................................................

21,578

35,324

*2,740

26,270

8,366

187,141

106,880

Leather and allied products........................................................................................................................

*3,742

*184,172

*6,795

--

*8,236

*1,362

*42,747

*28,284

29,766

44,163

38,939

298,692

36,181

-38,782

*4,140

101,660

-38,168

*7,288

364,955

*27,419

241,543

989,607

Wood products........................................................................................................................

31,500

1,829,515

98,375

Paper products........................................................................................................................

*1,091

*90,034

*234

Printing and related support activities........................................................................................................................

33,646

2,431,531

108,242

Petroleum and coal products........................................................................................................................

*2,369

*2,560

*14

--

--

--

--

*2,170

Chemical manufacturing........................................................................................................................

10,420

346,224

15,431

*153

*2,397

*4,365

*29,291

64,819

15,595

*1,393

32,207

*7,219

90,962

170,271

8,580

136,129

Plastics, rubber, clay, refractory, and glass products........................................................................................................................

15,175

681,457

26,126

*4,290

Nonmetallic mineral products........................................................................................................................

9,172

937,911

49,323

*11,349

Primary metal industries........................................................................................................................

*3,133

*129,020

*9,277

*748

--

*4,123

*14,877

*7,395

Fabricated metal products........................................................................................................................

28,183

3,406,438

176,749

32,294

104,448

42,467

546,384

271,911

Machinery........................................................................................................................

18,905

2,740,601

13,545

74,490

32,859

493,156

443,155

*7,376

*15,580

*911

9,126

*33,422

115,974

14,375

258,593

182,703

Computer and electronic products........................................................................................................................

7,523

234,015

*7,973

*245

Electrical equipment, appliances, and components........................................................................................................................

9,610

1,001,571

15,446

*3,875

Transportation equipment........................................................................................................................

9,816

782,649

31,527

*4,934

18,440

6,043

100,269

76,873

Furniture and related products........................................................................................................................

19,432

1,873,056

53,744

25,641

73,414

12,414

200,382

375,382

Medical equipment and supplies........................................................................................................................

7,528

366,917

4,666

*7,774

*15,721

*447

*37,653

141,063

Other miscellaneous manufacturing........................................................................................................................

43,063

1,746,281

64,565

18,977

Wholesale trade (merchant wholesalers)........................................................................................................................

308,015

35,488,448

550,742

177,744

29,211

362,577

23,942

237,353

245,029

1,098,145

202,603

4,533,573

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

127,951

14,513,169

230,843

86,213

158,115

101,101

518,454

1,690,100

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

106,739

16,123,924

249,106

65,388

149,955

96,012

497,864

1,526,753

Wholesale electronic markets and agents and brokers........................................................................................................................

73,325

4,851,354

70,794

26,143

54,508

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

2,321,152

179,426,483

3,442,171

875,069

5,463,005

40,240

1,892,347

81,828

10,328,793

1,316,719

7,609,159

Motor vehicle and parts dealers........................................................................................................................

154,426

35,100,792

370,189

78,049

439,782

332,336

1,509,422

984,010

Furniture and home furnishing stores........................................................................................................................

59,826

6,417,067

111,395

17,021

390,977

79,499

575,181

306,677

Electronic and appliance stores........................................................................................................................

35,449

4,685,056

97,957

13,492

188,651

39,719

458,091

342,114

Building material and garden equipment and suppliers dealers........................................................................................................................

61,586

8,211,202

326,482

70,953

110,716

Food and beverage stores........................................................................................................................

107,979

29,683,107

331,444

91,720

763,362

126,595

192,642

766,524

1,739,437

395,406

1,262,065

546,355

Health and personal care stores........................................................................................................................

144,361

7,561,901

102,771

49,531

176,154

32,031

441,197

Gasoline stations........................................................................................................................

22,257

19,588,277

253,070

44,757

296,686

223,359

961,303

241,862

Clothing and accessories stores........................................................................................................................

104,648

11,611,377

156,228

131,938

856,950

88,151

930,756

1,013,522

Sporting goods, hobby, book, and music stores........................................................................................................................

122,570

8,727,842

171,288

24,994

General merchandise stores........................................................................................................................

32,616

4,039,570

130,957

15,168

446,250

164,261

142,240

50,005

429,938

315,635

553,604

55,628

Miscellaneous store retailers........................................................................................................................

518,968

26,854,146

675,046

238,236

1,320,918

407,039

1,662,608

1,378,497

Nonstore retailers........................................................................................................................

956,464

16,946,146

99,211

308,298

178,730

538,700

529,419

715,343

Footnotes at end of table.

17

Sole Proprietorship Returns, 2002

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

Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued

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

Businesses with and without net income

Industrial sector

Number

of returns

Business

receipts

(1)

(2)

Rent paid

Depreciation on machinery

1,2

deduction

and

1

equipment

(3)

Payroll

1,4

Net income

less deficit

(4)

(5)

(6)

(7)

(8)

1,756,537

540,310

1,178,404

3,670,253

7,655,096

Air and rail transportation........................................................................................................................

14,644

844,648

275,025

Water transportation........................................................................................................................

5,305

233,492

52,574

9,032

*20,910

23,501

*605

31,559

11,824

45,827

*3,398

-170,952

35,022

General freight trucking, local........................................................................................................................

212,491

14,549,941

1,529,392

General freight trucking, long-distance and specialized freight

trucking........................................................................................................................

318,377

27,218,179

2,863,178

324,254

99,275

303,066

1,456,836

1,895,147

757,865

138,684

643,534

1,435,231

3,121,167

*5,679

--

*24

--

-*2,576

*13,503

*98

*-1,499

*5,945

Taxi and limousine service........................................................................................................................

120,451

3,218,289

118,975

398,354

School, employee, and charter bus industry........................................................................................................................

17,320

782,176

106,532

*59,866

124,032

*6,368

64,518

16,529

71,657

70,996

941,651

142,317

Other transit and ground passenger transportation........................................................................................................................

18,183

584,806

35,104

*5,947

Pipeline transportation........................................................................................................................

**

**

**

**

*2,324

**

*20,736

**

*50,767

**

134,919

**

Scenic and sightseeing transportation........................................................................................................................

**5,268

**302,072

**57,852

Support activities for transportation (including motor

**5,732

**9,256

**12,477

**42,437

**-35,514

vehicle towing)........................................................................................................................

39,172

1,699,712

151,339

Couriers and messengers........................................................................................................................

187,367

5,003,100

120,049

Warehousing and storage facilities........................................................................................................................

7,560

314,587

22,601

41,086

127,286

*527

76,783

30,727

28,731

36,815

30,299

*4,472

233,154

225,485

20,862

158,515

1,404,463

23,916

Information........................................................................................................................

223,398

6,469,180

369,484

114,849

Publishing industries (except internet)........................................................................................................................

67,679

2,110,691

78,601

16,193

177,400

23,694

59,077

25,830

547,079

243,215

1,237,526

512,093

Motion picture and sound recording........................................................................................................................

63,873

2,349,588

207,466

69,778

89,691

Broadcasting (except internet) and telecommunications........................................................................................................................

24,231

863,852

43,393

14,902

49,528

13,579

8,954

99,367

47,839

302,091

152,163

Internet publishing and broadcasting........................................................................................................................

8,214

157,231

*265

Internet service providers, web search portals, and

*89

*2,581

--

*129

71,739

13,887

317,535

11,906

1,344,623

10,713

522,079

156,529

3,634,592

199,440

15,666,392

92,035

242,886

214,952

879,419

1,294,175

2,758,902

11,748

34,630

66,221

11,015

9,762

14,407

38,133

123,801

19,960

183,901

569,394

-45,512

Securities and commodity exchanges........................................................................................................................

1,434

903,243

169

*2,666

*2,618

Other financial investment activities (investment advice)........................................................................................................................

108,676

33,767,183

123,138

47,598

241,273

1,321

206,382

*3,733

693,792

-36,989

2,088,108

909,213

822,307

187,158

172,201

2,540,221

2,353,145

11,613,315

9,498,483

23,861

507,123

86,906

906,688

14,957

896,289

187,076

1,286,319

2,114,832

22,581,125

data processing........................................................................................................................

59,401

987,817

39,759

Finance and insurance........................................................................................................................

647,338

76,355,733

904,291

Credit intermediation and related activities........................................................................................................................

86,075

4,579,176

138,380

37,720

78,919

Securities, commodity contracts, and other financial investments........................................................................................................................

146,480

43,546,489

167,435

63,072

356,490

Investment bankers and securities dealers........................................................................................................................

6,628

3,380,363

12,740

*4,779

Securities brokers........................................................................................................................

22,223

4,877,845

20,455

4,740

Commodity contracts brokers and dealers........................................................................................................................

7,519

617,854

10,933

*3,288

Insurance agents, brokers, and related activities........................................................................................................................

414,783

28,230,069

598,476

216,744

Insurance agencies and brokerages........................................................................................................................

327,538

24,000,354

514,937

192,883

Other insurance related activities........................................................................................................................

87,245

4,229,715

83,539

Real estate and rental and leasing........................................................................................................................

1,015,488

53,356,496

2,567,610

Real estate........................................................................................................................

960,101

49,307,383

Lessors of real estate (including miniwarehouses and

1,582,447

436,507

746,095

729,795

1,005,327

22,375,706

self storage)........................................................................................................................

41,841

2,249,224

Offices of real estate agents, brokers, property managers,

and appraisers........................................................................................................................

790,081

40,177,187

175,949

21,248

95,412

195,325

100,553

590,285

1,212,514

366,536

576,924

390,627

733,984

19,711,435

48,723

70,616

73,759

160,593

143,843

166,494

170,791

280,991

2,073,987

205,419

Automotive equipment rental and leasing........................................................................................................................

12,009

705,498

164,140

16,589

Consumer electronics and appliances rental........................................................................................................................

*1,126

*17,906

*4,258

--

24,027

*209

32,228

*1,094

24,157

*803

38,703

*-2,451

Formal wear and costume rental........................................................................................................................

---Video tape and disc rental........................................................................................................................

7,515

769,636

116,413

-84,354

-11,764

-91,580

-47,988

General rental centers and other consumer goods rental........................................................................................................................

13,957

900,787

118,771

4,617

33,701

Commercial and industrial machinery

24,039

79,831

53,813

18,302

3,334,003

1,466,327

97,369

987,508

228,773

84,621

10,696,572

3,584,194

67,367

48,637,019

14,485,178

25,813

52,235

188,249

227,526

66,864

106,983

562,219

793,372

1,383,609

2,821,179

Architectural, engineering, and related services........................................................................................................................

269,399

13,597,895

499,694

120,209

Architectural services........................................................................................................................

99,765

6,599,771

263,469

74,649

248,391

135,369

95,762

59,936

1,872,933

1,181,430

4,220,196

1,364,069

Engineering services........................................................................................................................

97,764

5,016,863

146,247

32,843

67,441

Drafting, building inspections, and geophysical surveying........................................................................................................................

52,712

1,389,703

61,983

9,912

27,713

22,141

10,832

475,986

145,618

2,032,128

613,172

Surveying and mapping (except geophysical) services........................................................................................................................

16,955

496,192

22,505

*210

*11,465

Testing laboratories........................................................................................................................

*2,204

*95,367

*5,490

*2,595

*6,403

Specialized design services........................................................................................................................

182,932

6,231,194

213,451

43,734

120,421

*1,621

*1,231

56,692

*63,205

*6,693

284,613

182,872

*27,956

1,641,313

Other activities related to real estate........................................................................................................................

128,178

6,880,973

193,985

Rental and leasing services........................................................................................................................

55,388

4,049,112

985,162

-*836

and equipment rental and leasing........................................................................................................................

20,782

1,655,286

581,581

48,575

Professional, scientific, and technical services........................................................................................................................

2,672,368 124,946,059

3,775,339

890,239

Legal services........................................................................................................................

356,895

33,827,841

554,579

203,304

Office of certified public accountants........................................................................................................................

48,319

3,603,525

142,374

Other accounting services........................................................................................................................

317,826

7,641,542

329,003

18

Interest paid

1,3

deduction

Transportation and warehousing........................................................................................................................

949,446

54,882,098

5,347,460

Urban transit........................................................................................................................

*1,362

*59,244

*5,437

Interurban and rural bus transportation........................................................................................................................

*1,946

*71,854

*9,401

18

Rent paid

on other

business

1

property

Footnotes at end of table.

Sole Proprietorship Returns, 2002

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

Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued

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

Businesses with and without net income

Rent paid

on other

business

1

property

Interest paid

1,3

deduction

Payroll

(4)

(5)

(6)

(7)

41,942

97,811

39,313

318,768

3,216,437

Other professional, scientific, and technical services........................................................................................................................

1,262,728

52,848,149

1,820,682

403,002

985,278

Management, scientific, and technical consulting services........................................................................................................................

661,791

27,162,068

852,697

205,017

423,890

393,120

179,378

3,280,475

1,043,503

20,869,105

13,206,191

Industrial sector

Number

of returns

Business

receipts

(1)

(2)

Rent paid

Depreciation on machinery

1,2

deduction

and

1

equipment

(3)

1,4

Net income

less deficit

(8)

Professional, scientific, and technical service

--Continued

Computer systems design services........................................................................................................................

234,269

7,195,912

215,556

Scientific research and development services........................................................................................................................

32,308

1,084,712

28,345

9,417

10,553

13,411

66,182

483,599

Advertising and related services........................................................................................................................

114,741

5,910,410

151,083

133,583

41,025

458,915

1,467,916

56,198

Market research and public opinion polling........................................................................................................................

39,278

1,556,546

73,963

24,047

38,632

4,604

125,790

527,717

Other miscellaneous services........................................................................................................................

414,610

17,134,413

714,595

Administrative and support and waste management

108,323

378,619

154,703

1,586,084

5,183,683

and remediation services........................................................................................................................

1,754,486

44,878,393

2,079,010

404,722

563,683

395,994

5,334,233

12,318,639

Administrative and support services........................................................................................................................

1,723,807

43,582,389

1,971,535

391,418

549,198

365,285

5,199,730

12,183,976

Waste management and remediation services........................................................................................................................

30,679

1,296,004

107,475

13,304

Educational services........................................................................................................................

395,839

5,023,159

233,264

37,510

14,485

251,914

30,709

32,239

134,503

338,282

134,663

1,820,693

41,265,821

Health care and social assistance........................................................................................................................

1,722,464

97,076,912

2,646,028

566,916

3,864,937

946,246

13,458,569

Ambulatory health care services........................................................................................................................

842,263

83,147,994

2,133,408

493,468

3,546,741

708,906

11,956,598

36,524,364

Offices of physicians (except mental health specialist)........................................................................................................................

192,326

29,436,364

543,928

179,905

1,065,418

156,487

3,663,409

14,816,436

160,587

14,763

145,552

1,641,751

Offices of dentists........................................................................................................................

96,416

27,851,174

873,691

Offices of chiropractors........................................................................................................................

39,517

4,516,425

155,544

Offices of physicians, mental health specialist........................................................................................................................

36,686

2,815,453

56,242

12,045

128,181

31,176

1,032,603

316,343

323,652

61,138

5,851,695

548,449

10,452,530

1,766,324

Offices of optometrists........................................................................................................................

11,412

2,621,749

80,699

27,568

169,386

33,155

481,053

650,640

Offices of mental health practitioners and social therapists........................................................................................................................

161,541

7,289,102

170,800

23,319

503,322

37,011

454,332

3,670,175

Offices of podiatrists........................................................................................................................

7,676

996,776

5,017

101,500

374,390

1,214,679

19,643

89,942

Outpatient care centers and

other miscellaneous health practitioners........................................................................................................................

98,592

2,797,373

85,404

28,757

17,356

107,279

9,202

136,381

Medical and diagnostic laboratories........................................................................................................................

28,085

1,750,269

49,134

20,819

43,303

19,533

272,088

583,016

Home health care services........................................................................................................................

147,666

2,387,180

85,528

12,616

29,689

41,976

197,981

1,085,234

Other ambulatory health care services

(including ambulance services, blood and organ banks)........................................................................................................................

22,344

686,131

15,082

9,438

28,868

6,974

104,159

269,188

*966

*1,577

*1,600

*25,244

154,695

Nursing and residential care facilities........................................................................................................................

52,359

2,641,194

98,293

18,695

59,306

133,541

655,996

384,290

Social assistance……………..........................................................................................................................

137,509

2,076,318

58,154

5,430

76,024

12,908

142,414

876,189

Child day care services........................................................................................................................

676,991

8,913,642

354,580

Arts, entertainment, and recreation........................................................................................................................

1,105,714

22,998,961

1,577,102

48,356

172,870

181,289

729,613

89,291

252,511

678,317

1,059,526

3,326,283

5,568,237

Performing arts, spectator sports, and related industries........................................................................................................................

946,141

17,861,397

1,179,120

109,027

495,691

Hospitals…………….........................................................................................................................

13,342

297,764

*1,592

125,749

573,684

5,420,659

*18

--

*1,940

*51,729

Amusement, gambling, and recreation industries........................................................................................................................

156,233

5,041,480

397,140

61,478

233,903

Accommodation, food services, and drinking places........................................................................................................................

362,149

36,733,209

1,531,040

294,946

2,156,805

126,762

956,699

483,902

6,546,711

95,848

1,609,451

Museums, historical sites, and similar institutions........................................................................................................................

*3,340

*96,084

*842

*2,365

Accommodation…………..........................................................................................................................

64,053

5,008,383

602,732

25,039

143,381

583,439

687,300

159,956

22,369

81,879

482,052

494,988

16,641

RV (recreational vehicle) parks and recreational camps........................................................................................................................

14,532

679,975

112,624

*1,289

*7,419

55,785

39,530

51,981

Travel accommodation (including hotels, motels, and bed

and breakfast inns)………………........................................................................................................................

30,381

3,505,412

445,089

Rooming and boarding houses........................................................................................................................

19,139

822,996

45,019

Food services and drinking places........................................................................................................................

298,097

31,724,826

928,308

*1,380

269,907

*54,083

2,013,424

45,601

373,261

152,781

5,859,412

91,333

1,449,495

2,657,699

814,894

4,571,609

940,476

7,864,314

15,440,454

Auto repair and maintenance........................................................................................................................

315,701

23,189,427

922,388

249,792

804,199

337,330

3,318,796

2,567,473

113,338

102,683

371,064

199,633

136,181

135,941

1,704,500

1,142,455

1,210,637

1,025,294

Other services........................................................................................................................

1,968,943

72,260,435

Automotive mechanical and electrical repair and

maintenance........................................................................................................................

150,280

11,611,478

403,227

Automotive body shops........................................................................................................................

105,775

8,071,336

356,521

Other auto repair and maintenance (including oil change,

lubrication, and car washes)........................................................................................................................

59,646

3,506,613

162,641

33,772

233,502

65,209

471,841

331,543

Miscellaneous repairs........................................................................................................................

428,093

15,650,487

599,952

113,697

405,011

177,385

1,346,752

3,207,170

Personal and laundry services........................................................................................................................

1,225,149

33,420,520

1,135,359

Religious, grantmaking, civic, professional

451,405

3,362,400

425,761

3,198,765

9,665,811

and similar organizations........................................................................................................................

256,606

3,008,913

75,900

*11,684

22,170

17,716

*9,324

1,767,093

Unclassified establishments........................................................................................................................

212,063

3,556,337

52,791

39,911

64,671

5,206

225,025

1,407,239

Footnotes at end of table.

19

Sole Proprietorship Returns, 2002

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

Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued

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

Businesses with net income

Industrial sector

Number

of returns

Business

receipts

(9)

(10)

Rent paid

Depreciation on machinery

1,2

deduction

and

1

equipment

(11)

Payroll

1,4

Net income

(12)

(13)

(14)

(15)

(16)

20,538,942

7,206,944

78,488,415

257,292,855

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

197,650

10,652,161

658,225

110,318

2,019,565

92,701

140,994

1,354,493

Animal production (including breeding of cats and dogs)........................................................................................................................

10,209

684,203

30,187

*306

*8,187

*4,220

69,749

95,349

Forestry and logging (including forest nurseries, timber tracts)........................................................................................................................

32,879

4,506,913

342,611

92,161

14,899

Fishing........................................................................................................................

50,141

1,650,449

156,160

*564

28,437

73,669

27,370

538,748

*100,614

459,597

491,579

Hunting and trapping........................................................................................................................

*5,131

*191,091

--

*921

*1,561

*1,012

*31,323

Support activities for agriculture and forestry........................................................................................................................

99,290

3,619,505

99,021

17,285

40,256

34,173

644,369

941,716

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

78,609

4,399,347

*30,245

310,433

17,137

22,718

42,815

184,190

1,313,837

Oil and gas extraction........................................................................................................................

60,823

2,849,690

159,145

Coal mining........................................................................................................................

*33

*4,875

*105

4,709

--

20,245

--

13,812

*1

74,169

--

920,078

*303

Metal ore mining........................................................................................................................

**

**

**

**

**

**

**

Nonmetallic mineral mining and quarrying........................................................................................................................

**4,053

**482,215

**59,742

**6,497

**

**177

**21,883

**33,947

**69,592

Support activities for mining........................................................................................................................

13,700

1,062,567

91,441

Utilities........................................................................................................................

5,765

139,348

*5,968

*5,931

*1,750

*2,296

*2,651

7,119

*584

76,076

*2,084

323,864

25,476

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

1,889,207

147,764,155

4,946,321

939,913

847,317

965,095

20,373,879

31,457,464

Residential building construction........................................................................................................................

310,103

36,614,451

908,140

165,484

115,704

192,099

3,971,826

5,956,035

Nonresidential building construction........................................................................................................................

87,001

8,422,109

289,180

46,957

59,236

70,890

1,094,919

1,359,667

Heavy and civil engineering construction ........................................................................................................................

60,980

7,471,556

478,962

123,906

90,474

128,893

900,614

1,428,975

603,567

172,230

581,903

463,883

573,213

185,113

14,406,520

2,572,448

22,712,786

3,573,825

Specialty trade contractors........................................................................................................................

1,431,123

95,256,039

3,270,038

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

205,279

19,898,393

728,355

Food manufacturing........................................................................................................................

13,595

2,670,512

57,420

6,130

69,286

11,344

194,610

266,509

Textile and textile product mills........................................................................................................................

*5,121

*325,133

*12,132

*234

--

*874

*9,582

*108,696

Apparel........................................................................................................................

15,158

803,081

26,078

*943

19,015

7,011

132,423

140,153

Leather and allied products........................................................................................................................

*3,398

*179,292

*6,795

Wood products........................................................................................................................

17,026

1,518,301

55,961

-26,773

*8,236

16,700

*1,362

20,563

*42,747

208,187

*29,627

208,655

Paper products........................................................................................................................

*1,083

*90,034

--

*4,140

--

*7,288

*27,445

Printing and related support activities........................................................................................................................

24,274

1,897,365

77,180

32,891

*234

62,099

23,183

236,361

297,999

Petroleum and coal products........................................................................................................................

*2,354

*2,506

--

--

Chemical manufacturing........................................................................................................................

7,584

318,107

*14,861

*153

Plastics, rubber, clay, refractory, and glass products........................................................................................................................

10,242

579,742

*15,976

*3,756

20

Interest paid

1,3

deduction

6,690,732

All nonfarm industries........................................................................................................................

13,750,798

871,015,286 25,432,022

20

Rent paid

on other

business

1

property

--

--

--

*2,422

*1,134

*7,318

*4,304

*27,806

*25,789

*86,895

67,832

88,089

142,123

Nonmetallic mineral products........................................................................................................................

8,934

875,998

*46,077

*9,395

*504

*6,671

*160,471

Primary metal industries........................................................................................................................

*2,126

*105,795

*4,076

*644

--

--

*3,962

*36,760

Fabricated metal products........................................................................................................................

19,772

2,893,919

123,052

29,276

81,310

24,162

450,006

373,917

Machinery........................................................................................................................

15,996

2,552,672

173,366

Computer and electronic products........................................................................................................................

*4,036

*157,699

*5,558

13,213

--

62,732

*4,110

28,331

*142

426,976

*16,894

474,210

*47,330

Electrical equipment, appliances, and components........................................................................................................................

9,593

936,431

13,504

*3,666

*14,308

*7,276

*99,779

263,514

Transportation equipment........................................................................................................................

6,362

660,350

*16,223

*4,902

*17,363

*4,077

*75,459

136,025

Furniture and related products........................................................................................................................

15,367

1,767,385

44,182

23,496

62,685

7,491

189,324

396,934

Medical equipment and supplies........................................................................................................................

3,475

342,270

*3,158

Other miscellaneous manufacturing........................................................................................................................

19,782

1,221,800

32,522

*7,743

*9,014

*12,388

20,556

*157

10,360

*31,011

174,684

156,725

308,859

Wholesale trade (merchant wholesalers)........................................................................................................................

209,627

31,092,450

391,448

135,578

283,355

151,641

842,037

5,315,422

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

82,966

12,681,041

145,662

63,975

115,922

56,194

382,502

2,086,022

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

73,367

13,979,303

178,994

47,003

123,718

60,166

392,789

1,770,115

Wholesale electronic markets and agents and brokers........................................................................................................................

53,294

4,432,106

66,792

24,600

43,715

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

1,183,058

144,868,119

1,919,123

561,589

3,670,610

35,282

1,123,584

66,747

7,883,789

1,459,285

14,670,457

Motor vehicle and parts dealers........................................................................................................................

91,278

28,285,838

234,354

34,988

296,676

213,620

1,145,742

1,619,711

Furniture and home furnishing stores........................................................................................................................

33,080

5,078,659

75,769

13,908

211,502

51,671

438,837

612,732

Electronic and appliance stores........................................................................................................................

25,178

4,311,693

79,745

4,755

146,294

23,465

391,503

496,701

Building material and garden equipment and suppliers dealers........................................................................................................................

39,432

6,882,552

195,186

23,881

67,923

Food and beverage stores........................................................................................................................

75,462

26,102,214

244,071

61,583

631,636

89,451

149,867

627,117

1,449,755

736,883

1,559,003

910,696

Health and personal care stores........................................................................................................................

68,439

7,064,929

71,003

41,185

162,065

23,791

432,128

Gasoline stations........................................................................................................................

13,773

14,851,546

160,268

30,892

224,809

141,250

705,566

398,979

Clothing and accessories stores........................................................................................................................

66,051

9,610,975

87,446

120,991

604,968

52,864

704,524

1,361,738

Sporting goods, hobby, book, and music stores........................................................................................................................

67,725

6,618,263

95,857

13,686

General merchandise stores........................................................................................................................

18,320

2,901,729

34,790

*5,510

299,866

103,799

87,626

17,679

287,599

220,722

881,916

249,168

Miscellaneous store retailers........................................................................................................................

265,242

20,504,369

349,735

160,671

747,869

191,259

1,102,647

3,163,010

Nonstore retailers........................................................................................................................

419,079

12,655,352

49,539

173,204

81,041

377,647

2,679,920

Footnotes at end of table.

290,900

Sole Proprietorship Returns, 2002

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

Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued

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

Businesses with net income

Industrial sector

Number

of returns

Business

receipts

(9)

(10)

Rent paid

Depreciation on machinery

1,2

deduction

and

1

equipment

(11)

Rent paid

on other

business

1

property

Interest paid

1,3

deduction

Payroll

1,4

Net income

(12)

(13)

(14)

(15)

(16)

Transportation and warehousing........................................................................................................................

759,115

44,998,421

3,525,373

1,400,941

445,014

848,879

2,766,575

9,594,520

Air and rail transportation........................................................................................................................

9,555

419,768

28,005

Water transportation........................................................................................................................

3,665

142,229

*2,678

General freight trucking, local........................................................................................................................

161,276

11,466,303

1,078,007

*3,253

*14

223,487

*8,350

*269

73,518

2,350

*1,554

220,540

*23,441

*2,071

1,111,339

122,554

86,279

2,373,358

General freight trucking, long-distance and specialized freight

trucking........................................................................................................................

252,976

22,296,418

Urban transit........................................................................................................................

*969

*23,778

583,410

*5,679

107,602

*24

487,189

--

1,053,228

*10,670

3,792,120

*656

Interurban and rural bus transportation........................................................................................................................

*1,946

*71,854

*9,401

-Taxi and limousine service........................................................................................................................

106,984

2,889,313

90,862

371,675

School, employee, and charter bus industry........................................................................................................................

13,977

645,021

69,326

*51,887

Other transit and ground passenger transportation........................................................................................................................

16,671

536,104

29,535

*4,051

-120,198

*3,676

*2,324

*2,576

51,116

*6,759

*19,762

*98

*35,739

*54,598

*38,505

*5,945

994,801

175,060

154,345

Pipeline transportation........................................................................................................................

**

**

**

Scenic and sightseeing transportation........................................................................................................................

**1,653

**197,165

**24,408

Support activities for transportation (including motor

**

**5,724

**

**5,879

**

**1,395

**

**39,985

**

**32,967

28,749

122,949

*63

99,707

67,830

30,390

*24,955

131,502

28,347

27,217

*74

39,501

185,221

206,022

*5,660

460,498

279,289

1,511,449

65,699

1,730,766

14,328

65,227

19,883

51,423

18,712

9,625

200,194

76,417

607,295

526,225

Broadcasting (except Internet) and telecommunications........................................................................................................................

16,134

747,579

36,470

*13,154

47,347

Internet publishing and broadcasting........................................................................................................................

5,318

145,004

*262

*89

*1,766

Internet service providers, web search portals, and

data processing........................................................................................................................

36,243

913,585

16,305

*6,908

11,083

*6,221

--

*30,911

*129

182,607

75,601

*4,944

152,847

339,038

Finance and insurance........................................................................................................................

458,193

47,782,386

742,659

271,043

1,138,597

Credit intermediation and related activities........................................................................................................................

60,152

4,168,227

118,133

22,336

55,087

Securities, commodity contracts, and other financial investments........................................................................................................................

81,380

17,364,043

113,438

51,012

232,779

258,731

23,261

76,421

2,992,034

178,516

455,960

18,000,755

1,595,418

3,951,082

4,610

25,918

*2,184

5,637

8,053

*6,216

32,561

46,331

*2,503

260,305

628,732

105,760

Securities and commodity exchanges........................................................................................................................

*176

*116,542

*9

*2,664

*(Z)

Other financial investment activities (investment advice)........................................................................................................................

62,354

13,354,322

93,954

42,020

200,067

Insurance agents, brokers, and related activities........................................................................................................................

316,661

26,250,115

511,088

197,694

850,731

*563

55,952

159,049

*3,161

371,404

2,357,558

*1,547

2,954,739

12,454,256

771,161

79,570

726,489

596,185

147,645

11,404

442,132

389,800

2,185,337

172,222

1,019,940

786,505

10,208,086

2,246,170

24,622,697

24,011,265

18,598

42,247

69,644

55,982

781,639

and appraisers........................................................................................................................

605,891

38,196,674

986,480

328,502

Other activities related to real estate........................................................................................................................

98,061

5,974,855

130,359

42,386

Rental and leasing services........................................................................................................................

31,704

3,165,968

493,079

62,967

503,193

50,744

130,304

263,657

56,499

52,332

631,419

99,104

233,435

20,730,702

2,498,923

611,433

Automotive equipment rental and leasing........................................................................................................................

7,148

399,968

96,725

*16,460

Consumer electronics and appliances rental........................................................................................................................

*152

*7,098

*1,154

-Formal wear and costume rental........................................................................................................................

-----

*13,467

*180

--

6,902

*436

--

*17,399

---

86,142

*821

--

Video tape and disc rental........................................................................................................................

5,366

726,430

105,456

*825

80,028

General rental centers and other consumer goods rental........................................................................................................................

7,710

835,449

69,983

*4,508

*22,440

Commercial and industrial machinery

and equipment rental and leasing........................................................................................................................

11,328

1,197,024

219,761

41,174

14,189

*9,731

6,714

84,206

73,165

81,275

134,738

1,990,922

--

vehicle towing)........................................................................................................................

27,123

1,415,428

102,803

Couriers and messengers........................................................................................................................

156,025

4,628,201

91,459

Warehousing and storage facilities........................................................................................................................

6,294

266,838

*7,967

Information........................................................................................................................

140,314

5,290,620

228,195

Publishing industries (except Internet)........................................................................................................................

47,453

1,864,522

59,158

Motion picture and sound recording........................................................................................................................

35,166

1,619,930

116,000

Investment bankers and securities dealers........................................................................................................................

4,641

1,254,486

7,760

*1,885

Securities brokers........................................................................................................................

12,094

2,351,312

10,627

4,133

Commodity contracts brokers and dealers........................................................................................................................

2,115

287,381

1,087

*310

Insurance agencies and brokerages........................................................................................................................

248,051

22,277,120

441,572

174,898

Other insurance related activities........................................................................................................................

68,610

3,972,996

69,516

22,796

Real estate and rental and leasing........................................................................................................................

758,224

49,025,678

1,678,958

452,453

Real estate........................................................................................................................

726,520

45,859,710

1,185,879

389,486

Lessors of real estate (including miniwarehouses and

self storage)........................................................................................................................

22,568

1,688,181

Offices of real estate agents, brokers, property managers,

69,039

28,549

58,665

308,457

Professional, scientific, and technical services........................................................................................................................

1,966,091 114,177,515

2,795,190

708,166

Legal services........................................................................................................................

292,060

32,394,696

478,633

183,997

Office of certified public accountants........................................................................................................................

39,963

3,464,588

116,195

25,710

2,766,322

1,296,675

174,092

709,512

205,459

48,766

9,116,498

3,236,012

526,208

53,156,697

14,951,921

1,440,995

Other accounting services........................................................................................................................

250,642

6,888,279

272,372

36,842

Architectural, engineering, and related services........................................................................................................................

199,965

12,657,305

419,190

109,157

Architectural services........................................................................................................................

75,568

6,190,365

225,994

70,549

209,597

204,958

117,328

85,767

70,239

44,832

706,119

1,738,344

1,076,009

3,046,759

4,597,500

1,535,252

Engineering services........................................................................................................................

71,077

4,560,237

121,761

29,690

52,179

Drafting, building inspections, and geophysical surveying........................................................................................................................

38,043

1,361,599

44,349

6,114

27,517

Surveying and mapping (except geophysical) services........................................................................................................................

14,063

453,697

21,821

*210

*4,234

Testing laboratories........................................................................................................................

*1,214

*91,407

*5,266

*2,595

*3,699

Specialized design services........................................................................................................................

116,763

5,674,487

147,803

26,504

98,607

12,261

10,832

*1,139

*1,173

20,893

450,389

145,059

*61,347

*5,540

230,176

2,189,877

647,570

190,378

*34,423

1,944,931

Footnotes at end of table.

21

Sole Proprietorship Returns, 2002

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

Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued

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

Businesses with net income

Industrial sector

Number

of returns

Business

receipts

(9)

(10)

Rent paid

Depreciation on machinery

deduction 1,2

and

equipment 1

(11)

(12)

Rent paid

on other

business

property 1

Interest paid

deduction 1,3

Payroll

(13)

(14)

(15)

(16)

1,4

Net income

Professional, scientific, and technical service

22

--Continued

Computer systems design services........................................................................................................................

155,396

6,269,873

121,793

23,836

56,698

Other professional, scientific, and technical services........................................................................................................................

911,302

46,828,286

1,239,203

302,119

725,695

Management, scientific, and technical consulting services........................................................................................................................

473,378

23,727,961

556,208

136,750

299,518

Scientific research and development services........................................................................................................................

25,008

972,665

18,859

9,302

*5,045

Advertising and related services........................................................................................................................

82,491

4,872,770

85,304

34,084

79,588

Market research and public opinion polling........................................................................................................................

25,763

1,415,676

26,999

24,047

35,114

Other miscellaneous services........................................................................................................................

304,661

15,839,214

551,833

97,937

306,431

Administrative and support and waste management

and remediation services........................................................................................................................

1,395,546

38,818,344

1,483,739

318,978

445,883

Administrative and support services........................................................................................................................

1,378,122

37,704,327

1,399,994

306,586

433,146

12,494

265,894

113,758

*1,776

23,278

4,604

122,478

224,005

2,455,635

558,000

*40,908

287,148

108,757

1,460,823

3,672,335

23,502,256

14,636,878

597,468

1,734,936

621,698

5,911,276

256,918

229,468

4,094,704

3,999,890

14,205,261

13,987,597

Waste management and remediation services........................................................................................................................

17,424

1,114,017

83,745

*12,392

Educational services........................................................................................................................

306,372

4,367,573

176,474

33,842

12,736

194,461

27,450

12,148

94,814

216,304

217,664

2,163,001

Health care and social assistance........................................................................................................................

1,448,909

91,937,046

2,259,814

473,549

3,541,559

Ambulatory health care services........................................................................................................................

706,898

80,512,898

1,939,040

425,917

3,340,247

Offices of physicians (except mental health specialist)........................................................................................................................

160,449

28,311,025

497,822

147,745

982,954

Offices of physicians, mental health specialist........................................................................................................................

33,245

2,782,448

53,966

11,937

158,518

Offices of dentists........................................................................................................................

91,604

27,633,290

859,786

127,001

1,018,856

Offices of chiropractors........................................................................................................................

36,088

4,408,460

139,099

28,985

300,023

Offices of optometrists........................................................................................................................

8,335

2,556,239

71,266

26,027

156,882

Offices of mental health practitioners and social therapists........................................................................................................................

129,248

6,936,947

147,866

21,909

467,502

Offices of podiatrists........................................................................................................................

5,299

989,957

16,152

15,436

89,940

Outpatient care centers and

other miscellaneous health practitioners........................................................................................................................

75,171

2,554,231

62,126

19,985

85,701

735,678

609,362

124,127

14,763

319,312

49,138

31,067

27,395

*5,015

12,403,943

11,536,475

3,450,476

143,759

5,827,202

530,854

463,185

438,192

101,500

42,572,247

37,334,629

15,101,267

1,653,864

10,494,645

1,827,376

691,770

3,776,547

389,748

7,027

134,700

1,277,878

Medical and diagnostic laboratories........................................................................................................................

22,430

1,593,742

29,074

15,590

35,866

Home health care services........................................................................................................................

128,106

2,170,630

55,091

10,963

21,367

Other ambulatory health care services

(including ambulance services, blood and organ banks)........................................................................................................................

16,921

575,931

6,790

*339

22,638

Hospitals…………….........................................................................................................................

10,994

225,178

*874

*2

-Nursing and residential care facilities........................................................................................................................

41,689

1,732,952

46,463

11,022

25,857

Social assistance……………..........................................................................................................................

108,068

1,844,914

45,337

4,981

71,426

Child day care services........................................................................................................................

581,261

7,621,105

228,102

31,626

104,028

Arts, entertainment, and recreation........................................................................................................................

620,435

18,732,118

715,905

109,578

401,042

Performing arts, spectator sports, and related industries........................................................................................................................

526,946

15,683,930

557,760

65,740

318,652

Museums, historical sites, and similar institutions........................................................................................................................

*2,602

*82,233

*436

*1,186

-Amusement, gambling, and recreation industries........................................................................................................................

90,888

2,965,955

157,710

42,652

82,389

Accommodation, food services, and drinking places........................................................................................................................

230,000

27,720,278

840,245

195,112

1,478,189

15,037

12,683

220,063

141,428

647,316

1,188,813

*3,798

*1,182

79,909

3,585

41,640

93,104

66,937

-26,167

519,155

85,116

*895

307,072

140,147

419,354

699,906

461,467

*761

237,679

4,605,451

285,403

155,696

492,934

940,771

3,648,219

8,461,610

7,663,116

*60,414

738,079

3,178,687

274,693

445,521

628,977

225,513

*17,077

32,103

244,461

676,895

243,356

108,711

102,735

294,749

*32,795

117,977

4,159,929

6,666,981

2,873,856

1,532,593

1,043,293

359,992

98,947

170,038

2,549,710

17,736,439

3,150,227

1,455,619

1,209,838

31,911

133,343

297,969

1,163,154

484,769

3,783,312

Accommodation…………..........................................................................................................................

35,145

3,318,333

265,373

9,882

66,713

Travel accommodation (including hotels, motels, and bed

and breakfast inns)………………........................................................................................................................

16,137

2,179,462

177,481

7,937

32,278

RV (recreational vehicle) parks and recreational camps........................................................................................................................

6,211

500,953

63,303

*922

*7,418

Rooming and boarding houses........................................................................................................................

12,796

637,918

24,589

*1,023

*27,017

Food services and drinking places........................................................................................................................

194,856

24,401,945

574,872

185,230

1,411,476

Other services........................................................................................................................

1,524,049

63,080,306

1,926,131

651,148

3,809,915

Auto repair and maintenance........................................................................................................................

223,348

19,751,510

674,701

178,213

612,601

Automotive mechanical and electrical repair and maintenance........................................................................................................................

111,138

10,073,526

306,182

99,973

274,174

Automotive body shops........................................................................................................................

73,464

7,031,067

270,228

59,131

176,522

Other auto repair and maintenance (including oil change,

lubrication, and car washes)........................................................................................................................

38,746

2,646,917

98,290

19,110

161,905

Miscellaneous repairs........................................................................................................................

333,615

13,731,215

428,358

96,355

332,221

22

Personal and laundry services........................................................................................................................

967,086

29,597,580

823,073

376,580

2,865,092

300,196

2,629,971

10,802,901

Religious, grantmaking, civic, professional

and similar organizations........................................................................................................................

188,743

2,847,114

52,317

*10,784

*16,867

*468

*9,324

1,964,550

Unclassified establishments........................................................................................................................

185,611

3,423,915

47,149

26,918

59,869

*3,996

223,336

1,529,579

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

** Data combined to prevent disclosure of information for specific taxpayers.

¹ Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly

understated.

² Includes depreciation claimed on Form 8829.

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

4

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

(Z) Less than $500.

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

Sole Proprietorship Returns, 2002

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors Classified with the

North American Industry Classification System

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

Agriculture, forestry, hunting, and fishing

Animal

All

Net income status, item

nonfarm

production

and logging

(including

(including forest

breeding

nurseries,

of cats and

timber tracts)

Total

industries

Mining

Forestry

Support

Hunting

Fishing

activities

and

for

trapping

agriculture

Total

and forestry

dogs)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

BUSINESSES WITH AND

WITHOUT NET INCOME

Number of returns ¹.......................................................................................................................

18,925,517

304,757

40,892

46,890

79,543

6,763

130,668

109,851

Business receipts, total ¹.......................................................................................................................

1,029,691,760

14,795,915

1,109,069

5,746,918

2,094,768

304,252

5,540,909

6,332,751

Income from sales and operations ¹.......................................................................................................................

1,015,363,541

14,500,031

1,070,375

5,664,956

6,076,594

2,036,959

304,056

5,423,684

81,962

57,809

*196

117,224

256,157

.......................................................................................................................

808,900,651

14,093,746

1,498,557

5,536,140

1,810,636

310,932

4,937,482

5,851,678

Cost of sales and operations, total.......................................................................................................................

351,785,009

4,766,708

380,215

2,137,270

Other business income.......................................................................................................................

14,328,219

295,885

38,694

Business deductions, total

1,2

333,624

48,042

1,867,557

1,092,758

Inventory, beginning of year.......................................................................................................................

34,291,721

377,581

82,852

132,886

*15,896

*28,218

117,728

107,009

Cost of labor.......................................................................................................................

30,389,028

376,932

*37,217

147,965

*120,156

*206

71,389

81,153

239,556

1,345,472

152,929

*10,243

1,682,939

367,806

Materials and supplies.......................................................................................................................

45,589,230

337,608

27,249

144,926

*33,419

*13,092

118,923

94,962

Other costs.......................................................................................................................

50,709,060

699,340

47,879

527,641

*26,609

*23,132

74,079

568,522

Inventory, end of year.......................................................................................................................

36,279,786

455,892

54,540

161,619

*15,385

*26,848

197,500

126,694

Advertising expenses.......................................................................................................................

11,237,979

87,038

10,933

11,372

13,197

8,455

43,082

16,182

Bad debts from sales or services.......................................................................................................................

1,055,722

9,741

*6,025

*1,539

--

*44

2,133

1,760

144,367

110,525

32,676

348,094

262,544

8,978

79,897

*11,939

*264

48,616

5,378

*91

*22,675

--

--

*14

364,176

193,335

580,246

342,427

54,778

268,303

551,091

5,967

*44

*460

4,422

7,999

173,844

50,271

8,348

100,498

94,117

Legal and professional services.......................................................................................................................

8,365,930

89,351

14,249

30,396

15,074

1,093

28,539

90,774

Meals and entertainment deducted.......................................................................................................................

5,088,083

47,414

3,984

8,467

19,953

1,142

13,867

23,322

Mortgage interest.......................................................................................................................

5,006,864

94,349

14,941

15,225

*2,689

21,961

18,509

Other interest paid on business indebtedness.......................................................................................................................

6,432,675

165,701

14,706

77,763

27,873

*1,786

43,572

129,605

Office expenses.......................................................................................................................

11,331,733

53,272

14,952

12,715

5,037

1,752

18,815

40,334

Pension and profit-sharing plans.......................................................................................................................

1,085,247

3,040

*26

2,689

--

--

*325

2,393

Rent on machinery and equipment.......................................................................................................................

8,543,257

144,534

2,305

113,379

*663

*873

27,314

39,256

Rent on other business property.......................................................................................................................

26,311,497

199,992

21,933

22,061

40,167

47,919

67,911

44,414

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

12,669,141

529,282

93,357

9,300

123,374

108,673

259,740

Purchases.......................................................................................................................

227,085,757

3,431,139

Car and truck expenses.......................................................................................................................

50,489,359

706,023

70,361

Commissions.......................................................................................................................

14,066,786

149,694

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

461,938

*22,780

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

36,642,027

1,439,088

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

2,284,368

12,593

1,699

Insurance.......................................................................................................................

16,004,335

358,245

25,284

39,533

26,997

276,255

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

66,067,965

1,391,536

65,986

556,323

*19,163

*8,315

741,750

Supplies.......................................................................................................................

24,615,763

446,091

56,208

83,220

108,720

9,221

188,722

67,536

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

14,901,431

265,078

10,846

88,857

51,020

4,294

110,062

175,863

Travel.......................................................................................................................

9,110,193

104,706

19,391

14,737

39,037

2,279

29,261

45,587

Utilities.......................................................................................................................

20,674,727

200,570

27,425

55,027

25,399

9,464

83,255

72,724

987,918

Other business deductions.......................................................................................................................

96,803,750

2,757,884

504,583

477,644

55,498

732,241

2,320,132

6,164

*7,554

*1,350

14,388

8,355

*710

*10

--

*2,923

*210

210,816

286,388

-6,441

629,753

501,591

95,349

459,597

491,579

*31,323

941,716

1,313,837

480,101

248,781

205,192

37,764

311,962

812,246

Home office business deductions.......................................................................................................................

6,474,145

32,559

*3,103

Depreciation, Form 8829.......................................................................................................................

691,574

5,100

*1,457

Net income less deficit

Net income

1,2

1,2

.......................................................................................................................

221,113,286

735,764

-384,751

.......................................................................................................................

257,292,855

2,019,565

Deficit ².......................................................................................................................

36,179,568

1,283,800

Footnotes at end of table.

23

Sole Proprietorship Returns, 2002

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors Classified with the

North American Industry Classification System--Continued

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

Agriculture, forestry, hunting, and fishing

Animal

All

Net income status, item

nonfarm

production

and logging

(including

(including forest

breeding

nurseries,

of cats and

timber tracts)

Total

industries

Mining

Forestry

Support

Hunting

Fishing

activities

and

for

trapping

agriculture

Total

and forestry

dogs)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

BUSINESSES WITH NET INCOME

Number of returns ¹.......................................................................................................................

13,750,798

197,650

10,209

32,879

50,141

*5,131

99,290

78,609

Business receipts, total ¹.......................................................................................................................

871,015,286

10,652,161

684,203

4,506,913

1,650,449

*191,091

3,619,505

4,399,347

Income from sales and operations ¹.......................................................................................................................

859,140,658

10,530,203

663,168

4,498,751

4,246,338

1,606,181

*191,075

3,571,028

8,162

44,268

*17

48,477

153,009

.......................................................................................................................

613,750,692

8,636,641

589,108

4,047,316

1,158,869

*159,769

2,681,579

3,085,652

Other business income.......................................................................................................................

11,874,628

121,958

*21,035

Business deductions, total

1,2

Cost of sales and operations.......................................................................................................................

266,914,262

2,940,721

268,531

1,606,676

292,397

*33,389

739,728

461,684

Inventory, beginning of year.......................................................................................................................

22,226,807

140,601

*33,461

60,596

*12,316

*1,592

*32,637

38,135

Cost of labor.......................................................................................................................

24,470,287

284,869

*28,408

105,063

*94,060

--

*57,337

*6,209

Purchases.......................................................................................................................

170,747,427

1,781,962

*199,060

886,159

*143,841

--

552,902

200,226

Materials and supplies.......................................................................................................................

38,242,474

274,379

*11,919

136,727

*28,342

*10,220

87,171

80,684

Other costs.......................................................................................................................

34,622,827

610,825

*25,205

484,538

*26,431

*22,809

51,841

189,349

Inventory, end of year.......................................................................................................................

23,395,560

151,915

*29,523

66,407

*12,593

*1,232

42,159

52,919

Advertising expenses.......................................................................................................................

8,903,225

59,872

4,535

10,038

*10,700

*4,287

30,312

14,416

Bad debts from sales or services.......................................................................................................................

553,128

2,221

*8

*1,458

--

--

*755

*1,149

221,199

Car and truck expenses.......................................................................................................................

39,170,840

457,887

31,510

87,746

69,034

*16,140

253,457

Commissions.......................................................................................................................

11,409,424

77,142

*4,037

33,702

*811

*237

38,356

2,814

--

*4,941

--

--

--

223,208

30,187

341,913

156,160

*30,245

98,978

310,271

5,099

*44

--

2,144

4,836

130,904

26,587

*4,710

66,965

70,391

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

270,802

*4,941

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

24,932,576

657,483

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

1,893,656

8,118

*830

24

Insurance.......................................................................................................................

12,683,647

239,569

10,403

12,157

7,653

*516

13,286

42,660

Meals and entertainment deducted.......................................................................................................................

4,018,436

38,483

*1,682

8,127

Legal and professional services.......................................................................................................................

6,232,016

41,986

8,374

16,669

*255

11,750

18,563

Mortgage interest.......................................................................................................................

3,080,081

46,923

*2,321

*11,110

*1,411

11,159

7,389

Other interest paid on business indebtedness.......................................................................................................................

4,126,863

94,071

*1,899

52,746

16,261

*150

23,014

35,426

Office expenses.......................................................................................................................

9,083,456

30,911

3,106

10,040

2,291

*574

14,899

29,315

Pension and profit-sharing plans.......................................................................................................................

1,037,867

2,746

--

2,689

--

--

*56

1,713

Rent on machinery and equipment.......................................................................................................................

6,690,732

110,318

*306

92,161

*564

--

17,285

17,137

Rent on other business property.......................................................................................................................

20,538,942

92,701

*8,187

14,899

28,437

*921

40,256

22,718

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

9,300,674

353,348

10,074

221,515

46,430

*5,425

69,903

82,659

Supplies.......................................................................................................................

19,142,196

269,294

6,212

58,456

54,108

*4,003

146,515

51,087

20,923

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

54,018,128

1,069,624

*41,341

433,685

*6,553

*1,012

587,032

177,981

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

11,698,547

181,984

5,850

59,561

38,866

*2,721

74,986

110,448

Travel.......................................................................................................................

6,690,437

62,457

7,642

13,475

24,931

--

16,409

23,456

Utilities.......................................................................................................................

15,749,576

118,725

9,658

40,896

15,342

*3,944

48,884

51,887

774,042

Other business deductions.......................................................................................................................

69,162,757

1,642,463

132,414

324,342

*48,413

363,251

1,087,169

6,005

*6,858

*524

2,813

7,619

*699

--

--

*43

*162

459,597

491,579

*31,323

941,716

1,313,837

Home office business deductions.......................................................................................................................

5,091,336

16,200

-Depreciation, Form 8829.......................................................................................................................

499,446

*742

-1,2

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

257,292,855

2,019,565

Returns with Schedule C-EZ:

95,349

*6

*3,794

*9,909

*966

34,418

15,318

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

16,196,050

233,388

*518

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

2,748,893

49,094

*10,082

*49,417

*2,898

170,473

149,206

Business deductions.......................................................................................................................

1,390,727

16,475

*2

*3,459

*2,721

*889

9,405

8,455

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

14,805,323

216,913

*6,624

*46,695

*2,009

161,068

140,751

Footnotes at end of table.

24

*517

Sole Proprietorship Returns, 2002

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors Classified with the

North American Industry Classification System--Continued

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

Mining--continued

Oil

Net income status, item

Construction

Metal

Nonmetallic

Support

and

Coal

ore

mineral

activities for

gas extraction

mining

mining

mining and

mining

Utilities

Total

(14)

(15)

quarrying

(9)

(10)

(11)

(12)

(13)

BUSINESSES WITH AND

WITHOUT NET INCOME

Number of returns ¹.......................................................................................................................

86,387

*377

*2,012

4,943

16,131

6,913

2,278,208

Business receipts, total ¹.......................................................................................................................

4,327,809

*166,733

*13,113

644,255

1,180,843

145,838

168,481,326

167,091,780

Income from sales and operations ¹.......................................................................................................................

4,082,483

*163,348

*13,113

637,748

1,179,903

144,678

--

6,507

*940

*1,160

1,389,546

.......................................................................................................................

4,152,938

*172,694

*28,590

617,757

879,699

160,900

140,389,630

Cost of sales and operations.......................................................................................................................

557,425

*144,877

*1,925

158,132

230,399

*22,375

77,065,734

Inventory, beginning of year.......................................................................................................................

71,237

*5,946

--

28,875

*951

--

3,153,599

Cost of labor.......................................................................................................................

*30,249

*12,670

*23,002

*15,232

--

15,426,172

Other business income.......................................................................................................................

245,326

*3,384

Business deductions, total

1,2

--

Purchases.......................................................................................................................

104,254

*43,945

--

68,014

*151,593

--

21,920,698

Materials and supplies.......................................................................................................................

651

*513

--

33,291

*60,506

*953

26,229,830

Other costs.......................................................................................................................

416,898

*84,470

*1,925

43,697

*21,532

*21,422

14,031,524

--

38,748

*19,415

--

3,696,089

*15

1,712

8,112

*328

885,615

*122

*75

--

130,461

Car and truck expenses.......................................................................................................................

174,115

*13

*5,534

27,760

55,123

*22,716

9,261,820

Commissions.......................................................................................................................

4,261

--

*1,115

--

*38,663

1,955,419

Inventory, end of year.......................................................................................................................

65,864

*2,666

Advertising expenses.......................................................................................................................

6,342

*(Z)

Bad debts from sales or services.......................................................................................................................

*1,562

--*2

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

353,615

*761

--

8,785

*1,016

*26

8,169

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

330,022

*10,056

*781

95,716

114,516

27,680

6,437,681

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

4,647

*398

--

1,851

*1,104

*4

325,440

Insurance.......................................................................................................................

26,379

*1,487

20,705

44,913

*2,024

3,444,708

*633

Legal and professional services.......................................................................................................................

76,301

*418

*40

6,180

7,835

2,609

801,909

Meals and entertainment deducted.......................................................................................................................

9,082

*8

*1

1,269

12,961

*568

392,182

Mortgage interest.......................................................................................................................

8,906

--

*6,672

*2,932

*209

605,988

Other interest paid on business indebtedness.......................................................................................................................

98,478

*2,640

*13

22,309

--

*6,165

*6,159

809,465

Office expenses.......................................................................................................................

23,459

*48

872,184

1,795

15,027

*2,345

Pension and profit-sharing plans.......................................................................................................................

1,596

*95

*76

*6

*39

*587

--

72,181

Rent on machinery and equipment.......................................................................................................................

6,524

*1,308

*7,545

15,946

*7,933

*1,763

1,165,225

Rent on other business property.......................................................................................................................

38,346

*370

*5

1,289

4,404

*2,664

1,033,265

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

25,882

*327

*1,540

31,461

49,462

*1,900

1,654,363

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

131,240

*2,043

*5,408

43,405

77,644

*2,112

9,497,382

Supplies.......................................................................................................................

21,418

*79

*1,799

4,618

39,623

*3,262

5,537,881

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

133,823

*495

*754

15,997

24,794

*741

1,774,015

Travel.......................................................................................................................

31,040

*33

*54

3,053

11,408

2,908

533,304

Utilities.......................................................................................................................

27,720

*27

*72

10,647

34,258

3,773

2,038,429

Other business deductions.......................................................................................................................

2,049,203

*7,213

*2,389

136,826

124,502

14,146

13,252,795

Home office business deductions.......................................................................................................................

3,682

---

*16

*4,657

*423

689,264

Depreciation, Form 8829.......................................................................................................................

*208

---

*2

--

*148

50,861

26,498

301,144

-15,063

28,091,981

*15

69,577

323,864

25,476

31,457,464

*15,492

43,080

*22,720

*40,539

3,365,483

Net income less deficit

1,2

.......................................................................................................................

195,389

*-5,962

*-15,478

Net income 1,2 .......................................................................................................................

920,078

*303

Deficit ².......................................................................................................................

724,689

*6,265

Footnotes at end of table.

25

Sole Proprietorship Returns, 2002

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors Classified with the

North American Industry Classification System--Continued

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

Mining--continued

Oil

Net income status, item

Construction

Metal

Nonmetallic

Support

and

Coal

ore

mineral

activities for

gas extraction

mining

mining

mining and

mining

Utilities

Total

(14)

(15)

quarrying

(9)

(10)

(11)

(12)

(13)

BUSINESSES WITH NET INCOME

Number of returns ¹.......................................................................................................................

60,823

*33

**

**4,053

13,700

5,765

1,889,207

Business receipts, total ¹.......................................................................................................................

2,849,690

*4,875

**

**482,215

1,062,567

139,348

147,764,155

146,557,603

Income from sales and operations ¹.......................................................................................................................

2,703,178

*4,875

**

**476,611

1,061,674

138,553

**

**5,604

*893

*795

1,206,552

.......................................................................................................................

1,929,754

*4,572

**

**412,623

738,703

113,872

116,306,918

Cost of sales and operations.......................................................................................................................

182,966

-**

**77,295

201,423

*21,996

64,993,819

Inventory, beginning of year.......................................................................................................................

*11,288

-**

**25,896

*951

--

2,032,610

Cost of labor.......................................................................................................................

*3,358

--

**2,832

*19

--

12,596,462

Other business income.......................................................................................................................

146,513

-Business deductions, total

1,2

**

Purchases.......................................................................................................................

15,282

--

**

**33,362

*151,582

--

18,618,204

Materials and supplies.......................................................................................................................

*378

--

**

**19,800

*60,506

*953

22,872,977

Other costs.......................................................................................................................

162,778

--

**

**18,970

*7,781

*21,043

11,391,673

Inventory, end of year.......................................................................................................................

*10,118

--

**

**23,386

*19,415

--

2,518,107

**

**858

8,089

*322

681,661

**81

*35

--

88,209

**18,526

52,957

*19,695

7,935,402

1,619,327

Advertising expenses.......................................................................................................................

5,468

*(Z)

Bad debts from sales or services.......................................................................................................................

*1,033

-**

26

Car and truck expenses.......................................................................................................................

149,716

*(Z)

**

Commissions.......................................................................................................................

2,341

--

**

**473

--

*38,655

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

213,810

*329

**

*'*8,100

*970

*26

*1,966

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

158,986

*105

**

**59,739

91,441

*5,968

4,906,629

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

2,336

-**

**1,399

*1,101

*4

256,061

Insurance.......................................................................................................................

16,991

*15

**15,255

38,129

*1,011

2,795,918

617,707

**

Legal and professional services.......................................................................................................................

33,208

*87

**

**2,993

6,372

*545

Meals and entertainment deducted.......................................................................................................................

6,048

*(Z)

**

**1,255

11,258

*521

334,163

Mortgage interest.......................................................................................................................

1,137

--

**5,032

*1,220

*209

402,726

**

Other interest paid on business indebtedness.......................................................................................................................

12,675

*1

**

**16,851

*5,899

*375

562,368

Office expenses.......................................................................................................................

15,722

--

**489

13,104

*2,298

704,262

Pension and profit-sharing plans.......................................................................................................................

1,051

-**

**76

*587

--

66,245

Rent on machinery and equipment.......................................................................................................................

4,709

-**

**6,497

*5,931

*1,750

939,913

**177

*2,296

*2,651

847,317

**26,654

40,590

*1,217

1,279,213

**

Rent on other business property.......................................................................................................................

20,245

-**

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

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Sole Proprietorship Returns, 2002 | Frix