S Corporation Returns, 2000

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by Kelly Bennett

corporations continue to be the single largest

corporate entity type filing Form 1120, U.S.

Tax Return for a Corporation. For Tax Year

2000, about 56.7 percent of all corporations filed a Form

1120S, up from 55.2 percent for Tax Year 1999. The

total number of returns filed by S corporations for Tax

Year 2000 increased 4.9 percent to nearly 2.9 million,

from the 2.7 million reported in Tax Year 1999.

Since 1996, the year S corporations first became the

largest corporate entity type, S corporation return

filings have increased 24.1 percent.

The growth of S corporation returns has been

spurred by four legislative acts: the Tax Reform Act

of 1986, the Revenue Reconciliation Act of 1990, the

Revenue Reconciliation Act of 1993, and the Small

Business Job Protection Act of 1996 [1]. Filings of

S corporation returns have increased at an average

annual rate of 9.5 percent since the inception of the

Tax Reform Act of 1986 (Figure A). During the

same time period, taxable corporations have experienced an average annual decline of 1.2 percent. The

term “taxable corporations” refers to all other corporations other than S corporations [2]. For Tax Year

2000, approximately 292.8 thousand corporations

elected subchapter S status for the first time. Of this

total, 211.3 thousand (7.4 percent of all S corporations) were newly incorporated businesses. The

remaining 81.5 thousand elected to make the conversion from a taxable corporation to an S corporation.

For the fourth straight year, the growth rate for all

S corporations slowed but the number of businesses

electing S corporation status continued to increase.

corporate level on their net incomes and capital gains

and again when profits are distributed to shareholders

in the form of dividends. Corporations that are

eligible to make a Subchapter S election can achieve

considerable tax savings by eliminating double

taxation. The tax benefits of an S election are

equally beneficial for corporations that report net

losses, as the losses flow through to the individual

shareholders and, for shareholders with active

participation in the business, can be used to offset net

income from other sources.

A corporation must meet all the criteria in Subchapter S of the Internal Revenue Code for an election and file Form 2553, Election by a Small Business Corporation, with the IRS Submission Processing Center where the corporation files its Federal

tax forms to qualify under Subchapter S. All shareholders of the corporation must concur with the

election on Form 2553, and all eligibility requirements

must be met prior to the election [3]. The criteria for

Tax Year 2000 were that the corporation:

be a domestic corporation (an unincorporated

association, which is treated as a corporation

under Internal Revenue Code section 7702, may

elect treatment as an S corporation);

have no more than 75 shareholders (a husband

and wife (and their estates) are counted as one

shareholder for this requirement);

have only individuals, estates, certain trusts, and

exempt organizations as shareholders [4];

Corporations may elect to be treated as S corporations for Federal tax purposes. Electing to be treated

as an S corporation allows the income and expenses

to pass through the corporate structure to the shareholders. Shareholders are generally responsible for

any resulting tax liability. The S corporation election

allows S corporations and their shareholders to avoid

double taxation of the corporation’s net income or

capital gains. This treatment is unlike that of taxable

corporations, which incur a tax liability first at the

have no nonresident alien shareholders; and

have only one class of stock.

Kelly Bennett is an economist with the Corporation

Special Projects Section. This article was prepared

under the direction of Doug Shearer, Chief.

SCorporationBasics

Ineligible corporations were:

affiliated group members eligible for inclusion on

a consolidation return;

insurance companies subject to provisions of

Subchapter L of the Internal Revenue Code;

Interest-Charge Domestic International Sales

Corporations (IC-DISC’s) or former Domestic

International Sales Corporations (DISC’s);

S Corporation Returns, 2000

Figure A

Form 1120 Series Returns by Percentage of Filings, Tax Years 1986-2000

Percentage of filings

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Tax year

S corporations

corporations eligible to elect the possessions tax

credit; and

banks or thrift institutions that use the reserve

method of accounting for bad debts under

Internal Revenue Code section 585.

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

month following the close of the tax year. Also,

S corporations generally must file for a calendar tax

year to conform with the majority of shareholders.

While S corporations may obtain an exemption from

the calendar year rule, for Tax Year 2000, nearly

92.2 percent of all S corporations filed a calendar

year return [5].

FinancialDataHighlights

For 2000, S corporations accounted for 56.7 percent

of the 5.0 million corporate returns but 17.5 percent

of the $20,605.8 billion total receipts and 3.8 percent

All other corporations

of the $47,026.9 billion total assets reported on

corporate returns. S corporations reported $1,790.7

billion of total assets and $3,617.5 billion of total

receipts for 2000, increases of 9.9 percent and 9.6

percent, respectively, from 1999. Net income (less

deficit) reported by S corporations also increased,

from $193.8 billion for 1999 to $198.5 billion for 2000,

an increase of 2.5 percent. S corporations in the

distribution and transportation of goods industrial

division, which accounted for the largest share of

returns (20.8 percent), also accounted for the largest

share of total assets (26.2 percent) and total receipts

(28.8 percent) reported by S corporations for 2000.

IncomeStatement

Total net income (less deficit) reported by S corporations increased to $198.5 billion for Tax Year 2000

compared with $193.8 billion reported for Tax Year

1999 (Table 1) [6]. Net income (less deficit) from a

trade or business is the largest component of total net

income (less deficit). Net income (less deficit) from

S Corporation Returns, 2000

a trade or business declined slightly, accounting for

70.1 percent of total net income (less deficit), as

compared to 70.9 percent for 1999. The slight decline

in net income (less deficit) from a trade or business is

due to an increase in net income (less deficit) from

other rental activity and portfolio income (less deficit)

distributed to shareholders. Net income (less deficit)

from other rental activity increased 13.6 percent to

$786.2 million, and portfolio income (less deficit)

distributed to shareholders increased 6.0 percent to

$53.2 billion. (See definition of portfolio income in

Explanation of Selected Terms .) Net short-term

capital gain (less loss) fell from a $2.4-billion net gain in

1999 to a $1.9-billion net loss in 2000, a decline of 180

percent. This followed an increase of nearly $1.9 billion

from 1998 to 1999, a gain of 372.6 percent.

Total receipts for S corporations increased 9.6

percent from $3,300.9 billion for 1999 to nearly

$3,617.5 billion for 2000. Total deductions rose 10.0

percent to over $3,477.0 billion for Tax Year 2000

from $3,162.2 for the previous year. (See definition

of total deductions in Explanation of Selected

Terms.) Cost of goods sold, the largest component of

deductions, accounted for 65.1 percent, or $2,264.7

billion, of total deductions, a 10.0-percent increase

from $2,059.3 billion for 1999. Interest paid displayed

the largest percentage change of all components of

total deductions, accounting for a 17.5-percent increase

from $40.4 billion for 1999 to $47.4 billion for 2000.

Four industrial divisions continued to account for

the majority, 83.2 percent, of the $165.2 billion of

total net income (less deficit) reported for all S corporations (Figure B). Goods production, which includes

construction and manufacturing, represented 29.8

percent of total net income (less deficit), or $59.1

billion. Distribution and transportation of goods,

which include wholesale and retail trade and transportation and warehousing, accounted for 20.5 percent of total net income (less deficit), or $40.7 billion.

Professional and business services reported $37.9

billion in total net income (less deficit), a decrease of

2.8 percent from 1999 when $39.0 billion were reported. Finance, insurance, real estate, and leasing

division, reported $27.4 billion for Tax Year 2000, an

increase of 28.5 percent. These four industrial

divisions also accounted for 87.0 percent of total

receipts, 87.2 percent of total deductions, and 80.8

percent of portfolio income (less deficit) distributed to shareholders.

Nearly two-thirds of all S corporations reported

positive net income (Table 2). These 1.8 million

S corporations reported $254.2 billion in positive total

net income for 2000, an increase of 5.7 percent from

1999 when $240.7 billion were reported. For Tax

Year 2000, interest income and other portfolio income (net), components of portfolio income (less

deficit) distributed to shareholders, increased 22.8

percent to $11.5 billion and 193.2 percent to $583.3

million, respectively. Net short-term capital gain (less

loss) decreased 126.4 percent to -$677.7 million for

2000. This decrease is due to the reduction in net

short-term capital gain (less loss) from the finance,

insurance, real estate, and rental and leasing division,

which reported -$0.9 billion for net short-term capital

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

loss) fell for the finance, insurance, real estate, and

rental and leasing division from a $1.4-billion net gain

for 1999 to a $1.1-billion net loss in 2000, a decline of

165.6 percent.

S corporations that reported positive total net

income reported an increase of 6.3 percent in total

receipts, from $2,778.9 billion for Tax Year 1999 to

$2,953.5 billion for Tax Year 2000. Total deductions

also increased 6.3 percent from the prior year when

$2,594.9 billion were reported. Net gain, noncapital

assets accounted for the most significant change in

total receipts, decreasing 12.8 percent from $5.2

billion for 1999 to $4.6 billion for 2000. Bad debts

and interest paid, components of total deductions,

increased 19.2 percent and 18.5 percent, respectively, from Tax Year 1999 to $5.1 billion and $32.4

billion for Tax Year 2000. Depletion accounted for

the largest percentage change (although only a small

dollar amount of change) with a 20.4-percent decrease from $220.9 million to $175.9 million.

Four divisions accounted for 76.0 percent of the

1.8 million returns reporting positive total net income

in Tax Year 2000: professional and business services

(21.4 percent); distribution and transportation of goods

(19.8 percent); goods production (19.1 percent); and

finance, insurance, real estate, and rental and leasing

(15.7 percent). Positive total net income for the four

largest industrial divisions was nearly $205.9 billion

for 2000. The goods production division accounted

for 27.4 percent, $69.8 billion, of all positive total net

income reported. Distribution and transportation of

goods represented 21.3 percent or nearly $54.1 billion

of positive total net income reported. Professional

S Corporation Returns, 2000

Figure B

Total Assets, Total Receipts, and Total Net Income (Less Deficit), by Industrial Sector, Tax Year 2000

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

Agriculture,

Item

All

forestry,

industries

fishing, and

Mining

Utilities

Construction

(3)

(4)

(5)

hunting

(1)

(2)

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

2,860,478

72,296

Total assets............................................................................................................................

1,790,711,766

41,449,773

17,686

25,254,705

2,555

3,882,164

365,608

213,009,833

Total receipts............................................................................................................................

3,617,477,105

51,637,253

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

198,535,888

1,672,758

19,358,418

3,957,550

4,005,740

183,567

515,433,816

25,883,775

84,736

95,954

22,193,120

3,472,051

110,360

274,455

136,284

1,762

52,508

141,700

1,729,749

7,000

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

-1,918,358

-153,230

39,063

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

38,110,217

1,150,025

623,983

*407

41,184

40,739

1,477,770

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

340,849

4,034

1,656

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

5,448,040

148,163

15,829

*2,623

75,093

201,858

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

139,109,127

121,232

2,744,960

Portfolio income, total............................................................................................................................

53,192,557

1,373,367

1,185,801

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

2,145,920

35,048

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

13,744,331

309,596

Royalty income............................................................................................................................

769,597

27,895

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

786,164

29,995

10,959

254

16,746

Wholesale

Retail

and

trade

retail trade

(8)

(9)

165,039

195,968,757

654,406,413

339,517

227,323,074

862,004,687

1,181

347,048

817,630

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

33,257,284

38,537,550

21,029,342

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

25,564,187

31,076,466

18,354,170

17,519,603

12,734,737

-11,396

-12,442

Portfolio income, total............................................................................................................................

7,440,587

6,865,768

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

258,228

320,723

2,369,855

201,700

4,494,867

119,023

*1,046

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

1,851,031

2,493,185

Royalty income............................................................................................................................

155,271

116,282

1,211,039

82,809

1,280,936

33,472

*1,210

-51,383

3,108,231

4,588

214,827

75,172

*-164

-----

Item

Manufacturing

retail trade

(6)

(7)

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

146,819

505,737

Total assets............................................................................................................................

268,684,602

423,638,880

Total receipts............................................................................................................................

526,679,587

1,517,228,731

not allocable

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

-56,397

-122,392

-70,845

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

5,236,518

4,134,858

1,026,627

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

-4,064

-76,887

-81,475

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

169,755

422,586

207,759

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

82,755

172,730

97,558

(10)

Footnotes at end of table.

and business services accounted for 18.1 percent, and

finance, insurance, real estate, and rental and leasing

accounted for 14.2 percent of positive total net income.

BalanceSheet

Total assets for S corporations increased 10.0

percent from Tax Year 1999 to $1,790.7 billion for

Tax Year 2000 (Table 3) [7]. The largest asset

categories for Tax Year 2000 were net notes and

accounts receivable and net depreciable assets. (See

definition of net notes and accounts receivable and

net depreciable assets in Explanation of Selected

Term.) Net notes and accounts receivable accounted

for nearly $392.0 billion, or 21.9 percent of total

assets. Net depreciable assets accounted for $403.5

billion, or 22.5 percent of total assets for all S corporations. The three asset categories that accounted

for the largest increases for Tax Year 2000 were

other current assets, other investments, and net

intangible assets. (See definition of net intangible

assets in Explanation of Selected Terms.) Other

current assets increased 13.6 percent to nearly

S Corporation Returns, 2000

Figure B--Continued

Total Assets, Total Receipts, and Total Net Income (Less Deficit), by Industrial Sector, Tax Year 2000

--Continued

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

Administrative

Real estate

Professional,

Finance

and rental

scientific,

Management

and waste

and

and technical

management

insurance

leasing

services

companies

and remediation

(13)

(14)

(15)

(16)

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

89,020

62,078

116,831

319,746

425,918

21,185

139,015

Total assets............................................................................................................................

46,168,937

61,078,495 125,478,415

Total receipts............................................................................................................................

92,650,105

53,556,206

78,071,704

190,019,468

69,453,511

71,626,675

227,225,752

144,414,394

11,336,140

29,870,885

110,208,156

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

2,243,520

6,139,978

13,880,572

13,484,944

23,011,931

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

1,197,524

1,857,040

5,244,377

4,686,966

19,367,619

8,447,269

2,321,807

6,474,729

4,824,619

Portfolio income, total............................................................................................................................

967,937

4,238,053

8,577,916

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

39,117

87,453

223,514

Transportation

Item

and

Information

warehousing

and support

services

(11)

(12)

(17)

4,218,489

198,398

3,525,033

180,701

6,309,146

395,122

1,625,247

33,625

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

283,759

547,385

1,349,901

1,638,989

Royalty income............................................................................................................................

418

12,395

24,689

38,741

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

-22,886

-16,830

-1,068,671

-106,108

979,151

7,572

-450,416

808,672

51,244

44,114

357,822

*80,480

10,292

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

667,497

3,588,124

7,612,766

2,460,061

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

19,526

435,717

-11,592

2,784,446

23,579

5,149,828

-139,834

1,142,547

*482

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

61,873

39,754

57,619

4,178,207

72,713

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

16,185

5,131

659

401,282

46,566

-127,948

-55,736

17,994

6,870

Educational

Health care

Arts,

Accommodation

Other

Not

services

and social

entertainment,

and food

services

allocable

assistance

and recreation

services

(19)

(20)

(21)

(22)

(23)

62,471

163,907

174,856

10,233

Total assets............................................................................................................................

3,664,240

27,428,794

24,330,325

Total receipts............................................................................................................................

8,412,195

99,955,668

30,548,453

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

719,686

9,459,573

1,637,251

63,751,012

121,826,519

4,658,380

26,233,351

78,817,992

4,807,450

726,820

1,071,159

78,121

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

646,490

8,937,583

818,370

3,819,555

Portfolio income, total............................................................................................................................

73,394

471,002

758,939

765,131

3,526,250

1,226,912

76,226

*1,829

Item

(18)

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

21,631

142,887

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

6,862

45,723

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

44,587

198,082

26,556

216,535

25,705

459,132

15,324

148,280

-*1,513

Royalty income............................................................................................................................

1,724

*139

92,971

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

2,986

3,248

-4,276

14,223

-18,526

1,869

-39,475

316

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

17,235

230,145

408,399

283,921

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

-*-6,335

18,754

*676

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

-266

41,438

46,679

46,603

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

9,550

13,263

27,091

1,100,910

52,493

1,795

--*67

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

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

$103.4 billion; other investments increased 14.8

percent to $198.1 billion; and net intangible assets

increased 15.8 percent to $37.9 billion.

The two largest components of total liabilities and

equity for Tax Year 2000 were mortgages, notes, and

bonds payable due in 1 year or more and total net

worth. Mortgages, notes, and bonds payable in 1

year or more accounted for $371.1 billion of the total,

or 20.7 percent. Total net worth accounted for

$521.2 billion of the total, or 29.1 percent. Total net

worth is comprised of capital stock, paid-in capital

surplus, retained earnings unappropriated, and adjustments to shareholder’s equity, reduced by cost of

treasury stock. Adjustments to shareholders’ equity

increased 227.1 percent to $6.9 billion for 2000.

Even with this increase, adjustments to shareholders'

equity remain the smallest component of total net

worth. Retained earnings unappropriated accounted

S Corporation Returns, 2000

for nearly $300.9 billion or 57.7 percent of total net

worth. S corporation returns in the goods production

division accounted for 46.6 percent of retained earnings unappropriated, or nearly $140.1 billion.

Four industrial divisions accounted for nearly

$1,513 billion (84.5 percent) of total assets: goods

production; distribution and transportation of goods;

finance, insurance, real estate, and rental and leasing;

and professional and business services (Figure C).

Goods production accounted for nearly $481.7 billion

(26.9 percent) of total assets for S corporations.

S corporations in the distributions and transportation

of goods division accounted for $469.8 billion, or 26.2

percent of total assets. The finance, insurance, real

estate, and rental and leasing division accounted for

nearly $315.5 billion, and the professional and business services division accounted for $245.9 billion.

IncomeFromRentalRealEstate

The number of S corporations reporting Rental Real

Estate Income on Form 8825 increased 3.0 percent

to 231.9 thousand. S corporation returns report rental

real estate income on Form 8825, Rental Real Estate

Income and Expenses of a Partnership or an

S Corporation (Table 4). Net rental real estate

income (less deficit) decreased to $5.4 billion for

2000, or 1.1 percent. The real estate rental and

leasing sector dominated all other sectors with 76.7

percent of net rental income (less deficit). The real

estate group reported 75.8 percent of net rental

income (less deficit) for all S corporations. The real

estate group also accounted for 67.7 percent of all

returns reporting income on Form 8825. Net gain

(loss) from sales of business property increased 73.0

percent for all industries to $61.6 million from Tax

Year 1999, when $35.6 million in gains were reported.

This increase was due not only to the increase in

gains from sales of business property but also from

the decrease in losses reported by the sales of business

property. Gains from sales of business property

were $63.4 million for Tax Year 2000, up from $44.8

million reported for 1999. S corporations reporting

rental real estate income had gross income of $26.4

billion, an increase of 8.5 percent from 1999. Taxes,

Figure C

S Corporation Total Assets, by Industrial Division, Tax Year 2000

All other ¹

15.5%

Goods production

26.9%

Professional and business

services

13.7%

Finance, insurance, real

estate, and rental and

leasing

17.6%

$1.8 Trillion

Distribution and

transportation of goods

26.2%

¹ All other includes raw materials and energy production; information; education, health, and social assistance; leisure,

accommodation, and food services; other services; and nature of business not allocable.

NOTE: Detail may not add to 100 percent because of rounding.

S Corporation Returns, 2000

a component of rental real estate expenses, increased

25.0 percent to $3.2 billion for Tax Year 2000.

Net income (less deficit) from partnerships and

fiduciaries reported on Form 8825 fell by 38.7 percent to $444.6 million for 2000 from $725.9 million for

1999. The real estate group represented 74.9 percent of the gain from net income from partnerships

and fiduciaries. The real estate group accounted for

$891.8 million of the $1.2-billion gain in net income

from partnerships and fiduciaries and $442.3 million

of the $745.7-million deficit.

Tax Year 2000 represents the first year that S

corporation returns with over 35 shareholders declined since the inception of the Small Business Jobs

Protection Act of 1996. (See Explanation of Selected

Terms for further detail on the Small Business Jobs

Protection Act of 1996.) S corporations with more

than 35 shareholders decreased 37.8 percent from

the nearly 1,700 reported for Tax Year 1999 to 1,051

for Tax Year 2000. Overall, the total number of shareholders decreased to 56,091 for returns with more

than 35 shareholders, from 81,336 in Tax Year 1999.

ShareholderData

SCorporationTaxation

Schedule K-1, Shareholder’s Share of Income,

Credits, Deductions, etc., filed with Form 1040,

U.S. Individual Income Tax Return reports

S corporation shareholders' share of income, deductions, loss, and credit. There are five types of entities

that can be considered shareholders, other than

individuals, of an S corporation. These entity types

are: estates, trusts, bankrupt shareholders and

bankruptcy estates, charitable organizations, and

employee shareholder trusts. Also, there are five

types of ineligible shareholder entities: nonresident

aliens, nonqualifying trusts, partnerships and limited

liability companies (LLC's), C corporations, and

individual retirement accounts (IRA's).

The number of S corporation shareholders increased 2.6 percent to 5,209,621 for Tax Year 2000.

Approximately 98.8 percent of S corporations had 10

or fewer shareholders, and the vast majority of new

S corporations (99.4 percent) were owned by 10 or

fewer shareholders. The total number of returns

with 1 shareholder grew 6.9 percent from 1,495,700

for 1999 to 1,598,795 for 2000. At the same time,

returns with 11-30 shareholders decreased 2.0 percent from 18,563 for 1999 to 18,188 in Tax Year

2000. The Small Business Job Protection Act of

1996 increased the allowable number of shareholders

from 35 to 75. S corporations with more than 30

shareholders decreased 4.0 percent to 2,356 for Tax

Year 2000. Despite having a decrease in the number

of returns with more than 30 shareholders, total net

income (less deficit) reported by these corporations

increased 80.8 percent to nearly $10.3 billion in Tax

Year 2000. S corporation returns with 11-20 shareholders increased 1.7 percent and reported a decrease in total net income (less deficit) of $2.6 billion,

or 19.8 percent.

S corporations generally do not pay income tax, due

to their treatment as a flow-through entity. However,

they may be subject to up to four different types of

Federal income taxes. S corporations are responsible

for the “built-in gains” tax, the excess net passive

income tax, the investment recapture tax, and the

LIFO recapture tax (included in “Adjustments to tax”

in Figure D). (See Explanation of Selected Terms

for further detail on the built-in gains tax, the excess

net passive income tax, the investment recapture tax,

and the LIFO recapture tax.) The built-in gains tax is

the most common of these four. The built-in gains

tax represented 81.4 percent, or $467.9 million of all

Federal income tax reported by S corporations for

2000. S corporations that were previously C corporations and made a valid S election after 1986 must

pay tax on any realized gain from the sale of certain

assets. These assets must be held at the time of

election, and the sale must be made within 10 years

from the first day of the S corporation’s election for

the built-in gains tax to apply. The built-in gains tax is

Figure D

S Corporation Taxes, Tax Years 1999 and 2000

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

Items

1999

2000

(1)

(2)

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

459,754

574,831

Percent

change

(3)

25.0

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

358,704

467,930

30.5

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

13,905

24,548

76.5

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

84,727

77,466

-8.6

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

1,415

3,549

150.8

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

1,004

1,338

33.3

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

S Corporation Returns, 2000

limited to net appreciation occurring prior to a C corporation’s election as an S corporation. S corporations

that had a valid S election since the inception of the

business are not subject to the built-in gains tax [8].

The excess net passive income tax, the investment recapture tax, and the LIFO recapture tax also

apply to corporations that operated as taxable corporations before making their S elections. The excess

net passive income tax applies only to S corporations

with net passive investment income accounting for

more than 25 percent of gross receipts and with

subchapter C earnings. S corporations are required

to report the investment credit recapture tax on the

recapture attributable to credits allowed on the corporation in the years prior to the S election. The last-in,

first-out (LIFO) recapture tax does not apply to

S corporations that made an S election prior to December 18, 1987, and use the LIFO method to value

inventory. A LIFO recapture amount, which is the

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

(FIFO) method that exceeds the inventory valued

under LIFO, is required to be included in gross income after a corporation converts to an S corporation. Inventory that is transferred to an S corporation

during a tax-free reorganization of a C corporation is

also subject to the LIFO recapture tax.

S corporations reported total net income of

$198.5 billion and total tax liability of $574.8 million

during Tax Year 2000. The total tax reported for all

S corporations increased 25.0 percent from 1999 to

2000 as shown in Figure D. This increase was due

not only to the growth in the built-in gains tax but also

in the growth of the excess net passive income tax

and the investment recapture tax. The built-in gains

tax increased 30.5 percent to $467.5 million for Tax

Year 2000. The excess net passive income tax

increase 76.5 percent to $24.6 million, and the investment recapture tax increased 150.8 percent to $3.5

million for Tax Year 2000. Since Tax Year 1998, the

investment recapture tax has increased 370.1 percent

(although it still accounts for less than 1 percent of all

S corporation tax liability). Also displayed in this

figure are the adjustments to tax, which include

Section 1363(d) LIFO recapture taxes and interest

due from Form 8697, Interest Computation Under

Look-Back Method for Completed Long-Term

Contracts. The income tax adjustment includes

Section 1291(c)(2) deferred tax of a shareholder in a

passive foreign investment company.

Of the nearly 2.9 million S corporations that filed

in 2000, only 9,721 reported tax liability. Overall,

S corporations reporting tax liability represent only

0.34 percent of all S corporation returns filed.

Subsidiaries

The Small Business Job Protection Act of 1996

allowed an S corporation to own all of the stock of a

subsidiary and to elect to have the subsidiary’s operations taxed as part of the parent and not separately.

The elected subsidiary is known as a qualified subchapter S subsidiary, or QSUB. For the past 3 years,

this article has included specific data concerning

these QSUB's; however, due to resource restrictions,

the QSUB data are no longer being tabulated.

Summary

For Tax Year 2000, the number of S corporations grew to nearly 2.9 million, an increase

of 4.9 percent in the number of returns filed

as compared to Tax Year 1999. S corporations remain the most popular corporate

entity with 56.7 percent of all U.S. corporations electing Federal tax treatment under

Subchapter S. The number of shareholders

for S corporations increased to 5.2 million, up

2.6 percent from the previous year.

Total net income (less deficit) increased to

$198.5 billion for Tax Year 2000 from $193.8

billion reported for Tax Year 1999. As the

largest component of total net income (less

deficit), net income from a trade or business

accounted for 70.1 percent of the total, down

from the 70.9 percent reported for Tax Year

1999. Portfolio income (less deficit) distributed to shareholders grew to $53.2 billion in

Tax Year 2000, an increase of 6.0 percent.

Net short-term capital gain (less loss), a

component of portfolio income, for all

S corporations decreased 180.0 percent to

-$1.9 billion for Tax Year 2000 after a 372.6percent increase in 1999 to $2.4 billion.

Over 1.8 million S corporations reported

positive total net income, an increase of 3.5

percent from the previous tax year. S corporations reported $254.2 billion in positive total

net income for Tax Year 2000, an increase

S Corporation Returns, 2000

of 5.7 percent. Four divisions accounted for

76.0 percent of positive total net income

reported by S corporations for Tax Year 2000.

Total assets increased to $1.8 trillion for Tax

Year 2000, a 10.0-percent increase from Tax

Year 1999 when S corporations reported $1.6

trillion. Four industrial divisions accounted

for 84.5 percent of total assets reported.

Mortgages, notes, and bonds payable in 1

year or more accounted for $371.1 billion of

total liabilities, or 20.7 percent.

Less than half of 1.0 percent of all S corporations reported Federal tax liability, for a

total tax liability of $574.8 million, a 25.0percent increase from Tax Year 1999 when

$459.8 million were reported. The largest

component of total tax liability was the built-in

gains tax, which represented $467.9 million in

total tax liability. The investment credit recapture tax displayed the largest growth, 150.8

percent, for components of total tax liability.

ExplanationofSelectedTerms

Built-in Gains Tax.--The built-in gains tax is a

corporate level tax on S corporations that dispose of

assets that have appreciated in value during years

when the corporation was a C corporation. The

S corporation may be liable for the tax on its built-in

gains if: it was a C corporation prior to making its

S election; the S corporation election was made after

1986; it has net recognized built-in gain within the

recognition period; and the net recognized built-in

gain for the tax year does not exceed the net unrealized gain minus the net recognized built-in gain for

prior years in the recognition period, to the extent that

such gains were subject to tax.

Excessive Net Passive Income.--The excess net

passive income is the income that bears the same

ratio to net passive income as the amount of passive

investment income, exceeding 25 percent of gross

receipts, bears to passive investment income.

Investment Recapture Tax.--S corporations are

liable for recapture attributable to credits allowed in

years before the corporation was an S corporation.

LIFO Recapture Tax.--The LIFO recapture

amount is the amount, if any, by which the amount of

inventory assets using the first-in, first out (FIFO)

method exceeds the inventory amount of such assets

under the LIFO method.

Limited Liability Company (LLC).--The limited

liability company is a State-registered entity that can

be taxed like a partnership for Federal income tax

purposes, but its members, like corporate shareholders, are not personally liable for the entity’s liabilities.

Net Depreciable Assets.--Depreciable assets

reduced by accumulated depreciation on the Balance

Sheet, Schedule L, of Form 1120S.

Net Intangible Assets.--Intangible assets reduced by accumulated amortization reported on the

Balance Sheet, Schedule L, of Form 1120S.

Net Notes and Accounts Receivable.--Notes

and accounts receivable reduced by allowance for

bad debts on the Balance Sheet, Schedule L, of the

Form 1120S.

Net Passive Income.--Passive investment income reduced by any allowable deduction directly

connected with the production of such income, except for the net operating loss deduction under Internal Revenue Code section 172 and the special deductions allowed to corporations by Internal Revenue

Code section 241.

Passive Investment Income.--Gross receipts

derived from royalties, rents, dividends, interest

(excluding interest on installment sales of inventory to

customers and income of certain lending and financing businesses), annuities, and sales or exchanges of

stock or securities to the extent of any gain.

Portfolio Income (less deficit).--Interest, dividends, annuities, and royalties, as well as gain or loss

from the disposition of income-producing or investment property that is not derived in the ordinary

course of trade or business.

Qualified Subchapter S Subsidiaries (QSUB).-Any domestic subsidiary of an S corporation that is

not an ineligible corporation under Subchapter S of

the Internal Revenue Code, and in which the S corporation holds 100 percent of the stock and elects to

treat the subsidiary as a QSUB.

Small Business Job Protection Act of 1996.-The Small Business Job Protection Act of 1996

increased the number of permitted shareholders for

S corporations from 35 to 75; allowed an electing

small business trust with multiple beneficiaries to

qualify as a S corporation shareholder; allowed charitable organizations and qualified retirement plans (but

not individual retirement accounts) to be S corpora-

S Corporation Returns, 2000

tion shareholders; allowed corporations with subsidiaries to become S corporations; and provided a special qualified subchapter S subsidiary election so that

wholly owned subsidiaries could be considered part of

the S corporation for Federal income tax purposes.

Total Deductions.--The sum of cost of goods

sold; compensation of officers; salaries and wages;

repairs; bad debts; rent paid on business property;

taxes paid; interest paid; amortization; depreciation;

depletion; advertising; pension, profit- sharing, stock,

bonus, and annuity plans; employee benefit programs;

net loss, noncapital assets; and other deductions from

the income statement of Form 1120S.

Total Net Income (less deficit).--Since the Tax

Reform Act of 1986, total net income (less deficit) is

defined as the sum of: ordinary income (loss), ordinary dividends, interest income, royalty income, other

portfolio income, net income (loss) from rental real

estate activities, net income (loss) from other rental

activities, total net long-term capital gain (loss), and

net short-term capital gain (loss). Prior to 1987,

S corporation net income (less deficit) included most

of the components of total net income (less deficit)

above. The sum of the above components is a comprehensive measure of S corporation profits and

losses that enables comparisons to be made with

years prior to 1987.

Total Receipts.--The sum of business receipts;

interest on government obligations, State and local; net

gain, noncapital assets; and other receipts. S corporations report receipts for interest, rents, royalties, net

capital gains, and dividends on Form 1120S, Schedule K,

and these items are not included in the statistics.

Trusts.--Trust refers to “electing small business

trust,” which can be an S corporation shareholder.

An electing trust is one that does not have as a beneficiary any person other than an individual, an estate,

or an organization eligible to accept charitable contributions under Internal Revenue Code section 170 and

does not have “potential current beneficiaries.” This

type of trust is different from the qualified subchapter

S trust (QSST).

The estimates in this article were based on a

stratified probability sample of 45,415 S corporation

returns drawn from a total population of 3,008,022

returns. The stratification was based on combinations

of total assets and total net income (less deficit).

Sample rates ranged from 0.25 percent to 100 percent. The sample was selected after administrative

processing, but before audit examination. The selected

sample included 44,232 active S corporation returns.

Based on this count, the number of active S corporations for Tax Year 2000 was estimated to be 2,860,478.

Because the estimates are based on a sample,

they are subject to sampling error. Coefficients of

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

of this sampling error. The CV is defined in the

section on sampling variability in the “SOI Sampling

Methodology and Data Limitations” appendix of this

publication. Figure E presents the coefficients of

variation for S corporations for selected variables by

industrial division. The smaller the coefficient of

variation, the more reliable the estimate.

NotesandReferences

DataSourcesandLimitations

[1] For detailed information on the impact of these

legislative acts on S corporations, see the

following articles. For more information on the

impact of the Tax Reform Act of 1986 on

S corporations, see Gill, Amy, “S Corporation

Returns, 1992,” Statistics of Income Bulletin,

Spring 1995, Volume 14, Number 4; and Gill,

Amy and Wittman, Susan, “S Corporation

Election After the Tax Reform Act of 1986,”

Statistics of Income Bulletin, Spring 1998,

Volume 17, Number 4. For more information on

the impact of the Revenue Reconciliation Act of

1993, see Wittman, Susan, “S Corporation

Returns, 1994,” Statistics of Income Bulletin,

Spring 1997, Volume 16, Number 4. For more

information on the impact of the Small Business

Job Protection Act of 1996, see Wittman, Susan,

“S Corporation Returns, 1997,” Statistics of

Income Bulletin, Spring 2000, Volume 19,

Number 4.

The statistics for Tax Year 2000 are based on a sample

of S corporation income tax returns with accounting

periods ending July 2000 through June 2001 that

posted to the Internal Revenue Service Business

Master File between July 2000 and June 2002.

[2] For the purpose of this article, taxable corporations file the following types of returns: Form

1120, Form 1120-A, Form 1120F, Form 1120L,

and Form 1120-PC. Form 1120-REIT and Form

1120-RIC, while not filed by taxable corpora-

S Corporation Returns, 2000

Figure E

Coefficients of Variation for Number of Returns, Number of Shareholders, Total Receipts, Dividends,

and Interest, by Industrial Division, Tax Year 2000

Industrial division

Number of

Total

Dividend

Interest

returns

shareholders

receipts

income

(1)

(2)

(3)

(4)

(5)

3.48

8.30

3.11

6.70

13.46

4.73

10.11

35.05

15.66

25.69

1.67

4.16

4.63

2.16

3.62

3.04

5.02

11.65

4.97

11.13

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

0.24

0.88

0.60

Raw materials and energy production....................................................................................................

3.99

7.52

3.97

Goods production....................................................................................................

1.34

2.17

1.01

Distribution and transportation of goods....................................................................................................

1.31

1.71

0.90

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

6.23

7.26

5.50

Finance, insurance, real estate, and rental and leasing....................................................................................................

1.45

2.45

5.23

Professional and business services....................................................................................................

1.34

1.99

2.57

Education, health, and social assistance....................................................................................................

2.43

6.95

5.82

Leisure, accommodation, and food services....................................................................................................

2.04

4.58

2.66

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

2.86

3.77

4.58

¹ Includes returns not allocable by industrial division.

tions, are included in the statistics. Limited

liability companies that choose to be taxed as a

corporation can file Form 1120; however, only

an “LLC” designation in the name can identify

the unincorporated associations. The number of

returns with an “LLC” designation in the

Statistics of Income corporate file is unpublished

and small. Partnership returns indicating that

they are LLC’s are included in the partnership

statistics because most LLC’s file a partnership

return for Federal tax purposes. For more

information on the impact of LLC’s on partnership data, see Pratt, Bill, “Partnership Returns,

2000,” Statistics of Income Bulletin, Fall 2002,

Volume 22, Number 2.

[3] Provisions exist to allow for late-filed elections to

be considered as timely made. See Revenue

Procedure 97-40 for extended filings. For further

detail on filing an S election, see Internal Revenue

Service, Internal Revenue Code, Subchapter S,

section 1362(a), (b).

[4] Eligible trusts are defined in Internal Revenue

Code section 1361(c)(2)(A); eligible trusts are

trusts that are treated as owned by an individual

who is a citizen or resident of the United States.

Eligible exempt organizations are described in

Internal Revenue Code section 401(a) and

section 501(c)(3); these organizations include

qualified pension plans, profit-sharing plans,

stock bonus plans, and certain organizations

exempt from Federal income taxes.

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

business purpose can be justified to the satisfaction of the Internal Revenue Service (IRS), or

they may use an alternate tax year but make

“required payments” to the IRS per Internal

Revenue Code section 1378.

[6] For further detail, see Bennett, Kelly, “S Corporation Returns, 1999,” Statistics of Income

Bulletin, Spring 2002, Volume 21, Number 4.

[7] Ibid. (See [6].)

[8] For further detail, see Internal Revenue Service,

Internal Revenue Code, Subchapter S,

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

Bulletin, Spring 1995, Volume 14, Number 4.

SOURCE: IRS, Statistics of Income Bulletin, Spring

2003, Publication 1136 (Revised 6-03).

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group

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

Raw materials and energy production

Agriculture, forestry, fishing, and hunting

All

Item

industries

Support

Total

Forestry

Total

activities and

Agriculture

and

fishing,

production

logging

hunting,

Mining

Utilities

(3)

(4)

(5)

72,296

48,232

6,046

18,017

(7)

17,686

(8)

2,555

180,769

126,527

10,005

44,237

56,326

6,124

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

3,617,477,105

75,001,411

51,637,253

35,268,971

5,506,547

10,861,735

19,358,418

4,005,740

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

3,557,650,166

70,354,883

Interest on Government obligations:

48,377,659

32,777,706

5,412,031

10,187,921

18,025,522

3,951,703

State and local ¹...........................................................................................

1,336,228

42,192

17,318

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

5,825,277

608,981

350,358

15,529

193,646

*1,287

66,670

*502

90,043

22,757

254,478

2,117

4,145

and trapping

(1)

(2)

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

2,860,478

92,536

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

5,209,621

243,219

(6)

Income and deductions from a trade

or business:

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

52,665,434

3,995,355

2,891,918

2,282,090

26,559

583,269

1,055,663

47,775

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

3,477,031,750

72,008,291

51,498,702

35,570,179

5,532,594

10,395,930

16,590,702

3,918,887

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

2,264,680,905

38,143,543

27,162,380

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

142,173,038

1,672,567

1,060,679

17,520,166

530,971

3,490,993

128,576

6,151,222

401,132

8,284,118

540,016

2,697,044

71,872

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

371,543,914

5,488,351

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

21,824,808

1,529,117

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

7,422,262

176,747

4,025,135

1,213,625

123,783

2,694,337

859,052

75,790

390,464

128,016

3,079

940,334

226,557

44,914

1,223,187

285,612

48,996

240,030

29,880

3,968

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

87,994,131

2,870,039

2,271,328

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

71,917,080

1,650,902

978,485

1,878,675

698,856

99,170

79,002

293,483

200,626

514,079

595,168

84,632

77,248

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

47,409,313

1,918,843

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

4,472,580

97,002

1,321,600

42,162

1,010,875

30,001

148,437

2,774

162,288

9,387

510,851

47,172

86,392

7,668

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

61,551,752

3,421,782

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

597,561

286,885

2,360,898

147,765

1,685,905

21,354

312,787

126,412

362,206

922,443

139,120

138,441

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

33,237,212

235,071

Pension, profit-sharing, stock

195,989

129,022

6,381

60,586

28,386

10,696

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

13,162,205

140,292

65,995

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

27,602,953

489,421

293,409

39,919

223,729

9,220

18,974

16,855

50,706

59,167

177,913

15,130

18,099

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

909,850

55,290

18,057

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

320,532,186

13,832,439

10,217,411

16,447

8,155,079

407

587,901

*1,203

1,474,431

37,126

3,177,348

107

437,680

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

140,445,354

2,993,120

138,550

-301,207

-26,047

465,804

2,767,717

86,853

Net income (less deficit)

from a trade or business ¹...........................................................................................

139,109,127

2,950,928

121,232

-316,737

-27,333

465,302

2,744,960

84,736

3,064,878

2,943,645

2,073,999

2,390,736

190,339

217,672

800,539

335,237

3,460,266

715,305

231,590

146,855

Portfolio income (less deficit)

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

53,192,557

2,655,123

1,373,367

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

199,827,055

6,756,734

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

60,717,928

3,805,805

1,234,881

70,063

68,423

1,185,801

95,954

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

2,145,920

147,170

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

13,744,331

636,559

35,048

309,596

24,073

244,129

4,652

22,883

6,323

42,583

110,360

274,455

1,762

52,508

Royalty income...........................................................................................

769,597

164,264

Net short-term capital gain

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

-1,918,358

-113,761

27,895

21,489

*6,286

120

136,284

-153,230

-138,082

-1,211

*-13,938

39,063

*407

Net long-term capital gain

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

38,110,217

1,815,192

1,150,025

1,080,388

36,303

33,335

623,983

41,184

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

340,849

5,698

4,034

*2,883

*1,151

1,656

148,163

170,810

156,908

160,681

1,574

2,152

-10,319

7,977

15,829

20,108

*2,623

22,647

3,773

578

*18,296

4,279

Real estate rental net income

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

5,448,040

166,615

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

8,275,616

193,541

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

2,827,575

26,926

Net income (less deficit)

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

786,164

41,208

29,995

17,923

5,523

*6,549

10,959

254

31,283

*1,288

18,950

*1,027

*5,682

159

*6,652

103

11,470

511

254

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

198,535,888

5,813,874

1,672,758

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

254,216,205

9,295,211

4,478,843

1,092,976

3,375,794

49,827

234,291

529,955

868,757

3,957,550

4,508,845

183,567

307,523

2,282,819

184,464

338,803

551,295

123,956

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

1,306,015

43,007

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

519,851

1,799

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

55,680,317

3,481,337

Footnotes at end of table.

2,806,085

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Goods production

Construction

Manufacturing

Building,

Item

Total

Special

developing,

Heavy

trade

and general

construction

contractors

Beverage

Total

Food

manufacturing

contracting

(9)

(10)

(11)

and tobacco

product

manufacturing

(13)

(14)

144,471

15,202

205,935

146,819

6,457

929

254,664

31,506

321,284

347,782

26,000

2,712

244,814,775

63,232,818

207,386,223

526,679,587

52,693,168

7,607,056

242,310,984

62,290,374

206,506,502

522,016,996

52,371,937

7,486,166

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

512,426

365,608

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

955,236

607,454

(12)

(15)

(16)

Income and deductions from a trade

or business:

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

1,042,113,403

515,433,816

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

1,033,124,856

511,107,860

Interest on Government obligations:

State and local ¹...........................................................................................

256,725

94,610

55,514

21,145

17,951

162,115

11,395

5,057

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

1,288,769

575,535

185,667

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

7,443,052

3,655,812

2,262,610

190,933

730,366

198,935

662,835

713,235

3,787,241

42,538

267,298

12,134

103,699

236,080,758

202,500,996

60,895,619

46,516,598

196,169,710

133,755,131

500,953,284

357,014,283

50,898,190

39,493,672

7,013,071

4,303,667

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

32,172,639

16,182,199

5,148,714

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

65,583,632

26,379,684

7,801,595

1,404,536

3,042,594

9,628,950

15,535,495

15,990,439

39,203,948

788,898

2,806,866

114,593

787,806

501,047

222,247

495,392

91,699

1,059,966

361,520

2,404,428

1,079,934

274,559

66,695

54,289

10,267

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

17,277,452

7,857,258

1,942,067

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

18,901,052

8,266,806

2,312,562

1,760,074

1,024,397

4,155,116

4,929,848

9,420,194

10,634,246

639,196

660,187

95,253

353,963

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

994,099,370

493,146,086

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

739,787,009

382,772,725

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

4,460,833

2,056,405

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

1,755,399

675,465

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

10,869,120

3,871,668

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

752,178

174,998

2,002,384

95,918

502,171

14,036

1,367,113

65,045

6,997,452

577,179

598,368

54,536

121,706

19,535

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

21,055,392

7,607,998

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

293,257

18,319

1,582,326

1,124

2,226,933

13,753

3,798,740

3,442

13,447,394

274,938

1,131,815

293,993

2,922

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

6,086,409

1,471,387

557,530

Pension, profit-sharing, stock

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

4,036,240

1,666,161

511,966

72,626

841,231

4,615,022

740,744

230,120

248,802

905,392

2,370,079

179,021

31,005

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

10,440,161

4,155,434

877,676

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

182,959

67,561

45,328

528,608

4,868

2,749,149

17,365

6,284,727

115,398

477,114

4,675

117,348

2,948,533

16,996,206

30,523,623

2,981,845

476,527

2,337,199

11,216,514

25,726,302

1,794,978

593,985

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

60,445,640

29,922,017

9,977,278

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

48,014,032

22,287,730

8,734,017

Net income (less deficit)

from a trade or business ¹...........................................................................................

47,757,307

22,193,120

8,678,503

2,316,054

11,198,563

25,564,187

1,783,583

588,929

11,516,403

2,837,900

2,821,793

505,739

12,976,925

1,778,362

32,369,040

6,804,853

2,193,678

410,095

682,866

93,938

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

10,912,638

3,472,051

2,099,283

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

399,928

141,700

72,944

583,029

26,381

789,739

42,374

7,440,587

258,228

242,738

16,160

102,501

5,290

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

59,684,162

27,315,122

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

11,926,854

5,122,002

Portfolio income (less deficit)

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

3,580,780

1,729,749

Royalty income...........................................................................................

162,271

7,000

1,043,788

982

281,578

5,667

404,383

351

1,851,031

155,271

129,768

2,517

37,447

Net short-term capital gain

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

-15,657

40,739

49,478

-5,562

-3,176

-56,397

-29,721

-3,082

Net long-term capital gain

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

6,714,288

1,477,770

916,519

263,038

298,212

5,236,518

131,100

62,814

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

71,028

75,093

15,572

11,926

*47,594

-4,064

*-7,086

Real estate rental net income

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

371,613

201,858

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

520,046

331,659

156,625

278,929

22,862

23,813

22,371

28,917

169,755

188,387

11,475

12,941

7,211

7,257

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

148,432

129,801

122,304

951

6,546

18,632

1,466

Net income (less deficit)

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

99,500

16,746

8,134

5,333

3,279

82,755

2,863

*1,805

19,174

11,040

5,359

4,243

964

98,938

16,184

2,885

*2,191

386

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

59,141,059

25,883,775

10,942,545

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

69,765,646

30,508,833

13,429,462

2,927,277

3,361,796

12,013,952

13,717,575

33,257,284

39,256,813

2,040,659

2,434,022

700,445

780,024

434,519

1,703,623

5,999,529

393,363

79,579

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

127,715

28,776

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

28,214

12,031

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

10,624,587

4,625,058

2,486,917

Footnotes at end of table.

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Goods production--continued

Manufacturing--continued

Textile mills

Item

Printing

Petroleum

and textile

Apparel

allied

product

Paper

and related

and coal

Chemical

product

manufacturing

product

manufacturing

support

products

manufacturing

activities

manufacturing

(20)

(21)

(22)

(23)

mills

(17)

Leather and

Wood

manufacturing

(18)

(19)

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

2,659

5,856

(24)

1,374

6,694

1,735

18,156

202

4,744

2,107

16,882

4,417

33,430

680

15,407

2,846,860

31,926,608

16,707,743

28,146,850

3,539,749

18,440,792

2,831,454

31,577,744

16,550,081

27,950,431

3,501,744

18,298,269

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

4,980

10,306

Income and deductions from a trade

or business:

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

12,895,804

23,874,513

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

12,776,650

23,414,985

Interest on Government obligations:

State and local ¹...........................................................................................

3,322

4,617

*445

4,305

10,215

7,407

*1,148

7,704

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

38,963

8,742

1,945

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

76,869

446,168

13,016

38,724

305,835

59,342

88,104

32,009

157,003

1,361

35,496

17,822

116,998

2,719,084

1,796,706

30,828,973

24,405,649

16,110,985

11,754,286

26,969,070

16,045,011

3,469,418

2,654,587

17,427,127

11,212,713

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

415,683

837,195

114,067

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

812,326

2,143,495

249,744

536,383

1,737,933

460,212

1,128,317

1,460,445

2,791,158

65,323

188,998

675,373

1,756,929

6,812

4,798

151,575

46,219

83,229

34,179

169,227

86,768

36,493

5,127

116,440

40,112

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

237,163

482,931

68,805

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

261,681

548,224

56,418

305,369

501,506

346,567

284,090

877,857

683,445

49,653

48,951

329,295

322,959

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

155,662

310,366

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

6,974

12,967

48,204

2,555

470,715

17,026

251,205

16,159

428,359

65,438

51,427

3,223

209,969

20,421

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

310,928

258,037

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

---

32,190

746,085

22,532

504,589

*229,406

1,074,658

139,525

4,240

438,051

1,454

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

48,116

253,987

53,314

Pension, profit-sharing, stock

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

37,274

46,482

4,433

160,325

52,422

305,738

14,505

326,422

122,432

66,281

119,541

8,506

97,285

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

139,977

171,605

20,433

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

*415

4,803

285,220

1,777

167,441

2,292

320,334

8,997

26,428

215

219,218

1,316

1,318,227

730,310

2,532,095

172,216

1,659,170

1,097,635

596,757

1,177,780

70,331

1,013,665

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

12,552,295

23,007,615

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

9,525,781

16,424,273

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

45,046

60,359

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

38,753

48,309

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

516,515

1,404,582

260,588

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

343,509

866,898

127,776

Net income (less deficit)

from a trade or business ¹...........................................................................................

340,187

862,281

127,332

1,093,330

586,542

1,170,373

69,183

1,005,961

180,395

53,064

1,567,765

474,435

843,117

256,575

1,570,520

400,147

147,690

78,507

1,300,723

294,762

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

107,380

238,341

19,796

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

5,406

11,807

*3,260

252,237

5,335

209,566

4,297

263,818

6,357

13,808

*1,567

371,334

22,649

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

554,894

1,096,491

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

214,707

234,210

Portfolio income (less deficit)

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

37,905

202,920

Royalty income...........................................................................................

2,663

12,233

10,508

93,227

6,734

56,357

5,660

107,508

232

8,535

(²)

79,526

15,911

Net short-term capital gain

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

2,809

-1,006

228

-9,274

3,202

-1,938

*-543

-183

Net long-term capital gain

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

56,823

12,386

5,763

156,089

139,934

151,660

4,248

253,431

126

116

(²)

*254

*265

6,952

8,619

3,520

5,936

2,240

4,127

764

12,335

12,381

1,667

2,416

*1,887

(²)

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

1,775

-Real estate rental net income

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

2,830

9,042

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

3,092

9,656

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

262

615

Net income (less deficit)

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

1,267

1,310

28,912

*390

13,647

804

467

---

28,978

*391

13,647

(²)

804

474

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

451,663

1,110,974

147,381

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

655,565

1,326,096

195,847

1,381,431

1,777,455

800,019

1,041,198

1,450,079

1,819,021

84,559

156,613

1,390,098

1,612,394

396,024

241,179

368,942

72,054

222,297

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

1,267

1,310

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

---

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

203,902

215,122

Footnotes at end of table.

48,466

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Goods production--continued

Manufacturing--continued

Electrical

Item

Plastics and

Nonmetallic

Primary

Fabricated

rubber

mineral

metal

products

manufacturing

products

manufacturing

(25)

(26)

Computer

equipment,

Machinery

and electronic

appliance, and

equipment

manufacturing

products

component

manufacturing

(30)

(31)

manufacturing

(27)

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

6,249

4,719

(28)

(29)

Transportation

(32)

3,548

28,861

11,513

4,890

5,269

3,241

9,059

62,063

26,049

18,543

12,646

9,169

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

34,680,853

14,829,288

26,910,548

86,395,935

30,990,899

23,049,945

22,909,727

28,983,920

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

34,429,135

14,687,878

Interest on Government obligations:

26,716,038

85,742,285

30,632,439

22,915,222

22,763,349

28,651,818

State and local ¹...........................................................................................

11,872

4,209

3,718

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

39,328

23,800

17,181

26,664

143,587

14,150

72,029

11,033

23,115

6,626

12,171

13,545

38,255

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

15,618

13,203

Income and deductions from a trade

or business:

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

200,518

113,401

173,611

483,400

272,281

100,574

127,580

280,302

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

33,090,856

13,971,158

26,262,920

80,824,484

29,108,264

21,487,056

21,620,483

27,771,987

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

23,772,729

9,468,717

21,851,887

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

1,031,315

337,566

405,256

56,327,255

3,441,769

19,903,975

1,102,555

14,851,222

623,161

14,608,937

776,254

21,671,203

489,876

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

2,256,980

1,187,216

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

163,724

141,191

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

63,605

31,414

1,080,299

86,473

44,691

6,054,263

416,253

141,945

2,455,980

134,241

68,753

2,410,000

84,410

38,602

2,283,305

72,630

51,521

1,818,130

77,710

34,267

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

599,640

365,909

289,978

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

700,585

333,353

353,749

1,686,660

2,014,631

547,650

721,019

398,965

453,190

346,885

476,963

371,040

515,040

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

538,231

220,358

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

47,275

23,309

467,294

23,817

1,125,524

65,870

419,834

38,178

242,753

24,577

249,271

19,404

333,556

48,379

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

1,199,967

638,821

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

-13,567

566,975

2,642,453

*21

877,000

470,366

465,191

533,129

*753

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

187,111

66,453

Pension, profit-sharing, stock

36,916

466,464

220,269

170,387

361,959

165,212

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

153,068

67,039

80,171

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

459,337

164,330

175,023

593,607

1,298,249

210,747

590,741

117,040

258,795

110,544

283,993

86,596

348,625

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

2,169

4,060

681

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

1,915,119

907,856

799,688

3,398

4,546,123

7,425

1,809,878

3,483

1,340,104

52,596

1,461,031

4,469

1,274,002

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

1,589,997

858,130

647,628

5,571,451

1,882,634

1,562,889

1,289,243

1,211,933

Net income (less deficit)

from a trade or business ¹...........................................................................................

1,578,124

853,921

643,910

5,544,787

1,868,484

1,551,856

1,282,617

1,198,388

935,629

291,719

6,489,876

945,088

2,257,084

388,600

2,049,437

497,582

1,568,502

285,886

1,650,062

451,675

Portfolio income (less deficit)

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

202,339

223,430

374,846

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

1,969,216

1,050,055

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

391,091

196,134

1,055,188

417,652

492,428

2,241,738

235,656

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

12,437

3,797

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

103,680

53,329

16,127

90,902

37,182

290,505

13,204

113,181

4,206

67,580

48,584

69,847

17,403

117,316

Royalty income...........................................................................................

3,414

1,137

Net short-term capital gain

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

-28,359

190

55,257

15,911

5,008

14,209

1,751

6,157

74,223

5,739

-5,329

-64,829

-458

730

138,599

Net long-term capital gain

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

110,909

164,976

705,757

291,489

471,192

2,122,014

94,004

-262

100

(²)

14,683

15,303

25,914

28,284

14,938

15,982

4,435

4,458

8,672

8,938

9,153

9,916

620

2,370

1,044

*266

762

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

258

Real estate rental net income

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

3,732

10,187

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

7,285

10,237

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

3,553

Net income (less deficit)

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

-382

737

1,569

14,687

14,244

*2,505

*2,595

-5,639

1,625

15,129

442

14,962

*718

*2,805

300

*3,177

583

7,172

12,811

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

1,783,813

1,088,275

1,035,008

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

2,155,080

1,264,530

1,177,704

6,640,577

7,502,943

2,315,319

2,674,692

2,051,223

2,550,129

3,535,622

3,691,342

1,437,558

1,826,642

862,366

359,373

498,907

155,720

389,083

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

*357

737

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

*739

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

371,267

176,255

142,695

Footnotes at end of table.

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Goods production--continued

Distribution and transportation of goods

Manufacturing--continued

Wholesale and retail trade

Furniture

Item

Wholesale trade

and related

Miscellaneous

products

manufacturing

Total

Durable goods

Nondurable

goods

Total

(38)

(39)

(40)

manufacturing

(33)

(34)

Retail trade

(35)

(36)

(37)

594,757

505,737

165,039

98,827

66,211

339,517

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

13,523

50,989

1,055,476

906,974

320,829

189,962

130,867

584,945

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

6,847

22,877

Income and deductions from a trade

or business:

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

14,992,821

44,256,511

1,609,878,835

1,517,228,731

654,406,413

313,355,364

341,051,049

862,004,687

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

14,801,179

43,918,193

1,591,461,671

Interest on Government obligations:

State and local ¹...........................................................................................

3,720

10,964

218,027

1,500,204,874

648,932,286

310,542,112

338,390,174

850,472,602

204,711

129,459

86,739

42,720

75,251

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

43,905

46,283

1,737,283

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

144,016

281,071

16,461,855

985,013

15,834,132

302,116

5,042,552

224,307

2,502,206

77,809

2,540,345

682,072

10,774,762

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

14,313,377

41,506,870

1,577,386,818

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

10,049,832

26,892,182

1,228,907,123

1,485,947,554

1,194,377,910

635,922,784

514,774,091

301,773,212

235,048,137

334,149,571

279,725,954

849,194,699

678,982,062

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

490,074

1,824,441

29,781,202

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

1,236,424

4,017,779

114,551,893

27,124,229

100,933,001

13,797,012

41,579,051

8,172,593

23,555,037

5,624,419

18,024,014

13,282,572

59,311,802

7,438,796

2,643,045

5,290,215

2,389,043

2,128,372

1,263,284

973,286

763,832

1,155,085

499,452

3,159,301

1,125,218

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

365,967

1,015,409

30,500,684

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

336,228

1,008,064

21,323,862

23,905,928

18,237,819

7,721,103

7,868,821

4,215,600

3,459,004

3,505,503

4,409,817

16,169,642

10,358,211

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

139,014

615,635

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

11,646

55,892

13,823,801

1,133,471

12,102,055

1,048,780

5,216,301

429,783

2,986,910

163,705

2,229,391

266,078

6,871,001

618,078

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

243,081

880,540

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

---

17,090,191

12,845

11,478,307

12,370

4,936,153

8,943

2,832,630

*7,291

2,103,524

*1,652

6,527,955

*3,427

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

168,652

585,908

Pension, profit-sharing, stock

14,112,062

13,865,904

3,201,726

1,781,005

1,420,720

10,660,066

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

44,418

194,588

2,909,592

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

180,125

580,392

7,452,308

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

1,811

10,721

263,148

2,551,502

6,193,416

249,180

1,534,252

2,687,329

123,225

902,206

1,586,301

24,697

632,045

1,101,029

98,528

1,016,896

3,497,733

125,955

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

938,659

3,479,088

66,187,897

28,653,338

15,300,977

13,352,361

37,484,780

31,281,176

18,483,630

11,582,152

6,901,478

12,809,989

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

51,982

177,785

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

55,464

168,447

85,442,796

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

679,443

2,749,640

32,492,017

Net income (less deficit)

from a trade or business ¹...........................................................................................

675,723

2,738,676

32,273,990

31,076,466

18,354,170

11,495,413

6,858,757

12,734,737

46,727,281

14,453,291

42,592,234

11,515,768

22,832,703

4,478,533

13,824,279

2,328,866

9,008,424

2,149,667

19,742,175

7,007,438

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

45,668

330,124

7,833,705

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

867,156

3,393,882

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

191,433

655,206

Portfolio income (less deficit)

6,865,768

2,369,855

1,385,532

984,324

4,494,867

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

3,714

19,448

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

38,275

142,715

Royalty income...........................................................................................

6,413

359,839

2,776,943

116,700

320,723

2,493,185

116,282

201,700

1,211,039

82,809

91,675

663,305

30,987

110,025

547,734

51,823

119,023

1,280,936

33,472

Net short-term capital gain

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

1,257

-53

-145,278

-122,392

-70,845

-45,534

-25,311

-51,383

Net long-term capital gain

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

2,410

160,920

4,802,355

4,134,858

1,026,627

723,869

302,759

3,108,231

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

-8

680

-76,853

-76,887

-81,475

-78,770

-2,705

4,588

484,459

529,038

422,586

462,355

207,759

222,645

118,796

121,531

88,963

101,114

214,827

239,709

44,579

39,769

14,887

2,735

12,151

24,882

Real estate rental net income

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

4,126

17,291

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

4,234

18,712

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

107

1,421

Net income (less deficit)

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

304

670

188,915

172,730

97,558

62,206

35,352

75,172

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

306

*719

247,939

200,359

108,855

72,656

36,199

91,504

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

59,024

27,629

11,296

10,450

847

16,333

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

725,822

3,086,760

40,781,069

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

910,336

3,705,182

54,079,518

38,537,550

49,085,445

21,029,342

25,061,626

13,061,947

15,201,692

7,967,396

9,859,934

17,519,603

24,006,226

10,547,896

4,032,284

2,139,745

1,892,539

6,486,623

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

184,514

618,421

Footnotes at end of table.

13,298,448

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Distribution and transportation of goods--continued

Wholesale and retail trade--continued

Retail trade--continued

Building

Item

Motor vehicle

Furniture

Electronics

material

Food,

Health

and

and home

and

and garden

beverage,

and

Gasoline

Clothing and

clothing

parts dealers

furnishings

appliance

equipment

and

personal care

stations

accessories

and supplies

liquor stores

stores

dealers

(41)

(42)

(43)

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

53,158

19,838

(44)

(45)

(46)

(47)

(48)

14,426

19,358

51,924

22,140

19,226

26,745

26,375

36,906

96,103

35,364

36,190

41,557

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

433,858,394

31,332,084

27,078,262

42,014,677

95,708,480

31,934,079

79,952,336

19,334,869

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

427,144,916

31,004,553

Interest on Government obligations:

26,664,300

41,719,739

94,379,341

31,764,878

79,303,630

19,179,429

State and local ¹...........................................................................................

9,261

4,645

*2,293

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

307,688

24,870

1,431

5,088

29,782

5,956

112,298

1,930

24,375

7,537

85,769

4,651

11,031

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

89,688

34,284

Income and deductions from a trade

or business:

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

6,396,530

298,015

410,238

260,068

1,210,884

142,895

555,400

139,758

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

429,989,992

30,375,038

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

374,084,010

19,347,918

26,346,397

19,687,852

40,716,973

29,691,235

94,474,888

69,560,677

30,837,497

22,258,562

79,508,335

69,014,545

18,682,739

11,013,839

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

3,923,223

918,805

659,216

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

21,140,616

3,546,776

2,597,685

1,008,728

3,989,360

1,473,233

9,227,603

1,176,864

3,003,700

532,085

3,354,515

669,407

2,379,599

67,195

45,859

235,084

94,895

723,933

101,510

107,508

57,611

345,242

27,516

80,236

140,786

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

3,891,779

1,260,192

506,857

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

3,390,281

694,767

379,834

902,108

759,398

2,630,854

1,661,698

924,647

470,446

1,174,239

718,949

1,211,350

425,452

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

3,562,175

241,304

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

156,066

49,021

136,893

16,820

411,896

18,123

643,557

107,698

185,371

42,677

489,214

77,567

166,170

13,435

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

1,835,579

311,198

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

191,617

*799

450,386

*2,285

1,105,380

195,833

970,935

157,921

195

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

4,277,799

1,138,166

Pension, profit-sharing, stock

338,856

371,281

1,064,000

383,260

142,521

531,058

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

251,928

63,250

44,454

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

1,494,163

164,596

119,648

98,031

246,047

159,755

659,859

70,394

119,497

22,088

124,695

63,884

92,043

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

44,800

37,530

*1,700

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

10,736,833

2,362,635

1,551,113

6,234

2,431,883

16,759

5,338,371

*2,528

1,838,600

740

2,513,415

396

1,736,970

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

3,868,402

957,046

731,865

1,297,704

1,233,592

1,096,582

444,001

652,130

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

882,741

181,544

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

317,920

57,334

Net income (less deficit)

from a trade or business ¹...........................................................................................

3,859,141

952,400

729,572

1,292,616

1,227,636

1,094,652

436,464

647,479

1,045,064

315,492

1,583,738

291,122

2,178,935

951,299

1,506,386

411,734

923,057

486,593

933,730

286,250

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

1,111,435

118,879

265,850

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

5,682,079

1,286,963

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

1,822,939

334,563

Portfolio income (less deficit)

358,527

1,354,573

184,373

249,118

134,132

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

19,465

12,049

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

515,583

66,495

7,055

50,540

11,807

123,348

29,316

188,061

5,650

28,425

5,879

71,179

5,684

29,640

Royalty income...........................................................................................

*214

506

Net short-term capital gain

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

-2,808

-3,752

372

*108

9,065

717

3,549

-10,086

-10,629

6,056

-4,151

-1,265

173

Net long-term capital gain

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

575,515

43,393

217,969

233,892

1,121,984

154,424

172,548

95,086

(²)

7,966

10,167

10,987

59,733

60,719

8,755

*9,026

32,792

36,243

1,494

*819

986

271

3,451

*1,453

*1,646

10,062

*4,831

11,866

*146

*1,954

307

10,080

*4,831

11,866

276

*130

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

5,050,512

1,109,051

1,003,410

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

6,695,980

1,416,805

1,297,463

1,662,957

1,914,621

2,652,004

3,476,834

1,292,611

1,698,144

730,240

1,151,884

781,798

1,059,216

251,665

824,830

405,533

421,644

277,418

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

3,467

*188

Real estate rental net income

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

58,122

19,192

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

61,576

19,620

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

3,454

428

Net income (less deficit)

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

21,815

*18,579

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

36,500

*18,579

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

14,685

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

1,645,468

307,754

Footnotes at end of table.

294,053

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Distribution and transportation of goods--continued

Wholesale and retail trade--continued

Transportation and warehousing

Retail trade--continued

Item

Sporting

Wholesale

Air, rail,

goods,

General

Miscellaneous

Nonstore

and retail trade

hobby, book,

merchandise

store

retailers

not allocable

(52)

(53)

and music

(49)

Total

and water

transportation

Truck

transportation

retailers

(50)

(51)

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

16,776

6,062

(54)

(55)

(56)

61,920

27,945

1,181

89,020

7,464

51,152

104,041

46,880

1,199

148,503

12,286

84,557

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

13,166,684

9,186,442

44,996,444

33,441,936

817,630

92,650,105

9,324,271

55,242,317

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

13,013,307

9,100,169

Interest on Government obligations:

44,378,758

32,819,583

799,986

91,256,796

9,076,134

54,623,619

State and local ¹...........................................................................................

293

*722

28,605

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

5,406

1,755

28,592

4,270

49,074

-*826

13,316

752,270

892

197,285

3,436

323,539

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

26,600

10,956

Income and deductions from a trade

or business:

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

147,679

83,796

560,490

569,009

*16,818

627,723

49,960

291,723

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

12,853,309

9,050,321

43,958,194

32,401,014

830,072

91,439,264

9,757,969

54,390,473

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

8,325,264

6,231,586

29,037,514

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

352,454

173,955

1,549,444

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

1,376,887

963,946

4,500,555

20,729,060

845,157

3,230,560

*621,757

*44,646

*42,148

34,529,213

2,656,973

13,618,892

3,698,794

163,369

1,106,284

17,587,947

1,368,662

8,726,487

253,801

49,184

165,387

171,249

*2,543

*541

2,148,581

254,002

415,609

50,690

1,300,264

142,170

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

736,019

405,185

1,989,587

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

291,741

162,283

850,829

536,826

552,533

*15,182

10,786

6,594,756

3,086,043

717,547

190,864

4,386,805

2,078,458

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

144,823

92,821

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

10,729

5,726

444,045

58,063

352,733

62,152

*14,753

*919

1,721,745

84,691

380,150

14,985

875,523

21,395

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

151,988

82,491

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

---

479,623

595,004

*14,199

5,611,885

475

1,119,278

3,362,873

475

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

297,118

166,230

Pension, profit-sharing, stock

653,161

1,296,617

*4,112

246,158

36,736

122,225

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

23,504

11,702

107,293

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

37,893

42,799

198,279

100,615

198,214

*354

*8,353

358,091

1,258,892

25,777

113,610

208,288

843,690

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

*9,419

213

5,238

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

1,010,168

618,700

3,781,578

397

3,564,513

-49,779

13,968

19,254,898

*977

1,723,299

7,612

13,357,599

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

313,375

136,121

1,038,251

1,040,922

-12,442

1,210,840

-433,698

851,844

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

70,032

46,598

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

15,269

46,086

Net income (less deficit)

from a trade or business ¹...........................................................................................

313,082

135,398

1,009,645

1,036,652

-12,442

1,197,524

-434,590

848,409

1,956,578

946,933

1,732,129

695,477

*17,355

*29,797

4,135,047

2,937,523

549,871

984,461

1,980,270

1,131,861

Portfolio income (less deficit)

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

46,901

26,719

300,894

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

610,460

303,056

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

297,378

167,657

343,465

*1,046

967,937

140,740

293,628

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

3,195

1,374

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

23,134

22,632

6,916

77,544

10,632

84,356

-*1,210

39,117

283,759

6,702

65,137

10,482

102,205

Royalty income...........................................................................................

-16

Net short-term capital gain

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

*-1

2,540

*12,733

6,168

418

315

-9,775

-17,686

*-164

-22,886

-5,045

-3,795

212,821

259,871

667,497

73,608

184,748

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

*654

*124

-35

3,217

10,395

14,890

15,392

---

61,873

66,683

3,510

*4,191

19,469

20,213

7,178

*503

4,810

681

745

Net long-term capital gain

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

20,570

157

Real estate rental net income

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

*-984

937

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

*1,283

5,008

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

*2,268

*4,071

Net income (less deficit)

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

881

-307

*5,629

16,185

1,823

*871

1,177

*5,644

---

47,580

31,395

*25,732

23,909

5,786

*5,728

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

359,880

163,055

1,313,449

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

651,340

328,056

2,236,372

1,400,636

2,079,512

-11,396

*17,592

2,243,520

4,994,073

-288,517

649,187

1,161,563

2,219,651

678,875

*28,988

2,750,553

937,704

1,058,088

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

881

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

---

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

291,459

165,001

Footnotes at end of table.

922,922

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Distribution and transportation of goods--continued

Information

Transportation and warehousing--continued

Transit and

Item

Motion

Other

Warehousing

ground

Pipeline

transportation

and

passenger

transportation

and support

storage

transportation

(57)

Total

picture

Broadcasting

Publishing

and sound

and telecom-

industries

recording

munications

activities

(58)

industries

(59)

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

8,284

*102

(60)

(61)

(62)

(63)

(64)

19,434

2,584

62,078

15,832

16,599

16,081

34,717

6,724

116,219

32,406

24,855

34,398

17,919,805

4,653,699

53,556,206

19,294,011

10,817,696

15,379,666

17,644,857

4,531,154

52,974,903

18,714,884

10,430,635

16,378,313

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

10,059

*159

Income and deductions from a trade

or business:

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

5,108,926

*401,085

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

5,016,787

*364,246

Interest on Government obligations:

State and local ¹...........................................................................................

337

4,882

3,769

67,245

30,537

11,304

22,952

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

60,671

220

162,433

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

31,131

*36,619

107,634

8,121

110,655

299,011

215,047

117,892

430,698

27,294

348,464

152,104

-1,173,703

17,563,754

9,816,722

4,367,100

1,464,715

51,631,920

19,025,321

17,709,341

6,928,276

10,158,663

3,257,942

16,382,881

6,037,889

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

195,676

*6,459

807,119

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

868,657

*3,549

2,088,926

115,688

824,989

4,147,722

9,324,323

1,072,957

3,535,101

1,735,633

1,297,585

832,880

3,168,660

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

106,104

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

3,059

241,655

52,275

84,855

5,703

325,099

316,979

94,427

105,026

69,585

22,154

123,850

178,193

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

289,935

*2,691

616,344

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

185,218

*4,023

469,960

581,434

157,520

1,577,584

1,505,258

402,956

497,074

433,045

253,725

383,936

558,040

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

122,862

*15,822

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

13,912

*3,525

199,920

17,729

127,470

13,144

940,571

542,354

217,777

144,433

133,621

170,146

479,164

208,427

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

309,565

*17,316

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

---

581,952

220,900

1,895,953

396,316

646,085

717,162

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

25,364

*157

47,927

Pension, profit-sharing, stock

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

51,711

-44,177

13,748

1,125,499

351,500

132,604

227,822

28,138

334,903

173,435

69,339

61,692

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

57,008

160,973

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

*4,921

-*236

83,599

*222

762,827

31,224

328,201

2,715

55,357

*4,876

278,694

23,456

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

993,994

*117,194

644,975

9,776,303

3,459,148

1,876,967

3,103,017

286,599

1,924,285

1,584,670

659,033

-1,003,216

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

4,938,975

*420,993

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

1,710,990

*250,044

*95

105

2,417,837

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

169,951

*-19,908

356,052

Net income (less deficit)

from a trade or business ¹...........................................................................................

169,614

*-19,908

351,170

282,830

1,857,040

1,554,133

647,729

-1,026,168

899,275

548,105

382,337

99,507

6,275,431

4,418,390

2,123,812

569,680

1,244,157

596,428

1,665,620

2,691,788

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

79,196

*9,769

385,008

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

307,721

*15,574

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

138,107

*35,482

Portfolio income (less deficit)

59,595

4,238,053

2,099,383

422,855

1,541,723

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

*6,070

-Interest income...........................................................................................

15,405

*9,769

Royalty income...........................................................................................

---

13,479

52,661

2,384

38,581

87,453

547,385

12,395

32,195

143,363

*3,977

19,302

81,186

*413

30,256

288,399

3,057

Net short-term capital gain

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

*-14,156

674

-565

-16,830

-26,792

15,243

14,448

Net long-term capital gain

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

71,877

318,152

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

---

19,112

3,588,124

1,946,517

306,698

1,186,175

19,526

124

19,389

Real estate rental net income

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

2,789

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

*3,159

10,023

10,588

26,081

28,531

39,754

40,709

23,452

23,679

4,247

4,307

7,509

8,173

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

369

*565

*2,450

955

227

664

Net income (less deficit)

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

*5,473

*4,361

*4,460

5,131

-1,072

*1,354

4,193

*5,864

*1,502

*4,460

7,953

2,822

1,488

2,559

*1,383

4,428

235

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

257,073

*-10,127

750,562

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

392,934

*19,024

1,262,114

372,967

451,162

6,139,978

10,073,006

3,675,896

4,157,404

1,076,185

1,635,396

527,258

2,862,514

78,196

3,933,028

481,508

559,211

2,335,256

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

*5,728

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

255

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

135,861

*29,151

511,552

Footnotes at end of table.

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Information--

Finance, insurance, real estate, and rental and leasing

continued

Finance and insurance

Securities,

Information

Item

services

Total

and data

Total

processing

Depository

Non-

commodity

Insurance

Other

credit

depository

contracts,

carriers and

financial

inter-

credit inter-

other financial

vehicles and

mediation

investments,

activities

services

other

and related

investment

activities

(65)

(66)

(67)

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

13,566

436,577

(68)

(69)

(70)

companies

(71)

(72)

116,831

834

29,069

29,274

55,548

2,106

207,782

10,501

46,625

56,726

89,899

4,031

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

8,064,833

147,525,216

78,071,704

3,598,467

14,399,146

30,655,706

29,335,530

82,855

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

7,451,071

138,963,837

Interest on Government obligations:

73,167,775

1,396,733

12,740,114

30,032,461

28,882,115

116,353

State and local ¹...........................................................................................

2,452

318,343

239,350

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

*1,722

839,739

155,905

78,580

49,161

24,440

25,417

120,575

68,400

11,839

2,789

*3,916

10,139

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

24,560

911,143

Income and deductions from a trade

or business:

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

609,588

7,403,296

4,508,673

2,073,993

1,609,176

434,271

438,786

-47,553

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

7,381,035

137,275,530

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

2,801,214

25,268,502

72,587,977

9,576,092

2,888,176

*4,794

13,336,591

2,079,429

30,032,285

2,260,538

26,209,841

5,221,722

121,083

9,609

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

506,252

18,203,669

13,130,193

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

1,322,978

37,901,081

21,290,685

194,524

386,979

810,759

3,613,770

8,323,204

9,024,480

3,783,942

8,248,223

*17,764

*17,232

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

37,236

1,350,989

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

11,607

977,084

351,819

776,644

31,444

63,492

82,202

581,246

75,732

56,509

160,757

74,961

*1,683

*436

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

357,648

5,832,313

2,431,161

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

196,420

3,996,071

2,068,197

29,786

74,933

575,989

362,158

747,124

839,001

1,075,871

782,289

2,391

9,816

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

110,010

7,069,326

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

19,348

299,127

4,661,272

205,581

1,493,808

18,615

1,389,952

50,586

1,444,631

30,745

310,936

103,717

21,945

*1,918

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

136,390

4,949,127

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

-*3,809

912,002

*2,215

72,351

191,325

*2,197

333,868

311,153

3,305

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

413,573

2,303,913

Pension, profit-sharing, stock

934,548

37,788

291,654

211,956

392,540

*611

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

30,438

1,193,318

659,143

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

100,575

1,299,943

817,338

20,006

51,413

34,698

105,168

332,275

266,190

269,820

392,824

*2,343

*1,743

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

177

134,375

63,355

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

1,337,171

26,492,882

14,707,733

18,225

390,011

2,264

3,163,193

41,146

6,044,876

1,720

5,079,366

-30,288

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

683,798

10,249,686

5,483,727

710,291

1,062,555

623,421

3,125,689

-38,229

Net income (less deficit)

from a trade or business ¹...........................................................................................

681,347

9,931,343

5,244,377

631,710

1,038,115

502,847

3,113,850

-42,144

11,289,731

6,045,353

674,313

42,602

1,806,943

768,829

5,174,125

4,671,278

3,528,844

414,994

105,506

147,650

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

174,091

12,796,405

8,577,916

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

1,241,841

19,669,194

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

560,495

9,737,851

Portfolio income (less deficit)

49,282

245,522

7,317,513

461,748

503,851

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

5,701

421,912

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

34,437

2,988,891

223,514

1,349,901

3,599

25,842

6,591

205,220

176,156

791,101

27,500

291,177

9,669

36,561

Royalty income...........................................................................................

4,948

63,430

Net short-term capital gain

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

-19,728

-1,174,779

24,689

133

24,529

-1,068,671

426

-12,820

-1,156,546

-11,643

111,911

Net long-term capital gain

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

148,734

10,072,827

7,612,766

19,176

45,347

7,050,703

151,915

345,625

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

-424,125

435,717

106

1,181

431,570

*2,799

*61

Real estate rental net income

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

4,546

4,235,826

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

4,550

6,510,053

57,619

76,537

5,737

8,290

10,698

15,054

24,521

33,781

16,561

17,560

103

*1,852

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

2,274,227

18,918

2,553

4,356

9,260

*999

*1,749

Net income (less deficit)

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

655

401,941

659

340

701

-1,713

*1,328

19,586

18,927

410

753

*52

17,093

18,806

*1,328

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

860,639

27,365,515

13,880,572

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

1,417,692

36,058,171

17,642,595

687,070

728,212

1,295,035

1,957,182

7,843,168

10,451,154

3,593,486

3,942,826

461,813

563,222

41,142

662,147

2,607,986

349,340

101,409

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

655

744,493

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

-342,551

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

557,053

8,692,655

Footnotes at end of table.

3,762,024

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Finance, insurance, real estate, and rental and leasing--continued

Professional and business services

Real estate and rental and leasing

Lessors of

Item

Total

(73)

Real

Rental

nonfinancial

estate

and leasing

intangible

services

assets

(75)

(76)

(74)

Total

Professional,

scientific, and

technical

services

Management

(79)

companies

(77)

(78)

288,924

30,808

586,117

425,918

21,185

643,206

60,098

921,343

632,208

71,597

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

69,453,511

51,788,310

17,515,945

149,257

348,770,048

227,225,752

11,336,140

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

65,796,061

Interest on Government obligations:

48,972,297

16,710,863

112,901

335,939,408

222,671,591

4,313,763

State and local ¹...........................................................................................

78,993

68,830

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

683,834

200,702

10,156

483,099

377,078

375,846

47,862

187,718

301,587

34,688

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

319,746

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

703,361

Income and deductions from a trade

or business:

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

2,894,623

2,546,480

311,826

36,316

12,077,717

4,318,582

6,686,102

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

64,687,553

47,338,799

17,254,342

94,412

321,878,926

207,810,272

8,712,746

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

15,692,410

10,120,332

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

5,073,476

4,540,263

5,562,287

526,807

9,790

6,406

117,786,796

29,182,435

71,708,813

23,907,805

149,474

622,193

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

16,610,396

Repairs........................................................................................... 999,170

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

200,440

14,140,269

587,451

108,700

2,453,738

410,918

90,358

16,389

801

1,383

70,066,451

2,096,671

870,351

43,337,110

1,264,765

388,441

1,089,048

102,891

245,585

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

3,401,152

2,123,203

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

1,927,874

1,459,710

1,277,413

466,025

536

2,138

10,042,314

11,192,900

7,412,607

6,425,414

81,260

274,509

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

2,408,054

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

93,546

1,563,793

59,080

842,175

17,030

2,086

17,437

6,777,766

518,063

1,697,896

316,868

4,136,152

56,614

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

4,037,124

Depletion........................................................................................... *1,594

996,972

*22

3,038,143

*1,572

2,009

4,909,187

410

2,663,398

256,447

334

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

1,369,365

Pension, profit-sharing, stock

1,148,048

220,168

1,149

3,104,194

2,049,653

78,127

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

534,176

474,444

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

482,605

366,275

58,958

116,019

773

311

2,520,282

4,033,061

2,173,385

2,525,017

81,647

152,532

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

71,020

23,026

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

11,785,149

9,627,209

47,995

2,124,735

-33,205

129,446

58,648,599

36,336

41,902,747

86,490

1,299,442

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

4,765,959

4,449,511

261,603

54,845

26,891,122

19,415,480

2,623,394

Net income (less deficit)

from a trade or business ¹...........................................................................................

4,686,966

4,380,681

251,447

54,838

26,514,044

19,367,619

2,321,807

7,073,302

2,692,621

1,248,665

997,218

57,497

2,658

34,687,595

8,173,551

24,674,140

5,306,521

3,329,489

1,007,682

Portfolio income (less deficit)

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

4,218,489

3,863,182

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

8,379,463

Deficit...........................................................................................3,692,498

323,495

31,812

11,459,426

3,525,033

6,309,146

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

198,398

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

1,638,989

187,493

1,521,318

10,722

114,735

182

2,937

609,448

2,145,645

180,701

979,151

395,122

808,672

Royalty income...........................................................................................

38,741

Net short-term capital gain

11,580

*18,838

8,323

139,296

7,572

51,244

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

-106,108

Net long-term capital gain

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

2,460,061

-101,350

-4,484

-273

-396,010

-450,416

44,114

2,255,769

183,648

20,644

9,076,820

2,784,446

5,149,828

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

-11,592

-11,628

-115,772

23,579

-139,834

Real estate rental net income

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

4,178,207

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

6,433,516

4,130,135

6,365,131

46,983

67,296

1,089

-37,241

214,516

72,713

140,055

-127,948

49,628

Deficit...........................................................................................2,255,309

2,234,996

20,313

251,757

67,343

177,575

Net income (less deficit)

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

401,282

81,550

319,720

-2,299

46,566

-55,736

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

724,907

112,027

612,868

73,933

56,267

10,473

Deficit........................................................................................... 323,624

30,477

293,148

76,232

9,701

66,209

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

13,484,944

12,455,548

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

18,415,575

16,198,190

941,644

2,128,958

87,752

88,428

37,933,929

45,981,039

23,011,931

28,079,852

8,447,269

9,806,222

1,187,314

676

8,047,110

5,067,922

1,358,952

Deficit...........................................................................................4,930,632

3,742,642

Footnotes at end of table.

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Professional and business services--continued

Education, health, and social assistance

Administrative and support and waste

Health care and social assistance

management and remediation services

Waste

Item

Total

Administrative

management

and support

and

services

remediation

Educational

services

Offices of

Total

physicians

and dentists

services

(80)

(81)

(85)

(86)

132,486

6,528

164,519

21,631

142,887

110,517

204,276

13,262

254,021

29,575

224,446

162,908

101,402,905

100,319,828

8,805,251

8,634,226

108,367,863

106,896,519

8,412,195

8,278,191

99,955,668

98,618,328

66,431,465

65,447,463

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

139,015

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

217,538

(82)

(83)

(84)

Income and deductions from a trade

or business:

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

110,208,156

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

108,954,054

Interest on Government obligations:

State and local ¹...........................................................................................

27,629

16,321

11,308

14,777

8,093

6,683

4,069

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

153,440

117,231

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

1,073,034

949,526

36,209

123,508

44,764

1,411,803

943

124,968

43,821

1,286,835

27,807

952,125

96,947,241

42,558,751

8,408,668

3,369,758

98,769,014

11,596,426

7,757,612

1,629,339

91,011,402

9,967,087

59,138,436

5,093,306

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

4,652,436

4,413,948

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

25,640,293

24,461,778

238,488

1,178,515

14,655,090

27,582,484

441,412

2,095,343

14,213,678

25,487,141

12,977,820

13,275,671

555,084

208,859

173,931

27,465

912,601

366,917

130,391

76,419

782,210

290,498

410,242

61,471

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

2,548,447

2,228,167

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

4,492,976

4,153,703

320,280

339,273

5,382,157

3,916,594

604,555

281,274

4,777,602

3,635,320

3,036,236

2,039,221

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

943,719

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

144,581

758,349

112,406

185,369

32,176

1,306,348

192,689

61,175

14,644

1,245,172

178,045

489,726

120,824

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

1,989,342

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

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

976,413

1,464,415

-931,177

524,927

45,236

1,566,966

-1,116,350

159,183

-310,764

1,407,783

-805,586

730,213

-651,003

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

105,355,908

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

45,928,509

Repairs........................................................................................... 729,015

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

236,324

Pension, profit-sharing, stock

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

265,250

225,223

40,026

1,419,636

33,544

1,386,091

1,251,313

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

1,355,511

1,174,573

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

6,620

5,245

180,938

1,375

1,301,413

46,988

115,403

*6,909

1,186,010

40,079

498,723

*37,720

1,750,848

27,406,356

1,797,256

25,609,100

18,464,946

396,584

9,598,849

654,583

8,944,266

7,293,029

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

15,446,410

13,695,562

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

4,852,248

4,455,664

Net income (less deficit)

from a trade or business ¹...........................................................................................

4,824,619

4,439,344

385,275

9,584,072

646,490

8,937,583

7,288,959

6,018,833

1,579,489

665,134

279,858

11,256,507

1,672,434

794,287

147,798

10,462,219

1,524,637

8,025,337

736,378

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

1,625,247

1,007,165

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

33,625

29,644

618,082

3,981

544,395

52,584

73,394

6,862

471,002

45,723

270,220

40,186

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

6,683,966

Deficit...........................................................................................1,859,348

Portfolio income (less deficit)

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

357,822

Royalty income...........................................................................................

*80,480

304,659

*80,154

53,163

326

242,669

*1,863

44,587

1,724

198,082

*139

102,812

*139

Net short-term capital gain

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

10,292

-12,221

22,513

6,235

2,986

3,248

-1,445

Net long-term capital gain

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

1,142,547

604,471

538,076

247,380

17,235

230,145

135,161

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

*482

*458

*-6,335

*-6,632

12,582

19,116

5,411

5,717

41,172

49,715

-266

2,128

41,438

47,587

5,036

9,006

6,534

306

8,543

*2,395

6,148

*3,969

Real estate rental net income

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

17,994

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

24,833

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

6,839

Net income (less deficit)

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

6,870

4,278

*2,592

9,620

9,550

*8,567

4,588

310

*2,605

9,632

*13

9,563

*13

*8,579

*13

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

6,474,729

5,463,368

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

8,094,965

6,849,960

1,011,361

1,245,006

10,179,259

11,726,276

719,686

847,475

9,459,573

10,878,801

7,572,783

8,237,948

233,645

1,547,017

127,789

1,419,229

665,165

Net income...........................................................................................7,192

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

322

Deficit...........................................................................................1,620,236

Footnotes at end of table.

1,386,591

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Item

Education, health, and social

assistance--continued

Health care and social assistance-continued

Miscellaneous

Hospitals,

Leisure, accommodation, and food services

Arts, entertainment, and recreation

Amusement,

health care and

nursing,

entertainment,

gambling, and

social

and residential

and

recreation

assistance

care facilities

recreation

industries

(87)

(88)

(91)

(92)

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

22,390

Total

Other arts,

(89)

Total

(90)

Accommodation

and food

services

Total

(93)

9,980

226,379

62,471

29,579

32,893

163,907

22,823

464,335

125,777

44,140

81,637

338,558

18,452,497

18,240,021

152,374,972

148,593,274

30,548,453

29,291,420

12,584,046

12,058,968

17,964,407

17,232,452

121,826,519

119,301,854

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

38,715

Income and deductions from a trade

or business:

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

15,071,706

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

14,930,844

Interest on Government obligations:

State and local ¹...........................................................................................

926

1,688

35,266

16,258

8,582

7,676

19,008

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

6,686

9,329

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

133,250

201,459

433,765

3,312,666

207,201

1,033,575

6,987

509,509

200,214

524,066

226,565

2,279,092

18,011,602

147,701,781

29,713,825

12,393,883

17,319,942

117,987,956

1,680,060

52,084,402

6,316,455

2,064,606

4,251,849

45,767,947

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

994,908

240,950

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

4,425,150

7,786,321

Repairs........................................................................................... 175,760

196,208

6,902,378

28,307,582

2,869,584

3,060,033

5,802,138

637,691

2,416,518

2,521,584

91,275

643,514

3,280,553

546,416

3,842,346

22,505,445

2,231,894

Bad debts...........................................................................................93,454

135,574

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

598,113

1,143,253

149,243

9,797,681

34,091

1,860,558

13,425

393,972

20,666

1,466,586

115,152

7,937,122

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

621,472

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

204,329

974,626

551,117

6,682,446

3,762,863

1,252,745

811,060

314,842

223,550

937,903

587,511

5,429,700

2,951,803

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

27,208

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

289,630

30,014

387,941

719,054

4,914,698

227,601

1,327,854

175,590

265,265

52,011

1,062,590

491,453

3,586,844

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

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

73,714

-80,868

*354

3,798,509

655,871

-232,645

423,226

*269

3,142,638

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

13,861,363

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

3,193,721

Pension, profit-sharing, stock

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

70,651

64,126

320,314

150,288

112,945

37,343

170,026

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

162,802

524,484

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

863

1,496

1,114,941

53,710

247,514

18,815

72,428

16,411

175,086

2,404

867,427

34,895

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

2,929,590

26,224,020

7,311,025

3,478,826

3,832,199

18,912,995

4,673,191

834,628

190,163

644,465

3,838,563

4,214,564

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

1,210,343

440,895

Net income (less deficit)

from a trade or business ¹...........................................................................................

1,209,417

439,207

4,637,925

818,370

181,581

636,790

3,819,555

973,863

534,656

9,815,483

5,177,558

3,137,512

2,319,141

1,460,837

1,279,257

1,676,675

1,039,885

6,677,972

2,858,417

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

41,200

159,581

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

1,323

4,214

1,524,070

52,261

758,939

26,556

354,610

18,287

404,329

8,269

765,131

25,705

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

1,463,019

Deficit........................................................................................... 253,603

Portfolio income (less deficit)

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

29,490

Royalty income...........................................................................................--

65,780

675,667

107,194

216,535

92,971

102,063

92,717

114,471

254

459,132

14,223

Net short-term capital gain

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

*-1,588

6,281

-22,802

-4,276

2,681

-6,957

-18,526

Net long-term capital gain

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

*11,975

83,009

692,320

408,399

120,198

288,201

283,921

19,430

18,754

18,663

*676

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

297

Real estate rental net income

(less deficit)...........................................................................................*5,350

31,052

93,282

46,679

13,051

33,628

46,603

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

*5,971

32,610

161,387

60,141

22,610

37,531

101,246

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

1,558

68,105

13,462

*9,559

3,903

54,643

*620

Net income (less deficit)

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

*983

40,353

13,263

13,207

27,091

*983

44,157

*3,804

16,663

*3,400

*3,288

*3,233

13,374

167

27,495

404

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

1,255,967

630,823

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

1,501,532

1,139,321

6,295,631

11,070,039

1,637,251

3,729,239

549,297

1,691,645

1,087,954

2,037,594

4,658,380

7,340,801

4,774,408

2,091,988

1,142,347

949,641

2,682,420

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

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

---

Deficit........................................................................................... 245,565

508,499

Footnotes at end of table.

S Corporation Returns, 2000

Table 1.--S Corporations: Total Receipts and Deductions, Portfolio Income, Rental Income, and Total

Net Income, by Industrial Division, Sector, and Major Group--Continued

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

Leisure, accommodation, and food

services--continued

Other services

Accommodation and food

services--continued

Item

Food

Total

Religious,

Nature of

Repair

Personal

grantmaking,

business

and

and laundry

civic,

not

maintenance

services

professional,

allocable

Accom-

services

modation

and drinking

and similar

places

organizations

(94)

(95)

(96)

139,376

174,856

89,431

84,654

*770

10,233

271,391

274,581

137,203

136,583

*795

14,049

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

18,833,524

102,992,995

78,817,992

45,122,756

33,538,398

*156,838

1,071,159

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

17,732,646

101,569,208

78,275,028

44,827,198

33,291,563

*156,267

1,065,788

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

24,531

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

67,166

(97)

(98)

(99)

(100)

Income and deductions from a trade or business:

Interest on Government obligations:

14,331

6,575

*654

5,921

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

51,084

175,480

State and local ¹...........................................................................................

4,677

197,117

51,280

145,831

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

1,045,116

1,233,975

339,272

243,623

95,083

565

*5,371

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

18,557,339

99,430,617

75,285,167

43,308,146

31,823,039

*153,982

994,933

375,420

41,984,322

31,706,364

22,489,014

9,133,351

*83,999

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

598,142

3,244,204

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

3,783,625

5,410,305

2,856,212

2,552,369

1,724

*45,031

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

3,802,865

18,702,580

12,582,028

5,997,719

6,541,376

*42,933

*156,089

Repairs........................................................................................... 538,769

1,693,125

822,421

410,406

411,679

*337

18,696

Bad debts...........................................................................................63,017

52,135

166,496

76,752

89,668

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

842,735

7,094,387

4,650,970

2,066,086

2,574,836

*10,047

62,938

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

1,360,185

4,069,516

2,715,320

1,463,235

1,250,925

*1,160

32,675

Inte

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