# Sole Proprietorship Returns, 2004 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A6bf41c212e4d3523 ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Sole Proprietorship Returns, 2004 by Kevin Pierce and Michael Parisi F or Tax Year 2004, there were approximately 20.6 million individual income tax returns that reported nonfarm sole proprietorship activity. Nearly every sole proprietor industrial sector reported an increase in profits. Total profits for all nonfarm sole proprietorships were $247.6 billion, a 7.5-percent increase from Tax Year 2003. When adjusted for inflation, profits increased by 4.4 percent, the highest percentage increase in profits since 1998. The largest percentage increase in profits for a major industrial sector was 18.3 percent for the wholesale trade sector, followed by a 9.2-percent increase by both the real estate and rental and leasing sector and the professional, scientific, and technical services sector. Although overall profits for nonfarm sole proprietorship returns increased, deficits also increased by an amount of 7.5 percent in real terms from Tax Year 2003. In addition to an increase in profits for sole proprietorships in Tax Year 2004, there was an increase of both receipts and deductions reported on these returns: total business receipts increased 8.5 percent to $1,139.5 billion, and total business deductions grew 8.8 percent to $892.4 billion. The finance and insurance sector reported the largest percentage increase in both receipts and deductions with a 13.6percent increase in business receipts and a 15.5percent increase in deductions. The construction sector reported the second largest growth in receipts at 12.8 percent. For 2004, when inflation is taken into account, sole proprietors reported the largest increase in both receipts and deductions since before1988. 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 1998-2004 with 1997 and prior years may show inconsistencies. A reason for this was that many sole proprietorships under the NAICS system were classified in completely different industrial groups, which Kevin Pierce and Michael Parisi are economists with the Individual Research Section and the Individual Returns Analysis Section, respectively. This article was prepared under the direction of Carl Greene, Chief of the Individual Research Section, and Jeff Hartzok, Chief of the Individual Returns Analysis Section. makes prior-year comparisons inappropriate. For example, in 1997, finance, insurance, and real estate were grouped by Standard Industrial Classification (SIC) codes as one industry, while, under the NAICS system, the group has been split into two industrial sectors. The industrial sectors based on the NAICS codes are reported in Tables 1 and 2. Returns and Receipts The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2004 increased 4.5 percent to almost 20.6 million (Figure A)[1]. The two largest industrial sectors (in numbers of returns) showed an increase in the number of returns for Tax Year 2004; the professional, scientific, and technical services sector, with approximately 3.0 million returns, increased 7.2 percent, and the construction sector, with approximately 2.6 million returns, increased 3.8 percent. The largest reported increase for any industrial sector was in the wholesale trade sector, with a 21.6percent increase to almost 351 thousand returns. Total business receipts (the sum of “income from sales and operations” and “other business income”) for all nonfarm sole proprietorship industries increased 8.5 percent, from $1,050.2 billion to $1,139.5 billion [2]. The finance and insurance sector showed the largest percentage increase in receipts, reporting an increase of $8.7 billion or 13.6 percent. The second largest percentage increase in receipts for 2004 was in the construction sector, with an increase of 12.8 percent. This was followed closely by the 12.5-percent growth in receipts in the real estate and rental and leasing sector, as well as the 12.3-percent growth in the transportation and warehousing sector. Overall, in constant dollar terms, total business receipts had the largest annual increase over Tax Years 1988-2004 of 5.4 percent (Figure B) [3]. Deductions Total business deductions (“cost of sales and operations” plus business expenses, including expenses for home office) in current dollars increased 8.8 percent from $820.2 billion for 2003 to $892.4 billion for 2004 (Figure A) [4,5]. The finance and insurance sector showed the largest percentage increase in deductions, with 15.5 percent. As shown in Figure B, when accounting for inflation, business deductions 7 Sole Proprietorship Returns, 2004 Figure A Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors, Tax Years 2003 and 2004 [Number of returns is in thousands--money amounts are in billions of dollars] Number of returns Industrial sector 2003 2004 Total business receipts Percentage 2003 2004 increase (1) 8 Total business deductions ¹ Percentage 2003 2004 increase Percentage increase (2) (3) (4) (5) (6) (7) (8) All nonfarm industries........................... 19,710.1 20,590.7 4.5 1,050.2 1,139.5 8.5 820.2 892.4 (9) 8.8 Construction............................................... Specialty trade contractors...................... 2,491.2 1,998.4 2,586.8 2,084.0 3.8 4.3 175.8 120.0 198.4 134.7 12.8 12.2 146.9 97.2 167.3 110.2 13.9 13.4 Wholesale trade (merchant wholesalers)... Retail trade................................................. 288.5 2,416.1 350.8 2,399.4 21.6 -0.7 38.3 177.0 40.8 187.1 6.6 5.7 34.0 169.1 35.7 179.0 5.2 5.9 Transportation and warehousing................ Finance and insurance............................... 944.6 659.0 982.8 672.7 4.0 2.1 58.1 64.4 65.3 73.1 12.3 13.6 49.9 48.1 56.6 55.6 13.3 15.5 Real estate and rental and leasing............. Real estate.............................................. 1,074.1 1,019.6 1,179.4 1,113.9 9.8 9.2 62.7 58.8 70.5 66.6 12.5 13.2 37.2 33.2 42.6 38.6 14.6 16.3 Professional, scientific, and technical services..................................... 2,752.8 2,951.0 7.2 128.5 137.7 7.1 76.5 80.9 5.8 Administrative and support and waste management and remediation services... 1,881.2 1,994.8 6.0 46.7 50.0 7.1 33.7 35.9 6.7 Health care and social assistance.............. Child day care services........................... 1,762.8 721.4 1,778.0 694.1 0.9 -3.8 99.4 9.8 104.2 10.0 4.8 2.1 59.6 6.3 62.2 6.4 4.3 1.3 Arts, entertainment, and recreation............ 1,098.5 1,132.2 3.1 24.1 26.4 9.4 18.7 20.6 10.1 Performing arts, spectator sports, and related industries........................... 937.7 963.5 2.8 17.9 19.3 7.8 12.7 13.8 8.8 Other services............................................ Personal and laundry services................ 1,995.0 1,239.5 2,089.3 1,338.7 4.7 8.0 70.2 31.9 73.0 33.6 4.0 5.2 54.2 22.2 56.6 23.0 4.3 3.9 All other industries...................................... 2,346.2 2,473.4 5.4 105.0 113.1 7.7 92.3 99.4 7.7 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. increased 5.7 percent, the largest increase in deductions from Tax Years 1988-2004. Representing 41.6 percent of total 2004 business deductions, the cost of sales and operations was approximately $371.0 billion (Figure C), a 9.6-percent increase from the 2003 level. Total business “expenses” (total business deductions minus the cost of sales and operations) were $521.5 billion for 2004, an 8.2-percent increase from the 2003 amount. Figure D graphically presents the main components of total business expenses. The largest component, salaries and wages, accounted for 13.6 percent of the total. For 2004, salaries and wages totaled $71.1 billion, a 5.1-percent increase from 2003. The next largest components of business expenses were cars and trucks (11.3 percent), depreciation (8.2 percent), and rent on business property, machinery, and equipment (5.4 percent). For 2004, these items were $59.0 8 billion, $42.9 billion, and $36.9 billion, respectively. Car and truck expenses showed a 10.3-percent increase from 2003; depreciation a 2.7-percent increase, and rent on business property, machinery, and equipment a 3.4-percent increase. While contract labor, represented only 3.5 percent of all business expenses for 2003, it had the largest percentage increase for 2004 of 45.4 percent and went up to 4.7 percent of all business expenses. Beginning with 1993, constant dollar depreciation increased every year through 2003, except for 1995, when it decreased 1.9 percent to $28.5 billion [6]. However, for 2004, constant dollar depreciation showed a decrease for the first time in 9 years. This was possibly due to the rather large increase in allowable expensing of depreciation for 2003, leaving less to expense for 2004. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, a Sole Proprietorship Returns, 2004 Figure B Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2004 [Money amounts are in billions of dollars] Total business deductions 1 Total business receipts Constant dollars 2 Tax year 1988..................... 1989..................... 1990..................... 1991..................... 1992..................... 1993..................... 1994..................... 1995..................... 1996..................... 1997..................... 1998..................... 1999..................... 2000..................... 2001..................... 2002..................... 2003..................... 2004..................... Current Net income less deficit (profits) Constant dollars 2 Constant dollars 2 Percentage Current Percentage Current dollars Amount increase dollars Amount increase dollars Amount Percentage increase (1) (2) (3) (4) (5) (6) (7) (8) (9) 672.0 692.8 730.6 712.6 737.1 757.2 790.6 807.4 843.2 870.4 918.3 969.3 1,021.0 1,016.8 1,029.7 1,050.2 1,139.5 887.8 881.9 895.5 843.9 853.3 856.8 876.0 876.6 898.5 912.2 951.8 990.5 1,021.0 993.3 990.6 990.8 1,044.5 --0.7 1.5 -5.8 1.1 0.4 2.2 0.1 2.5 1.5 4.3 4.1 3.1 -2.7 -0.3 (³) 5.4 545.7 560.2 589.2 571.2 583.1 600.8 623.8 638.1 666.5 683.9 716.2 761.4 806.4 799.6 808.9 820.2 892.4 720.9 713.1 722.1 676.4 675.0 679.7 691.2 692.8 710.1 716.7 742.3 778.0 806.4 781.1 778.2 773.8 818.0 --1.1 1.3 -6.3 -0.2 0.7 1.7 0.2 2.5 0.9 3.6 4.8 3.6 -3.1 -0.4 -0.6 5.7 126.3 132.7 141.4 141.5 154.0 156.5 166.8 169.3 176.8 186.6 202.3 207.9 214.7 217.4 221.1 230.3 247.6 166.9 168.9 173.3 167.6 178.3 177.0 184.8 183.8 188.3 195.6 209.7 212.5 214.7 212.3 212.7 217.3 226.9 -1.2 2.6 -3.3 6.4 -0.7 4.4 -0.6 2.5 3.9 7.2 1.3 1.1 -1.1 0.2 2.1 4.4 ¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses (after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or deficit. ² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic Analysis, in the Survey of Current Business . The deflator represents the annual average of current-weighted prices, based on 2000 = 100. ³ Less than 0.05 percent. NOTE: Percentage increases were calculated before rounding. substantial increase in the maximum allowable Section 179 deduction from $24,000 for 2002 to $100,000 for 2003 led to depreciation increasing significantly by 11.7 percent in real terms. For 2004, with the179 deduction increasing to $102,000, depreciation deductions had only a slight change, a decrease (in real terms) of 0.2 percent (Figure E). Although not all of the growth in depreciation in 2003 can be attributed to the change in the Section 179 deduction, the significant increase in the deduction amount greatly impacted the depreciation deductions for sole proprietorships. With the extra depreciation expensed for 2003 and only a $2,000 increase in the 179 deduction amount between 2003 and 2004, there was relatively no change in depreciation deductions for 2004 [7, 8]. Beginning with Tax Year 1992, certain smaller businesses could elect not to itemize depreciation and other business deductions by filing Schedule C-EZ, Net Profit From Business, a simplified version of Schedule C, Profit or Loss From Business. (Schedule C and Schedule C-EZ are the source of sole proprietorship statistics.) For Tax Year 2004, taxpayers could use Schedule C-EZ if they: had business expenses of $5,000 or less (this was $2,500 for 2003); used the cash accounting method; had no inventories; did not report a deficit from the business; had only one business as a sole proprietor; had no employees; were not required to file Form 4562, Depreciation and Amortization, for the business; claimed no deduction for home business expenses; and had no prior-year disallowed passive activity losses from the business. Since taxpayers using Schedule C-EZ did not itemize business deductions, the detailed deductions in Table 2 are slightly understated and do not add to the totals. Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial sector. Approximately 3.7 million taxpayers filed Schedule C-EZ for Tax Year 9 Sole Proprietorship Returns, 2004 Figure C Components of Nonfarm Sole Proprietorship Business Deductions, Tax Years 2003 and 2004 [Money amounts are in millions of dollars] Business deductions 2003 2004 Percentage (1) (2) (3) Business deductions, total ¹.............. 820,206,714 892,402,428 8.8 Cost of sales and operations, total.. 338,376,959 370,951,227 9.6 increase 10 Inventory, beginning of year.............. 34,924,642 35,761,115 2.4 Cost of labor...................................... 28,032,070 31,768,695 13.3 Purchases......................................... 218,445,328 238,922,503 9.4 Materials and supplies...................... 46,554,634 53,267,879 14.4 Other costs........................................ 47,331,624 50,186,705 6.0 Inventory, end of year....................... 36,911,339 Business expenses, total ¹................ 481,829,755 38,955,669 521,451,201 5.5 8.2 Advertising expenses........................ 12,340,084 12,888,316 4.4 Car and truck expenses.................... 53,466,645 58,980,274 10.3 Commissions.................................... 13,502,446 13,267,025 -1.7 Contract labor................................... 16,977,798 24,686,741 45.4 Depletion........................................... 639,008 775,567 21.4 Depreciation ².................................... 41,754,963 42,900,776 2.7 Employee benefit programs.............. 2,421,673 2,617,800 8.1 Home office business deductions ²... 7,047,483 7,807,037 10.8 27.3 Depreciation, Form 8829.............. 858,891 1,093,415 Insurance.......................................... 17,489,210 18,864,229 7.9 Legal and professional services....... 8,284,557 8,959,140 8.1 Meals and entertainment deducted... 5,524,213 5,997,824 8.6 Mortgage interest.............................. 4,762,929 5,167,373 8.5 0.7 Other interest paid on business indebtedness.................................. 5,818,316 5,856,393 Office expenses................................ 11,849,079 12,362,672 4.3 Pension and profit-sharing plans....... 1,182,019 1,202,228 1.7 3.0 Rent on machinery and equipment... 8,470,304 8,728,363 Rent on other business property....... 27,201,706 28,139,206 3.4 Repairs.............................................. 13,221,220 14,762,464 11.7 Supplies............................................ 25,507,159 27,302,886 7.0 Salaries and wages........................... 67,640,849 71,068,517 5.1 Taxes paid........................................ 15,179,639 16,036,234 5.6 Travel................................................ 9,313,708 10,317,557 10.8 Utilities.............................................. 21,661,093 21,477,462 -0.8 Other business deductions................ 89,092,512 98,293,189 10.3 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. 2004, representing a 25.2-percent increase from the number filed for 2003. This large increase was probably due to the raising of allowable expenses on a Schedule C-EZ from $2,500 to $5,000. Of the 10 returns filed for 2004 in the administrative and support services sector (the largest filers of this schedule), taxpayers filed approximately 565 thousand Schedule C-EZ returns, or 28.3 percent of the total for that sector [9]. For 2004, business receipts from Schedule C-EZ filers totaled $24.6 billion, or 2.2 percent of total business receipts reported. Business deductions reported on Schedule C-EZ returns accounted for only 0.3 percent of total business deductions for all industries, or $3.0 billion of the total $892.4 billion. Even in the administrative and support services sector with its higher concentration of Schedule C-EZ filers, deductions reported on the Schedule C-EZ accounted for just 1.0 percent of that sector’s total business deductions. Profits and Losses For 2004, nearly all of the principal industrial sectors reported increased sole proprietorship profits (net income less deficit). Figure B presents total profits for all industries (in both current and constant dollars) since 1988, while Figure G presents profits by industrial sector for 2003 and 2004 [10]. Total profits increased 7.5 percent from $230.3 billion for 2003 to $247.6 billion for 2004. The wholesale trade sector reported the largest percentage change in profits for 2004, increasing 18.3 percent to $5.1 billion. The real estate and rental and leasing as well as the professional, scientific, and technical sector reported the second largest percentage increase in profits with 9.2 percent. In constant dollars, total profits increased 4.4 percent for 2004 (Figure B), the largest increase in profits since 1998. Despite the significant increase in total profits (in real terms), profits as a percentage of business receipts went down for 2004. Figure H displays net income less deficits as a percentage of business receipts. For Tax Year 2004, profits as a percentage of business receipts was 21.7 percent, slightly below the 21.9 percent for 2003. Since 1987, the highest percentage was for 1998 at 22.0 percent, while the lowest was for 1988 at 18.8 percent. Figure E presents net income and deficit separately for 1988 through 2004, in current and constant dollars. For 2004, net income (in constant dollars) increased 4.9 percent, and deficit (in constant dollars) increased 7.5 percent. Sole Proprietorship Returns, 2004 Figure D Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2004 ¹ Type of expenses Office expenses 2.4 Advertising expenses 2.5 Commissions 2.5 Repairs 2.8 Taxes paid 3.1 Insurance 3.6 Utilities 4.1 Contract labor 4.7 Supplies 5.2 Rent paid on business property, machinery, and equipment 7.1 Depreciation ² 8.2 Car and truck expenses 11.3 Salaries and wages 13.6 Other business deductions ³ 28.8 0 5 10 15 20 25 30 35 Percent of total ¹ Total business expenses equals all business deductions minus cost of sales and operations. ² Depreciation claimed on Form 8829 is included in "home office business deductions" and excluded from "depreciation" shown above. ³ Other business deductions includes: depletion; employee benefit programs; interest; legal and professional services; pension and profitsharing plans; travel, meals, and entertainment; and home office business deductions. Other business deductions also includes all Schedule CEZ deductions ($3.0 billion). NOTES: Percents are based on an estimated total business expense of $521.5 billion. Detail may not add to 100 percent because of rounding. Industries Using receipts as a measure of business size, Figures A and I show that construction was the largest sole proprietorship industrial sector for 2004, with 17.4 percent of all business receipts (surpassing the retail trade sector which was largest for 2003). Total receipts for the construction sector, at $198.4 billion, were 12.8-percent higher than the $175.8 billion reported for 2003, while deductions also increased by 13.9 percent, leading to a 7.4-percent increase in profits. The second largest industrial sector was retail trade, with receipts totaling $187.1 billion. This amount was 16.4 percent of all sole proprietorship receipts for 2004, and it represented a 5.7-percent increase from the 2003 amount. Deductions also increased in this sector by 5.9 percent. Retail trade profits increased 2.0 percent for 2004, totaling $8.1 billion. The third largest sector was professional, scientific, and technical services, which accounted for 12.1 percent of sole proprietorship receipts for 2004. Receipts increased 7.1 percent to $137.7 billion, and deductions increased 5.8 percent to $80.9 billion. Although this sector was the third largest sector in terms of business receipts, the professional, scientific, and technical services sector had the largest percent11 Sole Proprietorship Returns, 2004 Figure E Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2004 [Money amounts are in billions of dollars] Constant dollars 1 Current dollars Tax year Net income (1) (2) 1988........................... 1989........................... 1990........................... 1991........................... 1992........................... 1993........................... 1994........................... 1995........................... 1996........................... 1997........................... 1998........................... 1999........................... 2000........................... 2001........................... 2002........................... 2003........................... 2004........................... 145.5 152.4 161.7 162.4 173.5 177.0 187.8 191.7 200.1 210.5 226.2 233.4 245.2 250.2 257.3 269.1 290.5 19.2 19.7 20.2 20.9 19.5 20.5 21.0 22.5 23.4 23.8 23.9 25.5 30.5 32.8 36.2 38.8 42.9 Deficit Depreciation ² Percentage increase in constant dollars 1 Net income Deficit Depreciation ² Net income Deficit Depreciation ² (3) (4) (5) (6) (7) (8) (9) 26.1 24.5 23.7 23.1 23.3 25.0 26.2 26.2 27.4 28.6 29.1 30.6 32.2 33.4 36.6 41.8 42.9 192.2 194.0 198.2 192.3 200.8 200.3 208.1 208.2 213.2 220.6 234.5 238.5 245.2 244.4 247.5 253.9 266.3 25.4 25.1 24.8 24.8 22.6 23.2 23.3 24.4 24.9 25.0 24.8 26.0 30.5 32.0 34.8 36.6 39.3 34.5 31.2 29.0 27.4 27.0 28.3 29.0 28.5 29.2 30.0 30.2 31.3 32.2 32.7 35.3 39.4 39.3 -0.9 2.2 -3.0 4.4 -0.3 3.9 (³) 2.4 3.4 6.3 1.7 2.8 -0.3 1.3 2.6 4.9 --1.1 -1.3 (³) -8.8 2.8 0.3 4.8 2.1 0.3 -0.7 4.9 17.3 5.0 8.7 5.1 7.5 --9.6 -6.9 -5.8 -1.4 4.9 2.6 -1.9 2.4 2.9 0.7 3.7 2.8 1.4 8.0 11.7 -0.2 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. 12 Figure F Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2004 [Money amounts are in millions of dollars] Number of returns Total business receipts With Percentage On Percentage Schedule of Schedule of C-EZ total C-EZ total (2) (3) (5) (6) Industrial sector Total (1) All nonfarm industries................................. 20,590,691 Construction..................................................... 2,586,774 Total (4) Total business deductions ¹ On Total Percentage Schedule of C-EZ total (7) (8) (9) 2,991.9 0.3 403.8 0.2 3,703,927 18.0 1,139,523.8 24,574.8 2.2 892,402.4 417,400 16.1 198,364.4 3,135.2 1.6 167,342.7 Wholesale trade (merchant wholesalers)........ 350,824 51,572 14.7 40,849.6 442.4 1.1 35,735.4 35.4 0.1 Retail trade...................................................... 2,399,442 238,773 10.0 187,076.7 1,018.0 0.5 179,018.0 160.2 0.1 Transportation and warehousing..................... 982,832 129,112 13.1 65,303.9 947.9 1.5 56,584.5 152.3 0.3 Finance and insurance..................................... 672,687 65,770 9.8 73,125.9 642.1 0.9 55,556.1 59.0 0.1 Real estate and rental and leasing.................. 1,179,391 90,140 7.6 70,504.2 859.4 1.2 42,591.5 110.0 0.3 2,950,964 492,948 16.7 137,681.8 4,922.4 3.6 80,934.2 486.3 0.6 Professional, scientific, and technical services....................................... Administrative and support and waste management and remediation services......... 1,994,817 564,644 28.3 49,986.8 3,342.1 6.7 35,935.7 365.9 1.0 Health care and social assistance.................. 1,778,007 457,059 25.7 104,158.8 3,083.7 3.0 62,205.0 327.4 0.5 Arts, entertainment, and recreation.................. 1,132,171 195,987 17.3 26,359.3 737.5 2.8 20,571.7 165.4 0.8 Other services.................................................. 2,089,346 396,413 19.0 73,006.2 2,523.0 3.5 56,559.5 389.8 0.7 All other industries........................................... 2,473,436 604,109 24.4 113,106.0 2,921.3 2.6 99,368.1 336.3 0.3 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 from Business. See the text of this article for a 12 full list of the requirements to be eligible to file Schedule C-EZ. Sole Proprietorship Returns, 2004 Figure G age of sole proprietorship profits with 23.0 percent (see Figure J). For 2004, the professional, scientific, and technical services sector’s profits went from $52.1 billion to $56.9 billion, a 9.2-percent increase from 2003 profits. The sector with the second largest profits was health care and social assistance. These profits rose to $42.0 billion for 2004, a 5.4percent increase from 2003 levels. Tax Year 2001 is the first year in which data became available on the number of Limited Liability Companies (LLCs) among sole proprietorship returns. LLC entities have the limited liability of corporations, but are taxed as sole proprietorships--income and expenses flow through to the owner to be taxed. In 2001, there were approximately 126 thousand sole proprietorship returns that indicated status as an LLC (Figure K). This increased by 15.3 percent for 2002 and 51.2 percent for 2003. For Tax Year 2004, the number of these sole proprietorships rose to approximately 310 thousand, a 40.4-percent increase from 2003 [11]. Though the 2004 level of LLCs among sole proprietorship returns only counts for 1.5 percent of the total nonfarm sole proprietorships, these numbers are growing fast. Nonfarm Sole Proprietorship Profits, by Selected Industrial Sectors, Tax Years 2003 and 2004 [Money amounts are in billions of dollars] Net income less deficit (profits) Industrial sector Percentage 2003 2004 (1) (2) (3) All nonfarm industries.................................. 230.3 247.6 7.5 Construction........................................................ Specialty trade contractors.............................. 28.9 22.9 31.0 24.5 7.4 7.3 Wholesale trade (merchant wholesalers)........... Retail trade.......................................................... Transportation and warehousing......................... Finance and insurance........................................ Real estate and rental and leasing..................... Real estate...................................................... Professional, scientific, and technical services.. Administrative and support and waste management and remediation services.......... Health care and social assistance...................... Child day care services.................................... Arts, entertainment, and recreation..................... Performing arts, spectator sports, and related industries......................................... Other services..................................................... 4.3 7.9 8.2 16.3 25.5 25.6 52.1 5.1 8.1 8.8 17.6 27.9 27.9 56.9 18.3 2.0 6.6 8.2 9.2 9.3 9.2 13.0 39.8 3.5 5.5 14.1 42.0 3.6 5.8 8.2 5.4 3.0 6.2 5.2 16.0 5.5 16.5 4.8 3.2 Personal and laundry services........................ All other industries.............................................. 9.8 12.8 10.6 13.9 8.1 8.7 increase NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. Figure H Net Income Less Deficit (Profits) as a Percentage of Business Receipts, Tax Years 1988-2004 Percent 23 22.0 21.9 22 21.4 21.1 20.9 21 21.5 21.5 21.4 21.7 21.0 20.7 21.0 21.0 19.9 20 19.4 19.2 19 18.8 18 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Tax year 13 Sole Proprietorship Returns, 2004 Figure I Nonfarm Sole Proprietorship Total Business Receipts by Selected Industrial Sectors, Tax Year 2004 Arts, entertainment, and recreation 2.3 Wholesale trade (merchant wholesalers) 3.6 Administrative and support and waste management and remediation services 4.4 Transportation and warehousing 5.7 Real estate and rental and leasing 6.2 Other services 6.4 Finance and insurance 6.4 Health care and social assistance 9.1 All other industries 14 9.8 Professional, scientific, and technical services 12.1 Retail trade 16.4 Construction 17.4 0 5 10 15 20 Percent of total NOTES: Percents are based on an estimated total business receipts of $1,139.5 billion. Detail may not add to 100 percent because of rounding. Summary Profits for the 20.6 million returns with sole proprietorship activity for Tax Year 2004 grew 7.5 percent to a level of $247.6 billion. In constant dollars, total nonfarm sole proprietorship profits increased 4.4 percent, the largest increase since 1998. The wholesale trade sector reported the largest percentage growth in profits at 18.3 percent. The professional, scientific, and technical services sector had the 14 largest profits of any sector at $56.9 billion, representing 23.0 percent of total sole proprietorship profits, followed by the health care and social assistance sector at $42.0 billion, or 17.0 percent of total profits. For all sole proprietorships, receipts and deductions increased 8.5 percent and 8.8 percent, respectively. The largest sole proprietorship industrial sector, based on business receipts was the construction sector, accounting for 17.4 percent of Sole Proprietorship Returns, 2004 Figure J Nonfarm Sole Proprietorship Total Business Profits by Selected Industrial Sectors, Tax Year 2004 Wholesale trade (merchant wholesalers) 2.1 Arts, entertainment, and recreation 2.3 Retail trade 3.3 Transportation and warehousing 3.5 All other industries 5.6 Administrative and support and waste management and remediation services 5.7 Other services 6.6 Finance and insurance 7.1 Real estate and rental and leasing 11.3 Construction 12.5 Health care and social assistance 17.0 Professional, scientific, and technical services 23.0 0 5 10 15 20 25 Percent of total NOTES: Percents are based on an estimated total business profits of $247.6 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. receipts. This sector reported a 7.4-percent increase in profits. The finance and insurance sector showed the largest percentage increase in both receipts and deductions, reporting a 13.6-percent increase in receipts and a 15.5-percent increase in deductions. Filings of Schedules C-EZ increased rapidly (25.1 percent) with the doubling of allowable expenses on this form for 2004. Data Sources and Limitations The 2004 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 2004. Returns in the sample were stratified based on: (1) the presence or absence of Schedule C, Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net Profit From Business, and Schedule F, Farm Income and Expenses; (2) the larger of positive income or negative income (i.e., “adjusted gross income” before statutory adjustments); and (3) tax year. The returns were selected at rates that ranged from 0.05 percent to 100 percent. The 2004 nonfarm sole proprietorship data are based on a sample of 62,926 returns and a population of 20,848,447 returns [11]. The corresponding sample and population for the 2003 data were 55,935 and 19,987,964 returns, respectively. 15 Sole Proprietorship Returns, 2004 Figure K Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs), Tax Years 2001-2004 Tax year 2004 309,665 2003 220,615 145,839 2002 2001 126,437 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Number of LLCs 16 Since the data presented in this article are estimates based on a sample of returns filed, they are subject to sampling error. To properly use the statistical data estimates provided, the magnitude of the potential sampling error must be known; coefficients of variation (CVs) are used to measure that magnitude. Figure L presents estimated coefficients of variation for the number of returns and money amounts for selected items and industrial sectors. Generally, the smaller the coefficient of variation, the more reliable the estimate is judged to be. The Appendix to this issue of the Bulletin discusses the reliability of estimates based on samples, and the use of coefficients of variation for evaluating the precision of estimates based on samples. Notes and References [1] For 2004, the 20,590,691 nonfarm sole proprietorship returns accounted for an estimated 22,886,863 nonfarm businesses. For purposes of the statistics, if a proprietor owned more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial 16 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 2004. These classifications were applied on a “per business” (rather than on a “per establishment”) basis for Statistics of Income by combining various industry groups, although businesses were further combined as described above. While the wording of the industry titles used for the sole proprietorship statistics diverge somewhat from those appearing in NAICS, the definitions are consistent. [2] Statistics for “business receipts, total” in Table 2 represent the total receipts of the business, mainly gross receipts from sales and operations. Business receipts also include miscellaneous business receipts, such as incidental sales of scrap, shown separately in the statistics as “other business income.” However, business Sole Proprietorship Returns, 2004 Figure L Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial Sectors, Tax Year 2004 [Coefficients of variation are in percentages] Coefficients of variation Industrial sector Total business receipts ¹ (1) Total business deductions Depreciation ² Net income Deficit (2) (3) (4) (5) All nonfarm industries..................................................................... 0.64 0.71 1.35 0.91 1.72 Construction......................................................................................... 2.29 2.36 3.88 2.97 6.01 Speciality trade contractors............................................................. 2.80 2.89 4.60 3.51 7.46 Wholesale trade (merchant wholesalers)............................................ 5.31 5.48 10.56 8.02 12.35 Retail trade.......................................................................................... 2.30 2.27 4.19 3.86 4.49 Transportation and warehousing......................................................... 3.28 3.35 4.56 4.45 7.47 Finance and insurance......................................................................... 2.69 2.66 8.20 4.57 8.13 Real estate and rental and leasing...................................................... 2.85 3.00 4.94 3.62 6.32 Real estate....................................................................................... 2.96 3.16 5.42 3.68 7.10 Professional, scientific, and technical services................................... 2.09 2.37 4.12 2.51 5.28 7.75 Administrative and support and waste management and remediation services........................................................................ 3.68 4.21 6.52 3.85 Health care and social assistance....................................................... 2.12 2.21 3.95 2.57 8.88 Child day care services................................................................... 5.86 7.10 11.97 6.11 18.11 Arts, entertainment, and recreation...................................................... 4.27 4.26 6.42 5.92 6.05 Performing arts, spectator sports, and related industries................ 4.82 4.67 7.68 6.44 6.81 Other services...................................................................................... 3.22 3.48 5.55 3.92 7.47 Personal and laundry services......................................................... 3.97 4.29 8.43 5.00 9.90 All other industries............................................................................... 2.46 2.52 3.79 3.32 4.36 ¹ Positive only. ² Excludes depreciation claimed on Form 8829. 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. [3] Based on the overall implicit price deflator for Gross Domestic Product (GDP). See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business. Indices used for this article were: Year Indices 1988 75.7 1989 78.6 1990 81.6 Year Indices 1994 90.3 1995 92.1 1996 93.9 Year Indices 2000 100.0 2001 102.4 2002 103.9 1991 1992 1993 84.4 86.4 88.4 1997 1998 1999 95.4 96.5 97.9 2003 2004 106.0 109.1 [4] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from business income or loss, which is reported on the attached Schedule C, Profit or Loss From Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid to owners qualify as personal income, not as a business expense, and are, therefore, part of the owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made through the business as personal expenses on Schedule A, Itemized Deductions. However, the owner of a sole proprietorship may choose to deduct any foreign taxes paid as a business expense, unless the owner elects to claim these taxes as a credit against U.S. income tax. 17 Sole Proprietorship Returns, 2004 [5] Business deductions include home office business deductions. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use of Your Home, and the deductible portion brought forward to the 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. 18 [6] 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. [7] Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of Section 179 deduction (the amount of depreciable property that can be expensed for the cost of certain qualifying property) increased from $24,000 for 2002 to $100,000 for 2003 and $102,000 for 2004. For all tax returns that filed Form 4562, Depreciation and Amortization, the Section 179 property deducted as an expense increased by 8.7 percent to $39.7 billion for 2004. The Jobs Creation and Worker 18 Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the bonus percentage to 50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as advantageous as immediate expensing and therefore likely had less effect on their depreciation deductions. [8] For 2004, there were $19.9 billion deducted as Section 179 property on returns that had a Schedule C. This number does not reflect depreciation solely deducted on Schedule C as this could also include depreciation taken on Schedule E, Supplemental Income and Loss, and Schedule F, Profit or Loss from Farming. [9] Based on the NAICS system, the full name of the administrative and support services sector is the administrative and support and waste management and remediation services sector. The waste management and remediation services portions make up a small percentage of the overall numbers reported under this classification, which are detailed in Table 1. [10] 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. [11] 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. Sole Proprietorship Returns, 2004 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 Business Depreciation on machinery of returns receipts deduction 1,2 and equipment (1) (2) All nonfarm industries................................................................ 20,590,691 1,139,523,760 281,915 15,878,032 Agriculture, forestry, hunting, and fishing................................... 35,273 1,462,902 Animal production (including breeding of cats and dogs)............. Forestry and logging (including forest nurseries, timber tracts).................................... Rent paid Number 1 on other Interest paid business deduction property 1,3 Net income Payroll 1,4 less deficit 1 (3) (4) (5) 43,994,191 1,669,142 196,715 8,728,363 161,583 30,717 28,139,206 191,813 35,243 (6) (7) (8) 11,023,767 102,837,211 247,567,189 244,989 1,480,454 660,369 37,846 87,449 -282,054 Fishing.......................................................................................... Hunting and trapping..................................................................... Support activities for agriculture and forestry............................... 48,400 70,441 8,665 119,137 5,947,055 2,166,336 211,979 6,089,760 557,233 350,443 79,022 485,729 63,917 * 4,589 * 252 62,107 35,460 33,681 * 795 86,633 74,980 42,690 14,248 75,225 506,887 69,143 4,165 812,810 360,087 291,632 -67,714 358,419 Mining.............................................................................................. Oil and gas extraction................................................................... Coal mining................................................................................... Metal ore mining............................................................................ Nonmetallic mineral mining and quarrying.................................... Support activities for mining.......................................................... 125,923 103,469 1,135 * 1,335 4,527 15,458 9,202,124 6,650,892 507,160 * 110,121 467,784 1,466,167 723,616 517,910 33,171 * 21,411 45,803 105,322 24,968 11,332 * 1,274 * 2,369 3,147 6,847 52,068 41,400 * 711 * 39 3,297 6,622 88,646 61,205 * 6,708 * 370 9,476 10,886 377,073 107,482 * 66,319 * 12,443 61,869 128,960 1,372,340 992,096 -20,424 * 15,679 71,173 313,817 Utilities............................................................................................ Construction................................................................................... Residential building construction.................................................. Nonresidential building construction............................................. Heavy and civil engineering construction ................................... Specialty trade contractors........................................................... 11,795 2,586,774 374,490 80,950 47,320 2,084,014 308,232 198,364,423 46,626,584 9,541,450 7,508,085 134,688,305 23,832 8,032,625 1,306,249 276,377 598,615 5,851,383 * 10,090 1,378,644 213,176 62,918 176,561 925,989 * 5,311 1,044,355 134,396 27,218 27,441 855,300 * 9,673 1,364,121 329,870 71,521 148,328 814,402 * 8,443 26,964,195 5,495,273 1,145,922 586,424 19,736,577 41,922 31,038,488 4,913,506 932,519 654,918 24,537,546 Manufacturing................................................................................. Food manufacturing...................................................................... Textile and textile product mills..................................................... Apparel.......................................................................................... Leather and allied products........................................................... 351,204 29,074 4,551 29,678 * 3,838 25,824,798 3,449,144 316,682 1,585,687 * 99,464 1,145,102 79,700 * 12,537 39,339 * 2,941 185,809 4,452 * 2,016 8,584 -- 800,530 150,973 * 1,119 63,671 * 120 282,152 23,977 * 3,602 11,182 * 213 3,410,268 339,003 * 37,890 167,305 * 1,276 3,018,241 180,805 44,382 313,302 * 1,629 Wood products.............................................................................. Paper products.............................................................................. Printing and related support activities........................................... Petroleum and coal products........................................................ Chemical manufacturing............................................................... Plastics, rubber, clay, refractory, and glass products................... Nonmetallic mineral products........................................................ Primary metal industries................................................................ Fabricated metal products............................................................. Machinery...................................................................................... Computer and electronic products................................................ Electrical equipment, appliances, and components...................... Transportation equipment............................................................. Furniture and related products...................................................... Medical equipment and supplies................................................... Other miscellaneous manufacturing.............................................. 51,401 * 18 38,532 * 407 11,169 18,696 8,578 * 5,133 35,016 24,222 8,370 5,665 10,288 28,287 3,864 34,417 3,232,481 * 27,629 2,563,190 * 130,793 497,290 746,391 992,138 * 162,506 3,574,350 2,661,245 230,494 551,221 955,764 1,917,331 448,767 1,682,231 156,759 * 2,783 81,536 * 727 21,701 53,363 47,024 * 20,298 244,734 184,319 9,506 11,183 16,624 75,849 * 4,275 79,903 27,163 * 693 35,670 * 17 * 2,452 * 1,416 * 6,714 * 23 51,698 2,927 *4 * 662 * 18,970 10,448 * 3,816 8,084 67,416 * 258 144,532 * 20 * 4,926 32,315 * 5,300 * 162 78,453 63,550 * 6,443 12,966 21,605 85,564 * 20,354 40,782 33,793 * 420 23,357 * 26 * 2,462 20,213 9,477 * 2,340 43,538 25,711 * 611 * 5,459 36,145 13,813 * 1,139 24,672 523,968 * 4,268 341,146 * 1,411 * 33,454 104,815 172,281 * 579 585,232 413,157 * 8,253 63,786 104,964 163,699 * 29,779 314,004 348,726 * -709 199,361 * 6,093 58,692 68,035 92,249 * 40,598 312,585 415,265 71,908 69,363 36,531 432,369 158,137 168,919 Wholesale trade (merchant wholesalers)..................................... Durable goods, including machinery, wood, metals, etc............... Nondurable goods, including food, fiber, chemicals, etc............... Wholesale electronic markets and agents and brokers................ 350,824 149,399 118,760 82,665 40,849,558 18,307,028 16,338,556 6,203,974 598,001 306,032 191,979 99,990 139,742 78,142 52,577 9,024 434,172 223,059 164,408 46,704 204,294 89,997 99,082 15,215 1,273,027 547,124 638,846 87,057 5,128,810 2,008,014 1,428,062 1,692,734 Retail trade...................................................................................... Motor vehicle and parts dealers.................................................... Furniture and home furnishing stores........................................... Electronic and appliance stores.................................................... Building material and garden equipment and supplies dealers.... Food and beverage stores............................................................ Health and personal care stores................................................... Gasoline stations.......................................................................... Clothing and accessories stores................................................... 2,399,442 158,658 55,791 44,865 50,761 85,108 156,954 20,851 120,231 187,076,742 37,368,327 6,345,917 4,883,913 9,107,146 26,133,236 9,763,099 22,544,731 11,868,512 3,137,131 383,744 103,138 126,071 185,646 276,708 190,165 267,504 162,874 784,146 76,427 19,779 15,405 28,541 66,211 71,324 48,229 95,367 5,707,590 395,909 326,574 240,386 137,764 735,749 268,526 290,877 919,601 1,512,244 290,415 59,254 35,160 95,268 112,431 42,267 167,009 80,068 11,274,485 1,708,524 531,515 569,537 956,486 1,725,492 768,658 779,287 884,291 8,101,744 1,307,471 477,484 320,731 615,612 1,012,664 512,215 274,447 934,908 Sporting goods, hobby, book, and music stores........................... General merchandise stores......................................................... 133,070 34,661 7,479,548 5,388,473 171,461 72,038 24,257 6,342 386,629 201,128 84,617 45,421 451,685 349,470 217,403 183,609 Miscellaneous store retailers........................................................ 551,143 28,161,353 725,716 253,735 1,391,168 302,167 1,770,561 1,624,375 Nonstore retailers.......................................................................... Footnotes at end of table. 987,350 18,032,484 472,065 78,529 413,280 198,167 778,977 620,825 19 Sole Proprietorship Returns, 2004 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Transportation and warehousing......................................................... Air and rail transportation..................................................................... Water transportation............................................................................. General freight trucking, local............................................................... 20 20 Rent paid Number Business Depreciation on machinery on other Interest paid of returns receipts deduction 1,2 and business deduction 1,3 equipment 1 property 1 Net income Payroll 1,4 less deficit (1) (2) (3) (4) (5) (6) (7) (8) 982,832 15,824 5,606 216,673 65,303,903 970,991 377,275 18,221,665 5,539,440 328,036 27,838 1,490,437 1,828,319 10,163 * 63 294,684 640,671 22,748 11,298 103,423 906,945 54,203 2,605 209,736 4,292,880 41,612 4,517 2,043,744 8,756,499 -271,833 152,804 2,319,481 General freight trucking, long-distance and specialized freight trucking......................................................... Urban transit......................................................................................... Interurban and rural bus transportation................................................ Taxi and limousine service................................................................... School, employee, and charter bus industry......................................... Other transit and ground passenger transportation.............................. Pipeline transportation.......................................................................... Scenic and sightseeing transportation.................................................. Support activities for transportation (including motor vehicle towing)....................................................... Couriers and messengers..................................................................... Warehousing and storage facilities...................................................... 305,173 *8 * 1,946 132,510 23,218 24,556 -2,875 31,598,902 * 7,076 * 79,362 3,906,844 824,329 1,105,269 -102,087 2,972,169 -* 9,294 114,431 87,751 49,442 -33,458 907,980 -* 6,637 459,295 * 26,294 * 13,949 -* 4,334 184,357 --113,051 * 3,264 * 20,211 -* 4,418 506,068 --38,978 27,196 * 11,333 -11,635 1,385,060 * 4,873 * 10,800 79,752 61,948 * 211,961 -* 1,749 3,370,129 * -1,027 * 7,908 1,081,961 235,821 163,559 --47,131 37,500 208,050 8,893 2,164,631 5,428,770 516,701 185,587 168,564 72,434 19,193 82,581 3,147 112,470 32,616 32,814 21,825 13,503 9,864 216,094 187,018 43,749 292,535 1,408,386 43,907 Information............................................................................................. Publishing industries (except internet).................................................. Motion picture and sound recording..................................................... Broadcasting (except internet) and telecommunications...................... Internet publishing and broadcasting.................................................... Internet service providers, web search portals, and data processing... 295,031 91,795 64,025 44,285 24,636 70,289 8,044,330 2,405,480 1,954,105 1,692,541 345,060 1,647,144 441,967 65,626 257,644 87,126 4,211 27,360 80,003 13,960 55,666 3,422 * 5,292 1,663 242,063 24,575 147,937 54,037 * 851 14,663 68,264 17,303 15,826 25,491 * 5,527 4,117 719,281 177,608 113,930 222,155 * 12,846 192,743 1,901,666 673,220 127,482 280,667 141,102 679,195 Finance and insurance.......................................................................... Credit intermediation and related activities........................................... 672,687 100,590 73,125,906 5,354,120 1,332,606 225,624 290,373 20,313 1,399,366 144,833 621,998 120,779 3,915,629 267,382 17,598,689 1,441,206 Securities, commodity contracts, and other financial investments........ Investment bankers and securities dealers........................................ Securities brokers............................................................................... Commodity contracts brokers and dealers......................................... Securities and commodity exchanges................................................. Other financial investment activities (investment advice)................... Insurance agents, brokers, and related activities................................. Insurance agencies and brokerages................................................... Other insurance related activities....................................................... 154,797 7,654 18,323 10,396 605 117,818 417,301 321,451 95,850 38,721,972 2,218,751 4,952,584 727,299 1,240,237 29,583,101 29,049,814 24,897,407 4,152,407 304,813 8,509 34,720 12,554 1,225 247,806 802,169 675,048 127,121 103,921 6,763 43,887 * 2,713 -50,558 166,140 149,058 17,081 387,119 12,296 41,396 39,004 * 621 293,802 867,414 800,557 66,857 298,767 9,172 28,951 5,525 1,279 253,840 202,452 169,697 32,755 1,108,358 36,840 176,483 30,115 * 1,840 863,081 2,539,889 2,463,075 76,814 4,196,085 511,954 1,022,002 -45,928 -43,974 2,752,031 11,961,398 10,129,012 1,832,386 Real estate and rental and leasing....................................................... 1,179,391 Real estate............................................................................................ 1,113,911 Lessors of real estate (including miniwarehouses and self storage).................................... 38,277 Offices of real estate agents, brokers, property managers, and appraisers.................................................. 880,577 Other activities related to real estate.................................................. 195,057 Rental and leasing services.................................................................. 65,479 Automotive equipment rental and leasing........................................... 12,623 Consumer electronics and appliances rental...................................... * 352 Formal wear and costume rental........................................................ * 2,408 Video tape and disc rental.................................................................. 7,939 General rental centers and other consumer goods rental.................. 16,679 Commercial and industrial machinery and equipment rental and leasing..................................................... 25,479 70,504,236 66,553,847 3,874,335 2,629,771 494,374 421,889 1,176,160 1,014,109 1,237,175 1,069,617 1,941,274 1,639,014 27,906,990 27,943,474 2,191,958 229,066 23,744 85,181 301,750 128,525 218,955 51,239,559 13,122,330 3,950,389 526,696 * 83,869 * 42,479 569,876 759,490 1,959,354 441,352 1,244,564 202,142 * 5,456 * 2,150 55,534 105,886 353,151 44,994 72,485 * 13,678 * 243 * 46 * 3,402 18,114 799,480 129,448 162,051 8,365 * 13,681 * 2,694 89,854 18,874 360,447 407,419 167,558 21,360 * 702 *5 17,520 18,511 1,162,232 348,257 302,260 19,910 * 35,940 * 6,121 63,937 66,330 24,150,911 3,573,608 -36,484 9,427 * -7,931 * 11,251 20,175 -13,915 1,967,980 873,396 37,001 28,583 109,460 110,022 -55,492 Professional, scientific, and technical services.................................. 2,950,964 Legal services....................................................................................... 352,504 Office of certified public accountants.................................................... 55,696 Other accounting services.................................................................... 351,845 Architectural, engineering, and related services................................... 290,762 Architectural services.......................................................................... 99,930 Engineering services.......................................................................... 99,262 137,681,834 35,245,418 3,471,238 7,780,208 14,172,954 6,249,719 5,740,327 4,637,792 720,607 113,011 314,423 559,134 254,389 191,339 850,710 205,575 17,139 51,656 79,056 38,436 29,239 3,394,650 1,473,641 188,581 195,644 217,484 107,912 68,829 927,546 209,113 28,809 112,302 87,285 43,259 34,842 11,229,728 3,978,112 563,847 795,138 1,706,862 868,098 609,348 56,861,810 16,048,668 1,304,100 3,028,344 4,156,847 1,521,083 1,858,477 Drafting, building inspections, and geophysical surveying................. 66,619 1,251,984 43,677 * 3,280 24,969 * 4,070 106,907 475,766 Surveying and mapping (except geophysical) services...................... Testing laboratories............................................................................ Footnotes at end of table. 22,656 2,295 799,849 131,075 57,886 * 11,843 * 6,279 * 1,821 9,723 * 6,051 * 3,235 * 1,879 94,904 * 27,605 270,575 30,946 Sole Proprietorship Returns, 2004 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1,2 and equipment 1 on other Interest paid business deduction property 1,3 Net income Payroll 1,4 less deficit 1 (1) (2) (3) (4) (5) (6) (7) (8) 217,654 255,947 7,361,378 8,816,742 290,744 376,350 31,981 61,631 111,720 98,659 38,495 53,142 312,399 316,254 1,976,455 4,727,399 1,426,556 735,232 28,188 137,802 40,527 484,808 60,833,895 31,394,764 1,013,759 6,212,967 1,180,626 21,031,781 2,263,524 1,061,518 45,779 155,824 39,633 960,770 403,672 170,119 2,084 27,156 10,557 193,756 1,108,921 383,391 11,596 132,142 25,672 556,121 398,400 192,816 4,057 30,395 3,255 167,878 3,557,117 1,340,983 69,454 239,379 84,422 1,822,878 25,619,996 16,062,373 497,151 2,032,110 400,948 6,627,415 1,994,817 1,962,607 32,210 473,778 1,778,007 867,154 183,041 35,087 92,024 37,158 12,662 175,642 9,127 49,986,835 47,848,873 2,137,961 6,926,461 104,158,816 87,670,394 30,856,608 2,859,686 29,269,421 4,426,015 2,892,474 7,493,224 1,186,771 2,521,071 2,317,657 203,414 332,491 3,144,642 2,542,630 625,287 63,792 1,090,504 168,444 139,182 191,774 20,203 451,614 403,325 48,289 35,240 574,507 482,104 180,715 15,535 123,800 59,545 10,252 61,289 10,502 608,086 588,761 19,325 414,450 4,259,913 3,795,910 1,194,327 184,245 1,078,893 314,931 169,376 448,312 113,951 394,303 358,125 36,179 64,154 1,029,938 651,108 132,195 7,279 317,670 58,924 24,481 46,667 4,249 5,217,819 5,062,278 155,541 436,208 14,701,921 13,004,899 3,982,558 210,069 6,409,817 500,638 526,004 419,570 121,647 14,074,703 13,869,633 205,070 2,455,538 41,963,329 36,691,252 14,505,727 1,524,436 10,082,600 1,742,985 737,340 3,950,018 466,846 105,666 22,127 166,920 3,596,663 1,616,631 2,766,603 103,197 63,821 64,346 11,035 3,829 3,724 193,160 41,519 26,579 7,984 22,406 25,479 215,136 241,829 307,625 1,669,438 578,110 1,142,637 27,701 11,556 55,771 149,411 694,116 706,298 449,632 3,558,970 2,490,455 9,989,364 12,080 12,077 145,589 77,332 367,015 * 1,878 * 1,263 12,940 8,607 69,592 30,616 * 7,309 145,733 131,139 179,823 * 3,774 * 2,567 199,160 49,665 127,438 70,008 * 52,661 901,463 203,914 538,984 291,113 225,583 396,212 1,089,198 3,561,084 Arts, entertainment, and recreation............................................... 1,132,171 Performing arts, spectator sports, and related industries.............. 963,514 Museums, historical sites, and similar institutions......................... * 3,035 Amusement, gambling, and recreation industries.......................... 165,621 26,359,320 19,310,715 * 74,365 6,974,240 1,775,313 1,268,420 * 1,731 505,162 174,572 101,094 -73,478 828,264 441,944 -386,320 253,500 150,539 * 158 102,804 1,321,054 726,269 -594,785 5,792,899 5,466,714 * 43,101 283,084 Accommodation, food services, and drinking places................. Accommodation............................................................................. Travel accommodation (including hotels, motels, and bed and breakfast inns).............. RV (recreational vehicle) parks and recreational camps............. Rooming and boarding houses.................................................... Food services and drinking places................................................ 383,770 48,805 39,720,751 4,807,254 1,715,793 557,429 278,651 30,715 2,406,618 104,703 889,159 476,092 7,054,580 651,219 1,391,146 8,822 30,236 10,256 8,314 334,965 3,797,085 605,999 404,170 34,913,497 419,083 90,421 47,926 1,158,364 24,240 4,495 1,980 247,936 79,885 21,959 * 2,859 2,301,915 363,772 76,530 35,790 413,067 568,756 24,278 58,184 6,403,361 92,686 -29,282 -54,583 1,382,324 Other services................................................................................. 2,089,346 Auto repair and maintenance......................................................... 344,689 Automotive mechanical and electrical repair and maintenance... 179,170 Automotive body shops................................................................ 95,334 Other auto repair and maintenance (including oil change, lubrication, and car washes)................... 70,186 Miscellaneous repairs.................................................................... 405,970 Personal and laundry services....................................................... 1,338,687 73,006,151 24,419,559 11,649,920 8,395,054 3,113,737 1,145,520 472,405 413,331 947,472 227,408 108,645 75,757 4,458,533 837,953 400,088 260,015 872,891 358,419 143,635 125,531 7,070,915 3,045,612 1,578,647 905,495 16,457,988 2,930,959 1,356,007 1,205,974 4,374,585 14,994,662 33,591,931 259,784 612,207 1,356,010 43,005 152,436 567,628 177,850 381,421 3,239,159 89,254 196,913 317,559 561,469 1,252,775 2,772,528 368,978 2,948,041 10,578,988 3,635,138 3,566,169 56,853 178,702 11,860 25,686 40,206 34,386 * 12,318 39,458 * 49,885 98,091 1,681,245 1,362,773 Professional, scientific, and technical service --Continued Specialized design services........................................................... Computer systems design services............................................... Other professional, scientific, and technical services.................... Management, scientific, and technical consulting services......... Scientific research and development services............................. Advertising and related services.................................................. Market research and public opinion polling................................. Other miscellaneous services...................................................... Administrative and support and waste management and remediation services............................................................. Administrative and support services.............................................. Waste management and remediation services.............................. Educational services...................................................................... Health care and social assistance................................................. Ambulatory health care services.................................................... Offices of physicians (except mental health specialists).............. Offices of physicians, mental health specialists........................... Offices of dentists........................................................................ Offices of chiropractors................................................................ Offices of optometrists................................................................. Offices of mental health practitioners and social therapists........ Offices of podiatrists.................................................................... Outpatient care centers and other miscellaneous health practitioners................................... Medical and diagnostic laboratories............................................ Home health care services.......................................................... Other ambulatory health care services (including ambulance services, blood and organ banks)........... Hospitals........................................................................................ Nursing and residential care facilities............................................ Social assistance........................................................................... Child day care services.................................................................. Religious, grantmaking, civic, professional and similar organizations............................................................ Unclassified establishments.......................................................... Footnotes at end of table. 265,620 284,398 21 Sole Proprietorship Returns, 2004 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery of returns receipts deduction 1,2 and equipment (9) 1 on other Interest paid business deduction property 1,3 Payroll 1,4 Net income 1 (10) (11) (12) (13) (14) 971,377,184 29,362,885 6,839,094 21,976,979 6,648,429 169,072 11,802 12,203,678 1,185,643 875,157 59,300 91,956 * 2,857 109,266 26,529 138,511 21,097 1,130,204 * 76,560 2,308,533 207,116 Fishing.......................................................................................... Hunting and trapping.................................................................... Support activities for agriculture and forestry............................... 28,058 47,819 5,795 75,599 4,475,983 1,662,031 131,585 4,748,437 372,547 182,488 * 11,195 249,626 45,785 * 1,509 -41,805 13,261 20,711 -48,765 43,654 21,591 * 5,197 46,972 361,769 * 43,941 * 36 647,898 578,150 574,269 28,970 920,030 Mining............................................................................................. Oil and gas extraction................................................................... Coal mining................................................................................... Metal ore mining........................................................................... 98,943 82,834 * 1,051 * 354 7,275,659 5,353,963 * 77,068 * 109,798 437,892 300,864 * 2,441 * 21,319 17,372 7,237 * 42 * 1,605 42,615 34,614 * 330 * 16 52,338 34,249 * 178 * 370 247,399 62,960 * 9,826 * 12,227 2,080,574 1,624,615 * 17,971 * 18,057 Nonmetallic mineral mining and quarrying................................... Support activities for mining......................................................... 2,508 12,196 389,079 1,345,751 32,962 80,306 * 2,399 6,088 * 1,389 6,266 7,228 10,313 50,516 111,870 81,668 338,264 Utilities............................................................................................ Construction................................................................................... Residential building construction.................................................. Nonresidential building construction............................................ 9,146 2,127,410 302,012 63,983 251,675 174,956,534 40,918,175 7,774,489 * 12,391 6,195,445 1,059,927 193,599 * 1,623 1,113,350 168,675 46,124 * 2,792 860,074 109,488 25,148 * 451 985,755 233,445 38,270 * 8,228 22,621,722 4,658,313 922,475 99,146 35,130,228 5,741,610 1,220,989 Heavy and civil engineering construction ................................... Specialty trade contractors........................................................... 37,124 1,724,291 6,180,477 120,083,392 504,161 4,437,758 162,398 736,153 19,755 705,683 106,255 607,785 471,730 16,569,204 880,302 27,287,328 Manufacturing................................................................................ Food manufacturing...................................................................... Textile and textile product mills.................................................... Apparel......................................................................................... Leather and allied products.......................................................... 224,199 20,124 * 2,524 17,677 * 1,850 21,979,899 2,974,797 * 256,523 1,435,185 * 97,537 824,575 48,577 * 10,775 23,537 *7 129,652 2,617 * 795 * 8,560 -- 600,827 118,440 -32,397 * 120 184,553 10,965 * 2,902 * 5,067 * 213 2,770,917 253,155 * 18,890 153,886 * 1,276 3,980,453 294,382 * 66,763 378,246 * 8,919 Wood products............................................................................. Paper products............................................................................. Printing and related support activities.......................................... 35,298 *7 23,862 2,893,226 * 23,155 2,072,384 107,019 * 1,147 53,568 25,633 * 693 22,284 55,715 * 258 100,850 26,892 * 331 18,172 500,228 * 3,825 251,535 424,441 * 272 318,381 Petroleum and coal products........................................................ Chemical manufacturing............................................................... Plastics, rubber, clay, refractory, and glass products................... * 393 5,160 13,482 * 130,570 404,583 609,210 * 626 18,900 21,206 * 17 * 2,452 * 496 * 20 * 4,198 * 26,167 * 26 * 1,651 * 12,114 * 1,411 * 30,433 * 93,477 * 6,596 85,743 121,486 Nonmetallic mineral products....................................................... Primary metal industries............................................................... Fabricated metal products............................................................ 6,904 * 3,851 20,462 717,978 * 158,756 2,820,617 37,579 * 17,103 199,698 * 5,410 * 23 31,023 * 1,915 * 162 40,443 * 3,610 * 481 27,793 104,026 * 579 471,180 101,850 * 45,427 455,896 Machinery..................................................................................... Computer and electronic products................................................ Electrical equipment, appliances, and components..................... 19,131 * 2,761 4,328 2,406,330 * 207,516 504,764 141,596 * 2,134 9,034 2,383 -* 239 50,198 * 5,918 * 10,504 19,003 * 387 * 4,716 376,175 * 4,019 * 48,147 461,357 * 122,184 105,486 Transportation equipment............................................................. Furniture and related products..................................................... Medical equipment and supplies.................................................. 4,400 20,314 3,852 633,854 1,750,824 443,802 * 9,854 57,438 * 3,884 * 18,935 * 1,624 * 3,809 * 17,793 83,944 * 20,001 * 15,490 12,551 * 1,007 * 28,950 154,426 * 27,190 95,955 467,551 160,417 Other miscellaneous manufacturing............................................. Wholesale trade (merchant wholesalers).................................... Durable goods, including machinery, wood, metals, etc............... 17,820 235,915 88,536 1,438,288 35,783,987 16,787,457 60,894 397,381 214,924 * 2,657 115,956 62,391 31,784 313,215 173,343 21,182 146,929 65,873 248,110 1,005,268 464,343 259,099 6,070,740 2,402,728 Nondurable goods, including food, fiber, chemicals, etc.............. Wholesale electronic markets and agents and brokers................ 86,462 60,917 13,280,104 5,716,426 107,414 75,043 45,856 7,709 109,213 30,659 69,128 11,928 464,183 76,742 1,822,211 1,845,801 Retail trade..................................................................................... Motor vehicle and parts dealers................................................... Furniture and home furnishing stores........................................... Electronic and appliance stores................................................... Building material and garden equipment and supplies dealers.... 1,203,794 112,012 31,781 27,747 36,017 149,998,167 31,096,834 5,286,450 4,382,867 7,224,426 1,813,784 269,181 80,257 112,540 132,537 514,288 60,454 17,886 13,082 16,895 3,982,267 276,637 234,919 192,254 109,339 843,138 182,611 50,542 24,248 68,648 8,751,547 1,442,753 415,662 505,370 700,475 15,672,409 1,844,493 733,814 483,389 876,775 Food and beverage stores............................................................ Health and personal care stores................................................... Gasoline stations.......................................................................... 61,963 55,600 14,055 23,750,297 8,681,185 16,610,552 218,513 100,849 161,606 57,906 64,187 34,425 618,074 193,041 226,211 78,626 30,142 107,110 1,552,139 719,962 514,973 1,365,979 1,038,328 432,009 Clothing and accessories stores................................................... Sporting goods, hobby, book, and music stores........................... General merchandise stores........................................................ 70,967 64,205 23,656 9,752,412 5,027,062 4,197,939 100,812 79,352 32,832 72,708 11,766 4,222 724,730 234,932 145,187 50,886 42,821 22,678 714,553 244,735 269,146 1,394,513 697,063 348,427 Miscellaneous store retailers........................................................ 268,485 20,836,053 316,023 112,000 802,292 117,264 1,177,316 3,525,283 Nonstore retailers......................................................................... Footnotes at end of table. 437,307 13,152,090 209,283 48,756 224,652 67,563 494,463 2,932,335 All nonfarm industries................................................................ 15,053,252 Agriculture, forestry, hunting, and fishing.................................. Animal production (including breeding of cats and dogs)............. (15) (16) 83,455,835 290,486,159 Forestry and logging (including forest nurseries, timber tracts)................................... 22 22 Sole Proprietorship Returns, 2004 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery on other Interest paid of returns receipts deduction 1,2 and business deduction 1,3 equipment 1 property 1 Payroll 1,4 Net income (9) (10) (11) (12) (13) (14) (15) (16) 801,855 10,124 2,279 169,596 53,661,944 386,707 287,902 14,312,066 3,608,928 22,480 * 7,218 979,916 1,525,014 * 3,011 *4 255,931 491,327 * 7,970 * 11,020 75,643 600,200 7,118 * 553 142,387 2,757,661 * 11,929 * 3,719 1,224,249 10,981,020 87,896 199,147 2,930,162 240,916 -* 1,946 116,848 20,909 18,343 -* 1,231 25,999,235 -* 79,362 3,378,867 670,329 1,037,321 -* 55,457 2,113,660 -* 9,294 100,666 39,047 * 22,309 -* 1,968 732,234 -* 6,637 422,563 * 6,941 * 3,610 -* 58 138,364 --90,755 * 2,753 * 19,873 -*2 356,664 --34,026 18,794 * 8,060 -* 1,892 840,319 -* 10,800 * 41,272 * 39,967 * 211,961 -*4 4,101,740 -* 7,908 1,174,729 279,101 209,229 -* 26,868 31,176 180,923 7,565 1,945,094 5,165,310 344,293 141,501 148,590 22,278 13,730 79,283 * 1,012 102,720 32,071 * 10,158 17,023 11,866 * 1,818 173,586 184,124 * 15,731 337,287 1,517,639 109,313 Information........................................................................................... Publishing industries (except internet)............................................... Motion picture and sound recording................................................... Broadcasting (except internet) and telecommunications.................... Internet publishing and broadcasting................................................. Internet service providers, web search portals,and data processing. 195,125 65,773 34,637 31,592 15,823 47,299 6,979,492 2,088,071 1,595,438 1,471,265 313,502 1,511,217 225,021 44,490 105,865 54,493 * 3,121 17,053 54,453 11,079 40,735 * 1,815 * 12 811 112,463 20,543 44,955 42,475 * 192 4,299 25,363 10,570 8,139 * 2,665 * 151 3,839 512,066 105,442 87,506 162,142 * 2,948 154,027 3,024,488 943,862 614,601 443,451 184,697 837,878 Finance and insurance........................................................................ Credit intermediation and related activities........................................ 469,714 79,258 49,765,512 4,887,670 941,927 113,774 259,079 17,802 1,216,272 112,775 349,366 50,061 3,442,906 237,590 19,913,216 1,741,384 Securities, commodity contracts, and other financial investments..... Investment bankers and securities dealers...................................... Securities brokers............................................................................. Commodity contracts brokers and dealers....................................... Securities and commodity exchanges.............................................. Other financial investment activities (investment advice)................. Insurance agents, brokers, and related activities............................... Insurance agencies and brokerages................................................ Other insurance related activities..................................................... 88,644 3,878 12,309 2,928 * 18 69,511 301,812 229,432 72,379 17,842,789 885,263 2,974,186 370,441 * 224,349 13,388,551 27,035,053 23,175,424 3,859,629 187,073 7,537 25,953 2,711 * 384 150,488 641,080 569,471 71,609 86,077 6,723 43,449 * 16 -35,889 155,200 138,127 17,072 295,232 11,229 38,536 31,692 * 290 213,485 808,266 748,672 59,594 123,837 * 2,691 24,440 * 657 *7 96,041 175,468 143,878 31,590 770,595 25,982 134,495 * 8,250 * 75 601,793 2,434,721 2,360,056 74,665 5,433,611 570,757 1,107,284 168,865 * 1,593 3,585,112 12,738,222 10,744,526 1,993,696 Real estate and rental and leasing..................................................... Real estate......................................................................................... Lessors of real estate (including miniwarehouses and self storage)................................. Offices of real estate agents, brokers, property managers, and appraisers............................................... Other activities related to real estate................................................ Rental and leasing services............................................................... Automotive equipment rental and leasing........................................ Consumer electronics and appliances rental................................... Formal wear and costume rental...................................................... Video tape and disc rental................................................................ General rental centers and other consumer goods rental................ Commercial and industrial machinery and equipment rental and leasing.................................................. 840,003 802,223 63,625,097 60,885,984 2,319,943 1,858,565 400,145 343,965 930,680 822,986 530,983 468,003 1,507,800 1,316,214 31,090,576 30,504,507 23,102 1,533,765 78,940 22,598 50,889 114,017 57,822 454,579 642,935 136,186 37,780 8,801 *3 * 2,408 4,159 6,747 48,048,447 11,303,773 2,739,113 377,419 * 99 * 42,479 420,416 644,613 1,520,908 258,717 461,378 61,785 * 42 * 2,150 48,238 67,474 286,491 34,876 56,180 * 11,425 -* 46 * 742 * 13,497 666,290 105,807 107,694 * 5,261 -* 2,694 61,706 * 15,955 209,999 143,986 62,980 8,648 -*5 5,912 8,012 993,543 264,849 191,586 * 12,764 -* 6,121 * 36,529 * 57,333 25,752,325 4,297,604 586,069 84,852 * 51 * 11,251 67,595 106,880 Transportation and warehousing....................................................... Air and rail transportation................................................................... Water transportation........................................................................... General freight trucking, local............................................................ General freight trucking, long-distance and specialized freight trucking........................................................ Urban transit....................................................................................... Interurban and rural bus transportation.............................................. Taxi and limousine service................................................................. School, employee, and charter bus industry...................................... Other transit and ground passenger transportation........................... Pipeline transportation....................................................................... Scenic and sightseeing transportation............................................... Support activities for transportation (including motor vehicle towing)..................................................... Couriers and messengers.................................................................. Warehousing and storage facilities.................................................... 15,662 1,254,087 281,689 30,470 22,079 40,403 78,839 315,439 Professional, scientific, and technical services............................... 2,183,278 Legal services.................................................................................... 275,016 Office of certified public accountants................................................. 46,813 Other accounting services.................................................................. 277,418 Architectural, engineering, and related services................................ 216,046 Architectural services....................................................................... 76,756 Engineering services........................................................................ 74,069 125,295,367 33,900,532 3,213,170 7,286,000 12,165,793 5,417,147 4,760,617 3,340,795 600,340 90,830 224,249 380,706 181,960 117,523 723,672 188,077 15,184 42,400 64,061 30,904 22,546 2,892,611 1,398,911 163,317 163,401 170,653 90,927 50,204 632,247 162,631 23,522 87,985 53,028 38,578 6,076 9,196,686 3,765,676 518,553 721,087 1,320,710 710,050 413,301 61,721,883 16,486,633 1,376,228 3,430,675 4,585,371 1,691,417 2,035,129 Drafting, building inspections, and geophysical surveying............... 44,508 1,155,790 22,972 * 2,740 * 21,048 * 4,070 97,232 523,365 Surveying and mapping (except geophysical) services................... Testing laboratories.......................................................................... Footnotes at end of table. 19,429 * 1,285 754,171 * 78,067 52,118 * 6,132 * 6,279 * 1,592 4,730 * 3,744 * 3,235 * 1,070 94,904 * 5,223 296,324 * 39,135 23 Sole Proprietorship Returns, 2004 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System --Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Rent paid Industrial sector Rent paid Number Business Depreciation on machinery on other Interest paid of returns receipts deduction 1,2 and business deduction 1,3 Payroll 1,4 Net income equipment 1 property 1 (9) (10) (11) (12) (13) (14) (15) (16) 149,577 191,675 6,633,893 7,874,626 213,243 234,715 22,549 47,943 88,834 72,580 29,021 16,322 258,617 245,588 2,242,233 5,019,271 Other professional, scientific, and technical services..................... 1,026,734 Management, scientific, and technical consulting services.......... 529,879 Scientific research and development services.............................. 21,097 Advertising and related services................................................... 103,250 Market research and public opinion polling.................................. 28,737 Other miscellaneous services....................................................... 343,770 54,221,354 27,659,193 872,620 5,881,554 1,137,042 18,670,945 1,596,712 774,107 29,076 129,164 13,835 650,530 343,457 147,718 * 1,771 25,497 10,557 157,915 834,914 232,494 * 1,644 108,308 25,661 466,808 259,737 108,275 * 1,815 25,782 * 1,435 122,431 2,366,456 571,103 * 19,267 223,017 84,422 1,468,647 28,581,472 17,649,438 593,965 2,274,191 445,111 7,618,767 1,643,845 1,621,349 22,496 43,701,525 42,102,400 1,599,125 1,760,187 1,603,797 156,391 275,823 260,343 15,480 438,843 429,063 9,780 247,955 216,416 31,539 4,088,011 3,969,889 118,122 16,277,863 15,966,737 311,125 Educational services....................................................................... 379,545 Health care and social assistance.................................................. 1,483,957 Ambulatory health care services..................................................... 728,547 6,385,017 98,388,798 84,697,189 197,540 2,555,082 2,197,793 19,597 498,751 437,572 348,010 3,829,368 3,491,392 16,321 732,088 547,671 378,673 13,371,335 12,355,918 2,977,993 43,796,313 37,684,712 Professional, scientific, and technical service --Continued Specialized design services........................................................... Computer systems design services................................................ Administrative and support and waste management and remediation services.............................................................. Administrative and support services............................................... Waste management and remediation services............................... 24 Offices of physicians (except mental health specialists).............. Offices of physicians, mental health specialists........................... Offices of dentists......................................................................... Offices of chiropractors................................................................. Offices of optometrists.................................................................. Offices of mental health practitioners and social therapists......... 155,788 30,868 79,388 32,360 12,137 141,045 29,838,904 2,724,653 28,639,982 4,225,063 2,803,900 7,220,090 543,316 60,596 975,276 142,592 108,791 177,363 168,741 11,753 116,566 47,139 9,782 58,941 1,110,924 168,345 1,026,278 292,743 160,066 398,436 114,330 2,836 280,220 49,421 24,325 45,208 3,758,792 180,112 6,217,984 466,988 512,334 409,206 14,883,180 1,541,268 10,234,813 1,803,021 742,993 4,057,996 Offices of podiatrists..................................................................... Outpatient care centers and 5,927 1,180,553 20,203 * 8,084 113,928 4,061 121,647 475,430 other miscellaneous health practitioners.................................... Medical and diagnostic laboratories............................................. Home health care services........................................................... Other ambulatory health care services (including ambulance services, blood and organ banks)............ 81,650 21,311 146,471 3,403,537 1,512,694 2,524,594 72,152 54,276 33,840 10,788 1,829 3,603 138,900 37,857 17,476 4,030 20,973 1,718 193,999 226,772 227,283 1,769,781 592,832 1,243,696 21,600 623,219 9,387 * 345 26,440 * 548 * 40,803 339,702 Hospitals......................................................................................... Nursing and residential care facilities............................................. Social assistance............................................................................ Child day care services.................................................................. 11,399 41,889 113,115 589,008 351,432 2,374,206 2,201,397 8,764,574 * 10,786 73,193 44,942 228,368 * 765 3,360 2,775 54,279 * 4,249 93,018 103,693 137,015 * 860 89,081 15,821 78,655 * 3,157 465,153 138,145 408,962 235,657 591,808 1,260,970 4,023,167 Arts, entertainment, and recreation................................................ Performing arts, spectator sports, and related industries............... 676,031 563,076 21,143,256 16,167,978 752,903 519,300 102,721 52,061 423,605 198,191 96,008 52,288 939,009 540,461 9,071,473 8,062,708 Museums, historical sites, and similar institutions.......................... Amusement, gambling, and recreation industries........................... * 3,021 109,935 * 74,257 4,901,020 * 1,367 232,236 -50,660 -225,414 -43,719 -398,548 * 43,742 965,023 Accommodation, food services, and drinking places.................. Accommodation.............................................................................. Travel accommodation (including hotels, motels, and bed and breakfast inns).............. 245,617 23,438 29,544,477 3,015,227 885,340 241,502 199,504 16,312 1,643,369 60,879 467,329 219,911 4,879,350 325,747 3,413,616 561,093 16,349 2,432,727 193,099 10,848 38,137 203,572 287,218 431,088 RV (recreational vehicle) parks and recreational camps.............. Rooming and boarding houses..................................................... Food services and drinking places................................................. 4,032 3,056 222,179 383,605 198,895 26,529,250 38,319 * 10,084 643,838 * 4,204 * 1,260 183,191 * 19,969 * 2,773 1,582,490 13,068 * 3,272 247,418 18,519 * 20,010 4,553,604 72,229 57,775 2,852,524 Other services.................................................................................. 1,635,119 Auto repair and maintenance.......................................................... 252,943 Automotive mechanical and electrical repair and maintenance.... 130,225 Automotive body shops................................................................. 73,696 63,786,547 21,145,775 10,185,391 7,262,105 2,102,675 790,447 337,624 303,647 768,224 207,972 93,910 72,330 3,678,638 710,515 328,179 219,474 586,671 246,618 111,333 74,892 5,715,593 2,580,881 1,422,524 723,514 19,228,424 3,730,555 1,652,555 1,499,617 Other auto repair and maintenance (including oil change, lubrication, and car washes).................... Miscellaneous repairs..................................................................... Personal and laundry services....................................................... 49,023 308,261 1,073,915 3,698,278 13,005,927 29,634,845 149,176 447,385 864,843 41,732 118,344 441,908 162,862 261,111 2,707,013 60,392 99,458 240,595 434,843 1,081,594 2,053,118 578,383 3,461,532 12,036,337 Religious, grantmaking, civic, professional and similar organizations............................................................. Unclassified establishments........................................................... 199,047 231,636 3,410,095 3,240,458 34,634 81,285 * 6,580 21,335 * 35,898 24,839 * 1,535 10,689 * 48,295 83,164 1,992,736 1,654,474 * Estimate should be used with caution because of the small number of sample returns on which it is based. 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 24 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. NOTE: Detail may not add to totals because of rounding. Sole Proprietorship Returns, 2004 Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected 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 Total industries Mining Forestry Support production and logging (including (including forest breeding nurseries, of cats and timber tracts) 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 20,590,691 281,915 35,273 48,400 70,441 8,665 119,137 125,923 Business receipts, total ¹..................................... 1,139,523,760 15,878,032 1,462,902 5,947,055 2,166,336 211,979 6,089,760 9,202,124 Income from sales and operations ¹.................... 1,122,226,857 8,914,512 Number of returns ¹.............................................. 15,515,105 1,394,826 5,805,868 2,117,396 211,478 5,985,538 Other business income....................................... 17,296,903 362,927 68,076 141,187 48,941 *501 104,222 287,612 Business deductions, total 1,2 ................................. 892,402,428 15,232,473 1,747,516 5,587,068 1,874,718 279,968 5,743,203 7,836,034 Cost of sales and operations, total...................... 370,951,227 4,864,964 538,467 2,198,929 309,508 61,609 1,756,451 1,879,807 Inventory, beginning of year............................. 35,761,115 450,637 75,045 122,353 *24,660 *24,351 204,229 154,949 Cost of labor..................................................... 31,768,695 237,260 *33,150 80,763 *60,722 *651 61,974 76,364 Purchases........................................................ 238,922,503 3,110,514 407,609 1,041,536 *164,931 *19,619 1,476,819 519,149 Materials and supplies..................................... 53,267,879 437,925 28,129 238,773 39,154 *10,836 121,032 325,490 Other costs....................................................... 50,186,705 1,120,825 75,336 869,100 44,502 *36,041 95,847 989,122 185,267 Inventory, end of year...................................... 38,955,669 492,197 80,802 153,595 *24,461 *29,889 203,449 Advertising expenses.......................................... 12,888,316 100,088 11,058 14,875 10,477 4,423 59,254 15,475 Car and truck expenses...................................... 58,980,274 716,128 63,034 175,492 128,295 6,972 342,335 187,192 Commissions....................................................... 13,267,025 101,605 5,744 37,693 *706 *1,641 55,821 13,330 Contract labor..................................................... 24,686,741 517,297 54,888 214,093 77,345 6,179 164,792 204,060 Depletion............................................................. 775,567 6,976 *1 *6,971 -- -- *5 652,450 Depreciation........................................................ 42,900,776 1,663,360 193,695 556,430 349,296 79,022 484,917 722,527 Employee benefit programs................................ 2,617,800 21,450 4,159 6,969 *82 *33 10,207 21,840 Insurance............................................................ 18,864,229 444,033 32,653 190,531 60,483 5,050 155,316 109,190 Legal and professional services.......................... 8,959,140 101,240 25,388 24,348 19,445 2,142 29,916 104,725 Meals and entertainment deducted..................... 5,997,824 54,166 7,868 7,023 24,081 *688 14,507 20,944 Mortgage interest................................................ 5,167,373 105,893 24,606 15,998 21,743 *12,367 31,179 22,336 Other interest paid on business indebtedness.... 5,856,393 139,096 13,240 58,982 20,947 *1,882 44,046 66,310 Office expenses.................................................. 12,362,672 62,112 8,707 13,303 9,197 528 30,378 49,620 Pension and profit-sharing plans........................ 1,202,228 8,002 -- 2,890 -- -- *5,113 3,013 Rent on machinery and equipment..................... 8,728,363 161,583 30,717 63,917 *4,589 *252 62,107 24,968 Rent on other business property......................... 28,139,206 191,813 35,243 35,460 33,681 *795 86,633 52,068 Repairs................................................................ 14,762,464 659,372 33,511 321,265 106,430 3,831 194,335 192,034 Supplies.............................................................. 27,302,886 539,356 98,368 114,460 96,581 11,472 218,474 72,787 Salaries and wages............................................. 71,068,517 1,243,193 54,300 426,123 *8,421 3,513 750,836 300,709 Taxes paid........................................................... 16,036,234 296,504 12,366 96,811 43,280 5,550 138,497 263,747 Travel.................................................................. 10,317,557 100,975 22,890 14,895 27,636 *760 34,794 36,982 Utilities................................................................ 21,477,462 224,233 34,922 54,333 31,211 10,734 93,034 90,475 Other business deductions................................. 98,293,189 2,856,618 439,083 931,936 476,194 59,643 949,762 2,699,160 Home office business deductions....................... 7,807,037 29,488 *827 3,186 *8,641 *883 15,952 12,803 Depreciation, Form 8829.................................. 1,093,415 5,782 *3,020 *803 *1,147 -- 813 1,090 Casualty loss, Form 8829................................ 38,187 *84 *14 -- -- -- *69 -- Excess--casualty depreciations, Form 8829.... 679,264 4,705 *1,353 *602 *971 -- *1,780 *479 Net income less deficit........................................ 1,2 247,567,189 660,369 -282,054 360,087 291,632 -67,714 358,419 1,372,340 Net income 1,2 ...................................................... 290,486,159 2,308,533 207,116 578,150 574,269 28,970 920,030 2,080,574 Deficit ²................................................................ 42,918,970 1,648,164 489,169 218,063 282,637 96,684 561,610 708,234 Footnotes at end of table. 25 Sole Proprietorship Returns, 2004 Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected 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 Total industries Mining Forestry Support production and logging (including (including forest breeding nurseries, of cats and timber tracts) Hunting Fishing activities and for trapping agriculture Total and forestry dogs) (1) (2) (3) (4) (5) (6) (7) (8) BUSINESSES WITH NET INCOME 26 Number of returns ¹.............................................. 15,053,252 169,072 11,802 28,058 47,819 5,795 75,599 98,943 Business receipts, total ¹..................................... 971,377,184 12,203,678 1,185,643 4,475,983 1,662,031 131,585 4,748,437 7,275,659 Income from sales and operations ¹.................... 957,180,075 11,939,861 1,128,473 4,378,259 1,622,161 131,427 4,679,541 7,075,818 Other business income....................................... 14,197,110 263,818 57,170 97,724 39,870 *157 68,896 199,841 Business deductions, total 1,2.............................. 680,922,716 9,895,158 978,527 3,897,833 1,087,775 *102,615 3,828,408 5,195,499 Cost of sales and operations, total...................... 287,540,846 3,673,695 490,658 1,631,510 173,493 *6,101 1,371,932 1,199,404 Inventory, beginning of year............................. 22,889,773 185,749 47,576 43,195 *9,691 *1,141 84,146 83,221 Cost of labor..................................................... 25,594,783 194,160 *30,474 61,077 *43,303 *36 59,270 19,541 309,699 Purchases........................................................ 182,919,335 2,277,075 379,937 689,433 *85,966 -- 1,121,739 Materials and supplies..................................... 44,088,243 399,298 *26,082 226,978 *21,927 *6,190 118,120 301,981 Other costs....................................................... 37,131,891 813,928 *46,965 673,981 *22,130 -- 70,852 579,637 94,674 Inventory, end of year...................................... 25,083,180 196,514 40,375 63,154 *9,524 *1,267 82,195 Advertising expenses.......................................... 9,946,038 51,574 3,228 9,175 9,878 *3,416 25,878 9,621 Car and truck expenses...................................... 45,032,334 464,218 39,947 94,937 76,969 *3,202 249,163 167,848 Commissions....................................................... 10,596,604 71,120 *3,890 *22,113 *678 *1,602 42,837 9,762 Contract labor..................................................... 20,263,337 307,528 43,369 153,471 *18,478 *4,911 87,298 157,954 Depletion............................................................. 630,899 *2,317 *1 *2,312 -- -- *5 541,710 Depreciation........................................................ 28,579,782 873,131 59,300 371,865 181,417 *11,195 249,352 436,814 18,357 Employee benefit programs................................ 2,185,157 17,669 *3,574 5,315 *32 -- 8,748 Insurance............................................................ 14,879,267 290,637 19,840 128,225 35,053 *2,473 105,047 90,569 Legal and professional services.......................... 6,654,261 51,956 6,615 15,029 8,613 *1,892 19,808 63,774 Meals and entertainment deducted..................... 4,741,255 42,679 3,981 4,411 21,802 *672 11,814 17,802 Mortgage interest................................................ 2,964,033 52,176 *14,726 5,237 *7,735 *5,146 19,333 19,808 Other interest paid on business indebtedness.... 3,684,395 86,334 6,371 38,417 13,856 *51 27,639 32,530 Office expenses.................................................. 9,597,963 38,310 4,713 9,652 7,251 *334 16,360 39,771 Pension and profit-sharing plans........................ 1,142,795 7,690 -- *2,841 -- -- *4,849 2,294 Rent on machinery and equipment..................... 6,839,094 91,956 *2,857 45,785 *1,509 -- 41,805 17,372 Rent on other business property......................... 21,976,979 109,266 26,529 13,261 20,711 -- 48,765 42,615 Repairs................................................................ 10,500,594 394,932 9,092 210,519 58,928 *1,616 114,777 141,679 Supplies.............................................................. 20,980,798 368,902 30,868 78,348 75,200 *4,825 179,660 52,088 Salaries and wages............................................. 57,861,052 936,044 *46,087 300,691 *638 -- 588,628 227,859 Taxes paid........................................................... 12,398,929 206,739 8,244 59,886 33,113 *3,523 101,973 205,659 Travel.................................................................. 7,681,995 58,431 10,681 13,188 13,941 *527 20,094 19,141 Utilities................................................................ 16,006,315 138,268 21,740 37,640 22,549 *3,325 53,014 68,488 Other business deductions................................. 69,222,553 1,513,209 120,463 641,040 291,358 *46,922 413,425 1,583,409 Home office business deductions....................... 6,090,685 24,010 -- 2,809 *8,123 *883 12,195 12,487 Depreciation, Form 8829.................................. 783,103 2,026 -- *682 *1,071 -- *274 1,079 Casualty loss, Form 8829................................ 26,973 -- -- -- -- -- -- -- Excess--casualty depreciations, Form 8829.... Net income 1,2........................................................ 66,388 290,486,159 *1,322 2,308,533 -207,116 *425 578,150 *897 574,269 -28,970 -920,030 *244 2,080,574 Returns with Schedule C-EZ: 26 Number of returns............................................... 3,703,927 37,609 *990 *4,306 12,313 *2,151 17,850 26,599 Business receipts................................................ 24,574,808 206,934 *1,999 *71,050 55,475 *6,146 72,264 116,743 Business deductions........................................... 2,991,929 22,929 *1,779 *156 6,449 -- 14,545 17,484 Net income.......................................................... Footnotes at end of table. 21,582,879 184,005 *220 *70,894 49,026 *6,146 57,719 99,258 Sole Proprietorship Returns, 2004 Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected 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 Metal Nonmetallic Support and Coal ore mineral activities for gas extraction mining mining mining and mining Utilities Construction Total Total (14) (15) quarrying (9) (10) (11) (12) (13) BUSINESSES WITH AND WITHOUT NET INCOME Number of returns ¹.............................................. 103,469 1,135 *1,335 4,527 15,458 11,795 2,586,774 Business receipts, total ¹..................................... 6,650,892 507,160 *110,121 467,784 1,466,167 308,232 198,364,423 Income from sales and operations ¹.................... 6,399,459 503,085 *110,042 464,557 1,437,370 305,414 196,965,287 Other business income....................................... 251,433 *4,075 *79 3,227 28,798 *2,818 1,399,137 .............................. 5,666,958 525,673 *94,442 396,612 1,152,350 275,435 167,342,724 Cost of sales and operations, total, total............. 971,870 *350,642 *6,124 117,403 433,768 *33,700 87,352,291 Inventory, beginning of year............................. 67,756 *4,571 -- 62,462 *20,159 *582 4,461,608 Cost of labor..................................................... 15,761 *45,400 -- *9,431 *5,772 -- 16,355,362 Purchases........................................................ 193,251 *95,996 *59 93,348 136,496 *24,114 26,898,873 Materials and supplies..................................... 24,689 *83 *4,748 *5,538 290,432 *9,500 30,746,065 Other costs....................................................... 747,890 *210,380 *1,318 25,535 *4,000 -- 14,201,019 Inventory, end of year...................................... 77,476 *5,789 -- 78,911 *23,091 *496 5,310,636 Advertising expenses.......................................... 4,977 *202 *35 2,332 7,931 *986 982,799 Car and truck expenses...................................... 126,347 *368 *856 15,770 43,852 *39,365 11,239,455 Business deductions, total 1,2 Commissions....................................................... 8,325 *3,985 *38 *87 *894 *277 747,887 Contract labor..................................................... 112,913 *16,657 *73 5,372 69,045 *26,717 9,603,708 Depletion............................................................. 632,275 *7,567 *1,135 5,164 6,309 *28 5,079 Depreciation........................................................ 516,882 33,171 *21,411 45,801 105,262 23,684 7,927,571 Employee benefit programs................................ 8,474 *5,266 *862 *1,027 6,210 *250 378,773 Insurance............................................................ 45,643 *4,144 *1,238 14,696 43,468 8,997 4,245,542 Legal and professional services.......................... 93,231 2,688 *232 2,685 5,890 3,201 875,964 Meals and entertainment deducted..................... 9,047 *50 *7 90 11,750 *1,316 505,516 Mortgage interest................................................ 14,433 *139 -- *3,918 3,846 -- 541,826 Other interest paid on business indebtedness.... 46,773 *6,569 *370 5,557 7,041 *9,673 822,294 Office expenses.................................................. 29,618 *404 *360 1,199 18,039 5,593 943,559 Pension and profit-sharing plans........................ 2,015 *141 *156 *214 *488 -- 66,090 Rent on machinery and equipment..................... 11,332 *1,274 *2,369 3,147 6,847 *10,090 1,378,644 Rent on other business property......................... 41,400 *711 *39 3,297 6,622 *5,311 1,044,355 Repairs................................................................ 91,576 *15,156 *14,923 23,224 47,154 12,956 1,837,717 Supplies.............................................................. 42,629 *3,913 *2,547 3,812 19,886 15,596 6,928,892 Salaries and wages............................................. 91,721 *20,918 *12,443 52,439 123,188 *8,443 10,608,833 2,085,405 Taxes paid........................................................... 217,562 5,698 *2,215 13,043 25,229 2,823 Travel.................................................................. 27,931 *394 *506 1,631 6,520 *9,954 651,253 Utilities................................................................ 45,714 1,880 *5,874 9,275 27,732 11,906 2,177,276 Other business deductions................................. 2,452,516 43,737 *20,629 65,403 116,876 42,674 13,099,646 Home office business deductions....................... 7,338 -- -- *29 *5,437 *967 888,515 Depreciation, Form 8829.................................. 1,028 -- -- *2 *60 *148 105,053 Casualty loss, Form 8829................................ -- -- -- -- -- -- *3,037 Excess--casualty depreciations, Form 8829.... *479 -- -- -- -- -- 48,187 Net income less deficit 1,2 .................................... 992,096 -20,424 *15,679 71,173 313,817 41,922 31,038,488 Net income 1,2 ...................................................... 1,624,615 *17,971 *18,057 81,668 338,264 99,146 35,130,228 Deficit ²................................................................ 632,519 38,395 *2,378 10,495 24,447 *57,224 4,091,740 Footnotes at end of table. 27 Sole Proprietorship Returns, 2004 Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected 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 Metal Nonmetallic Support and Coal ore mineral activities for gas extraction mining mining mining and mining Utilities Construction Total Total (14) (15) quarrying (9) (10) (11) (12) (13) BUSINESSES WITH NET INCOME Number of returns ¹.............................................. 82,834 *1,051 *354 2,508 12,196 9,146 2,127,410 Business receipts, total ¹..................................... 5,353,963 *77,068 *109,798 389,079 1,345,751 251,675 174,956,534 Income from sales and operations ¹.................... 5,183,799 *76,815 *109,718 386,058 1,319,428 248,894 173,761,946 Other business income....................................... 170,164 *253 *79 *3,021 *26,323 *2,781 1,194,588 Business deductions, total ................................ 3,729,761 *59,097 *91,741 307,411 1,007,488 152,547 139,825,752 Cost of sales and operations, total...................... 705,509 *1,655 *6,124 91,725 394,390 *33,700 74,558,516 Inventory, beginning of year............................. 32,351 -- -- *31,640 *19,230 *582 3,377,295 Cost of labor..................................................... *9,439 -- -- *6,523 *3,579 -- 13,925,151 Purchases........................................................ 137,088 *151 *59 *70,026 *102,375 *24,114 22,838,715 Materials and supplies..................................... 6,976 *69 *4,748 *2,456 *287,731 *9,500 26,010,144 1,2 28 Other costs....................................................... 556,284 *1,436 *1,318 *19,726 *875 -- 12,229,512 Inventory, end of year...................................... 36,628 -- -- *38,646 *19,400 *496 3,822,301 Advertising expenses.......................................... 2,681 *38 *35 1,261 5,607 *459 789,339 Car and truck expenses...................................... 112,887 *358 *425 12,783 41,395 *27,214 9,157,444 Commissions....................................................... 5,748 *3,893 *38 *83 -- -- 586,404 Contract labor..................................................... 87,813 *11 *73 *1,383 68,674 *26,717 8,292,302 Depletion............................................................. 526,093 *4,264 *1,135 *5,034 5,184 *28 *4,870 Depreciation........................................................ 299,848 *2,441 *21,319 32,959 80,246 *12,243 6,122,083 Employee benefit programs................................ 7,274 *3,350 *833 *892 *6,008 *250 288,013 Insurance............................................................ 36,482 *1,739 *1,233 11,744 39,372 *4,008 3,504,287 Legal and professional services.......................... 56,592 *1,248 *184 1,244 4,506 1,911 679,781 Meals and entertainment deducted..................... 6,481 *(Z) *4 *48 11,270 *657 413,879 Mortgage interest................................................ 11,965 *101 -- *3,918 *3,824 -- 352,428 Other interest paid on business indebtedness.... 22,284 *77 *370 3,310 6,489 *451 633,327 Office expenses.................................................. 21,342 *210 *350 1,070 16,799 *2,776 745,561 Pension and profit-sharing plans........................ 1,480 *3 *156 *177 *479 -- 61,974 Rent on machinery and equipment..................... 7,237 *42 *1,605 *2,399 6,088 *1,623 1,113,350 Rent [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A6bf41c212e4d3523. Public record. Not legal advice.