# S Corporation Returns, 2000

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- **Document type:** Agency decision

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S Corporation Returns, 2000
by Kelly Bennett

S

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:
r

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);

r

have no more than 75 shareholders (a husband
and wife (and their estates) are counted as one
shareholder for this requirement);

r

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

r

have no nonresident alien shareholders; and

r

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:
r

affiliated group members eligible for inclusion on
a consolidation return;

r

insurance companies subject to provisions of
Subchapter L of the Internal Revenue Code;

r

Interest-Charge Domestic International Sales
Corporations (IC-DISC’s) or former Domestic
International Sales Corporations (DISC’s);

63

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%
0%
1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Tax year

64

S corporations

r

corporations eligible to elect the possessions tax
credit; and

r

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
64

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

65

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
85

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

*8
*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

Wholesale

Wholesale

Retail

and

and

trade

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)

66

(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

66

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

and technical

of

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)............................................................................................................................
33
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............................................................................................................................
70
9,550
13,263
27,091

1,100,910
*4
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
67

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
68

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.

68

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.

69

S Corporation Returns, 2000

70

70

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-

71

S Corporation Returns, 2000

72

72

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

Number of

Total

Dividend

Interest

returns

shareholders

receipts

income

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).

73

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:

74

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

85

-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

*8

148,163
170,810

156,908
160,681

1,574
2,152

-10,319
7,977

15,829
20,108

*2,623
*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.

74

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

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
76

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
8

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

24

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

46

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
27

4,243
964

98,938
16,184

2,885
23

*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.

75

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

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
18

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

76

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
37

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)

1

--

*254
*265

6,952
8,619

3,520
5,936

2,240
4,127

764
764

12,335
12,381

11

1,667

2,416

*1,887

(²)

46

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
66

*391
1

13,647
(²)

804
--

474
7

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.

76

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

metal

products

products

manufacturing

products

manufacturing

manufacturing

(25)

(26)

Computer

equipment,

Machinery

and electronic

appliance, and

equipment

manufacturing

products

component

manufacturing

manufacturing

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
24

2,642,453
*21

877,000
20

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

96

100

69

(²)

47

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

23

*266

762

Other portfolio income (net)...........................................................................................
258
1
Real estate rental net income
(less deficit)...........................................................................................
3,732
10,187
Net income...........................................................................................
7,285
10,237
Deficit...........................................................................................
3,553

50

Net income (less deficit)
from other rental activity...........................................................................................
-382
737

1,569

14,687

14,244

*2,505

*2,595

-5,639

1,625
56

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.

77

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

Total

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

78

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...........................................................................................
19
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...........................................................................................
2

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

49

Deficit...........................................................................................
184,514
618,421
Footnotes at end of table.

78

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...........................................................................................
79
--

191,617
*799

450,386
*2,285

1,105,380
--

195,833
--

970,935
69

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

24

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)

92

--

59

--

7,966
7,966

10,167
10,987

59,733
60,719

8,755
*9,026

32,792
36,243

41
1,494

--

*819

986

271

3,451

*1,453

21

*1,646

10,062

*4,831

11,866

*146

21
--

*1,954
307

10,080
18

*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

79

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

80

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

24

-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)...........................................................................................
4
1
*654

*124

--

33

23

-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

57

*871
1,177

*5,644
15

---

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.

80

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
1

396,316
--

646,085
--

717,162
1

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
13
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
79

87,453
547,385
12,

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A86fd44eb30729905. Public record. Not legal advice.