# Sole Proprietorship Returns, 2007

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Sole Proprietorship Returns, 2007
by Adrian Dungan

F

or Tax Year 2007, there were approximately
23.1 million individual income tax returns that
reported nonfarm sole proprietorship activity,
a 4.7-percent increase from 2006. Profits for these
returns grew to a level of $280.6 billion in 2007, a
0.9-percent increase from 2006. However, in constant dollars, total nonfarm sole proprietorship profits
decreased for the second consecutive year, by 1.8
percent, after decreasing 0.4 percent in 2006.
Among all industrial sectors, the real estate and
rental and leasing sector experienced the most significant downturn in both profits and receipts from
Tax Years 2006 to 2007. After profits in the real estate and rental and leasing sector decreased by 18.5
percent in 2006, they slid even further in 2007, dropping another 17.7 percent.1 In current dollar terms,
these profits fell from $27.2 billion reported in 2006
to $22.3 billion in 2007. This sector also reported
the largest percentage decrease in receipts for 2007,
dropping from $77.2 billion in 2006 to $71.0 billion
for 2007, an 8.0-percent decrease. In 2006, this sector had reported the largest percentage decrease in
receipts for all sectors, at 6.9 percent.
However, not all industrial sectors reported declines for 2007. The professional, scientific, and
technical services sector, representing 25.5 percent
of total sole proprietorship profits at $71.6 billion,
had the largest profits of any sector, increasing 6.8
percent from 2006. Reporting the second largest
profits of any sector was the health care and social
assistance sector, with 16.4 percent of total profits, at
$46.1 billion.
For sole proprietorships as a whole, receipts
increased 3.6 percent, and deductions increased 4.3
percent. The construction sector reported the largest
percentage of total business receipts and deductions
among all industrial sectors, with 17.4 percent and
Adrian Dungan is an economist with the Individual Returns Analysis Section. This article was prepared under
the direction of Jeff Hartzok, Chief.

18.7 percent, respectively. This sector reported a
2.4-percent decrease in receipts and a 1.9-percent
decrease in deductions. Although not among the
larger of the industrial sectors, the finance and insurance sector reported the largest percentage increase
in both receipts and deductions, with a 14.1-percent
increase in business receipts and a 17.3-percent increase in deductions.

Returns and Receipts
The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2007 increased 4.7 percent to more than 23.1 million (Figure
A).2 Professional, scientific, and technical services,
the largest sector in terms of number of returns,
increased by 10.4 percent to more than 3.2 million
returns. This sector also accounted for the largest
reported increase in number of returns for any industrial sector.
The construction sector, which was the second
largest sector, reported roughly 2.9 million returns, a
slight increase of 0.5 percent. The only two sectors
to have decreases in the number of returns for 2007.
were retail trade (1.2 percent) and wholesale trade
(10.1 percent). The latter, however, is the smallest
sole proprietorship sector analyzed in this article,
with only 0.3 million returns.
Total business receipts (the sum of income from
sales and operations and other business income) for
all nonfarm sole proprietorship industries increased
3.6 percent, from $1,278.4 billion to $1,324.4 billion.3 The construction sector is the largest sector in
terms of business receipts and accounts for 17.4 percent of total business receipts. Its receipts decreased
by 2.4 percent in 2007, a change in direction from
the 11.9-percent and 6.3-percent increases in 2005
and 2006, respectively.
The retail trade sector, the second largest sector
in terms of business receipts, was back up (2.2 percent) after a slight drop (1.4 percent) last year. The
two industries with the largest percentage increases

1

Dent, Jonathan; Jeff Curry; and Justin Bryan, "Sole Proprietorship Returns, 2006,” Statistics of Income Bulletin, Fall 2008, Volume 28, Number 2, pp. 70-128. Profits in
the real estate and rental and leasing sector increased from $27.9 billion in 2004 to $33.3 billion in 2005.
2 For 2007, the 23,122,698 nonfarm sole proprietorship returns accounted for an estimated 25,822,467 nonfarm businesses. For purposes of the statistics, if a proprietor
owned more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that
business activity. When this occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting a
deficit) yielded the profits for a specific industrial group.
3 Statistics for business receipts, total in Table 2 represent total receipts of the business, mainly gross receipts from sales and operations. Business receipts also include
miscellaneous business receipts, such as incidental sales of scrap, shown separately in the statistics as other business income. However, business receipts exclude incidental
investment income received through the business. Examples of such incidental investment income are interest, dividends, income or loss from rents or royalties, and capital
or ordinary gain or loss from the sale of investment and business property. Sole proprietors report incidental investment income, in combination with nonbusiness-related
investment income, as part of total income on individual income tax returns.

5

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure A
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors, Tax
Years 2006 and 2007
[Number of returns is in thousands—money amounts are in billions of dollars]
Number of returns
Industrial sector

All nonfarm industries
Construction
Specialty trade contractors
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Real estate
Professional, scientific, and technical services
Administrative and support and waste
management and remediation services
Health care and social assistance
Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports, and
related industries
Other services
Personal and laundry services
All other industries

2006

Total business receipts

2007

Percentage
increase

2006

Total business deductions [1]

2007

Percentage
increase

2006

2007

Percentage
increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

22,075.0
2,915.8
2,287.0
378.5
2,466.1
1,084.0
688.3
1,381.3
1,318.1
2,929.7

23,122.7
2,931.1
2,347.4
340.4
2,436.3
1,154.8
726.0
1,393.4
1,336.8
3,234.5

4.7
0.5
2.6
-10.1
-1.2
6.5
5.5
0.9
1.4
10.4

1,278.4
236.4
158.4
48.5
194.6
76.3
82.4
77.2
73.5
156.1

1,324.4
230.8
159.7
50.4
198.9
82.1
94.0
71.0
66.9
169.3

3.6
-2.4
0.9
4.0
2.2
7.7
14.1
-8.0
-8.9
8.5

1,001.1
199.0
129.9
43.7
185.7
65.5
62.9
50.0
46.4
89.1

1,044.3
195.2
131.9
45.6
189.5
71.2
73.8
48.7
44.8
97.8

4.3
-1.9
1.6
4.6
2.0
8.8
17.3
-2.6
-3.5
9.7

2,140.7
1,873.5
715.3
1,238.3

2,251.0
2,016.4
797.9
1,283.3

5.2
7.6
11.5
3.6

57.2
110.4
10.9
30.0

60.3
115.5
12.5
31.0

5.4
4.6
13.8
3.5

41.1
66.0
7.0
22.9

43.9
69.5
7.9
23.5

6.8
5.3
12.9
2.3

1,039.5
2,281.8
1,401.4
2,697.0

1,068.0
2,416.2
1,583.3
2,939.2

2.7
5.9
13.0
9.0

21.7
81.8
38.2
127.5

23.9
84.8
43.6
136.2

10.5
3.6
14.2
6.8

15.7
63.8
26.8
111.3

16.5
65.6
30.8
120.1

5.5
2.7
14.9
7.9

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.
NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.

in business receipts were the finance and insurance
sector and the professional, scientific, and technical
services sector. They grew by 14.1 percent and 8.5
percent, respectively, providing a combined total
increase of $24.8 billion in business receipts. For
all sectors, total business receipts for nonfarm sole
proprietorships increased by $46.0 billion in 2007,
meaning that the two industries achieving the largest gains accounted for 53.9 percent of the aggregate
increase.
The third largest increase came from the transportation and warehousing sector with a 7.7-percent
growth in receipts. The real estate and rental and
leasing sector, which showed the largest percentage

6

decrease in receipts for Tax Year 2006 (6.9 percent),
once again reported the largest percentage decrease
in receipts among all industrial sectors for Tax Year
2007, decreasing 8.0 percent. In constant dollar
terms, the percentage increase in total business receipts went up 0.8 percent in 2007, down from the
larger 3.9-percent and 1.1-percent increases seen in
2005 and 2006, respectively (Figure B).4

Deductions
Total business deductions (cost of sales and operations plus business expenses, including expenses for
home office) in current dollars increased 4.3 percent,
from $1,001.1 billion for 2006 to $1,044.3 billion for

4 Based on the overall implicit price deflator for Gross Domestic Product (GDP). See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business. Indices used for this article were:
Year Indices
Year Indices
Year Indices
Year
Indices
1988 75.7
1993
88.
1998 96.5
2003
106.0
1989 78.6
1994 90.3
1999 97.9
2004
109.1
1990 81.6
1995 92.1
2000 100.0
2005
112.7
1991 84.4
1996 93.9
2001 102.4
2006
116.6
1992
86.4
1997 95.4
2002 103.9
2007
119.8

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure B
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2007
[Money amounts are in billions of dollars]

Total business receipts
Tax
year

Current
dollars
(1)

Total business deductions [1]

Constant dollars [2]
Percentage
Amount
increase
(2)
(3)

Current
dollars
(4)

Net income less deficit (profits)

Constant dollars [2]
Percentage
Amount
increase
(5)
(6)

Current
dollars
(7)

Constant dollars [2]
Percentage
increase
(8)
(9)

Amount

1988

672.0

887.8

[3]

545.7

720.9

[3]

126.3

166.9

[3]

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007

692.8
730.6
712.6
737.1
757.2
790.6
807.4
843.2
870.4
918.3
969.3
1,021.0
1,016.8
1,029.7
1,050.2
1,139.5
1,222.9
1,278.4
1,324.4

881.9
895.5
843.9
853.3
856.8
876.0
876.6
898.5
912.2
951.8
990.5
1,021.0
993.3
990.6
990.8
1,044.5
1,084.7
1,096.7
1,105.4

-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
[4]
5.4
3.9
1.1
0.8

560.2
589.2
571.2
583.1
600.8
623.8
638.1
666.5
683.9
716.2
761.4
806.4
799.6
808.9
820.2
892.4
953.4
1,001.1
1044.3

713.1
722.1
676.4
675.0
679.7
691.2
692.8
710.1
716.7
742.3
778.0
806.4
781.1
778.2
773.8
818.0
845.7
858.8
871.6

-1.1
1.3
-6.3
-0.2
0.7
1.7
0.2
2.5
0.9
3.6
4.8
3.6
-3.1
-0.4
-0.6
5.7
3.4
1.6
1.5

132.7
141.4
141.5
154.0
156.5
166.8
169.3
176.8
186.6
202.3
207.9
214.7
217.4
221.1
230.3
247.6
269.9
278.0
280.6

168.9
173.3
167.6
178.3
177.0
184.8
183.8
188.3
195.6
209.7
212.5
214.7
212.3
212.7
217.3
226.9
239.4
238.5
234.2

1.2
2.6
-3.3
6.4
-0.7
4.4
-0.6
2.5
3.9
7.2
1.3
1.1
-1.1
0.2
2.1
4.4
5.5
-0.4
-1.8

[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] Not calculated.
[4] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.

2007 (Figure A).5, 6 In addition to reporting the largest percentage increase in receipts, the finance and
insurance sector also reported the largest percentage
increase in total business deductions with 17.3 percent. The largest sector in terms of total business deductions, the construction sector, reported a 1.9-percent decrease in deductions. The real estate and
rental and leasing sector was the only other sector to
show a percentage decrease in deductions, decreasing
2.6 percent. As shown in Figure B, when accounting
for inflation, total business deductions increased 1.5
percent in 2007, the fourth straight year in which total inflation-adjusted business deductions increased.
The cost of sales and operations, which represented 40.5 percent of total 2007 business deductions, increased 3.2 percent from its 2006 level to
approximately $422.7 billion (Figure C). Total busi-

ness expenses (total business deductions minus the
cost of sales and operations) were $621.7 billion for
2007, a 5.1-percent increase from the 2006 amount.
The main components of total business expenses are
highlighted in Figure D. Surpassing salaries and
wages (which was the largest expense item for 2006),
the largest component was car and truck expenses,
accounting for 13.2 percent of the total. For 2007,
car and truck expenses totaled $82.0 billion, a substantial 8.8-percent increase from 2006.
Closely following car and truck expenses, accounting for 12.8 percent of total business expenses,
were salaries and wages which increased 3.0 percent
from 2006 to $79.4 billion. The next largest components were rent on business property, machinery, and
equipment (6.9 percent), and depreciation (6.4 percent). For 2007, rent on business property, machin-

5

Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from business income or loss, which is reported on the attached Schedule C, Profit
or Loss From Business (or, to a lesser extent, on Schedule C-EZ, Net Profit From Business). Salaries paid to owners are neither deducted as wages paid on Schedule C,
nor included as wages received on Form 1040. 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.
6 Business deductions include home office business deductions. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use of
Your Home, and the deductible portion brought forward to Schedule C. In some cases, these expenses were limited. Prior to 1990, these expenses were not limited and were
included with other expenses, such as depreciation deductions, utilities, and other expenses on Schedule C.

7

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure C
Components of Nonfarm Sole Proprietorship Business Deductions, Tax Years 2006 and 2007
[Money amounts are in millions of dollars]

Business deductions

Business deductions, total [1,2]
Cost of sales and operations
operations, total
Inventory
Inventory, beginning of year
C
Costt off llabor
b
P
Purchases
h
M
Materials
t i l and
d supplies
li
Other costs
Inventory,
y, end of yyear
Business expenses,
p
, total [1]
[ ]
Advertising
g expenses
p
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation [3]
Employee benefit programs
Home office business deductions [3]
Depreciation
Depreciation, Form 8829
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Oth
Other iinterest
t
t paid
id on b
business
i
indebtedness
i d bt d
Offi
Office expenses
P
Pension
i and
d profit-sharing
fit h i plans
l
Rent on machineryy and equipment
q p
Rent on other business property
p p y
Repairs
epa s
Salaries and wages
Supplies
Taxes paid
Travel
Utilities
Other business deductions

2007

Percentage
increase

((1))

(2)
( )

(3)
( )

1,001,097.6
409 661 0
409,661.0
41 101 7
41,101.7
31 743 9
31,743.9
259
992 7
259,992.7
59
699 4
59,699.4
61
626 5
61,626.5
44,503.2
591,436.6
,
,
15,274.1
,
75,402.4
15,634.3
34,577.9
1,058.4
39,004.5
2,867.7
10,119.5
1 639 7
1,639.7
19 083 9
19,083.9
10 092 9
10,092.9
7 306 3
7,306.3
6 297 5
6,297.5
7 214 5
7,214.5
13 024 7
13,024.7
1 276 9
1,276.9
9 350 3
9,350.3
31,229.2
,
15,726.0
,
77,038.7
32,136.9
17,660.0
11,861.2
23,842.8
110,762.7

1,044,343.4
422 684 5
422,684.5
44 469 6
44,469.6
34
34,514.6
514 6
264 234 8
264,234.8
61
519 0
61,519.0
64
956 7
64,956.7
47,010.1
621,658.9
,
15,731.0
,
82,023.8
14,569.2
36,674.4
1,021.1
39,646.0
2,909.5
11,217.6
1 439 1
1,439.1
19 290 6
19,290.6
10 934 4
10,934.4
7 661 5
7,661.5
6 649 0
6,649.0
8 368 2
8,368.2
13
297 3
13,297.3
1 279 7
1,279.7
9,526.5
9 526 5
33,613.2
,
16,170.7
,
79,380.3
32,325.5
18,183.2
13,134.0
24,856.2
119,516.1

2006

4.3
32
3.2
8.2
8
2
8.7
87
1
1.6
6
3
3.0
0
5.4
5.6
5.1
3.0
8.8
6.8
-6.8
6.1
-3.5
1.6
1.5
10 9
10.9
-12.2
-12
2
11
1.1
83
8.3
49
4.9
5.6
56
16.0
16 0
2.1
21
0.2
02
1.9
7.6
2.8
8
3.0
0.6
3.0
10.7
4.3
79
7.9

[1] Includes returns with Schedule C-EZ, Net Profit from Business , attached. Because only a total is reported for business deductions on Schedule C-EZ, the totals
shown in the statistics exceed the sum of the detailed deductions; the detailed deductions are, therefore, slightly understated.
[2] Total business deductions are before subtraction of nonallowable "passive"
passive activity losses and any "passive
passive loss"
loss carryover from the prior years.
[3] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home , is included in "home
home office business deductions"
deductions and excluded from "depreciation"
depreciation
shown above.
NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.

ery, and equipment expenses increased 6.3 percent
to $43.1 billion, while depreciation expenses rose
1.6 percent to $39.6 billion. Car and truck expenses
showed the largest net increase in share of business
expenses at 0.4 percentage points, up from 12.8 percent in 2006, while commissions showed the largest
net decrease at 0.3 percentage points, down from 2.6
percent for 2006.
Historically, constant dollar depreciation increased every year from 1993 through 2002, with

8

the exception of 1995, when it decreased 1.9 percent
to $28.5 billion (Figure E).7 In 2003, under the
Jobs and Growth Tax Relief Reconciliation Act of
2003, the maximum allowable section 179 deduction
(which allows expensing of investment property in
the year of purchase instead of depreciating it over
time) vaulted from $24,000 for 2002 to $100,000 for
2003. This change led to constant dollar depreciation
increasing by 11.7 percent for 2003, which was the
highest growth in depreciation of any year between

7 The increase in the depreciation deduction for 1993 may be attributed, in part, to a provision of the Omnibus Budget Reconciliation Act of 1993 (OBRA93). The cost of
certain tangible property (as described in Internal Revenue Code section 179) may be treated as a current expense rather than a capital expenditure subject to depreciation
deductions. The provision of OBRA93 (related to these expenses) increased the maximum amount of investment certain small businesses could immediately deduct on
property placed in service after 1992, from $10,000 to $17,500. Following the enactment of this provision, the 179 deduction for all individuals (not just sole proprietors)
filing Form 4562, Depreciation and Amortization, increased 32.4 percent to $13.5 billion for 1993.

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure D
NonfarmSoleProprietorshipTotalBusinessExpensesbyTypeofExpenses,TaxYear2007[1]
Travel

2.1

Office expenses

2.1

Commissions

2.3

Total interest

2.4

Advertising expenses

2.5

Repairs

2.6

Taxes paid

2.9

Insurance

3.1

Utilities

4.0

Supplies

5.2

Contract labor

5.9

Depreciation [2]

6.4

Rent paid on machinery, equipment and other business
property

8.0

Salaries and wages

12.8

Car and truck expenses

13.2

Other business deductions [3]

24.4

0

5

10

15

20

25

3

Percent of total
[1] Total business expenses equal all business deductions minus cost of sales and operations.
[2] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home, is included in "home office business deductions" and excluded from
"depreciation" shown above. See footnote 3 below.
[3] Depletion; employee benefit programs; legal and professional services; pension and profit-sharing plans; meals and entertainment; and home office
business deductions. Other business deductions also include all Schedule C-EZ, Net Profit from Business, deductions ($3.7 billion).
NOTES: Percentages are based on an estimated total business expense of $621.7 billion. Detail may not add to 100 percent because of rounding.

1988 and 2007. But the initial jump in depreciation
was offset in subsequent years by trends of decreased
depreciation.
From 2004 through 2007, constant dollar declines of depreciation were witnessed for all 4 years.
In 2004, constant dollar depreciation deductions
decreased by 0.2 percent, marking the first drop in

9 years. This downward trend was even more
evident in 2005, as constant dollar depreciation
plummeted 11.8 percent, followed by decreases
of 3.5 percent and 1.1 percent in 2006 and
2007, respectively. During this same 4-year period, section 179 limits gradually increased for
inflation, from $102,000 in 2004, to $105,000

9

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure E
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2007

[Money amounts are in billions of dollars]

Current dollars
Tax year

Net income

1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007

Deficit

Constant dollars [1]
Depreciation [2]

Percentage increase in constant dollars [1]

Net income

Deficit

Depreciation [2]

Net income

Deficit

Depreciation [2]

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

145.5
152.4
161.7
162.4
173.5
177.0
187.8
191.7
200.1
210.5
226.2
233.4
245.2
250.2
257.3
269.1
290.5
314.8
326.8
335.1

19.2
19.7
20.2
20.9
19.5
20.5
21.0
22.5
23.4
23.8
23.9
25.5
30.5
32.8
36.2
38.8
42.9
44.8
48.7
54.5

26.1
24.5
23.7
23.1
23.3
25.0
26.2
26.2
27.4
28.6
29.1
30.6
32.2
33.4
36.6
41.8
42.9
39.1
39.0
39.6

192.2
194.0
198.2
192.3
200.8
200.3
208.1
208.2
213.2
220.6
234.5
238.5
245.2
244.4
247.5
253.9
266.3
279.2
280.3
279.7

25.4
25.1
24.8
24.8
22.6
23.2
23.3
24.4
24.9
25.0
24.8
26.0
30.5
32.0
34.8
36.6
39.3
39.8
41.8
45.5

34.5
31.2
29.0
27.4
27.0
28.3
29.0
28.5
29.2
30.0
30.2
31.3
32.2
32.7
35.3
39.4
39.3
34.7
33.5
33.1

[3]
0.9
2.2
-3.0
4.4
-0.3
3.9
[4]
2.4
3.4
6.3
1.7
2.8
-0.3
1.3
2.6
4.9
4.9
0.4
-0.2

[3]
-1.1
-1.3
[4]
-8.8
2.8
0.3
4.8
2.1
0.3
-0.7
4.9
17.3
5.0
8.7
5.1
7.5
1.1
5.1
8.9

[3]
-9.6
-6.9
-5.8
-1.4
4.9
2.6
-1.9
2.4
2.9
0.7
3.7
2.8
1.4
8.0
11.7
-0.2
-11.8
-3.5
-1.1

[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] Not calculated.
[4] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.

in 2005, to $108,000 in 2006, finally rising to
$125,000 in 2007.8, 9
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 2007, taxpayers
could use Schedule C-EZ if they: had business expenses of $5,000 or less; used the cash accounting
method; had no inventories; did not report a loss
from the business; had only one business as a sole
proprietor; had no employees; were not required to

10

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. For Tax Year
2007, approximately 4.4 million taxpayers filed
Schedule C-EZ, marking a 9.2-percent increase from
the number filed for 2006. Of returns filed for 2007
in the administrative and support services sector (the

8 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, $102,000 for 2004, $105,000 for 2005, $108,000 for 2006,
and $125,000 for 2007. For all individual tax returns that filed Form 4562, Depreciation and Amortization, the section 179 property deducted as an expense increased
by 6.1 percent to $47.5 billion for 2007. The Jobs Creation and Worker Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax
Relief Reconciliation Act of 2003 increased the bonus percentage to 50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as advantageous as immediate expensing and therefore likely had less effect on their depreciation deductions.
9 The amount deducted as section 179 property on returns with Schedule C dropped slightly (by 1.3 percent) to $21.2 billion, from 2006 to 2007. This number does not
reflect depreciation solely deducted on Schedule C as it could also include depreciation taken on Schedule E, Supplemental Income and Loss, Schedule F, Profit or Loss
from Farming, and Form 4835, Farm Rental Income and Expenses.

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure F
All Nonfarm Sole Proprietorship Returns and Those with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2007
[Number of returns is in thousands—money amounts are in millions of dollars]

Industrial sector

All nonfarm industries
Construction
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Professional, scientific, and technical services
Administrative and support and waste
management and remediation services
Health care and social assistance
Arts, entertainment, and recreation
Other services
All other industries

Total

Number of returns
Percentage
With
of
Schedule
total
C-EZ

Total business receipts
Percentage
On
of
Total
Schedule
total
C-EZ

Total business deductions [1]
On
Percentage
Total
Schedule
of
C-EZ
total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

23,122.7
2,931.1
340.4
2,436.3
1,154.8
726.0
1,393.4
3,234.5

4,399.5
470.8
41.7
246.7
159.4
91.7
107.6
534.9

19.0
16.1
12.3
10.1
13.8
12.6
7.7
16.5

1,324,403.1
230,835.1
50,447.2
198,881.1
82,138.4
93,984.4
70,954.8
169,272.7

31,215.2
3,626.9
319.1
1,225.3
1,353.8
793.1
1,078.8
5,144.9

2.4
1.6
0.6
0.6
1.6
0.8
1.5
3.0

1,044,343.4
195,237.8
45,646.3
189,472.4
71,219.2
73,827.1
48,684.6
97,752.0

3,679.9
372.2
25.1
243.0
149.5
99.1
128.0
532.0

0.4
0.2
0.1
0.1
0.2
0.1
0.3
0.5

2,251.0
2,016.4
1,283.3
2,416.2
2,939.2

629.9
526.9
262.1
528.5
799.5

28.0
26.1
20.4
21.9
27.2

60,343.2
115,531.9
31,043.7
84,794.5

4,108.7
4,160.0
1,244.2
4,065.3

43,914.2
69,484.3
23,451.6
65,566.8

497.6
368.1
235.0
526.9

136,176.1

4,095.2

6.8
3.6
4.0
4.8
3.0

120,087.0

503.4

1.1
0.5
1.0
0.8
0.4

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.
NOTES: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit From Business. See the text of this article for a full list of the requirements to be
eligible to file Schedule C-EZ. Detail may not add to totals because of rounding. Percentages were calculated before rounding.

largest filers of this schedule), taxpayers filed over
0.6 million Schedule C-EZ returns, or 28.0 percent of
the total for that sector.10 For 2007, business receipts
from Schedule C-EZ filers totaled $31.2 billion, or
2.4 percent of total business receipts reported. Business deductions reported on Schedule C-EZ returns
accounted for only 0.4 percent of total business deductions for all industries, or $3.7 billion of the total
$1,044.3 billion. Despite having the largest concentration of Schedule C-EZ filers, deductions reported
on Schedule C-EZ by the administrative and support
services sector accounted for only 1.1 percent of that
sector’s total business deductions.

percent, reported the highest dollar increase in profits
($4.6 billion) and the largest percentage increase in
profits (6.8 percent). A moderately smaller sector,
the health care and social assistance sector, reported

Figure G
Nonfarm Sole Proprietorship Profits, by Selected
Industrial Sectors, Tax Years 2006 and 2007
[Money amounts are in billions of dollars]
Net income less deficit (profits)
Industrial sector
2006

All nonfarm industries

Profits and Losses
For 2007, many of the largest principal industrial
sectors reported either modestly increased or decreased 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 2006 and 2007.11 Total profits increased
0.9 percent, from $278.0 billion for 2006 to $280.6
billion for 2007.
The professional, scientific, and technical services sector, which had the highest percentage of total
profits of all nonfarm sole proprietorships with 25.5

Construction
Specialty trade contractors
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Real estate
Professional, scientific, and technical services
Administrative and support and waste
management and remediation services
Health care and social assistance
Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports,
and related industries
Other services
Personal and laundry services
All other industries

2007

Percentage
increase
(3)

(1)

(2)

278.0

280.6

0.9

37.6
28.7
4.8
9.0
10.8
19.5
27.2
27.1
67.0

35.7
27.9
4.8
9.5
11.0
20.2
22.3
22.2
71.6

-5.1
-2.9
-0.7
5.4
1.4
3.4
-17.7
-18.1
6.8

16.2

16.5

1.7

44.5
4.0
7.1

46.1
4.6
7.6

3.5
15.2
6.2

6.0

7.3

22.5

18.0
11.3
16.2

19.2
12.7
16.2

6.8
12.3
-0.4

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

10 Based on NAICS, the full name of the administrative and support services sector is administrative and support and waste management and remediation services sector.
The waste management and remediation services portion makes up a small percentage of the overall numbers reported under this classification, which are detailed in Table
1. 11 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

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

the second largest dollar increase in profits for 2007
at $1.6 billion.
Interestingly, the real estate and rental and leasing sector, which reported the largest percentage
increase in profits for 2005 (19.4 percent), reported
the largest decrease in profits for 2006 with a drop
of 18.5 percent. This trend continued through 2007
with another massive decrease of 17.7 percent. The
industry has lost 33.0 percent of its profits in the
2-year period of 2006-2007. The only other sectors to show decreases in net profits for 2007 were
the construction and wholesale trade sectors, which
reported 5.1-percent and 0.7-percent decreases, respectively.
In constant dollars, total profits decreased 1.8
percent for 2007, marking a larger decline than the
0.4-percent decrease in 2006 (Figure B). Profits as
a percentage of business receipts also decreased for
2007. Figure H displays net income less deficits as
a percentage of business receipts for 1988 through
2007. In general, this percentage has increased
slightly from a low of 18.8 percent for 1988. Profits
as a percentage of business receipts have remained

between 20.7 percent and 22.1 percent over the last
16 years, peaking in 2005. In 2007, this percentage
dropped 0.5 percent down to its current 21.2 percent.
Figure E presents net income and deficit separately
for 1988 through 2007, in current and constant dollars. For 2007, net income (in constant dollars) decreased 0.2 percent, and net deficit (in constant dollars) increased by 8.9 percent.

Industries
Using receipts as a measure of business size, Figures
A and I show that construction was the largest sole
proprietorship industrial sector for 2007, with 17.4
percent of all business receipts (the fourth year in a
row that this sector was largest). Total receipts for
the construction sector, at $230.8 billion, were 2.4
percent lower than the $236.4 billion reported for
2006, while deductions decreased by 1.9 percent,
resulting in a 5.1-percent decrease in profits to $35.7
billion (see Figure G).
Besides construction, only one other major
sector, the real estate sector, experienced a decline
in business receipts for 2007. Despite the decline

Figure H
Nonfarm Sole Proprietorship Net Income Less Deficit (Profits) as a Percentage of Business
Receipts, Tax Years 1988-2007
Percent
23

22.0

21.9

22.1

22
21.4

21.5

21.7
21.5

21.0

20.9

21

21.7

21.4

21.1
20.7

21.2
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 2005 2006 2007

12

Tax year

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

for both of these sectors, together they still represented 22.8 percent of all nonfarm industry business receipts.
The second largest industrial sector was retail
trade, with receipts totaling $198.9 billion. This
amount was 15.0 percent of all sole proprietorship
receipts for 2007, and it represented a 2.2-percent increase from the 2006 amount. Deductions and profits also increased in this sector by 2.0 percent and 5.4
percent, respectively. Retail trade profits totaled $9.5
billion for 2007.
The third largest sector was professional, scientific, and technical services, which accounted for
12.8 percent of sole proprietorship receipts for 2007.
Receipts increased 8.5 percent to $169.3 billion, and
deductions increased 9.7 percent to $97.8 billion. Although this sector was just the third largest in terms
of business receipts, the professional, scientific, and
technical services sector had the largest percentage

of sole proprietorship profits, with 25.5 percent (see
Figure J). For 2007, the professional, scientific, and
technical services sector’s profits went from $67.0
billion to $71.6 billion, a 6.8-percent increase from
2006. The sector with the second largest profits was
health care and social assistance. These profits rose
to $46.1 billion for 2007, a 3.5-percent increase from
2006, and represented 16.4 percent of all sole proprietorship profits. This was followed by construction
(12.7 percent, as cited above) and real estate and
rental and leasing (8.0 percent) in terms of overall
sole proprietor profits.
Tax Year 2001 is the first year in which data
became available on the number of Limited Liability Companies (LLCs) among sole proprietorship
returns. LLCs have the limited liability of corporations but may be taxed as sole proprietorships—income and expenses flow through to the owner to
be taxed—if they are owned by a single, individual

Figure I
Nonfarm Sole Proprietorship Total Business Receipts, by Selected Industrial Sectors,
Tax Year 2007
Arts, entertainment, and recreation

2.3

Wholesale trade (merchant wholesalers)

3.8

Administrative and support and waste management and
remediation services

4.6

Real estate and rental and leasing

5.4

Transportation and warehousing

6.2

Other services

6.4

Finance and insurance

7.1

Health care and social assistance

8.7

All other industries

10.3

Professional, scientific, and technical services

12.8

Retail trade

15.0

Construction

17.4

0

5

10

15

20

Percentage of total
NOTES: Percentages are based on estimated total business receipts of $1.3 trillion. Detail may not add to 100 percent because of rounding.

13

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

member. In 2001, there were approximately 126,000
sole proprietorship returns that indicated status as an
LLC (Figure K). This increased by 15.3 percent for
2002, 51.3 percent for 2003, 40.4 percent for 2004,
47.2 percent for 2005, and 33.2 percent for 2006.
Increases in the actual number of LLCs also help
illustrate the trend over the last few years. The count
of LLCs increased by approximately 146,000 from
2004-2005, 151, 000 from 2005-2006, and 140,000
from 2006-2007. For Tax Year 2007, the number
of these sole proprietorships rose to approximately
750,000, a 23.1-percent increase from 2006. The
2007 level of LLCs among sole proprietorship returns accounts for 3.2 percent of total nonfarm sole
proprietorships, with the total number of returns with
LLCs having increased nearly sixfold since 2001.

percent to a level of $280.6 billion. In constant
dollars, total nonfarm sole proprietorship profits
decreased 1.8 percent, after decreasing 0.4 percent
in 2006. This was the first time since before 1988
that profits (in constant dollars) have decreased in
2 consecutive years.
The professional, scientific, and technical services sector had the largest profits of any sector at
$71.6 billion, representing 25.5 percent of total sole
proprietorship profits, followed by the health care
and social assistance sector at $46.1 billion, or 16.4
percent of total profits. For all sole proprietorships,
receipts and deductions increased 3.6 percent and 4.3
percent, respectively.
The largest sole proprietorship industrial sector, based on business receipts, was the construction
sector, accounting for 17.4 percent of receipts. This
sector reported a 2.4-percent decrease in 2007. The
finance and insurance sector showed the largest percentage increase in both receipts and deductions,

Summary
Profits for the 23.1 million returns with sole proprietorship activity for Tax Year 2007 grew by 0.9

Figure J
Nonfarm Sole Proprietorship Total Business Profits, by Selected Industrial Sectors,
Tax Year 2007
Wholesale trade (merchant wholesalers)

1.7

Arts, entertainment, and recreation

2.7

Retail trade

3.4

Transportation and warehousing

3.9

All other industries

5.8

Administrative and support and waste management
and remediation services

5.9

Other services

6.9

Finance and insurance

7.2

Real estate and rental and leasing

8.0

Construction

12.7

Health care and social assistance

16.4

Professional, scientific, and technical services

25.5

0

5

10

15

20

25

30

Percent of total

14

NOTES: Percentages are based on estimated total business profits of $280.6 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.

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Figure K
Number of Nonfarm Sole Proprietorships Registered as Limited Liability
Companies (LLCs), Tax Years 2001-2007
Tax year

2007

746,885

2006

606,889

2005

455,734

2004

309,665

2003

220,615

2002

145,839

2001

126,437
126 437

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Number of returns with LLCs

reporting a 14.1-percent increase in receipts and
a 17.3-percent increase in deductions. Filings of
Schedules C-EZ increased 9.2 percent in 2007, more
than double the 4.0-percent increase for 2006.
The industrial sector experiencing the most significant downturn in both profits and receipts from Tax
Years 2006 to 2007 was the real estate and rental and
leasing sector. After reporting the largest percentage
decline in profits in 2006 at 18.5 percent, the real estate and rental and leasing sector continued this trend
by reporting a 17.7-percent drop in profits for 2007.
Likewise, this sector reported the biggest decrease
in business receipts for both 2006 and 2007, with declines of 6.9 percent and 8.0 percent, respectively.

Data Sources and Limitations
The 2007 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
2008. 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.
15

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

must be known. Coefficients of variation (CVs) are
used to measure that magnitude. Figure L presents
estimated CVs for the number of returns and money
amounts for selected items and industrial sectors.
Generally, the smaller the CV, the more reliable the
estimate is judged to be. SOI Sampling Methodology and Data Limitation in this issue of the Bulletin
discusses the reliability of estimates based on samples, and the use of CVs for evaluating the precision
of estimates based on samples.

Returns were selected at rates that ranged from
0.1 percent to 100 percent. The 2007 nonfarm sole
proprietorship data are based on a sample of 90,983
returns and a population of 23,516,241 returns.12
The corresponding sample and population for 2006
data were 88,619 and 22,407,707, respectively.
Since the data 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

Figure L
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial Sectors, Tax
Year 2007
[Coefficients of variation are in percentages]
Coefficients of variation
Industrial sector

All nonfarm industries
Construction
Specialty trade contractors
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Real estate
Professional, scientific, and technical services
Administrative and support and waste management and
remediation services
Health care and social assistance
Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports, and related industries
Other services
Personal and laundry services
All other industries

Total business
receipts

Total business
deductions

Depreciation [1]

Net income

Deficit

(1)

(2)

(3)

(4)

(5)

0.53

0.60

1.21

0.75

1.33

1.88

1.98

3.37

2.24

4.78

2.23

2.37

3.94

2.53

6.21

4.44

4.55

9.30

6.54

10.68

2.04

2.03

4.01

3.45

3.69

2.59

2.66

3.99

3.46

6.01

1.90

1.75

7.39

3.83

5.84

2.57

2.81

4.68

3.15

4.30

2.63

2.91

4.95

3.21

4.57

1.69

1.96

3.55

1.96

3.99

2.88

3.34

5.44

2.85

5.84

1.86

2.01

3.96

2.23

7.63

4.53

5.84

14.17

4.30

13.68

3.20

3.15

5.28

4.43

5.09

3.65

3.59

6.26

4.76

5.84

2.55

2.82

4.50

2.82

5.29

3.05

3.39

6.11

3.52

6.91

2.10

2.16

3.19

2.83

3.32

[1] Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home .

16

12 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, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income

Industrial sector

All nonfarm industries
Agriculture, forestry, hunting, and fishing
Animal production (including breeding of cats and dogs)
Forestry and logging (including forest nurseries, timber
tracts)

Number
of returns

Business
receipts

(1)

(2)

23,122,698 1,324,403,080

Rent paid
on
Rent paid
Depreciation
Interest paid
machinery
on other
deduction
deduction Payroll [1,4]
and
business
[1,2]
[1,3]
equipment property [1]
[1]
(3)
41,085,109

(4)

(5)

(6)

(7)

Net income
less deficit

(8)

9,526,481 33,613,237 15,017,165 113,894,900 280,557,010

301,280

17,747,925

1,662,460

127,994

213,486

315,084

1,726,477

668,372

53,941

1,766,020

270,803

5,606

13,411

26,253

57,392

-547,398

51,332

5,208,334

566,723

51,690

18,634

100,394

514,050

303,534

Fishing
Hunting and trapping

63,216
10,480

2,334,905
380,277

287,494
47,407

24,762
* 400

29,888
19,428

47,527
13,913

58,929
43,509

409,418
20,558

Support activities for agriculture and forestry

122,312

8,058,389

490,033

45,536

132,124

126,997

1,052,598

482,260

126,578
104,284
408
* 1,028
3,487
17,371

12,534,266
9,632,432
71,712
* 1,432
920,554
1,908,136

932,584
693,784
* 2,431
* 465
89,650
146,254

39,597
16,421
* 178
*6
12,879
10,113

46,426
34,410
* 52
* 64
* 1,377
10,522

191,470
133,658
* 1,420
0
36,448
19,944

621,265
294,329
* 22,837
* 853
98,463
204,784

1,624,615
1,119,626
5,079
* -3,125
59,401
443,634

Mining
Oil and gas extraction
Coal mining
Metal ore mining
Nonmetallic mineral mining and quarrying
Support activities for mining
Utilities

10,131

565,214

43,026

3,422

* 1,251

* 2,898

* 48,030

39,999

2,931,110
423,433
83,005
77,303
2,347,369

230,835,068
50,209,133
10,828,766
10,069,553
159,727,616

7,405,931
1,031,201
259,869
551,879
5,562,981

1,430,225
204,865
103,428
82,850
1,039,082

1,605,321
227,167
63,135
43,512
1,271,506

2,229,835
638,433
122,482
311,450
1,157,471

28,245,886
5,314,015
1,299,384
778,191
20,854,295

35,667,000
5,823,813
1,160,688
827,809
27,854,691

Manufacturing
Food manufacturing
Textile and textile product mills
Apparel
Leather and allied products
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

362,390
44,984
7,690
28,809
* 3,084
35,852
* 1,060
34,903
390
8,802
15,217
4,392
5,141
28,120
24,113
9,846
7,097
8,630
22,074
11,759
60,426

29,248,316
3,864,513
407,370
1,287,983
* 46,456
2,692,662
* 47,083
2,704,692
38,627
591,406
781,386
769,424
642,314
4,070,630
3,299,982
165,642
633,672
952,524
2,028,453
885,652
3,337,846

1,213,735
112,566
15,916
39,265
* 445
148,899
* 611
114,102
* 3,153
19,820
11,072
37,771
48,738
204,476
223,568
9,878
4,399
18,165
62,683
13,471
124,736

168,357
25,687
* 3,174
4,904
0
25,703
* 518
16,086
0
2,354
* 3,215
* 2,944
* 749
26,072
6,415
0
* 6,536
* 15,357
8,524
* 1,245
18,873

961,775
85,316
15,815
63,083
* 21
48,184
* 341
154,754
*2
11,265
52,301
* 9,697
* 29,924
148,710
95,576
* 3,430
9,013
45,949
81,827
18,383
88,185

382,243
55,148
* 3,562
4,700
*9
37,072
* 1,089
49,923
* 2,407
16,397
7,264
7,410
* 12,840
45,089
44,372
* 612
3,491
18,982
20,372
8,148
43,355

3,647,550
363,340
* 70,389
189,457
* 5,067
355,833
* 4,460
323,061
* 2,142
103,303
76,914
106,278
* 115,022
616,886
368,142
* 5,105
72,354
183,614
233,490
34,415
418,278

3,031,757
73,829
-15,707
86,798
* 13,944
269,548
* -3,163
321,191
-1,296
51,638
104,589
66,711
133,096
481,095
506,170
4,338
74,534
4,100
374,546
140,275
345,524

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

340,373
153,562
114,362
72,449

50,447,175
22,090,048
21,346,578
7,010,549

619,130
348,161
221,361
49,608

180,906
122,407
38,791
19,709

721,017
378,813
245,195
97,010

424,760
211,444
181,620
31,695

1,838,745
949,175
678,117
211,453

4,815,862
1,966,219
1,608,303
1,241,340

Construction
Residential building construction
Nonresidential building construction
Heavy and civil engineering construction
Specialty trade contractors

Footnotes at end of table.

17

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income

Industrial sector

Number
of returns

Business
receipts

(1)

(2)

(3)

2,436,291
145,975
48,991
35,679

198,881,138
41,039,684
5,179,294
4,053,726

2,781,246
371,653
63,989
90,996

51,802
82,127
145,056
18,245
140,659
110,577
28,886
570,299
1,057,997

8,805,474
26,901,682
8,884,316
25,622,478
10,622,326
7,325,799
2,969,973
33,568,539
23,907,848

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
pp activities for transportation
p
((including
g motor
Support
vehicle towing)
Couriers and messengers
Warehousing and storage facilities

1,154,819
12,672
6,840
241,130

(6)

(7)

(8)

687,456
36,270
32,369
20,273

6,140,304
564,151
318,225
149,007

2,117,264
462,911
72,841
62,281

11,336,292
1,781,794
431,513
408,172

9,493,005
1,142,983
292,420
160,183

187,740
242,563
107,100
186,311
160,874
142,166
73,156
574,216
580,481

28,685
106,478
78,512
36,983
85,110
8,302
20,644
167,279
66,551

102,268
780,588
273,327
300,219
919,302
399,846
152,046
1,741,870
439,455

147,466
209,733
75,292
199,481
115,986
82,060
45,245
436,145
207,823

854,033
1,789,644
535,297
1,101,956
717,193
436,105
167,108
2,312,494
800,983

663,491
833,826
715,129
183,671
488,313
48,541
53,049
2,867,432
2,043,966

82,138,420
1,654,862
541,453
20,571,116

5,767,718
374,397
98,796
1,575,578

2,211,303
13,005
* 2,948
383,866

539,256
23,055
11,741
107,866

1,211,633
109,656
24,791
315,549

5,210,337
64,926
33,741
1,809,311

10,963,923
-102,235
131,405
2,731,105

401,096
0
6,933
165,333
19,583
22,932
* 658
11,945

42,181,814
0
46,014
4,995,671
884,658
522,454
* 75,754
290,148

3,000,386
0
* 3,053
166,756
56,254
22,935
* 23,006
66,858

1,063,719
0
0
554,426
* 23,293
* 610
0
* 7,376

174,809
0
0
75,891
3,715
* 4,513
0
16,768

558,448
0
*9
72,160
33,676
* 5,144
* 1,181
10,122

2,198,411
0
* 161
171,307
64,580
* 53,621
* 228
13,043

4,655,023
0
19,131
1,293,614
197,161
50,994
* -19,872
-28,030

50,663
211,571
3,464

3,469,136
6,492,314
413,027

254,133
105,803
19,763

68,963
87,947
5,151

51,881
27,044
41,975

44,965
15,771
20,163

385,650
380,019
35,340

411,338
1,559,154
65,136

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

351,710
74,591
107,185
43,023
9,242

10,208,162
2,191,455
3,124,813
2,184,904
238,069

391,134
36,955
231,978
63,208
6,846

114,680
7,277
39,651
47,505
* 629

260,729
52,075
96,848
58,871
20,649

95,930
19,526
37,262
27,720
* 682

678,387
248,215
156,812
157,168
* 22,286

2,562,634
521,802
648,122
377,497
20,248

117,669

2,468,921

52,148

19,618

32,285

10,740

93,906

994,965

Finance and insurance
Credit intermediation and related activities
Securities, commodity contracts, and other financial
investments
Investment bankers and securities dealers
Securities brokers
Commodity contracts brokers and dealers
Securities and commodity exchanges
Other financial investment activities (investment advice)
Insurance agents, brokers, and related activities
Insurance agencies and brokerages
Other insurance-related activities

726,002
102,497

93,984,377
4,910,013

996,691
138,877

252,981
40,286

1,459,668
122,407

757,552
84,112

4,724,618
378,278

20,173,777
1,054,445

181,676
5,320
16,657
4,709
1,409
153,579
441,829
328,276
113,553

58,505,410
2,089,698
4,050,726
793,477
688,440
50,883,069
30,568,954
26,335,688
4,233,266

278,246
7,009
25,755
7,092
933
237,457
579,567
497,399
82,169

82,269
4,383
18,431
2,715
0
56,741
130,426
114,645
15,781

452,478
22,260
40,495
27,667
* 430
361,625
884,783
820,280
64,503

418,220
20,399
21,140
7,729
29,879
339,072
255,220
211,590
43,630

1,747,955
43,438
162,705
86,105
* 2,579
1,453,127
2,598,385
2,440,604
157,781

6,995,452
364,208
857,082
14,460
-57,276
5,816,977
12,123,880
10,314,637
1,809,243

Footnotes at end of table.

(4)

Net income
less deficit

(5)

Retail trade
Motor vehicle and parts dealers
Furniture and home furnishing stores
Electronic and appliance stores
Building material and garden equipment and supplies
dealers
Food and beverage stores
Health and personal care stores
Gasoline stations
Clothing and accessories stores
Sporting goods, hobby, book, and music stores
General merchandise stores
Miscellaneous store retailers
Nonstore retailers

18

Rent paid
Rent paid
on
Interest paid
Depreciation
on other
machinery
deduction Payroll [1,4]
deduction
business
and
[1,3]
[1,2]
equipment property [1]
[1]

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income

Industrial sector

Number
of returns

(1)
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
Videotape and disc rental
General rental centers and other consumer goods
rental
Commercial and industrial machinery and
equipment rental and leasing
Professional, scientific, and technical services
Legal services
Offices of certified public accountants
Other accounting services
Architectural, engineering, and related services
Architectural services
Engineering services
Drafting, building inspections, and geophysical
surveying
Surveying and mapping (except geophysical)
services
Testing laboratories
Specialized design services
Computer systems design services
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

Business
receipts

(2)

Rent paid
Rent paid
on
Depreciation
Interest paid
on other
machinery
deduction
deduction Payroll [1,4]
and
business
[1,2]
[1,3]
equipment property [1]
[1]
(3)

(4)

Net income
less deficit

(5)

(6)

(7)

(8)

1,393,424
1,336,767

70,954,832
66,927,293

2,862,096
1,805,994

516,272
460,539

1,250,986
1,149,118

1,692,992
1,487,742

2,388,076
2,019,008

22,335,602
22,158,626

39,944

1,341,797

183,204

9,692

14,080

363,623

62,989

-127,456

1,056,026
240,797
56,656
17,698
* 10
* 79
3,538

49,007,711
16,577,785
4,027,538
652,711
* 12,259
* 47,509
544,107

1,193,908
428,882
1,056,102
220,005
* 6,849
* 2,221
* 16,806

389,439
61,408
55,732
3,796
*5
0
* 426

877,832
257,206
101,868
11,467
* 70
* 3,900
42,205

614,867
509,252
205,250
36,100
* 1,794
* 268
* 7,084

1,291,147
664,872
369,068
23,115
* 1,366
* 8,554
* 75,522

19,671,820
2,614,262
176,975
26,582
* -2,023
* 2,474
52,956

15,820

959,760

164,767

12,873

28,799

24,445

126,814

84,761

19,512

1,811,193

645,454

38,631

15,426

135,560

133,697

12,225

3,234,542
363,321
46,084
330,229
275,602
99,885
97,556

169,272,699
38,716,955
4,203,407
8,210,291
16,193,715
7,741,906
5,798,047

4,301,618
501,614
80,506
238,345
557,303
255,464
190,579

916,230
214,968
34,806
51,089
80,045
44,213
29,664

3,929,938
1,734,106
169,264
260,422
248,713
149,745
68,782

1,137,409
255,263
53,004
109,697
86,955
42,606
29,972

12,758,206
4,253,225
630,407
842,598
1,919,886
1,150,884
545,117

71,608,966
16,676,401
1,841,417
3,117,258
5,682,629
1,924,217
2,467,909

60,757

1,696,841

70,426

1,703

* 13,918

9,175

74,195

899,800

13,342
4,062
241 885
241,885
254,014
1,723,407

767,444
189,477
9 336 822
9,336,822
9,986,914
82,624,594

35,188
* 5,646
240 449
240,449
281,266
2,402,135

* 4,458
*7
39 045
39,045
70,500
425,776

12,656
* 3,611
193 636
193,636
117,678
1,206,119

3,312
* 1,889
74 628
74,628
49,033
508,829

126,125
* 23,565
459 496
459,496
662,278
3,990,315

331,877
58,826
2 112 466
2,112,466
4,424,493
37,754,303

951,886
34,241
120,617
38,676
577,987

46,147,399
1,952,860
7,163,497
1,133,673
26,227,165

1,122,019
76,001
183,550
15,502
1,005,062

224,038
7,204
33,691
3,784
157,060

503,884
34,015
102,311
17,971
547,939

262,494
20,803
31,200
* 4,938
189,395

1,487,592
155,479
261,565
51,557
2,034,122

25,573,080
580,242
2,039,822
404,539
9,156,620

2,251,002
2,224,802

60,343,203
58,044,464

2,510,007
2,279,068

574,509
551,101

735,747
711,980

536,144
496,152

6,782,100
6,605,914

16,485,611
16,239,510

26,200

2,298,739

230,939

23,408

23,767

39,992

176,186

246,101

596,859

9,074,803

257,360

61,148

495,539

70,348

381,509

2,879,254

Footnotes at end of table.

19

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income

Industrial sector

Business
receipts

(1)

(2)

(3)

(5)

(6)

(7)

(8)

115,531,863

2,854,845

618,363

4,996,625

1,291,848

16,543,623

46,056,668

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

997,226

95,393,542

2,214,124

524,328

4,459,344

866,957

14,193,024

39,676,719

194,531
31,439
93,114
37,789
18,985

33,463,588
2,981,198
29,798,435
4,655,464
3,345,930

618,214
48,205
950,066
108,285
80,990

201,483
19,528
113,182
41,793
33,716

1,359,942
180,032
1,160,022
420,194
179,463

199,914
19,771
377,224
71,635
24,780

4,374,658
163,007
6,484,255
520,633
563,241

15,722,884
1,772,180
10,300,714
1,728,493
921,544

174,713
6,388

8,392,904
1,006,518

146,918
16,668

30,720
3,518

593,835
123,725

23,958
9,052

585,816
125,890

4,482,638
326,184

156,836
31,782
224,827

5,023,852
1,462,086
4,238,804

130,086
43,149
55,258

30,138
7,190
33,194

259,546
63,671
92,636

50,000
17,374
66,102

300,066
209,568
716,584

2,149,463
404,558
1,535,676

26,822
8,834
57,491
154,984
797,883

1,024,763
469,307
4,127,048
3,082,088
12,459,877

16,285
5,567
153,476
67,590
414,088

9,866
* 1,601
21,373
18,262
52,799

26,279
* 5,585
190,345
120,899
220,452

7,146
* 1,759
209,900
25,149
188,083

149,307
* 69,898
1,085,036
273,805
921,860

332,386
253,826
371,110
1,171,489
4,583,523

Arts, entertainment, and recreation
Performing arts, spectator sports, and related industries
Museums, historical sites, and similar institutions
Amusement, gambling, and recreation industries

1,283,267
1,068,030
3,401
211,836

31,043,663
23,926,664
29,469
7,087,530

1,588,587
1,231,566
* 282
356,739

224,842
132,997
* 143
91,702

1,139,292
580,819
* 225
558,248

331,542
183,732
* 167
147,644

1,609,655
876,827
* 234
732,593

7,562,358
7,340,857
23,171
198,330

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

411,451
50,553

47,792,244
5,516,079

1,813,463
598,140

408,024
17,076

3,258,012
155,042

1,150,463
617,328

8,035,918
789,234

1,239,437
-52,004

30,966
10,702
8,885
360,898

4,503,414
500,436
512,229
42,276,165

505,662
45,992
46,486
1,215,323

13,378
1,364
* 2,334
390,948

146,340
6,229
* 2,474
3,102,969

502,683
48,294
66,351
533,135

686,247
34,995
67,992
7,246,684

-36,987
6,860
-21,877
1,291,441

2,416,229
396,524

84,794,547
24,233,685

2,892,189
989,561

922,868
229,664

5,758,461
905,917

1,012,666
395,938

7,142,197
2,591,723

19,243,943
2,953,965

201,736
94,635

11,649,833
7,575,242

450,056
255,628

75,341
97,920

389,114
286,129

183,876
85,167

1,097,619
964,249

1,445,041
994,323

100,154
436,413
1,583,292

5,008,610
16,990,817
43,570,044

283,877
613,349
1,289,279

56,403
99,824
593,380

230,675
370,432
4,482,112

126,895
213,203
403,525

529,855
1,242,831
3,307,644

514,601
3,545,184
12,744,795

Other services
Auto repair and maintenance
Automotive mechanical and electrical repair and
maintenance
Automotive body shops
Other auto repair and maintenance (including oil
change, lubrication, and car washes)
Miscellaneous repairs
Personal and laundry services
Religious, grantmaking, civic, professional and similar
organizations
Unclassified establishments
Footnotes at end of table.

(4)

Net income
less deficit

2,016,418

Health care and social assistance

20

Number
of returns

Rent paid
Rent paid
on
Interest paid
Depreciation
on other
machinery
deduction Payroll [1,4]
deduction
business
and
[1,3]
[1,2]
equipment property [1]
[1]

251,516

3,521,657

51,295

8,975

19,248

11,575

25,500

1,752,897

527,305

5,483,508

139,996

58,330

80,157

53,508

150,530

2,351,330

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Industrial sector

All nonfarm industries
Agriculture, forestry, hunting, and fishing
Animal production (including breeding of cats and dogs)

Number
of returns

Business
receipts

Rent paid
Rent paid
on
Interest
on other
Depreciation machinery
paid
deduction [1,2]
and
business deduction
equipment property [1]
[1,3]
[1]

(9)

(10)

(11)

16,928,788

1,108,966,537

27,041,714

166,008
16,462

13,760,063
1,125,624

866,618
81,322

(12)

(13)

(14)

7,211,095 25,186,283 8,405,107
102,737
* 4,144

86,920
6,650

Payroll [1,4] Net income

(15)

(16)

91,674,116 335,098,968

167,968
11,207

1,460,361
35,521

2,633,207
181,712

Forestry and logging (including forest nurseries, timber
tracts)

31,497

4,225,932

371,471

47,166

14,024

57,294

414,246

583,592

Fishing

37,832

1,955,315

134,381

17,879

19,550

21,972

52,898

717,764

Hunting and trapping
Support activities for agriculture and forestry

4,846
75,371

238,520
6,214,672

* 13,250
266,194

*3
33,545

* 17,484
29,212

* 1,963
75,533

* 40,259
917,437

60,262
1,089,877

95,112
78,895
* 261
0
2,130
13,826

9,895,176
7,545,881
* 62,270
0
777,948
1,509,078

613,709
445,536
* 1,716
0
66,633
99,824

22,442
14,436
* 178
0
* 2,270
5,558

33,414
24,558
* 52
0
* 940
7,865

97,849
67,347
* 220
0
17,933
12,349

466,770
228,722
* 22,837
0
76,137
139,075

2,811,035
2,216,323
* 5,864
0
97,838
491,010

* 105

* 443

* 9,996

100,720

1,211,961 1,314,530
171,112
305,629
37,623
82,951
26,525
113,541
976,700
812,409

23,877,310
4,380,461
1,137,004
501,475
17,858,370

41,318,313
7,219,827
1,428,246
1,516,443
31,153,797
4,461,145
344,521
45,094
222,020
* 18,916
356,670
* 2,538
440,485
2,612
93,378
137,825
102,711
136,912
599,544
537,083
49,378
99,764
98,655
421,499
188,539
563,000

Mining
Oil and gas extraction
Coal mining
Metal ore mining
Nonmetallic mineral mining and quarrying
Support activities for mining
Utilities

8,067

406,924

16,192

* 2,316

2,434,150
353,370
68,416
53,045
1,959,319

200,697,261
41,215,012
9,120,021
7,152,437
143,209,791

5,698,904
813,282
197,636
366,925
4,321,061

1,111,543
130,280
55,383
67,420
858,460

Manufacturing
Food manufacturing
Textile and textile product mills
Apparel
Leather and allied products
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

217,718
27,381
5,050
16,445
* 3,001
22,680
* 55
22,192
349
4,420
8,402
3,328
3,849
20,513
18,467
3,768
5,491
3,603
15,754
6,889
26,080

23,656,129
3,153,371
352,856
1,071,138
* 20,120
2,373,021
* 2,565
2,047,637
16,857
392,804
544,246
694,533
641,736
3,188,039
2,832,280
155,431
418,018
864,534
1,788,714
577,383
2,520,847

789,877
58,231
* 13,373
15,937
* 81
105,154
0
75,479
* 166
10,991
6,571
22,298
* 48,142
105,350
163,244
* 2,161
2,726
11,463
56,557
10,211
81,742

127,619
12,323
* 2,508
* 4,878
0
21,403
0
15,333
0
* 1,460
* 3,208
* 2,747
* 749
18,493
5,961
0
* 1,192
* 15,353
8,507
* 973
12,530

Wholesale trade (merchant wholesalers)

Construction
Residential building construction
Nonresidential building construction
Heavy and civil engineering construction
Specialty trade contractors

665,372
61,389
* 11,138
49,121
0
38,423
0
112,212
0
* 5,971
* 33,722
* 4,484
* 29,780
90,801
54,983
* 3,295
* 6,814
29,812
73,380
* 14,694
45,353

240,066
27,781
* 2,879
* 4,522
0
19,580
0
31,441
* 66
* 8,535
* 4,417
4,324
* 12,840
23,815
38,294
* 78
* 2,946
* 16,779
14,496
* 763
26,509

2,770,941
249,601
* 55,082
186,791
0
322,228
0
247,982
* 50
63,938
* 43,424
* 92,231
* 115,022
379,382
339,853
* 4,165
* 29,419
157,927
186,913
* 7,297
289,635

225,451

43,189,528

460,486

149,952

567,335

247,733

1,416,214

6,009,042

Durable goods, including machinery, wood, metals, etc.
Nondurable goods, including food, fiber, chemicals, etc.

95,727
79,854

19,034,920
18,250,589

256,951
168,936

100,322
34,497

297,654
189,187

95,608
135,758

739,791
527,211

2,492,538
2,094,787

Wholesale electronic markets and agents and brokers

49,870

5,904,019

34,599

15,133

80,494

16,367

149,212

1,421,717

Footnotes at end of table.

21

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Industrial sector

Number
of returns

Business
receipts

(9)

(10)

Retail trade
Motor vehicle and parts dealers
Furniture and home furnishing stores
Electronic and appliance stores
Building material and garden equipment and supplies
dealers
Food and beverage stores
Health and personal care stores
Gasoline stations
Clothing and accessories stores
Sporting goods, hobby, book, and music stores
General merchandise stores
Miscellaneous store retailers
Nonstore retailers

1,267,199
99,584
30,445
21,685

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
pp activities for transportation
p
(
g motor
Support
(including
vehicle towing)
Couriers and messengers
Warehousing and storage facilities

(11)

(12)

155,918,883
31,179,343
3,785,404
3,172,697

1,602,453
217,359
36,996
60,473

426,059
21,760
16,313
10,876

33,506
57,960
60,487
12,283
78,459
45,880
16,748
322,913
487,248

7,425,178
22,600,203
7,895,494
18,274,250
8,458,131
4,839,994
2,473,905
26,519,335
19,294,949

132,886
149,636
65,076
116,392
75,607
61,135
25,070
338,988
322,837

931,017
8,987
5,140
192,327

67,266,486
1,059,025
426,465
16,424,743

322,988
0
* 4,963
146,455
17,495
** 14,250
**
5,760

(13)

(14)

Payroll [1,4] Net income

(15)

(16)

4,100,576 1,198,070
379,878
268,025
179,745
54,545
75,644
43,570

8,209,539
1,176,757
324,841
305,042

17,883,396
1,998,862
525,237
360,288

22,113
100,135
60,257
22,646
40,167
2,155
18,456
65,567
45,616

82,775
618,658
225,477
224,359
640,584
200,354
120,464
1,051,980
300,659

110,206
129,887
60,559
102,107
64,899
30,165
26,386
218,073
89,648

678,571
1,358,307
447,085
769,318
513,197
240,788
118,769
1,629,445
647,418

828,515
1,326,676
1,170,397
400,038
1,122,003
577,132
263,673
4,691,208
4,619,366

3,669,485
27,028
42,399
1,054,436

1,759,229
2,159
* 2,849
324,804

408,006
8,451
* 180
79,201

731,878
10,107
* 5,355
171,501

3,791,015
21,456
* 13,192
1,235,228

13,663,909
333,653
211,584
3,286,407

34,605,893
0
* 40,273
4,524,955
781,706
** 350,459
**
141,416

2,136,025
0
* 2,244
114,915
43,664
** 12,584
**
* 9,224

787,511
0
0
499,909
* 23,156
** 112
**
* 31

141,820
0
0
63,440
* 2,643
** 207
**
* 6,721

406,304
0
*9
62,935
24,242
** 2,924
**
* 2,463

1,658,643
0
* 161
107,869
* 44,140
** 19,757
**
* 93

5,621,941
0
* 22,773
1,427,655
213,044
** 109,297
**
46,401

38,244
171,843
2,565

2,643,274
5,939,044
329,235

139,831
79,384
7,752

38,609
78,321
* 1,769

43,942
27,044
34,357

28,792
11,653
5,594

297,760
373,533
19,183

557,750
1,755,951
77,452

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

233,984
50,942
60,910
33,532
4,161

8,605,326
1,752,419
2,590,179
1,785,661
201,167

179,751
24,532
100,530
19,967
2,533

70,985
5,230
19,019
40,133
* 105

153,702
28,264
64,983
26,672
* 11,260

50,565
11,076
20,033
12,994
* 657

423,573
149,692
109,384
78,895
* 12,283

3,652,581
716,377
1,164,090
518,816
73,592

84,439

2,275,899

32,189

* 6,498

22,524

5,804

73,319

1,179,707

Finance and insurance
Credit intermediation and related activities
Securities, commodity contracts, and other financial
investments
Investment bankers and securities dealers
Securities brokers
Commodity contracts brokers and dealers
Securities and commodity exchanges
Other financial investment activities (investment advice
Insurance agents, brokers, and related activities
Insurance agencies and brokerages
Other insurance—related activities

495,376
66,452

61,428,063
4,261,253

707,783
70,368

219,456
28,892

1,210,651
68,747

377,601
44,992

3,890,068
262,523

22,908,435
1,469,086

106,244
4,312
10,750
2,820
* 14
88,348
322,680
241,816
80,864

29,496,099
968,598
2,505,716
666,350
* 138,383
25,217,051
27,670,711
23,982,553
3,688,158

170,430
4,958
9,481
1,750
* 269
153,971
466,986
408,330
58,656

69,877
* 3,846
15,178
* 246
0
50,607
120,687
105,639
15,048

362,409
19,654
28,933
13,182
* 353
300,287
779,495
727,869
51,626

149,404
3,306
14,607
455
* 219
130,817
183,206
156,765
26,441

1,234,858
31,013
131,196
15,160
* 1,629
1,055,860
2,392,688
2,250,563
142,124

8,539,428
434,559
953,823
189,262
* 9,496
6,952,289
12,899,922
10,928,275
1,971,647

Footnotes at end of table.

22

Rent paid
Interest
on
Rent paid
paid
on other
Depreciation machinery
business deduction
deduction [1,2]
and
[1,3]
equipment property [1]
[1]

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Industrial sector

Number
of returns

(9)

Business
receipts

Payroll [1,4] Net income

(11)

(12)

(13)

(14)

(15)

(16)

908,375

60,188,057

1,480,061

383,751

835,897

582,249

1,804,064

27,320,942

Real estate
Lessors of real estate (including miniwarehouses
and self storage)
Offices of real estate agents, brokers, property
managers, and appraisers

877,660

57,261,965

1,059,093

356,781

779,817

511,899

1,505,241

26,636,164

13,266

697,851

32,023

4,052

6,352

68,763

23,443

276,502

711,860

43,920,550

804,148

309,666

600,634

312,539

1,037,925

22,251,313

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
Videotape and disc rental
General rental centers and other consumer goods
rental
Commercial and industrial machinery and
equipment rental and leasing

152,534
30,716
** 10,201
**
* 39
3,247

12,643,564
2,926,092
** 434,917
**
* 47,139
498,508

222,923
420,968
** 100,300
**
* 2,022
* 16,716

43,063
26,970
** 1,273
**
0
* 407

172,831
56,080
** 275
**
* 3,429
* 35,869

130,597
70,350
** 21,985
**
* 268
* 7,023

443,873
298,823
** 19,685
**
* 8,554
* 58,655

4,108,350
684,778
** 101,075
**
* 3,727
61,572

7,882

741,074

57,846

10,354

8,932

8,238

* 109,860

187,528

9,347

1,204,454

244,083

14,936

7,576

32,837

102,068

330,875

Professional, scientific, and technical services
Legal services
Offices of certified public accountants
Other accounting services
Architectural, engineering, and related services
Architectural services
Engineering services
Drafting, building inspections, and geophysical
surveying
Surveying and mapping (except geophysical)
services
Testing laboratories
Specialized design services
Computer systems design services
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

2,407,350
268,297
39,361
268,693
213,865
73,057
80,074

156,237,690
36,949,264
4,068,821
7,516,589
14,727,736
6,829,921
5,416,534

3,212,163
429,814
66,654
190,978
452,565
200,846
152,796

722,102
195,839
18,701
28,412
61,578
33,543
22,674

3,182,973
1,576,078
160,550
200,814
210,070
122,709
62,956

771,576
205,051
49,386
87,343
67,372
33,949
22,187

10,825,849
3,920,040
573,577
737,727
1,638,696
1,010,394
444,785

77,705,157
17,450,194
1,903,735
3,445,846
6,055,197
2,117,003
2,580,101

47,243

1,622,533

61,239

1,023

* 13,918

7,303

* 66,194

955,172

10,780
2,711
165 742
165,742
191,706
1,259,685

679,883
178,865
7 903 667
7,903,667
9,211,240
75,860,373

33,195
* 4,489
149 788
149,788
212,070
1,710,294

* 4,332
*7
22 510
22,510
63,261
331,800

8,521
* 1,965
92 405
92,405
78,717
864,340

* 3,194
* 739
25 539
25,539
29,161
307,724

94,545
* 22,776
358 309
358,309
466,991
3,130,508

334,128
68,793
2 668 602
2,668,602
4,780,921
41,400,665

697,244
26,842
90,271
26,335
418,993

43,565,512
1,412,635
6,739,828
1,053,548
23,088,850

817,882
35,191
134,245
6,284
716,691

184,480
7,002
28,999
* 1,537
109,782

354,683
22,413
85,585
11,932
389,726

136,403
* 707
27,056
* 375
143,183

1,122,918
66,215
236,820
42,712
1,661,843

27,576,853
775,250
2,276,899
494,610
10,277,052

1,787,855
1,766,210

52,763,362
50,755,416

1,752,019
1,580,081

409,781
390,345

585,247
563,092

305,984
276,754

5,466,780
5,321,341

19,554,621
19,225,753

21,645

2,007,946

171,937

19,435

22,155

29,230

145,440

328,868

466,677

7,042,678

140,904

30,938

352,979

44,792

268,854

3,612,035

Real estate and rental and leasing

Administrative and support and waste
management and remediation services
Administrative and support services
Waste management and remediation services
Educational services

(10)

Rent paid
on
Rent paid
Interest
Depreciation machinery
on other
paid
and
deduction [1,2]
business deduction
equipment property [1]
[1,3]
[1]

Footnotes at end of table.

23

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Industrial sector

Number
of returns

Business
receipts

Rent paid
Rent paid
Interest
on
on other
paid
Depreciation machinery
business deduction
and
deduction [1,2]
[1,3]
equipment property [1]
[1]

Payroll [1,4] Net income

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

1,677,379

107,695,993

2,262,347

528,516

4,399,618

939,407

14,893,884

48,286,449

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

829,480

91,188,521

1,898,616

460,576

4,046,344

733,914

13,333,972

41,107,694

160,313
28,775
84,992
34,353
17,661

31,988,061
2,923,924
29,148,584
4,505,208
3,234,129

515,444
42,986
874,270
94,661
69,016

174,059
19,528
108,901
41,600
32,704

1,274,790
172,550
1,126,332
388,324
167,600

168,478
16,461
353,616
61,313
24,528

4,052,871
153,074
6,321,501
507,247
542,131

16,239,483
1,797,035
10,431,676
1,745,278
924,445

141,668
4,543

7,928,102
958,637

124,787
16,587

29,441
2,705

520,958
88,334

19,028
9,052

482,225
125,890

4,617,337
352,247

119,980
27,060
186,423

4,559,133
1,295,056
3,696,328

79,873
32,741
34,716

23,886
4,217
14,109

202,316
58,828
25,562

24,018
9,954
42,956

233,335
200,565
586,697

2,413,599
448,923
1,790,438

23,712
8,831
46,231
117,669
675,168

951,359
466,059
2,650,615
2,762,097
10,628,701

13,536
* 3,937
85,315
44,219
230,259

9,425
* 1,601
14,121
16,361
35,857

20,750
* 5,580
90,382
107,113
150,199

4,509
* 1,759
76,552
18,561
108,620

128,438
* 69,301
655,447
219,037
616,126

347,232
255,650
501,734
1,306,503
5,114,868

Arts, entertainment, and recreation
Performing arts, spectator sports, and related industries
Museums, historical sites, and similar institutions
Amusement, gambling, and recreation industries

783,394
649,255
2,711
131,428

24,742,954
20,327,153
28,675
4,387,126

750,420
626,350
* 205
123,865

135,736
88,421
*1
47,314

591,563
329,385
* 53
262,125

113,460
72,964
0
40,496

825,929
492,875
*3
333,051

11,410,732
10,275,232
25,364
1,110,136

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

263,332
27,192

34,879,565
3,121,187

823,180
185,574

240,788
8,181

2,243,084
73,379

507,408
232,796

5,418,621
354,122

3,964,887
611,072

16,211
7,657
3,325
236,140

2,539,278
277,078
304,831
31,758,378

156,454
10,888
18,231
637,607

5,136
* 1,241
* 1,805
232,606

66,559
* 4,600
* 2,220
2,169,704

193,062
* 15,700
* 24,035
274,612

301,885
27,109
* 25,127
5,064,499

485,658
59,658
65,755
3,353,816

1,915,583
305,856

72,514,673
19,928,520

1,883,760
606,335

722,176
195,747

4,510,472
647,493

675,163
239,356

5,751,236
2,089,613

22,828,669
3,863,109

154,941
75,412

9,543,976
6,440,614

295,196
171,349

52,514
93,620

267,576
218,149

128,859
65,628

891,388
802,904

1,891,915
1,172,160

75,503
334,471
1,275,256

3,943,930
14,826,271
37,759,882

139,790
467,964
809,460

49,613
85,555
440,874

161,768
243,813
3,619,166

44,869
158,103
277,703

395,321
1,103,270
2,558,354

799,034
4,147,093
14,818,467

Health care and social assistance

Other services
Auto repair and maintenance
Automotive mechanical and electrical repair and
maintenance
Automotive body shops
Other auto repair and maintenance (including oil
change, lubrication, and car washes)
Miscellaneous repairs
Personal and laundry services
Religious, grantmaking, civic, professional and
similar organizations

201,412

3,292,324

34,159

* 3,732

8,608

* 8,597

* 23,717

2,072,527

Unclassified establishments

443,351

4,785,400

97,443

41,237

37,802

29,768

79,396

2,901,164

* Estimate should be used with caution because of the small number of sample returns on which it is based.
** Data combined to prevent disclosure of taxpayer information.
[1] Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly
understated.
[2] Includes depreciation claimed on Form 8829, Expenses for Business Use of Your Home .
[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.

24

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2007
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Agriculture, forestry, hunting, and fishing

Net income status, item

All
nonfarm
industries

(1)

Total

Animal
production
(including
breeding
of cats and
dogs)

Forestry
and logging
(including
forest
nurseries,
timber tracts)

(2)

(3)

(4)

Mining

Fishing

Hunting
and
trapping

Support
activities
for
agriculture
and forestry

Total

(5)

(6)

(7)

(8)

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]

23,122,698

301,280

53,941

51,332

63,216

10,480

122,312

126,578

Business receipts, total [1]
Income from sales and operations [1]
Other business income

1,324,403,080
1,303,976,701
20,426,379

17,747,925
17,405,779
342,146

1,766,020
1,683,919
82,100

5,208,334
5,145,938
62,397

2,334,905
2,248,280
86,625

380,277
373,160
7,118

8,058,389
7,954,482
103,906

12,534,266
11,996,371
537,894

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
M
Mortgage
t
interest
i t
t
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

1,044,343,442
422,684,549
44,469,609
34,514,589
264,234,818
61,519,006
64,956,668
47,010,141
15,731,012
82,023,756
14,569,232
36,674,415
1,021,072
39,645,972
2,909,540
19,290,556
10,934,377
7,661,490
6,648,973
6 648 973
8,368,192
13,297,287
1,279,748
9,526,481
33,613,237
16,170,712
32,325,460
79,380,311
18,183,185
13,134,026
24,856,179
119,516,105
11,217,628
1,439,137
99,670
1,235,717

17,100,026
5,660,622
543,798
341,752
4,428,553
207,887
563,263
424,632
90,979
967,185
92,797
624,357
87
1,651,315
11,125
416,028
129,634
51,218
105,559
105 559
209,525
51,863
2,983
127,994
213,486
747,409
595,994
1,384,725
337,412
141,345
229,172
3,150,505
78,411
11,145
* 369
12,441

2,318,882
745,829
102,881
26,863
561,119
48,087
96,320
89,441
22,515
128,799
33,639
29,738
*1
264,644
668
39,450
31,698
5,504
11,877
11 877
14,376
8,950
* 242
5,606
13,411
37,588
129,025
30,530
15,866
31,546
35,194
651,228
30,325
6,159
* 48
* 8,477

4,904,911
1,443,401
271,050
123,087
875,450
59,713
259,159
145,057
9,699
263,772
13,913
310,895
* 11
565,566
4,439
165,584
20,592
10,292
21,376
21 376
79,018
12,209
1,653
51,690
18,634
353,903
85,362
390,963
86,689
12,340
50,492
920,331
6,178
1,157
* 318
* 1,362

1,926,292
338,159
* 7,388
* 45,689
* 188,828
47,076
61,271
* 12,091
17,437
124,767
* 4,251
48,008
0
285,152
* 359
52,283
20,430
15,429
17,874
17 874
29,653
5,676
* 164
24,762
29,888
115,249
149,514
13,240
46,846
39,422
26,442
499,039
15,457
2,342
0
* 679

360,266
126,261
* 10,974
* 18,818
71,172
* 3,823
* 34,731
* 13,258
2,815
8,828
* 946
3,869
* 36
47,407
* 15
7,104
4,262
1,010
* 4,774
4 774
* 9,139
823
0
* 400
19,428
20,039
9,285
24,691
9,191
2,301
13,893
41,904
0
0
0
0

7,589,675
3,006,972
151,504
127,296
2,731,985
49,189
111,783
164,784
38,513
441,018
40,048
231,847
* 39
488,546
5,644
151,606
52,651
18,983
49,657
49 657
77,340
24,205
924
45,536
132,124
220,631
222,808
925,302
178,819
55,737
103,151
1,038,003
26,451
1,487
*3
* 1,922

10,913,682
2,788,714
71,876
214,754
1,161,315
97,919
1,315,366
72,516
14,966
327,274
30,944
135,819
873,111
931,200
23,142
142,881
102,745
29,331
34,778
34 778
156,692
46,140
3,113
39,597
46,426
205,423
115,960
406,512
295,731
53,196
94,957
3,973,760
16,170
1,383
0
1,542

280,557,010
335,098,968
-54,541,958

668,372
2,633,207
-1,964,834

-547,398
181,712
-729,110

303,534
583,592
-280,058

409,418
717,764
-308,346

20,558
60,262
-39,704

482,260
1,089,877
-607,617

1,624,615
2,811,035
-1,186,420

Net income less deficit [1,2]
Net income [1,2]
Deficit [2]
Footnotes at end of table.

25

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Agriculture, forestry, hunting, and fishing

Net income status, item

All
nonfarm
industries

(1)

Total

Animal
production
(including
breeding
of cats and
dogs)

Forestry
and logging
(including
forest
nurseries,
timber tracts)

(2)

(3)

(4)

Mining

Fishing

Hunting
and
trapping

Support
activities
for
agriculture
and forestry

Total

(5)

(6)

(7)

(8)

BUSINESSES WITH NET INCOME
Number of returns [1]

16,928,788

166,008

16,462

31,497

37,832

4,846

75,371

95,112

1,108,966,537
1,094,000,523
14,966,013

13,760,063
13,549,270
210,793

1,125,624
1,075,927
49,696

4,225,932
4,186,075
39,858

1,955,315
1,874,770
80,545

238,520
238,053
* 466

6,214,672
6,174,445
40,227

9,895,176
9,487,699
407,478

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

773,912,492
319,391,585
26,022,617
28,691,090
197,099,788
49,457,882
45,911,851
27,791,643
11,631,573
61,245,094
10,985,416
30,022,269
772,119
26,068,072
2,302,843
14,947,353
7,792,043
6,050,928
3,493,736
4 911 372
4,911,372
10,282,730
1,181,625
7,211,095
25,186,283
11,481,853
24,197,292
62,983,026
13,684,297
9,736,826
18,153,001
78,209,792
8,392,388
973,642
60,917
142,436

11,126,867
4,287,367
350,247
323,074
3,354,954
163,934
340,050
244,892
52,181
578,730
54,282
377,660
* 36
863,777
8,564
286,516
62,518
30,825
57,503
110 465
110,465
29,751
2,437
102,737
86,920
448,034
326,266
1,137,287
219,432
73,634
132,093
1,732,854
39,784
2,841
* 48
* 642

943,935
434,082
* 38,077
* 24,323
298,231
* 35,324
66,864
* 28,736
8,416
54,587
22,202
16,994
0
80,961
* 261
18,857
6,154
2,385
* 7,892
3 314
3,314
2,749
0
* 4,144
6,650
14,289
26,486
* 11,198
6,290
4,235
14,991
189,724
* 6,659
* 360
* 48
* 642

3,642,341
1,236,964
227,786
116,282
771,718
37,715
191,235
107,772
5,557
183,055
* 12,179
184,568
0
371,105
3,488
122,192
9,851
6,914
16,405
40 888
40,888
8,632
1,518
47,166
14,024
239,714
52,271
297,964
54,112
9,803
30,565
684,184
3,741
365
0
0

1,237,539
268,685
* 7,388
* 42,951
* 188,824
* 40,465
* 1,088
* 12,031
12,773
67,897
* 3,564
41,846
0
132,724
* 134
28,928
14,042
10,950
* 3,368
18 604
18,604
3,764
0
17,879
19,550
62,732
82,243
* 9,947
28,837
25,766
18,446
347,894
11,329
* 1,657
0
0

178,257
* 68,178
0
* 18,818
* 43,648
* 2,647
* 3,065
0
* 1,738
* 3,196
0
* 180
*1
* 13,250
0
* 1,500
* 2,608
* 319
* 1,932
* 30
* 491
0
*3
* 17,484
* 6,306
* 3,116
* 21,441
* 7,032
* 517
* 3,504
* 23,615
0
0
0
0

5,124,795
2,279,457
76,996
120,700
2,052,533
47,783
77,798
96,352
23,697
269,994
16,336
134,072
* 34
265,736
4,681
115,038
29,863
10,257
27,905
47 628
47,628
14,116
919
33,545
29,212
124,994
162,150
796,737
123,160
33,313
64,588
487,437
18,056
459
0
0

7,085,224
1,976,056
42,475
191,942
848,745
75,676
857,228
40,010
11,865
280,854
28,114
113,402
661,919
612,662
12,956
110,549
60,606
24,826
22,975
74 875
74,875
33,172
2,532
22,442
33,414
158,694
77,627
274,828
212,765
36,054
78,948
2,124,124
13,917
1,047
0
* 97

Net income [1,2]

335,098,968

2,633,207

181,712

583,592

717,764

60,262

1,089,877

2,811,035

Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income

4,399,494
31,215,207
3,679,945
27,535,262

42,647
210,792
28,297
182,495

2,064
4,341
* 634
* 3,706

8,087
28,191
* 5,907
22,284

8,802
45,128
* 6,791
38,336

* 3,474
* 13,187
* 1,845
* 11,342

20,221
119,945
13,119
106,826

21,951
139,542
25,101
114,441

Business receipts, total [1]
Income from sales and operations [1]
Other business income

Footnotes at end of table.

26

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Mining—continued

Net income status, item

Utilities

Construction

Oil
and
gas extraction

Coal
mining

Metal
ore
mining

Nonmetallic
mineral
mining and
quarrying

Support
activities for
mining

Total

Total

(9)

(10)

(11)

(12)

(13)

(14)

(15)

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]

104,284

408

* 1,028

3,487

17,371

10,131

2,931,110

Business receipts, total [1]
Income from sales and operations [1]
Other business income

9,632,432
9,178,734
453,698

71,712
71,402
* 310

* 1,432
* 1,432
0

920,554
919,044
1,510

1,908,136
1,825,759
82,377

565,214
563,140
2,075

230,835,068
229,219,635
1,615,433

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
M
Mortgage
t
interest
i t
t
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

8,516,518
1,805,302
49,695
138,803
464,114
44,349
1,154,557
46,216
5,355
168,215
27,960
89,808
852,693
692,659
12,290
75,443
89,416
15,404
22,654
22 654
111,003
33,310
2,594
16,421
34,410
123,203
67,450
155,525
252,232
34,150
62,236
3,742,497
12,501
1,125
0
1,540

66,633
* 4,370
* 82
0
* 3,935
0
* 430
* 77
* 46
* 219
* 35
* 18
* 961
* 2,431
* 1,730
* 4,411
716
*4
* 67
* 1,354
* 279
* 131
* 178
* 52
* 3,700
* 7,808
* 22,837
* 3,134
*3
* 241
11,906
0
0
0
0

* 4,558
* 763
0
* 489
0
* 148
* 127
0
0
* 611
0
0
* 130
* 465
0
* 137
*9
*5
0
0
* 15
0
*6
* 64
* 48
* 12
* 364
* 171
* 17
* 26
* 1,717
0
0
0
0

861,486
458,961
* 16,036
59,366
303,065
* 19,210
76,472
* 15,187
7,538
22,086
* 2,614
* 1,125
17,708
89,594
* 2,033
16,859
3,095
805
* 8,274
8 274
28,174
4,183
* 80
12,879
* 1,377
35,415
4,021
39,097
14,910
* 1,010
13,863
75,659
* 124
* 56
0
*2

1,464,487
519,317
* 6,064
* 16,096
390,202
34,212
83,780
* 11,037
2,026
136,143
* 334
44,869
1,619
146,051
7,090
46,031
9,508
13,114
* 3,783
3 783
16,161
8,353
* 308
10,113
10,522
43,056
36,669
188,688
25,285
18,016
18,592
141,981
* 3,545
* 202
0
0

523,669
222,384
* 447
* 33,033
* 46,990
* 33,557
* 109,734
* 1,379
1,857
39,667
* 2,183
62,070
* 3,371
42,091
* 50
13,103
3,264
2,520
* 333
* 2,564
2,978
* 11
3,422
* 1,251
10,413
13,945
* 14,997
4,438
6,971
3,908
60,058
* 1,020
* 935
0
* 932

195,237,842
99,315,888
7,901,962
17,647,456
30,031,679
33,173,579
19,335,209
8,773,996
1,264,898
15,584,086
752,630
15,287,410
60,823
7,264,279
367,121
4,366,712
1,069,848
697,176
971,130
971 130
1,258,704
1,203,860
73,774
1,430,225
1,605,321
2,066,517
8,118,260
10,598,430
2,294,429
981,857
2,593,852
14,317,657
1,320,751
141,652
23,190
85,376

Net income less deficit [1,2]
Net income [1,2]
Deficit [2]

1,119,626
2,216,323
-1,096,697

5,079
* 5,864
* -785

* -3,125
0
* -3,125

59,401
97,838
-38,436

443,634
491,010
-47,376

39,999
100,720
-60,722

35,667,000
41,318,313
-5,651,313

Footnotes at end of table.

27

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Mining—continued

Net income status, item

Utilities

Construction

Oil
and
gas extraction

Coal
mining

Metal
ore
mining

Nonmetallic
mineral
mining and
quarrying

Support
activities for
mining

Total

Total

(9)

(10)

(11)

(12)

(13)

(14)

(15)

BUSINESSES WITH NET INCOME
Number of returns [1]

78,895

* 261

0

2,130

13,826

8,067

2,434,150

Business receipts, total [1]
Income from sales and operations [1]
Other business income

7,545,881
7,215,533
330,349

* 62,270
* 62,178
* 92

0
0
0

777,948
777,856
* 92

1,509,078
1,432,131
76,946

406,924
404,903
* 2,021

200,697,261
199,409,333
1,287,928

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

5,330,641
1,226,673
33,330
130,446
335,839
36,879
717,077
26,898
3,886
140,862
25,340
78,485
651,735
444,745
5,647
58,301
51,803
12,038
15,071
52 277
52,277
24,563
2,018
14,436
24,558
111,073
49,378
98,276
180,730
18,805
53,769
1,964,133
10,265
791
0
* 97

* 56,405
* 4,370
* 82
0
* 3,935
0
* 430
* 77
* 46
* 171
* 35
* 18
0
* 1,716
* 1,730
* 4,411
* 616
*3
* 67
* 153
* 66
* 131
* 178
* 52
* 3,700
* 7,808
* 22,837
* 2,630
*1
* 241
* 5,425
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

680,110
415,201
* 3,630
* 48,148
* 287,064
* 14,316
* 65,989
* 3,944
* 6,218
* 21,189
* 2,566
* 448
8,769
66,580
* 1,392
11,016
1,513
* 619
* 4,468
* 13,465
13 465
2,188
* 75
* 2,270
* 940
20,711
* 2,469
* 27,989
10,671
* 653
8,860
49,735
* 106
* 54
0
0

1,018,067
329,812
* 5,433
* 13,349
* 221,908
* 24,481
73,732
* 9,091
1,716
118,632
* 172
34,451
* 1,415
99,621
4,187
36,821
6,674
12,166
* 3,370
8 980
8,980
6,356
* 308
5,558
7,865
23,209
17,972
125,726
18,735
16,594
16,078
104,831
* 3,545
* 202
0
0

306,234
* 115,884
* 447
0
* 44,365
* 2,523
* 68,996
* 447
* 1,466
33,073
* 2,183
* 55,718
* 3,371
16,189
*3
* 4,769
* 697
* 1,769
* 333
* 110
* 1,500
*5
* 2,316
* 105
* 5,138
12,387
* 9,996
* 3,846
* 2,136
2,986
25,224
* 230
*3
0
0

159,383,836
81,910,491
3,885,876
15,222,461
24,371,648
28,268,445
14,740,831
4,578,770
1,000,554
12,866,040
563,724
13,251,362
56,796
5,589,410
273,735
3,578,133
789,754
576,054
481,291
833 239
833,239
930,453
63,753
1,111,543
1,211,961
1,612,211
6,715,431
8,654,849
1,839,370
791,165
2,051,584
11,183,919
1,077,913
109,495
20,589
22,768

Net income [1,2]

2,216,323

* 5,864

0

97,838

491,010

100,720

41,318,313

17,284
66,658
11,789

0
0
0

0
0
0

* 300
* 33,350
0

4,367
39,533
* 13,312

* 3,983
* 21,891
* 4,802

470,797
3,626,865
372,204

Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions

28

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Construction—continued

Net income status, item

Heavy and
Residential Nonresidential
civil
building
building
engineering
construction construction
construction

(16)

(17)

(18)

Manufacturing

Specialty
trade
contractors

Total

Food
manufacturing

Textile
and textile
product mills

Apparel

(19)

(20)

(21)

(22)

(23)

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]

423,433

83,005

77,303

2,347,369

362,390

44,984

7,690

28,809

Business receipts, total [1]
Income from sales and operations [1]
Other business income

50,209,133
49,945,594
263,539

10,828,766
10,738,066
90,700

10,069,553
9,954,323
115,230

159,727,616
158,581,651
1,145,964

29,248,316
29,063,321
184,994

3,864,513
3,836,267
28,246

407,370
407,264
* 106

1,287,983
1,280,405
7,578

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
M
Mortgage
t
interest
i t
t
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

44,432,292
28,259,449
4,331,173
3,828,925
7,764,105
9,320,768
7,741,160
4,726,681
210,353
2,230,060
149,109
2,995,191
* 3,448
1,007,430
34,448
740,853
247,801
97,814
337,541
337 541
300,892
174,419
8,355
204,865
227,167
248,086
1,491,610
1,485,090
361,982
92,207
405,861
2,833,914
221,462
23,771
* 6,026
7,807

9,669,315
6,205,627
218,026
868,808
1,567,259
1,660,525
2,208,738
317,728
35,210
471,064
37,659
520,982
* 143
255,248
18,674
185,893
52,855
29,983
49,825
49 825
72,656
50,731
3,431
103,428
63,135
77,705
204,805
430,576
107,942
53,380
122,461
478,331
30,844
4,622
* 2,589
* 126

9,244,020
5,252,838
1,648,010
382,226
2,015,934
1,349,615
1,867,848
2,010,795
62,625
354,330
68,054
324,941
* 614
549,950
10,921
182,539
102,099
40,996
161,448
161 448
150,002
57,056
5,409
82,850
43,512
196,884
163,288
395,965
138,152
79,372
100,261
682,618
28,541
1,929
* 1,734
910

131,892,215
59,597,975
1,704,753
12,567,497
18,684,381
20,842,672
7,517,462
1,718,791
956,710
12,528,632
497,809
11,446,296
56,617
5,451,651
303,078
3,257,428
667,094
528,383
422,316
422 316
735,155
921,653
56,579
1,039,082
1,271,506
1,543,841
6,258,557
8,286,798
1,686,352
756,899
1,965,270
10,322,794
1,039,904
111,330
12,842
76,533

26,230,644
14,167,143
1,608,491
1,630,818
7,778,254
3,090,152
1,869,448
1,810,019
284,439
1,024,633
162,571
466,746
596
1,190,925
104,160
368,060
194,980
88,754
157,726
157 726
224,517
245,077
16,626
168,357
961,775
356,471
772,723
2,016,732
440,895
199,949
645,839
1,718,256
208,248
22,810
* 7,152
20,111

3,791,997
2,438,758
314,741
75,453
1,743,801
500,931
201,463
397,630
41,200
98,146
15,928
16,523
* 75
112,301
7,387
36,438
25,397
6,548
15,577
15 577
39,571
26,964
541
25,687
85,316
55,296
76,295
287,887
69,053
19,848
83,757
194,654
* 3,642
* 265
0
* 371

423,076
210,860
* 31,946
* 37,258
* 111,234
* 20,884
* 22,702
* 13,163
6,160
28,038
* 6,479
* 4,116
0
15,185
* 2,185
9,027
5,347
729
* 67
* 3,495
2,071
* 2,452
* 3,174
15,815
3,808
7,349
* 33,131
8,596
2,251
18,113
30,087
* 734
* 731
0
0

1,205,864
568,938
88,221
128,189
302,383
31,569
112,644
94,068
31,574
54,902
4,351
45,522
0
35,421
* 7,312
9,941
6,440
8,688
*4
4,696
16,096
* 79
4,904
63,083
9,236
35,600
61,269
16,398
15,202
35,388
140,461
23,315
* 3,844
0
* 2,248

Net income less deficit [1,2]
Net income [1,2]
Deficit [2]

5,823,813
7,219,827
-1,396,014

1,160,688
1,428,246
-267,558

827,809
1,516,443
-688,634

27,854,691
31,153,797
-3,299,106

3,031,757
4,461,145
-1,429,387

73,829
344,521
-270,692

-15,707
45,094
-60,800

86,798
222,020
-135,222

Footnotes at end of table.

29

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Construction—continued

Net income status, item

Heavy and
Residential Nonresidential
civil
building
building
engineering
construction construction
construction

(16)

(17)

(18)

Manufacturing

Specialty
trade
contractors

Total

Food
manufacturing

Textile
and textile
product mills

Apparel

(19)

(20)

(21)

(22)

(23)

BUSINESSES WITH NET INCOME
Number of returns [1]

353,370

68,416

53,045

1,959,319

217,718

27,381

5,050

16,445

Business receipts, total [1]
Income from sales and operations [1]
Other business income

41,215,012
41,010,110
204,902

9,120,021
9,044,825
75,196

7,152,437
7,118,071
34,366

143,209,791
142,236,327
973,464

23,656,129
23,536,337
119,792

3,153,371
3,134,316
19,055

352,856
352,856
0

1,071,138
1,063,793
* 7,344

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

33,999,954
21,781,202
2,231,006
3,293,848
5,479,795
7,577,583
5,640,778
2,441,808
152,056
1,817,715
107,470
2,411,544
* 30
795,761
21,073
590,659
148,592
77,452
130,725
174 904
174,904
141,973
7,097
130,280
171,112
208,905
1,144,919
1,086,613
253,925
77,689
319,355
2,003,301
183,313
17,522
* 6,022
1,918

7,691,775
5,093,127
95,754
790,635
1,086,451
1,523,473
1,785,685
188,871
31,664
374,176
* 16,698
415,481
* 143
193,134
14,784
128,183
37,359
25,186
39,094
43 857
43,857
41,133
3,208
55,383
37,623
55,458
140,277
346,370
86,390
43,912
71,194
361,450
29,764
4,502
* 2,589
*7

5,636,404
3,026,982
515,057
222,834
1,080,980
910,378
1,061,847
764,114
35,952
241,800
55,039
259,314
* 550
365,257
5,670
132,230
51,178
30,867
39,988
73 553
73,553
33,795
3,577
67,420
26,525
129,504
139,725
278,641
89,049
47,889
61,058
406,919
25,167
1,668
* 1,734
0

112,055,703
52,009,181
1,044,059
10,915,144
16,724,423
18,257,011
6,252,521
1,183,976
780,883
10,432,349
384,518
10,165,022
56,073
4,235,259
232,208
2,727,060
552,624
442,549
271,483
540 926
540,926
713,552
49,870
858,460
976,700
1,218,345
5,290,511
6,943,226
1,410,006
621,675
1,599,977
8,412,248
839,669
85,802
* 10,244
20,843

19,195,250
10,913,050
923,060
1,237,498
5,977,782
2,432,074
1,373,427
1,030,790
159,893
689,316
90,053
319,361
460
772,801
85,275
268,714
112,964
57,382
96,198
143 867
143,867
151,454
14,697
127,619
665,372
279,556
560,645
1,533,443
341,704
112,427
440,687
1,082,614
137,344
17,076
* 3,319
* 2,091

2,809,103
1,973,522
168,743
40,589
1,447,159
415,299
111,436
209,705
11,943
60,723
9,525
13,077
0
58,068
4,696
26,078
15,789
3,215
9,146
18 634
18,634
9,357
* 447
12,323
61,389
42,798
32,043
209,012
56,646
5,144
61,804
101,669
* 2,847
* 163
0
0

307,763
* 144,625
* 3,871
* 32,333
* 82,402
* 16,912
* 18,977
* 9,871
* 4,982
* 25,072
* 3,838
* 2,174
0
* 12,642
* 2,185
* 8,126
* 4,373
* 294
* 67
* 2,812
2 812
* 1,403
* 2,448
* 2,508
* 11,138
* 3,394
* 5,745
* 22,748
* 5,707
* 521
* 15,057
* 21,365
* 734
* 731
0
0

849,118
462,854
59,814
* 127,940
230,409
17,632
* 97,008
69,949
3,388
43,634
4,212
* 2,287
0
12,916
* 7,170
8,535
4,194
3,982
0
* 4,522
4 522
12,942
* 62
* 4,878
49,121
8,833
25,763
58,851
13,298
7,742
27,650
59,184
* 16,055
* 3,020
0
0

Net income [1,2]

7,219,827

1,428,246

1,516,443

31,153,797

4,461,145

344,521

45,094

222,020

65,277
535,954
62,885
473,069

11,533
100,852
* 6,727
94,125

12,210
108,616
8,756
99,859

381,777
2,881,443
293,836
2,587,607

47,827
314,749
44,446
270,303

11,318
79,244
* 9,207
70,037

* 1,291
* 5,451
* 3,806
* 1,645

* 4,270
* 25,674
* 7,045
* 18,629

Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income
Footnotes at end of table.

30

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Manufacturing—continued

Net income status, item

Leather
and
allied
products

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

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]

* 3,084

35,852

* 1,060

34,903

390

8,802

15,217

4,392

Business receipts, total [1]
Income from sales and operations [1]
Other business income

* 46,456
* 39,488
* 6,968

2,692,662
2,661,310
31,352

* 47,083
* 47,083
0

2,704,692
2,700,456
4,236

38,627
36,652
* 1,975

591,406
586,424
4,983

781,386
780,630
* 755

769,424
766,528
* 2,896

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
M
Mortgage
t
interest
i t
t
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

* 32,513
* 21,382
* 32,864
0
* 23,616
0
0
* 35,098
* 2,140
* 618
0
0
0
* 364
*1
* 374
*2
* 40
*9
0
* 39
0
0
* 21
*7
* 354
* 5,067
*4
* 184
* 218
* 1,550
* 137
* 81
0
0

2,423,114
1,357,141
195,590
165,123
714,850
283,143
195,205
196,770
14,580
86,669
6,951
32,772
* 22
145,663
15,852
27,132
13,884
3,387
15,921
15 921
21,151
23,156
* 1,435
25,703
48,184
56,131
51,705
190,710
32,655
9,272
44,754
160,619
33,372
* 3,236
0
* 1,123

* 50,246
* 34,729
* 2,019
0
* 32,302
0
* 2,713
* 2,305
*1
* 1,187
0
*4
0
* 611
0
* 1,330
* 314
* 130
* 1,089
1 089
0
* 289
0
* 518
* 341
* 358
*2
* 4,460
* 397
* 284
* 331
* 995
* 2,875
0
0
0

2,384,531
1,113,429
46,738
88,093
610,523
222,964
186,068
40,957
51,475
91,297
12,951
19,896
0
112,611
9,076
26,289
17,256
7,790
* 16,747
16 747
33,176
36,496
* 1,810
16,086
154,754
27,451
80,809
234,967
51,725
11,393
93,661
151,805
10,292
* 1,491
0
* 654

39,923
* 27,221
* 10,269
* 1,119
* 11,504
* 210
* 4,120
0
* 28
* 49
* 89
* 1,237
* 147
* 3,153
* 165
* 1,373
* 333
* 22
* 66
* 2,340
* 283
0
0
*2
* 83
*6
* 1,023
* 68
* 80
* 240
1,729
0
0
0
0

539,768
206,167
20,580
* 11,521
* 104,062
39,380
54,921
24,297
4,143
17,780
* 4,071
* 11,443
* 13
19,488
* 4,990
12,481
7,188
2,510
* 12,812
12 812
3,585
12,163
* 359
2,354
11,265
7,905
11,792
91,782
8,320
6,117
34,866
40,406
* 2,581
* 332
0
* 29

676,816
312,945
33,191
* 27,806
217,651
67,293
* 7,369
40,364
8,130
44,957
* 929
35,201
0
10,401
* 1,982
20,213
3,225
4,785
* 2,522
2 522
* 4,742
4,477
* 271
* 3,215
52,301
8,316
23,107
49,108
10,738
5,904
16,492
43,090
* 9,307
* 671
0
* 2,216

702,713
378,633
* 21,120
* 20,255
* 193,890
119,185
* 51,704
* 27,521
5,969
14,626
* 102
* 6,144
* [4]
37,461
* 3,051
17,407
6,585
1,876
* 3,326
3 326
4,084
6,654
* 341
* 2,944
* 9,697
14,604
18,331
86,023
13,441
5,439
8,015
55,834
* 2,128
* 310
0
0

Net income less deficit [1,2]
Net income [1,2]
Deficit [2]

* 13,944
* 18,916
* -4,973

269,548
356,670
-87,121

* -3,163
* 2,538
* -5,701

321,191
440,485
-119,294

-1,296
2,612
* -3,908

51,638
93,378
-41,740

104,589
137,825
-33,237

66,711
102,711
-36,001

Footnotes at end of table.

31

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors,
Tax Year 2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Manufacturing—continued

Net income status, item

Leather
and
allied
products

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

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

BUSINESSES WITH NET INCOME
Number of returns [1]

* 3,001

22,680

* 55

22,192

349

4,420

8,402

3,328

Business receipts, total [1]
Income from sales and operations [1]
Other business income

* 20,120
* 13,437
* 6,682

2,373,021
2,356,878
16,143

* 2,565
* 2,565
0

2,047,637
2,046,142
1,495

16,857
16,392
* 465

392,804
388,520
4,284

544,246
544,105
* 140

694,533
691,748
* 2,785

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

* 1,203
0
0
0
0
0
0
0
0
* 340
0
0
0
0
0
0
0
* 17
0
0
0
0
0
0
0
0
0
0
* 70
* 42
* 597
* 137
* 81
0
0

2,016,351
1,177,976
117,861
149,414
585,636
252,693
175,399
103,026
11,538
65,754
* 6,645
* 27,058
* 21
102,371
15,382
23,136
10,779
2,214
* 9,264
10 317
10,317
9,480
* 1,423
21,403
38,423
47,818
42,426
172,814
27,837
4,643
37,223
122,237
* 23,878
* 2,783
0
0

* 27
* 15
0
0
* 15
0
0
0
0
*9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
*2
0
0
0
0
0
0
0

1,607,152
727,142
25,052
* 68,900
399,291
170,945
85,128
22,173
34,549
50,856
8,768
17,003
0
74,642
6,204
18,734
7,772
5,324
* 15,107
16 334
16,334
24,261
* 1,806
15,333
112,212
19,920
68,880
179,082
34,116
5,672
56,313
98,058
7,773
* 837
0
0

14,245
* 12,445
0
0
* 10,644
0
* 1,801
0
*9
* 40
* 89
0
* 146
* 166
0
* 21
* 252
*2
* 66
0
* 16
0
0
0
*1
*1
* 50
*9
*9
* 43
855
0
0
0
0

299,426
120,075
* 3,440
* 11,521
* 40,107
* 38,922
* 29,583
* 3,498
* 2,520
12,817
* 4,008
* 1,127
* 13
10,660
* 4,905
8,565
3,184
1,507
* 5,950
* 2,585
2 585
5,963
* 359
* 1,460
* 5,971
4,994
* 9,149
* 52,418
4,426
2,603
8,551
23,045
* 2,566
* 331
0
* 27

406,420
161,888
25,364
* 5,685
* 97,807
* 54,283
* 3,649
* 24,900
2,950
20,804
* 373
* 33,629
0
6,321
* 1,902
18,157
2,090
* 2,506
0
* 4,417
4 417
* 2,689
* 257
* 3,208
* 33,722
* 2,960
17,100
* 37,739
* 6,420
* 3,113
11,820
23,757
* 8,140
* 250
0
0

591,821
351,319
* 20,755
* 15,932
* 187,366
* 107,000
* 44,033
* 23,767
5,238
* 14,122
* 86
* 5,049
0
21,988
* 2,188
* 16,009
4,630
* 1,818
* 1,188
* 3,137
3 137
6,040
0
* 2,747
* 4,484
* 8,430
* 10,116
* 76,299
10,861
* 5,347
5,818
32,782
* 2,128
* 310
0
0

Net income [1,2]

* 18,916

356,670

* 2,538

440,485

2,612

93,378

137,825

102,711

Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income

* 999
* 9,694
0
* 9,694

* 1,742
* 17,640
* 4,293
* 13,347

*6
* 1,620
0
* 1,620

* 2,938
* 27,297
* 1,290
* 26,008

* 47
* 1,347
* 186
* 1,161

* 1,027
* 3,292
* 3,185
* 107

* 1,999
* 2,319
* 458
* 1,862

* 1,285
* 22,271
0
* 22,271

Footnotes at end of table.

32

Sole Proprietorship Returns, 2007
Statistics of Income Bulletin | Summer 2009

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2007—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Manufacturing—continued

Net income status, item

Primary
metal
industries

Fabricated
metal
products

(32)

(33)

Machinery

Computer and
electronic
products

Electrical
equipment,
appliances,
and
components

Transportation
equipment

Furniture
and related
products

(34)

(35)

(36)

(37)

(38)

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]

5,141

28,120

24,113

9,846

7,097

8,630

22,074

Business receipts, total [1]
Income from sales and operations [1]
Other business income

642,314
642,310
*4

4,070,630
4,057,557
13,074

3,299,982
3,248,288
51,695

165,642
160,016
* 5,626

633,672
630,844
2,828

952,524
949,273
* 3,251

2,028,453
2,026,432
2,020

Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
M
Mortgage
t
interest
i t
t
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excessʊcasualty depreciations, Form 8829 [3]

509,219
* 264,369
* 3,948
* 69,472
* 86,873
* 60,687
* 47,317
* 3,929
* 1,215
* 6,621
* 3,319
* 623
0
48,738
* 715
* 18,837
* 2,090
* 1,541
0
* 12,840
* 3,284
0
* 749
* 29,924
* 8,302
* 2,779
* 45,550
* 7,478
* 305
14,498
35,172
0
0
0
0

3,589,536
1,938,506
132,914
348,514
771,167
551,147
298,621
163,857
22,666
138,921
38,196
70,294
* 22
204,443
16,992
58,981
30,047
10,444
19,768
19 768
25,321
28,397
3,225
26,072
148,710
45,310
74,725
268,372
67,425
26,236
82,724
229,653
* 14,002
* 33
* 3,319
* 84

2,794,708
1,421,910
81,479
179,582
632,101
383,416
243,381
98,049
12,777
111,254
10,272
89,362
* 37
221,857
8,369
49,577
12,187
10,577
23,557
23 557
20,816
19,480
* 4,107
6,415
95,576
42,763
131,565
188,560
42,684
19,849
74,551
159,868
15,641
* 1,712
* 3,833
* 5,242

161,304
41,047
* 48,537
* 2,669
* 33,049
* 2,145
* 1,658
* 47,010
5,031
25,900
* 34
* 5,110
0
8,582
* 63
* 861
* 469
3,713
* 555
* 57
2,033
0
0
* 3,430
* 1,642
4,244
* 2,436
1,533
* 2,000
5,606
42,094
* 4,862
* 1,297
0
* 198

560,724
375,975
41,428
* 10,395
259,911
* 106,687
* 4,164
46,612
3,856
10,194
* 2,646
* 5,782
0
4,018
* 2,459
7,073
2,134
2,486
* 1,280
1 280
2,211
2,859
* 392
* 6,536
9,013
1,468
1,852
61,959
4,271
6,215
6,536
22,958
* 16,168
* 381
0
* 381

948,445
564,336
104,112
* 144,073
347,762
* 43,663
47,348
122,622
6,624
63,285
* 364
* 12,918
* 187
17,939
* 1,471
7,196
5,791
4,684
* 15,509
15 509
3,473
1,234
* 465
* 15,357
45,949
22,050
40,677
39,540
6,659
10,612
18,879
42,334
* 911
* 226
0
* 1,261

1,654,089
812,680
111,081
108,654
447,852
136,358
120,775
1

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A7c2d6228ada55dcc. Public record. Not legal advice.