Sole Proprietorship Returns, Tax Year 2016

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or Tax Year 2016, there were approximately 25.5 million

individual income tax returns that reported nonfarm sole

proprietorship activity, a 1.2-percent increase from Tax

Year 2015. Total nonfarm sole proprietorship profits, however,

fell 1.1 percent to $328.2 billion in 2016. In constant dollars,

total profits also decreased by 2.4 percent. Total profits as a percentage of business receipts were 23.1 percent for the year, the

second highest level in this data series, which began in Tax Year

1988. The professional, scientific, and technical services sector

remained the sector with the largest share of profits at 23.7 percent, but it saw profits decline by 6.7 percent to $77.7 billion. A

few sectors saw increases in profits, with the largest in the arts,

entertainment, and recreation sector, which grew 19.6 percent

to $11.3 billion.

For sole proprietorships, total receipts decreased 1.5 percent, while deductions decreased 1.6 percent. The construction

sector reported the largest percentage of total business receipts

(17.0 percent) and total business deductions (18.4 percent).

The arts, entertainment, and recreation sector reported the largest percentage increase in business receipts (12.7 percent). The

construction sector reported the largest dollar increase in business receipts, jumping $12.4 billion. The finance and insurance

sector experienced the largest downturn in total receipts, losing

$14.0 billion or 15.5 percent, and also reported the largest drop

in deductions, with a decline of $14.5 billion or 20.8 percent.

Returns and Receipts

Between Tax Years 2015 and 2016, the number of individual

income tax returns reporting nonfarm sole proprietorship activity increased 1.2 percent to 25.5 million (Figure A).1 The transportation and warehousing sector had the largest percentage

increase in the number of returns among all sectors, increasing

Figure A

Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sector, Tax Years 2015 and 2016

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

Number of returns

Selected industrial sector

2015

Total business receipts

2016

Percentage

change

2015

2016

Total business deductions [1]

Percentage

change

2015

2016

Percentage

change

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

All nonfarm industries

25,226.2

25,525.9

1.2

1,443.6

1,422.2

-1.5

1,112.8

1,094.9

-1.6

Construction

2,696.8

2,840.0

5.3

229.7

242.1

5.4

189.7

201.5

6.2

371.1

342.7

-7.7

58.0

48.4

-16.5

53.0

43.9

-17.1

-5.4

Wholesale trade (merchant wholesalers)

Retail trade

2,460.6

2,329.5

-5.3

184.8

174.6

-5.5

173.5

164.1

Transportation and warehousing

1,619.6

1,985.0

22.6

102.8

103.4

0.6

88.2

88.3

0.1

636.2

609.4

-4.2

90.1

76.1

-15.5

69.7

55.2

-20.8

Real estate and rental and leasing

1,214.7

1,282.2

5.6

77.4

82.6

6.8

49.3

53.5

8.5

Professional, scientific, and technical services

3,486.6

3,466.6

-0.6

196.3

188.6

-3.9

113.1

111.0

-1.9

Administrative and support and waste management services

2,472.0

2,557.9

3.5

71.5

75.6

5.7

50.7

54.5

7.4

Health care and social assistance

2,181.4

2,127.3

-2.5

121.9

121.1

-0.7

72.1

72.7

0.9

Arts, entertainment, and recreation

1,499.7

1,642.7

9.5

39.1

44.1

12.7

29.7

32.8

10.5

Finance and insurance

Other services

3,512.2

3,449.8

-1.8

112.1

111.7

-0.3

82.7

81.1

-1.9

All other sectors

3,075.4

2,892.7

-5.9

160.0

153.9

-3.9

141.1

136.2

-3.5

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

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

For Tax Year 2016, the 25,525,915 nonfarm sole proprietorship returns accounted for an estimated 28,773,191 nonfarm businesses. For purposes of these statistics, if a proprietor owned more

than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that business activity. When this occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting a deficit) yielded the profits for a specific industrial

group.

The North American Industry Classification System (NAICS) was used to classify data by industries. The Statistics of Income Division applied these classifications on a “per business” (rather

than on a “per establishment”) basis by combining various industry groups, although businesses were further combined as described above. While the wording of the industry titles used for the

sole proprietorship statistics diverge somewhat from those appearing in NAICS, the definitions are consistent.

NAICS for industrial coding was introduced in Tax Year 1998. Prior to 1998, industries were classified using the Standard Industrial Classification (SIC). Due to coding changes, comparisons

between data by industry from 1998–2016 with 1997 and prior years may show inconsistencies. A reason for this is that several types of sole proprietorships under NAICS were classified in

completely different industrial groups, which makes prior-year comparisons under the SIC system inappropriate. For example, in 1997, finance, insurance, and real estate were classified as one

industry under the SIC system, while under the NAICS system, the group is split into two industrial sectors. The industrial sectors based on the NAICS codes are reported in Tables 1 and 2.

Statistics of Income Bulletin | Spring 2019

www.irs.gov/statistics

Sole Proprietorship Returns, Tax Year 2016

22.6 percent for the year, after increasing by 25.0 percent in

2015, the latter being the largest percentage increase by a sector

since at least 1988. Growth in ride-sharing businesses contributed to these large increases. The subsector of the transportation and warehousing sector specific to “Taxis, limousines, and

other ride-sharing services” accounted for much of the total increase in the number of business returns in the sector, making

up 87.5 percent of the increase in Tax Year 2014. This subset

also made up much of the total increase in the number of business returns in Tax Years 2015 (69.1 percent) and 2016 (79.9

percent). Between Tax Years 2013 and 2016, the average business receipts per return in this subsector fell from $36,420 to

$19,676. This precipitous drop was driven by substantial increases in the number of returns for this subsector, averaging

more than 50 percent per year, with smaller gains in business

receipts over this same period, averaging just over 25 percent

(Figure B). For transportation and warehousing more broadly,

87.5 percent of the returns in the sector had business receipts

of $100,000 or less; these returns accounted for 56.2 percent of

total profits. Similarly, both the administrative and support and

Figure B

Nonfarm Sole Proprietorships: Income Statements, for Taxis, Limousines, and Ride Sharing Services, Tax Years 2013–2016

[Money amounts are in billions of dollars]

Taxis, Limousines, Uber, Lyft and other ride sharing services

Net income status, item

2013

2014

2015

2016

(1)

(2)

(3)

(4)

230,481

8,394,177

8,238,769

155,408

6,026,516

85,707

58,833

1,446,115

179,673

193,757

252,269

303,001

36,102

68,614

49,441

21,934

1,244,278

149,334

209,576

41,890

115,582

89,953

53,945

145,183

1,206,370

2,367,665

2,629,448

261,783

331,281

10,874,894

10,658,172

216,722

8,405,469

220,143

46,425

2,154,758

230,200

278,918

362,876

403,056

45,489

85,709

13,270

29,264

1,676,672

120,421

289,536

125,806

103,728

139,797

73,095

199,119

1,669,365

2,470,162

2,940,526

470,364

555,046

12,808,899

12,680,939

127,959

10,153,715

200,268

60,397

2,725,539

487,736

199,810

488,304

382,624

60,581

89,987

34,864

57,056

1,613,450

234,897

359,142

99,870

109,566

122,103

74,806

320,180

2,206,131

2,656,632

3,457,190

800,558

847,065

16,667,209

16,445,007

222,202

13,459,248

168,933

69,043

4,480,628

794,283

179,858

459,246

487,139

77,012

224,901

30,653

75,168

1,622,525

227,218

375,638

199,312

219,346

211,215

105,037

429,427

2,728,782

3,223,125

4,382,503

1,159,378

23,418

223,733

39,465

184,268

36,026

197,099

39,656

157,444

126,124

502,216

164,642

337,574

193,612

595,387

198,272

397,116

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

Other business income (loss) [1]

Business deductions, total [1,2]

Cost of sales and operations, total

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depreciation

Insurance

Legal and professional services

Meals and entertainment deducted

Other interest paid on business indebtedness

Office expenses

Rent paid on machinery and equipment

Rent paid on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business expenses

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Returns with Schedule C-EZ:

Number of returns

Business receipts

Business deductions

Net income

[1] Includes returns with Schedule C-EZ attached. Schedule C-EZ was filed for certain small businesses, i.e., those with net incomes, business expenses of $5,000 or less, used the cash accounting

method, with no inventories or employees, and with no deduction for a home office business and no allowable "passive" activity losses. Because only a total is reported for business deductions on

Schedule C-EZ, the totals shown in the statistics exceed the sum of the detailed deductions; the detailed deductions are, therefore, slightly understated.

[2] Total business deductions are before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from the prior years. However, these losses (after subtraction) and any

carrryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or deficit.

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns 2016, August 2018.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

waste management services and the construction sector had a

relatively large percentage of profits accounted for by returns

with business receipts of less than $100,000. In the administrative and support and waste management services sector’s, 95.4

percent of returns had business receipts less than $100,000;

these returns accounted for 67.5 percent of the sectors’ total

profits. The construction sector had 84.1 percent of such returns,

accounting for 49 percent of its total profits. The finance and

insurance sector and the wholesale trade and retail trade sectors

had much lower percentages of profits accounted for by returns

with business receipts of $100,000 or less (Figure B1). The professional, scientific, and technical services sector was the largest

sector in terms of the number of returns with business receipts

less than $100,000; this sector saw a 0.6-percent decrease in its

number of returns to 3.5 million.

For all nonfarm sole proprietorship industries, total business

receipts (the sum of “income from sales and operations” and

“other business income”) decreased 1.5 percent, from $1,443.6

billion to $1,422.2 billion (Figure A).2 The professional, scientific, and technical services sector, the second largest sector by

receipts, showed a decrease in receipts of 3.9 percent to $188.6

billion. The wholesale trade sector showed the largest percentage decrease in business receipts, declining by 16.5 percent to

$48.4 billion for Tax Year 2016. In comparison, the arts, entertainment, and recreation sector had the largest percentage gain

in business receipts, with an increase of 12.7 percent to $44.1

billion for the year, followed by the real estate and rental and

leasing sector, with an increase of 6.8 percent from $77.4 billion to $82.6 billion. Construction, the largest sector by receipts,

experienced the largest dollar increase in receipts, which rose

Figure B1

Nonfarm Sole Proprietorships: Percentage of Industry’s Total Returns and Total Net Income for Returns with Business Receipts

Equal to or less than $100,000, Tax Year 2016

39.2%

All nonfarm sole proprietorships

90.2%

67.5%

Administrative and support and waste

management services

95.4%

56.2%

Transportation and warehousing

87.5%

49.0%

Construction

84.1%

38.7%

Arts, entertainment, and recreation

96.5%

34.6%

Health care and social assistance

90.7%

29.5%

Real estate and rental and leasing

85.5%

29.5%

Professional, scientific, and technical services

88.8%

16.5%

Wholesale trade (merchant wholesalers)

81.1%

13.5%

Finance and insurance

79.9%

12.7%

Retail trade

89.7%

10%

20%

30%

40%

50%

Net income less deficit

60%

70%

80%

90%

100%

Number of returns

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, October 2018.

Statistics for “business receipts, total” in Table 2 represent the total receipts of the business, mainly gross receipts from sales and operations. Business receipts also include miscellaneous

business receipts, such as incidental sales of scrap, shown separately as “other business income.” However, business receipts exclude incidental investment income received through the business. Examples of such incidental investment income are interest, dividends, income or loss from rents or royalties, and capital or ordinary gain or loss from the sale of investment and business

property. Sole proprietors report incidental investment income, in combination with nonbusiness related investment income, as part of their total income on their individual income tax returns.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Deductions

by $12.4 billion or 5.4 percent. In constant dollar terms, total

business receipts for nonfarm sole proprietorships decreased 2.8

percent to $1,276.1 billion (Figure C) 3 for the year, well below

the peak level of $1,360.6 billion in Tax Year 2007.

Total business deductions (“cost of sales and operations” plus

business expenses, including expenses for home offices) in current dollars decreased 1.6 percent, from $1,112.8 billion in Tax

Figure C

Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988–2016

[Money amounts are in millions of dollars]

Total business receipts

Tax year

Total business deductions [1]

Constant dollars [2]

Current dollars

Net income less deficit (profits)

Constant dollars [2]

Amount

Percentage

change

Current dollars

(1)

(2)

(3)

1988

672.0

1,084.2

1989

692.8

1,075.9

1990

730.6

1,094.2

1991

712.6

1,032.8

1992

737.1

1,044.5

1993

757.2

1,048.1

1994

790.6

1995

807.4

1996

1997

Constant dollars [2]

Amount

Percentage

change

Current dollars

(4)

(5)

(6)

[3]

545.7

880.4

-0.8

560.2

870.0

1.7

589.2

882.4

-5.6

571.2

827.9

1.1

583.1

826.3

0.3

600.8

831.5

1,071.5

2.2

623.8

1,071.9

[4]

638.1

843.2

1,099.4

2.6

870.4

1,115.7

1.5

1998

918.3

1,164.4

1999

969.3

2000

Amount

Percentage

change

(7)

(8)

(9)

[3]

126.3

203.8

[3]

-1.2

132.7

206.1

1.1

1.4

141.4

211.8

2.8

-6.2

141.5

205.1

-3.2

-0.2

154.0

218.2

6.4

0.6

156.5

216.6

-0.8

845.5

1.7

166.8

226.1

4.4

847.2

0.2

169.3

224.7

-0.6

666.5

868.9

2.6

176.8

230.5

2.6

683.9

876.6

0.9

186.6

239.3

3.8

4.4

716.2

908.1

3.6

202.3

256.5

7.2

1,210.7

4.0

761.4

951.0

4.7

207.9

259.7

1.3

1,021.0

1,246.8

3.0

806.4

984.8

3.5

214.7

262.2

1.0

2001

1,016.8

1,214.1

-2.6

799.6

954.7

-3.0

217.4

259.6

-1.0

2002

1,029.7

1,210.8

-0.3

808.9

951.2

-0.4

221.1

260.0

0.2

2003

1,050.2

1,210.8

[4]

820.2

945.6

-0.6

230.3

265.5

2.1

2004

1,139.5

1,278.6

5.6

892.4

1,001.3

5.9

247.6

277.8

4.6

2005

1,222.9

1,329.4

4.0

953.4

1,036.4

3.5

269.9

293.4

5.6

2006

1,278.4

1,348.3

1.4

1,001.1

1,055.9

1.9

278.0

293.2

-0.1

2007

1,324.4

1,360.6

0.9

1,044.3

1,072.9

1.6

280.6

288.2

-1.7

2008

1,317.4

1,327.5

-2.4

1,053.7

1,061.7

-1.0

264.5

266.5

-7.5

2009

1,178.4

-11.2

934.5

-12.0

244.8

-8.1

2010

1,195.5

1,181.1

0.2

929.0

917.8

-1.8

267.7

264.5

8.0

2011

1,265.9

1,225.4

3.7

984.2

952.7

3.8

282.6

273.6

3.4

2012

1,301.6

1,237.1

1.0

997.6

948.1

-0.5

304.9

289.8

5.9

2013

1,341.6

1,254.8

1.4

1,040.4

973.1

2.6

302.3

282.7

-2.4

2014

1,393.9

1,280.8

2.1

1,078.5

991.0

1.8

317.1

291.3

3.0

2015

1,443.6

1,312.4

2.5

1,112.8

1,011.7

2.1

331.8

301.7

3.5

2016

1,422.2

1,276.1

-2.8

1,094.9

982.5

-2.9

328.2

294.5

-2.4

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

carryover are reflected in net income less deficit. Therefore, total business receipts minus total business deductions may not always equal net income less deficit.

[2] Current dollars are the value of a dollar at the time it was measured. Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S.

Department of Commerce, Bureau of Economic Analysis, in the Survey of Current Business. The deflator represents the annual average of current-weighted prices, based on 2009 = 100.

[3] Not calculated.

[4] Less than 0.05 percent.

NOTE: Percentages were calculated before rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Based on the overall implicit price deflator for Gross Domestic Product (GDP). See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business. Indices used

for this article were:

Year

Indices

Year

Indices

Year

Indices

Year

Indices

1988

1989

1990

1991

61.982

64.392

66.773

68.996

1996

1997

1998

1999

76.699

78.012

78.859

80.065

2004

2005

2006

2007

89.12

91.988

94.814

97.337

2012

2013

2014

2015

2016

105.214

106.913

108.828

109.998

111.445

1992

70.569

2000

81.887

2008

99.246

1993

1994

1995

72.248

73.785

75.324

2001

2002

2003

83.754

85.039

86.735

2009

2010

2011

100

101.221

103.311

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Figure D

Components of Nonfarm Sole Proprietorship Business Expenses

as a Percentage of Total Business Expenses, Tax Year 2016

Year 2015 to $1,094.9 billion in Tax Year 2016 (Figure A).4,5 In

constant dollars, total business deductions decreased 2.9 percent

in 2016 (Figure C).

Deductions for the construction sector, the largest sector in

terms of total business deductions, increased 6.2 percent, from

$189.7 billion in 2015 to $201.5 billion in 2016. The arts, entertainment, and recreation sector had the largest percentage

increase of total business deductions, increasing 10.5 percent

to $32.8 billion. The wholesale trade sector and finance and insurance sector experienced large percentage decreases of total

business deductions, dropping 17.1 percent and 20.8 percent,

respectively.

The cost of sales and operations, which represented 37.5

percent of total Tax Year 2016 business deductions ($410.6

billion), decreased 4.9 percent from Tax Year 2015 (Table 2).

Total business “expenses” (total business deductions minus the

cost of sales and operations) were $684.3 billion for 2016, a

0.5-percent increase from the previous tax year. The main components of total business expenses are highlighted in Figure D.

The two largest components were salaries and wages accounting

for $90.9 billion (13.3 percent) and car and truck expenses accounting for $88.6 billion (13.0 percent).

Historically, constant dollar depreciation increased almost

every year from 1993 through 2003.6 Between Tax Years 2004

and 2009, constant dollar depreciation dropped significantly,

going from $48.1 billion to $34.5 billion. In Tax Year 2012,

it dropped to $32.5 billion, but subsequently climbed back to

$34.5 billion by 2016 (Figure E). Increases in Tax Years 2003

and 2008 coincided with legislative changes to section 179

of the Internal Revenue Code that substantially increased the

amount of certain investment property that could be expensed in

a given year rather than depreciated over time. Under the Jobs

and Growth Tax Relief Reconciliation Act of 2003, the maximum allowable section 179 deduction vaulted from $24,000 in

2002 to $100,000 in 2003. This change led to a constant dollar

depreciation increase of 11.7 percent for 2003, which was the

highest growth in depreciation of any year between Tax Years

1988 and 2016. But, the initial jump in depreciation was followed by trends of decreased depreciation, which is consistent

with deductions being accelerated into the year of expensing.

Constant dollar declines of depreciation were reported for Tax

Years 2005, 2006, and 2007. This downward trend was particularly pronounced in 2005, as constant dollar depreciation fell

Office expenses

2.0

Advertising expenses

2.4

Commissions

2.4

Travel

2.4

Repairs

2.7

Taxes paid

2.9

Insurance

2.9

Utilities

4.6

Depreciation [1]

5.6

Supplies

5.7

Rent paid on machinery, equipment

and other business property

7.0

Contract labor

8.3

Car and truck expenses

13.0

Salaries and wages

13.3

Other business deductions [2]

24.9

Percentage of total business expenses

[1] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home, is included in

“home office business deductions” and excluded from “depreciation” shown above. See footnote [2]

below.

[2] Includes depletion; employee benefit programs; total interest; legal and professional services;

pension and profit-sharing plans; meals and entertainment; home office; and other business

expenses. Other business deductions also includes all Schedule C-EZ, Net Profit From Business,

deductions ($5.0 billion).

NOTES: Total business expenses equals all business deductions minus cost of sales and

operations. Percents are based on an estimated total business expense of $684.3 billion. Detail may

not add to 100 percent because of rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

by 11.7 percent, followed by decreases of 3.2 percent in 2006

and 1.0 percent in 2007. During this same 3-year period, section 179 limits gradually increased for inflation, finally rising to

$125,000 in 2007.7 In 2008, the section 179 limit was doubled to

$250,000 and there was a 2.5-percent increase in constant dollar

depreciation. The $250,000 limit remained for Tax Year 2009

and depreciation dropped 17.3 percent, which was the largest decrease since at least 1988. In Tax Year 2010, the section

179 limit was again doubled to $500,000, but constant dollar

Sole proprietors report personal, i.e., nonbusiness income and expense items apart from business income or loss, which is reported on Schedule C, Profit or Loss From Business (or, to a lesser

extent, on Schedule C-EZ, Net Profit From Business). Salaries paid to owners are neither deducted as wages paid on Schedule C nor included as wages received on Form 1040, U.S. Individual

Income Tax Return. Similarly, sole proprietors deduct charitable contributions made through the business as personal expenses on Schedule A, Itemized Deductions. However, the owner of a

sole proprietorship may choose to deduct any foreign taxes paid as a business expense, unless the owner elects to claim these taxes as a credit against U.S. income tax.

Business deductions include the home office business deductions. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use of Your Home, and

the deductible portion brought forward to Schedule C. In some cases, these expenses were limited. Starting in Tax Year 2013, sole proprietors could also use a simplified method to determine

these costs by reporting on Schedule C square footage (up to 300 square feet) used for the home office. The taxpayer could then take $5 per square foot as a business expense. Prior to 1990, these

expenses were not limited and were included with other expenses, such as depreciation deductions, utilities, and “other” expenses on Schedule C.

Under section 179 of the Internal Revenue Code, the cost of certain tangible property may be treated as a current expense rather than a capital expenditure subject to depreciation deductions.

The Omnibus Budget Reconciliation Act of 1993 (OBRA93) increased the maximum amount of investment that could immediately be deducted on property placed in service after 1992, from

$10,000 to $17,500. The increase in the constant dollar depreciation deductions for 1993, and subsequent decline in 1995, may be attributed, in part, to this provision of OBRA93. Following the

enactment of this provision, the 179 deduction for all individuals (not just sole proprietors) filing Form 4562, Depreciation and Amortization, increased 32.4 percent to $13.5 billion for 1993.

Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of a section 179 deduction increased from $24,000 for 2002 to $100,000 for 2003 to $102,000 for

2004, and to $105,000 and $108,000 for 2005 and 2006, respectively. This was further expanded to $125,000 for 2007 by the Small Business and Work Opportunity Tax Act of 2007 (PL 110-28).

The Jobs Creation and Worker Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the bonus percentage

to 50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as advantageous as immediate expensing and,

therefore, likely had less effect on their depreciation deductions.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Figure E

Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988–2016

[Money amounts are in billions of dollars]

Tax year

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Current dollars [1]

Constant dollars [1]

Percentage change in constant dollars [1]

Net income

Deficit

Depreciation [2]

Net income

Deficit

Depreciation [2]

Net income

Deficit

Depreciation [2]

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

145.5

152.4

161.7

162.4

173.5

177.0

187.8

191.7

200.1

210.5

226.2

233.4

245.2

250.2

257.3

269.1

290.5

314.8

326.8

335.1

325.3

308.9

323.2

337.0

357.1

357.4

374.5

392.1

389.1

19.2

19.7

20.2

20.9

19.5

20.5

21.0

22.5

23.4

23.8

23.9

25.5

30.5

32.8

36.2

38.8

42.9

44.8

48.7

54.5

60.8

64.1

55.5

54.3

52.2

55.1

57.5

60.3

60.9

26.1

24.5

23.7

23.1

23.3

25.0

26.2

27.4

28.6

29.1

30.6

32.2

33.4

36.6

41.8

42.9

39.1

39.0

39.6

41.4

34.5

35.1

35.6

34.2

35.4

36.6

38.4

234.7

236.7

242.2

235.4

245.9

245.0

254.5

260.9

269.8

286.8

291.5

299.5

298.7

302.6

310.2

325.9

342.2

344.6

344.3

327.7

308.9

319.3

326.2

339.4

334.3

344.2

356.5

349.2

[3]

0.8

2.3

-2.8

4.5

-0.4

3.9

[4]

2.5

3.4

6.3

1.6

2.7

-0.3

1.3

2.5

5.1

5.0

0.7

-0.1

-4.8

-5.8

3.4

2.2

4.0

-1.5

2.9

3.6

-2.0

[3]

-1.2

-1.1

0.1

-8.8

2.7

0.3

4.8

2.1

0.2

-0.7

4.8

17.2

5.1

8.7

5.1

7.7

1.2

5.5

9.0

9.3

4.7

-14.4

-4.1

-5.7

4.0

2.4

3.8

-0.2

[3]

-9.6

-6.7

-5.7

-1.4

4.8

2.6

-1.9

2.4

2.8

0.7

3.6

2.7

1.5

8.0

11.7

[4]

-11.7

-3.2

-1.0

2.5

-17.3

0.4

-0.7

-5.6

1.7

1.5

4.0

-1.4

31.0

30.6

30.3

27.6

28.4

28.5

29.8

30.5

30.3

31.8

37.3

39.2

42.5

44.7

48.2

48.7

51.4

56.0

61.2

64.1

54.8

52.6

49.6

51.6

52.8

54.8

54.7

42.1

38.0

35.5

33.5

33.0

34.6

35.5

34.8

35.7

36.7

36.9

38.3

39.3

39.9

43.1

48.1

42.5

41.1

40.7

41.8

34.5

34.7

34.5

32.5

33.1

33.6

34.9

34.5

[1] Current dollars are the value of a dollar at the time it was measured. Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department

of Commerce, Bureau of Economic Analysis, in the Survey of Current Business. The deflator represents the annual average of current-weighted prices, based on 2009 = 100.

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

[3] Not calculated.

[4] Less than 0.05 percent.

NOTE: Percentage changes were calculated before rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

depreciation increased by only 0.4 percent, from $34.5 billion

to $34.7 billion. The limit was increased as part of the stimulus packages created in response to the Great Recession.8 The

section 179 limit has remained $500,000 for Tax Years 2011

through 2016. For 2011, constant dollar depreciation dropped

by 0.7 percent; in 2012 it dropped another 5.6 percent to $32.5

billion, the lowest level over the 26 years of this study. In 2016,

constant dollar depreciation fell by 1.4 percent and is currently

$34.5 billion, the same as in 2009.

Beginning with Tax Year 1992, certain smaller businesses

could elect not to itemize depreciation and other business deductions by filing Schedule C-EZ, Net Profit from Business, a

simplified version of Schedule C, Profit or Loss from Business.

(Schedules C and C-EZ are the sources of nonfarm sole

For 2008, the Economic Stimulus Act of 2008 increased the maximum expensing deduction under section 179 to $250,000. The American Recovery and Reinvestment Act of 2009 extended

that level through 2009. For all individual tax returns that filed Form 4562, Depreciation and Amortization, the Section 179 property deducted as an expense increased by 5.1 percent to $49.8

billion for 2008. For 2009, when the maximum 179 deduction remained at $250,000, the amount deducted for all returns decreased by 17.2 percent to $41.3 billion. The amount deducted as section

179 property on returns that had a Schedule C dropped 19.6 percent to $16.2 billion between 2008 and 2009. For 2010, the amount taxpayers could deduct as section 179 property increased to

$500,000. This was in accordance with the Small Business Jobs and Credit Act of 2010. The amount deducted by returns with a Schedule C increased to $18.8 billion, representing a 15.6-percent

increase from 2009. For 2010, the amount deducted on all individual returns increased to $49.6 billion, a 20.3-percent increase from 2009. By 2016, this had increased to $67.6 billion. These

numbers do not reflect depreciation solely deducted on the Schedule C, as this could also include depreciation taken on the Schedule E, Supplemental Income and Loss, the Schedule F, Profit or

Loss from Farming, and the Form 4835, Farm Rental Income and Expenses.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

proprietorship statistics.) For Tax Year 2016, taxpayers could

use Schedule C-EZ if they: had business expenses of $5,000 or

less; used the cash accounting method; had no inventories; did

not report a loss from the business; had only one business as

a sole proprietor; had no employees; were not required to file

Form 4562, Depreciation and Amortization, for the business;

claimed no deduction for home business expenses; and had no

prior-year disallowed passive activity losses from the business.

Since taxpayers using Schedule C-EZ did not itemize business

deductions, the detailed deductions in Table 2, based only on

Schedule C returns, are slightly understated and do not sum to

the total deductions in Figure C.

For Tax Year 2016, approximately 5.4 million taxpayers filed

the Schedule C-EZ. In the administrative and support sector (the

sector with the highest percentage of Schedule C-EZ filers), taxpayers filed 0.8 million Schedule C-EZ returns, which made

up 30.1 percent of the total sole proprietorship returns for that

sector (Figure F).9 For 2016, business receipts from Schedule

C-EZ filers totaled $42.4 billion, or 3.0 percent of total business

receipts reported. Business deductions reported on Schedule

C-EZ returns accounted for only 0.5 percent of total business

deductions for all industries, or $5.0 billion of the total $1,112.8

billion. Despite having the largest concentration of Schedule

C-EZ filers, the receipts and deductions from Schedule C-EZ

filers in the administrative and support services sector accounted

for only 7.8 percent of that sector’s total business receipts and

1.3 percent of that sector’s total business deductions.

Profits and Losses

Total profits decreased 1.1 percent from $331.8 billion in Tax

Year 2015 to $328.2 billion in Tax Year 2016. By industrial

sector, changes to profits were mixed with 7 of the 12 sectors

analyzed reporting increased sole proprietorship profits (net

income less deficit). The professional, scientific, and technical

services sector reported the largest percentage of total profits of

all nonfarm sole proprietorships, with 23.7 percent ($77.7 billion), but had a 6.7-percent decrease in profits for 2016 as compared to the previous year. The second largest sector by profits,

health care and social assistance, also reported a decrease in

profits over last year, falling 2.9 percent to $48.4 billion. The

largest percentage increase in profits was realized in the arts,

entertainment, and recreation sector, which jumped 19.6 percent for a gain of $1.9 billion. Figure B presents total profits for

all industries (in both current and constant dollars) since 1988,

while Figures G and H present profits by industrial sector for

2015 and 2016.10

Figure F

All Nonfarm Sole Proprietorship Returns and Those with Schedule C-EZ, by Selected Industrial Sector, Tax Year 2016

[Number of returns is in thousands—money amounts are in millions of dollars]

Number of returns

Selected industrial sector

Total

Total business receipts

With Schedule

C-EZ

Percentage

total

(3)

Total

Total business deductions [1]

Percentage

Schedule

C-EZC-EZ

total

Schedule

Percentage

Schedule

C-EZC-EZ

total

Schedule

(1)

(2)

(4)

(5)

(7)

(8)

All nonfarm industries

25,525.9

5,432.2

21.3

1,422,204.6

42,370.6

3.0

1,094,904.1

4,962.8

0.5

Construction

2,840.0

542.4

19.1

242,073.8

4,674.0

1.9

201,473.7

531.9

0.3

Wholesale trade (merchant wholesalers)

(6)

Total

(9)

342.7

39.3

11.5

48,439.1

394.0

0.8

43,923.3

38.8

0.1

Retail trade

2,329.5

322.0

13.8

174,647.8

1,677.6

1.0

164,143.6

217.0

0.1

Transportation and warehousing

1,985.0

349.8

17.6

103,400.5

1,746.0

1.7

88,263.8

389.0

0.4

609.4

83.7

13.7

76,056.6

656.4

0.9

55,216.2

71.5

0.1

Real estate and rental and leasing

1,282.2

139.7

10.9

82,601.1

1,824.8

2.2

53,520.2

201.5

0.4

Professional, scientific, and technical services

3,466.6

644.6

18.6

188,626.2

6,827.2

3.6

110,999.5

648.4

0.6

Administrative and support and waste management services

2,557.9

770.2

30.1

75,648.0

5,877.3

7.8

54,459.3

725.0

1.3

Health care and social assistance

2,127.3

585.9

27.5

121,086.4

5,598.2

4.6

72,717.2

479.1

0.7

Arts, entertainment, and recreation

1,642.7

399.0

24.3

44,086.6

2,260.5

5.1

32,846.0

340.2

1.0

Other services

3,449.8

815.5

23.6

111,682.9

6,779.8

6.1

81,145.2

849.1

1.0

All other sectors

2,892.7

740.0

25.6

153,855.7

4,054.7

2.6

136,196.2

471.4

0.3

Finance and insurance

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

NOTES: Certain smaller sole proprietorships could elect not to itemize business expenses by filing Schedule C-EZ, Net Profit From Business. See the text of this article for a full list of the requirements to be eligible to file Schedule C-EZ.

Detail may not add to totals because of rounding. Percentages were calculated before rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Based on the NAICS system, the full name of the administrative and support services sector is administrative and support and waste management and remediation services sector. The waste

management and remediation services portion makes up a small percentage of the overall numbers reported under this classification, which are detailed in Table 1.

Net income minus deficit (loss) before Federal income tax yields profits. Proprietors compute their tax on total “taxable income,” which includes their business profits, plus any other income.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

In constant dollars, total profits fell by 2.4 percent for 2016

(Figure C). Figure I shows net income less deficits as a percentage of business receipts for 1988 through 2016. In general, this

percentage has increased over time from a low of 18.8 percent

for 1988, the exceptions being the periods leading up to the recession in the early 2000s and the Great Recession, starting in

2008. Since 2010, net income less deficit as a percentage of total

business receipts has been between 22.4 percent (2010) and 23.4

percent (2012), dropping slightly to 23.1 percent in 2016. Figure

E presents net income and deficit separately for 1988 through

2016 in current and constant dollars. For 2016, net income (in

constant dollars) decreased by 2.0 percent and deficit (in constant dollars) decreased by 0.2 percent.

Figure G

Nonfarm Sole Proprietorship Profits, by Selected Industrial

Sector, Tax Years 2015 and 2016

[Money amounts are in billions of dollars]

Net income less deficit (profits)

Selected industrial sector

2015

Percentage

change

2016

(1)

(2)

(3)

All nonfarm industries

331.8

328.2

-1.1

Construction

Wholesale trade (merchant wholesalers)

Retail trade

40.0

5.1

11.4

40.7

4.5

10.6

1.8

-10.4

-6.7

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Professional, scientific, and technical

services

Administrative and support and waste

management services

Health care and social assistance

Arts, entertainment, and recreation

Other services

All other sectors

14.6

20.4

28.2

14.9

20.9

29.2

1.9

2.5

3.6

83.3

77.7

-6.7

20.9

21.2

1.7

49.9

9.5

29.4

19.2

48.4

11.3

30.6

18.0

-2.9

19.6

4.1

-6.3

Limited Liability Companies

Tax Year 2001 was the first year for which data became available on the number of limited liability companies (LLCs) among

nonfarm sole proprietorship returns. LLC entities have limited

liability (like corporations), but they may be taxed as sole proprietorships (for which income and expenses flow through to

the owner to be taxed), if they are owned by a single individual.

In 2001, there were a little over 126,000 sole proprietorship returns that indicated status as an LLC or just 0.7 percent of total

sole proprietorship returns (Figure J). In contrast, for Tax Year

2016, there were 1.9 million such sole proprietorships, which

accounted for 7.3 percent of the total nonfarm sole proprietorship returns, a nearly 15-fold increase in number of returns since

2001. The share of total nonfarm sole proprietorship business

receipts attributed to LLCs has also risen during this period

from approximately 2.3 percent in 2001, to 28.1 percent in 2016

(Figure K). Similarly, the portion of total net income (less deficit) of all nonfarm sole proprietorships attributable to LLCs increased from 1.0 percent in 2001, to 15.6 percent in 2016.

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

before rounding.

SOURCE: IRS, Statistics -of Income Division, Sole Proprietorship Returns, August 2018.

Figure H

Nonfarm Sole Proprietorships: Selected Industrial Sector

Profits as a Percentage of Total Profits, Tax Year 2016

Wholesale trade (merchant

wholesalers)

1.4

Retail trade

3.2

Arts, entertainment, and recreation

3.5

Transportation and warehousing

4.5

All other sectors

5.5

Finance and insurance

6.4

Administrative and support and waste

management services

6.5

Summary

Real estate and rental and leasing

8.9

Other services

9.3

Construction

12.4

Health care and social assistance

Professional, scientific, and technical

services

Profits for the 25.5 million returns with sole proprietorship activity for Tax Year 2016 decreased by 1.1 percent from Tax Year

2015, to a level of $328.2 billion. In constant dollars, total nonfarm sole proprietorship profits for 2016 decreased 2.4 percent.

The professional, scientific, and technical services sector had

the largest profits of any sector, at $77.7 billion, representing

23.7 percent of total sole proprietorship profits, followed by the

health care and social assistance sector, at $48.4 billion or 14.8

percent of total profits. For all sole proprietorships, business receipts decreased 1.5 percent. The largest industrial sector, based

on business receipts, was the construction sector, accounting

for 17.0 percent of total business receipts (Figure L). The arts,

entertainment, and recreation sector had the largest percentage

increase in receipts at 12.7 percent. By dollar amount, the retail

trade sector and the finance and insurance sector experienced

14.8

23.7

Percentage of total profits

NOTES: Percentages are based on estimated total profits of $328.2 billion.

Detail may not add to 100 percent because of rounding.

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Figure I

Nonfarm Sole Proprietorship Net Income Less Deficit (Profits) as a Percentage of Total Business Receipts, Tax Years 1988–2016

Percentage

23.4

22.7

22.4

22.0

21.9

20.9

21.5

21.0 21.0

20.7

23.1

22.5

21.7

21.2

21.0

20.8

19.9

19.2

21.1

21.7

21.4

21.5

21.4

22.3

22.1

23.0

20.1

19.4

18.8

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Tax year

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Figure J

Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs), Tax Years 2001–2016

Tax year

1,868,459

2016

2015

1,715,430

1,619,099

2014

2013

1,474,592

2012

1,324,196

2011

1,125,132

2010

1,059,910

2009

991,809

2008

842,819

2007

746,885

2006

606,889

2005

455,734

2004

309,665

2003

220,615

2002

145,839

2001

126,437

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Number of returns filed by nonfarm sole proprietorships registered as LLCs

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Figure K

Number of Returns, Business Receipts, and Profits for All Nonfarm Sole Proprietorships and Those Registered As Limited Liability

Companies (LLCs), Tax Years 2001–2016

[Money amounts are in millions of dollars]

Number of returns

Tax

year

Total business receipts

All

nonfarm sole

proprietorships

Nonfarm sole

proprietorships

registered

as LLCs

LLCs percentage

of all nonfarm

sole

proprietorships

(1)

(2)

(3)

All

nonfarm sole

proprietorships

Net income less deficit

Nonfarm sole

proprietorships

registered

as LLCs

LLCs percentage

of all nonfarm

sole

proprietorships

(5)

(6)

(4)

All

nonfarm sole

proprietorships

(7)

Nonfarm sole

proprietorships

registered

as LLCs

LLCs percentage

of all nonfarm

sole

proprietorships

(8)

(9)

2001

18,338,190

126,437

0.7

1,016,834,678

23,357,818

2.3

217,385,116

2,259,135

2002

18,925,517

145,839

0.8

1,029,691,760

39,239,656

3.8

221,113,286

3,378,774

1.0

1.5

2003

19,710,079

220,615

1.1

1,050,202,446

55,626,849

5.3

230,308,100

3,847,617

1.7

2004

20,590,691

309,665

1.5

1,139,523,760

82,850,651

7.3

247,567,189

6,743,666

2.7

2005

21,467,566

455,734

2.1

1,222,880,231

119,603,018

9.8

269,919,995

10,902,821

4.0

2006

22,074,953

606,889

2.7

1,278,359,791

151,746,232

11.9

278,032,643

14,270,523

5.1

2007

23,122,698

746,885

3.2

1,324,403,080

185,837,712

14.0

280,557,010

16,235,182

5.8

2008

22,614,483

842,819

3.7

1,317,443,005

205,646,039

15.6

264,508,362

18,215,151

6.9

2009

22,659,976

991,809

4.4

1,178,437,093

205,194,197

17.4

244,821,815

18,522,837

7.6

2010

23,003,656

1,059,910

4.6

1,195,538,629

220,116,934

18.4

267,699,702

23,915,511

8.9

2011

23,426,940

1,125,132

4.8

1,265,939,196

244,024,850

19.3

282,649,926

27,093,827

9.6

2012

23,553,850

1,324,196

5.6

1,301,569,749

291,350,534

22.4

304,895,911

35,841,019

11.8

2013

24,074,684

1,474,592

6.1

1,341,571,082

316,224,871

23.6

302,269,621

37,151,475

12.3

2014

24,631,831

1,619,099

6.6

1,393,884,201

342,093,644

24.5

317,058,087

43,427,440

13.7

2015

25,226,245

1,715,430

6.8

1,443,584,972

370,123,809

25.6

331,832,538

48,902,901

14.7

2016

25,525,915

1,868,459

7.3

1,422,204,586

399,904,053

28.1

328,209,453

51,214,709

15.6

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

the largest downturns in receipts from Tax Years 2015 to 2016,

dropping $10.1 billion and $14.0 billion, respectively. For all

sole proprietorships, deductions decreased 1.6 percent with the

finance and insurance sector having the largest percentage decrease in deductions falling 20.8 percent.

Figure L

Nonfarm Sole Proprietorships: Selected Industrial Sector

Business Receipts as a Percentage of Total Business Receipts,

Tax Year 2016

Arts, entertainment, and recreation

3.1

Wholesale trade (merchant wholesalers)

3.4

Data Sources and Limitations

Administrative and support and waste

management services

5.3

Finance and insurance

5.3

Real estate and rental and leasing

5.8

Transportation and warehousing

7.3

Other services

7.9

Health care and social assistance

The 2016 sole proprietorship estimates are based on a stratified

probability sample of unaudited individual income tax returns,

Form 1040 (including electronically filed returns), processed

by the Internal Revenue Service during Calendar Year 2016.

Returns in the sample were stratified based on: (1) the presence

or absence of Schedule C, Profit or Loss From Business (Sole

Proprietorship), or Schedule C-EZ, Net Profit From Business,

and Schedule F, Farm Income and Expenses; (2) the larger

of positive income or negative income (i.e., “adjusted gross

income” before statutory adjustments); and (3) tax year. The returns were selected at rates that ranged from 0.1 percent to 100

percent. The 2016 nonfarm sole proprietorship data are based

on a sample of 93,107 returns and a population of 25,904,575

returns.11 The corresponding data for 2015 were based on a

sample of 90,765 returns and a population of 25,571,122 returns.

8.5

All other industries

10.8

Retail trade

12.3

Professional, scientific, and technical

services

13.3

Construction

17.0

The difference between the number of returns in the population and the total number of

returns in Tables 1 and 2 is mainly due to returns in which Schedule C income was moved

to other income or wages to avoid double counting of taxpayers for Gross Domestic Product

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

statistics.

Percentage of total receipts

NOTES: Percentages are based on estimated total business receipts of $1.4 trillion. Detail may not

add to 100 percent because of rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

section of the SOI Bulletin, available at http://www.irs.gov/pub/

irs-soi/sampling.pdf, discusses the reliability of estimates based

on samples and the use of coefficients of variation for evaluating

the precision of estimates based on samples.

Since the data presented in this article are estimates based on

a sample of returns filed, they are subject to sampling error. To

properly use the statistical data estimates provided, the magnitude of the potential sampling error must be known; coefficients

of variation (CVs) are used to measure that magnitude. Figure M

presents estimated coefficients of variation for total business receipts, total business deductions, depreciation, net income, and

deficit by selected industrial sector. Generally, the smaller the

coefficient of variation, the more reliable the estimate is judged

to be. The SOI Sampling Methodology and Data Limitations

Adrian Dungan is an economist with the Individual Special Studies

Section. This article was prepared under the direction of Victoria Bryant,

Acting Chief, with technical assistance provided by Michael Strudler,

Chief, Individual Returns Processing and Data Perfection Section.

Figure M

Nonfarm

NonfarmSole

SoleProprietorships:

Proprietorships: Coefficients

CoefficientsofofVariation

Variationfor

forSelected

SelectedItems,

Items,by

bySelected

SelectedIndustrial

Industrial Sector, Tax Year 2016

[Coefficients

variation

are 2015

in percentages]

Sector,ofTax

Year

[Coefficients of variation are in percentages]

Coefficients of variation

Industrial sector

Total business

receipts

Total business

deductions

Depreciation [1]

Net income

Deficit

(1)

(2)

(3)

(4)

(5)

All industries

0.63

0.72

1.63

0.74

Construction

2.20

2.34

4.56

2.44

5.82

Wholesale trade

4.84

4.99

11.18

6.88

10.76

1.50

Retail trade

2.60

2.61

5.36

3.63

4.26

Transportation and warehousing

2.74

2.76

4.75

3.45

5.90

Finance and insurance

2.52

2.49

9.80

3.93

7.00

Real estate and rental and leasing

2.84

3.28

6.16

3.24

5.21

1.80

2.22

5.27

1.94

4.66

Professional, scientific, and technical services

Administrative and support and waste management

services

(

3.03

3.58

7.76

2.87

6.22

Health care and social assistance

1.95

2.19

5.30

2.34

7.13

5.18

Arts, entertainment, and recreation

3.55

3.94

6.27

3.84

Other services

2.65

3.04

6.03

2.57

5.61

All other industries

2.33

2.38

3.76

2.95

3.69

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, August 2018.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

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

by Industrial Sectors, Tax Year 2016

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

Businesses with and without net income

Industrial sector

All nonfarm industries

Agriculture, forestry, hunting, and fishing

Animal production (including breeding of cats and dogs)

Number

of returns

Business

receipts

Depreciation

deduction [1,2]

Rent paid

on machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction [1,3]

Payroll [1,4]

Net income

less deficit

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

25,525,915

1,422,204,586

39,610,060

10,308,934

37,543,375

8,874,953

126,941,320

328,209,453

297,031

21,199,514

1,812,454

200,916

198,525

254,407

1,845,548

1,704,083

40,722

1,165,708

162,059

2,122

27,663

32,632

72,655

-331,591

Forestry and logging (including forest nurseries, timber

tracts)

56,377

5,241,701

659,250

102,505

10,150

74,942

365,492

652,241

Fishing, hunting, and trapping

72,671

3,439,540

369,780

32,384

66,774

41,242

84,050

524,619

Support activities for agriculture and forestry

127,262

11,352,566

621,365

63,905

93,937

105,591

1,323,351

858,814

113,475

6,993,311

597,231

69,194

45,891

126,203

628,491

105,841

90,369

4,524,156

382,713

34,875

37,426

93,225

272,993

-119,464

Mining

Oil and gas extraction

Other mining

5,879

558,140

46,639

12,014

3,828

12,335

65,819

-4,251

Support activities for mining

17,227

1,911,015

167,879

22,305

4,637

20,642

289,679

229,556

Utilities

14,390

669,064

69,780

* 9,162

24,108

8,533

24,883

114,346

2,840,001

242,073,803

6,521,501

1,336,455

1,691,000

1,177,509

27,811,842

40,749,218

Construction of buildings

585,620

71,484,958

1,369,181

295,564

391,856

390,847

7,701,555

8,884,198

Heavy and civil engineering construction

52,517

7,888,024

511,684

54,506

68,636

110,947

983,156

929,271

2,201,864

162,700,821

4,640,636

986,384

1,230,508

675,714

19,127,132

30,935,749

Construction

Specialty trade contractors

Manufacturing

370,081

32,895,561

1,210,503

164,134

1,017,429

360,991

4,246,857

4,021,563

Food manufacturing

46,793

5,607,532

156,787

18,478

229,449

153,249

694,676

315,377

Textile and textile product mills

10,834

525,390

8,931

* 512

* 22,806

** 3,653

63,604

51,482

Apparel

19,152

1,322,835

30,625

** 7,722

43,943

* 16,586

189,978

168,216

Leather and allied products

Wood products

Paper products

Printing and related support activities

5,259

126,454

* 3,859

* 3,975

* 14,754

38,098

** 35,303

** 3,426,456

** 145,013

** 16,013

** 41,591

** 22,903

** 331,578

** 481,900

28,597

1,342,367

70,505

16,979

53,490

18,609

170,308

78,557

Petroleum and coal products

2,323

169,167

* 11,324

1,570

* 712

* 22,167

491

Chemical manufacturing

18,741

1,395,343

50,791

* 657

33,583

** 2,319

258,641

155,586

Plastic and rubber products

395

377,337

17,168

* 3,670

11,949

82,581

21,108

Nonmetallic mineral products

11,453

1,039,299

37,487

** 14,743

** 12,912

** 13,607

78,878

106,132

Primary metal industries

2,420

149,125

* 11,811

* 946

* 29,047

20,822

Fabricated metal products

26,572

3,535,478

214,338

20,219

69,343

33,553

560,501

545,434

344,615

Machinery

24,173

1,846,028

48,737

634

67,053

5,801

239,278

Computer and electronic products

14,363

924,007

53,502

* 2,408

22,860

7,064

122,018

27,464

Electrical equipment, appliances, and components

9,277

916,114

31,850

* 2,659

8,314

12,949

199,257

124,914

Transportation equipment

10,681

892,760

30,312

* 146

26,899

10,343

126,468

64,780

Furniture and related products

28,173

3,023,451

61,926

46,886

151,490

13,905

395,387

487,134

Miscellaneous manufacturing

75,572

6,276,419

225,538

10,839

217,061

45,503

667,734

989,452

342,687

48,439,075

574,981

222,123

755,099

213,763

2,129,225

4,546,353

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

155,506

22,073,343

318,022

136,007

342,845

107,592

1,058,592

2,207,240

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

120,392

21,082,353

227,429

52,925

317,370

96,619

902,058

1,372,230

Wholesale electronic markets and agents and brokers

66,788

5,283,380

29,530

33,190

94,884

9,552

168,576

966,883

2,329,498

174,647,841

2,435,255

651,851

5,173,527

1,001,435

9,733,735

10,600,092

Motor vehicle and parts dealers

131,699

39,400,845

368,517

69,181

521,112

254,610

1,737,342

1,257,406

Furniture and home furnishing stores

30,572

3,981,536

79,320

44,478

185,821

36,948

341,244

362,937

Electronic stores and household appliance stores

11,492

2,749,696

22,188

94,505

64,161

12,520

216,103

156,665

Building material and garden equipment and supplies

dealers

31,829

5,764,064

123,944

16,449

110,580

58,552

616,990

597,148

Food and beverage stores

91,973

24,621,568

219,736

59,678

883,699

85,126

1,814,149

875,587

Health and personal care stores

141,684

7,855,981

105,096

34,882

249,777

47,934

547,219

369,885

Gasoline stations

12,887

14,821,487

151,152

11,988

209,192

74,514

698,372

380,782

Clothing and accessories stores

147,740

8,862,339

125,242

50,133

736,349

82,113

702,946

442,362

Sporting goods, hobby, book, and music stores

108,551

6,705,399

153,040

27,781

312,251

52,039

379,352

126,568

General merchandise stores

32,981

3,267,555

38,673

33,176

115,538

7,875

136,188

180,035

Miscellaneous store retailers

627,497

30,688,605

614,299

135,078

1,364,055

159,602

1,943,883

3,046,421

Nonstore retailers

960,593

25,928,766

434,048

74,522

420,992

129,601

599,947

2,804,295

Wholesale trade (merchant wholesalers)

Retail trade

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

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

by Industrial Sectors, Tax Year 2016—Continued

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

Businesses with net income

Industrial sector

All nonfarm industries

Agriculture, forestry, hunting, and fishing

Animal production (including breeding of cats and dogs)

Number

of returns

Business

receipts

Depreciation

deduction [1,2]

Rent paid

on machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction [1,3]

Payroll [1,4]

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

Net income

18,959,230

1,225,543,853

25,235,713

7,890,688

29,162,891

5,467,519

101,116,438

389,138,987

179,185

17,199,944

989,230

148,813

144,696

137,132

1,522,965

3,369,499

10,366

739,907

39,617

* 863

12,419

3,817

57,359

201,344

Forestry and logging (including forest nurseries, timber

tracts)

38,203

4,060,537

411,911

78,905

5,602

36,047

255,532

916,187

Fishing, hunting, and trapping

43,612

3,013,842

199,722

* 23,071

55,442

26,854

76,498

802,438

Support activities for agriculture and forestry

87,005

9,385,657

337,980

45,974

71,233

70,413

1,133,575

1,449,530

67,704

4,405,506

246,421

45,823

14,172

28,010

248,733

1,354,470

Oil and gas extraction

49,936

2,485,900

111,327

20,869

10,469

13,359

63,483

895,474

Other mining

3,838

439,789

26,322

11,076

* 2,085

6,733

48,889

90,050

Support activities for mining

13,930

1,479,817

108,772

13,878

1,617

7,919

136,362

368,947

Mining

Utilities

7,568

605,871

27,972

* 1,353

* 21,079

4,556

* 25,004

171,253

2,372,257

218,171,302

5,140,281

1,132,748

1,429,390

785,434

23,513,881

45,534,242

Construction of buildings

489,637

61,844,820

1,111,651

233,318

315,773

265,269

5,832,349

10,283,441

Heavy and civil engineering construction

37,950

6,273,280

343,668

34,000

49,908

62,704

715,293

1,327,738

1,844,670

150,053,202

3,684,962

865,430

1,063,708

457,461

16,966,239

33,923,063

Construction

Specialty trade contractors

Manufacturing

236,253

27,318,712

817,885

104,467

743,741

163,316

3,018,649

5,606,164

Food manufacturing

27,140

4,245,372

85,565

8,130

148,595

22,566

388,795

680,143

Textile and textile product mills

5,978

414,432

* 2,424

** 1,823

* 5,992

* 2,198

* 42,155

92,544

Apparel

11,431

1,029,773

22,942

** 37,256

** 14,843

139,366

261,752

Leather and allied products

Wood products

Paper products

* 5,058

* 89,837

* 1,513

* 2,726

* 55,508

** 25,440

** 3,213,258

** 129,643

** 13,450

** 37,956

** 20,420

** 293,351

** 526,027

Printing and related support activities

11,592

883,999

40,918

794

22,296

4,233

78,316

246,683

Petroleum and coal products

* 1,636

* 129,056

* 6,311

* 712

* 21,797

* 10,463

Chemical manufacturing

13,607

1,044,558

18,088

** 1,869

26,006

** 1,957

160,536

239,560

Plastic and rubber products

358

315,757

7,153

* 2,524

* 8,758

* 678

* 65,513

38,281

Nonmetallic mineral products

9,036

911,622

** 36,138

** 13,731

** 6,544

** 10,053

** 74,259

146,567

Primary metal industries

* 326

* 103,935

* 26,221

Fabricated metal products

18,477

3,017,823

154,671

8,217

38,842

26,115

446,208

657,633

Machinery

17,371

1,458,283

39,509

* 332

55,084

1,944

152,973

424,006

Computer and electronic products

5,756

832,766

49,397

* 111

20,456

* 3,060

88,652

114,740

Electrical equipment, appliances, and components

8,089

701,330

24,866

** 2,353

* 4,011

* 10,555

* 112,717

165,017

Transportation equipment

5,376

714,241

* 3,545

* 8,151

* 4,933

* 84,318

126,893

Furniture and related products

23,530

2,926,926

46,049

46,795

150,516

11,916

378,563

516,135

1,277,990

Miscellaneous manufacturing

46,052

5,285,743

149,154

4,338

172,565

27,846

488,403

218,211

40,073,313

317,966

167,268

494,306

105,696

1,561,133

6,032,294

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

99,057

18,414,744

181,725

118,734

210,180

55,408

778,159

2,714,735

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

75,127

16,974,376

114,814

34,258

205,376

45,193

632,151

2,054,875

Wholesale electronic markets and agents and brokers

44,028

4,684,194

21,427

14,276

78,750

5,095

150,823

1,262,685

1,284,769

141,832,801

1,319,647

433,736

3,386,867

628,034

7,193,260

18,598,124

Motor vehicle and parts dealers

87,445

31,533,572

206,110

50,464

351,595

177,116

1,249,040

1,844,255

Furniture and home furnishing stores

22,434

3,162,953

51,877

24,979

98,116

27,601

250,784

497,514

Electronic stores and household appliance stores

6,923

2,413,770

17,703

* 80,840

33,501

8,523

158,948

200,222

Building material and garden equipment and supplies

dealers

20,489

4,971,449

105,083

12,916

88,361

41,427

503,398

707,090

Food and beverage stores

64,173

20,031,830

139,948

43,614

659,800

55,572

1,369,243

1,328,364

Health and personal care stores

72,512

6,445,996

47,439

20,059

191,720

23,073

369,232

992,768

Gasoline stations

7,896

12,474,766

107,619

10,186

177,802

53,144

554,359

453,149

Clothing and accessories stores

75,672

6,636,468

57,169

27,452

449,223

34,905

482,805

1,186,631

Sporting goods, hobby, book, and music stores

56,504

4,427,782

67,217

8,310

185,256

37,850

209,833

603,145

General merchandise stores

18,774

2,535,723

15,337

* 31,003

93,790

4,227

95,825

402,371

Miscellaneous store retailers

371,817

25,276,506

279,325

66,326

789,016

78,087

1,499,939

5,078,996

Nonstore retailers

480,129

21,921,986

224,821

57,589

268,687

86,509

449,854

5,303,619

Wholesale trade (merchant wholesalers)

Retail trade

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

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

by Industrial Sectors, Tax Year 2016—Continued

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

Businesses with and without net income

Industrial sector

Number

of returns

Business

receipts

(1)

Depreciation

deduction [1,2]

Rent paid

on other

business

property [1]

Interest paid

deduction [1,3]

Net income

less deficit

Payroll [1,4]

(3)

(4)

(5)

(6)

(7)

1,984,991

103,400,451

6,309,087

3,524,852

844,361

783,451

4,654,022

14,926,404

Air and rail transportation

16,884

1,395,269

273,157

7,829

27,788

42,333

85,632

-71,347

Water transportation

5,638

762,096

150,583

11,307

4,403

22,852

134,855

-48,719

Truck transportation

623,265

68,851,259

4,609,921

1,543,829

368,006

487,146

3,262,861

9,620,826

** 1,020,896

** 20,416,980

** 696,389

** 1,752,536

** 266,642

** 150,424

** 511,985

** 3,791,564

10,688

490,337

175,168

* 3,241

19,602

11,102

35,773

-32,891

Transportation and warehousing

Other transit and ground transportation

Pipeline transportation

Scenic and sightseeing transportation

(2)

Rent paid

on machinery

and

equipment [1]

(8)

Support activities for transportation (including motor

vehicle towing)

62,465

4,026,108

305,515

56,662

86,661

37,076

385,233

280,993

Couriers and messengers

229,829

7,091,955

81,230

144,362

43,543

27,294

180,906

1,386,426

Warehousing and storage facilities

Information

15,326

366,447

17,125

5,084

27,715

5,224

56,777

-449

367,766

11,744,041

320,197

72,564

317,038

64,880

1,025,202

2,333,927

Publishing industries (except internet)

54,718

1,702,220

24,165

5,700

29,299

3,781

180,311

434,649

Motion picture and sound recording

122,541

3,850,279

194,295

48,005

108,973

36,644

439,236

622,201

Broadcasting (except internet) and telecommunications

and internet service providers

66,741

3,154,057

44,189

10,989

118,210

13,515

278,046

436,127

Data processing, internet publishing and broadcasting,

and web search portals

123,766

3,037,485

57,549

7,869

60,556

10,940

127,608

840,950

609,412

76,056,618

721,732

213,310

1,554,863

448,721

5,013,599

20,879,459

Credit intermediation and related activities

33,640

2,389,765

35,964

4,075

71,206

89,802

211,244

598,105

Securities, commodity contracts, and other financial

investments

Finance and insurance

173,466

42,625,116

236,697

99,620

516,263

165,119

1,869,090

8,392,362

Investment bankers and securities dealers

5,979

6,213,122

7,071

5,646

11,636

8,015

40,364

211,932

Securities brokers

13,309

3,363,991

30,226

5,148

26,586

7,497

102,827

870,450

Commodity contracts brokers and dealers

3,662

695,012

1,116

** 142

13,708

802

** 62,412

73,515

Securities and commodity exchanges

1,003

952,876

* 358

* 679

* 319

8,071

Other financial investment activities (investment advice)

149,512

31,400,116

197,925

88,684

463,654

148,485

1,663,487

7,228,393

Insurance agents, brokers, and related activities

402,306

31,041,737

449,071

109,616

967,394

193,799

2,933,265

11,888,992

Insurance agencies and brokerages

310,944

26,040,881

342,450

101,596

829,461

155,715

2,636,835

9,735,465

Other insurance related activities and other financial

vehicles

Real estate and rental and leasing

Real estate

91,362

5,000,855

106,621

8,020

137,932

38,085

296,430

2,153,527

1,282,230

82,601,087

3,087,995

407,769

1,219,766

980,297

3,069,160

29,166,991

1,209,604

77,274,746

1,741,363

313,184

1,102,200

819,092

2,702,314

28,883,614

Lessors of real estate (including miniwarehouses and

self storage)

51,244

2,760,329

326,724

15,555

105,723

171,479

190,582

499,410

Offices of real estate agents, brokers, property

managers, and appraisers

896,765

52,673,186

882,465

219,701

718,557

344,160

1,643,076

23,126,122

Other activities related to real estate

261,595

21,841,231

532,175

77,929

277,919

303,453

868,655

5,258,082

Rental and leasing services

71,092

5,277,327

** 1,346,631

** 94,584

117,157

161,075

** 366,846

276,444

Automotive equipment rental and leasing

19,377

938,181

270,907

29,161

15,825

24,864

** 43,320

30,558

Consumer electronics and appliances rental

* 2,336

* 70,268

* 20,094

** 623

* 1,701

446

* 14,748

* -14,504

Formal wear and costume rental

* 605

* 291

* 927

Video tape and disc rental

* 1,761

* 221,107

* 11,695

** 28,585

* 5,961

* 47,419

* -865

General rental centers and other consumer goods rental

23,930

1,578,485

209,347

13,565

33,928

33,465

67,365

256,189

Commercial and industrial machinery and equipment

rental and leasing

23,082

2,468,995

** 833,661

** 51,236

37,118

96,339

** 208,743

-9,681

Lessors of nonfinancial intangible assets (except

copyrighted works)

1,534

49,014

* 409

* 131

6,933

Professional, scientific, and technical services

3,466,550

188,626,180

3,637,262

809,949

4,658,143

802,503

17,263,231

77,705,005

Legal services

347,931

40,868,244

351,707

179,707

1,871,880

180,485

4,715,841

17,591,812

Offices of certified public accountants

36,668

4,056,721

108,381

22,780

149,290

24,558

611,339

1,689,686

Other accounting services

366,590

9,536,589

236,443

55,309

224,137

49,000

939,450

4,017,363

Architectural, engineering, and related services

280,184

16,384,728

577,280

85,919

306,672

84,615

1,876,431

5,121,625

Architectural services

129,573

8,033,296

389,700

39,057

161,352

38,724

1,095,437

2,036,093

Engineering services

90,208

5,824,908

86,970

41,121

124,956

26,943

511,115

2,137,065

Drafting, building inspections, and geophysical

surveying

47,176

1,579,742

26,690

** 5,546

* 7,734

13,556

143,156

756,995

Surveying and mapping (except geophysical) services

7,272

434,146

* 47,544

* 3,803

* 591

* 67,200

128,156

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

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

by Industrial Sectors, Tax Year 2016—Continued

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

Businesses with net income

Industrial sector

Transportation and warehousing

Number

of returns

Business

receipts

Depreciation

deduction [1,2]

Rent paid

on machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction [1,3]

(13)

(14)

(9)

(10)

(11)

(12)

1,525,305

86,413,509

4,050,858

2,909,351

603,149

497,736

Net income

Payroll [1,4]

(15)

(16)

3,054,492

19,285,687

225,889

Air and rail transportation

7,922

1,019,103

30,334

3,249

13,133

6,717

54,689

Water transportation

4,832

262,126

15,442

* 10,324

* 2,411

* 2,062

* 41,635

71,584

Truck transportation

509,600

57,529,080

3,267,486

1,208,962

285,944

352,606

2,177,347

11,349,224

** 770,157

** 18,256,138

** 474,952

** 1,574,690

** 177,311

** 110,690

** 371,681

** 5,318,351

4,993

368,855

58,127

* 3,204

10,410

6,345

33,987

77,557

Other transit and ground transportation

Pipeline transportation

Scenic and sightseeing transportation

Support activities for transportation (including motor

vehicle towing)

42,516

2,806,794

128,143

22,738

68,337

14,258

238,983

462,382

Couriers and messengers

174,455

5,938,407

66,100

84,904

31,714

2,854

123,054

1,688,517

Warehousing and storage facilities

Information

10,829

233,006

10,275

1,280

13,891

* 2,205

* 13,115

92,182

251,891

9,631,263

161,995

45,270

248,010

35,394

613,931

3,663,219

Publishing industries (except internet)

39,242

1,408,409

18,773

2,204

23,238

1,155

64,458

611,957

Motion picture and sound recording

81,574

3,137,570

78,503

25,944

69,062

26,738

313,460

1,255,260

Broadcasting (except internet) and telecommunications

and internet service providers

42,104

2,466,908

19,758

9,740

103,558

5,371

154,809

668,465

Data processing, internet publishing and broadcasting,

and web search portals

88,971

2,618,375

44,961

7,382

52,151

2,130

81,204

1,127,537

427,646

53,614,473

492,206

142,376

1,347,153

300,221

4,221,300

23,378,008

Credit intermediation and related activities

23,741

2,064,603

14,755

3,786

63,643

51,073

197,567

791,827

Securities, commodity contracts, and other financial

investments

9,763,822

Finance and insurance

113,425

23,735,474

117,264

52,979

411,907

72,947

1,390,249

Investment bankers and securities dealers

3,786

1,039,585

3,976

* 5,271

10,410

4,932

38,412

289,891

Securities brokers

10,500

2,952,194

13,111

5,018

20,658

3,498

82,933

914,723

Commodity contracts brokers and dealers

1,731

467,041

826

* 16

3,061

* 266

* 11,777

219,922

Securities and commodity exchanges

* 157

* 122,867

* 101

* 23,599

Other financial investment activities (investment advice)

97,251

19,153,786

** 99,351

** 42,674

** 377,779

64,149

** 1,257,127

8,315,687

Insurance agents, brokers, and related activities

290,479

27,814,396

360,188

85,612

871,603

176,201

2,633,485

12,822,359

Insurance agencies and brokerages

226,250

23,232,556

270,637

81,213

748,903

144,561

2,409,198

10,465,348

Other insurance related activities and other financial

vehicles

64,230

4,581,840

89,551

4,399

122,700

31,641

224,287

2,357,011

873,619

72,589,233

1,443,223

285,204

880,882

509,716

2,255,760

33,679,724

Real estate

834,303

68,944,423

1,001,951

242,761

818,054

442,139

2,045,432

32,609,417

Lessors of real estate (including miniwarehouses and

self storage)

26,661

2,193,004

108,574

2,136

101,658

78,528

89,352

919,561

Offices of real estate agents, brokers, property

managers, and appraisers

638,100

48,706,501

597,840

191,760

514,961

222,954

1,362,815

25,065,303

Other activities related to real estate

169,542

18,044,918

295,538

48,865

201,436

140,657

593,265

6,624,553

Rental and leasing services

38,149

3,614,627

** 441,272

** 42,442

** 62,828

67,577

210,328

1,058,929

Real estate and rental and leasing

Automotive equipment rental and leasing

12,185

678,090

** 164,689

** 4,178

** 15,559

** 16,928

** 28,069

151,603

Consumer electronics and appliances rental

* 1,318

* 42,912

* 19,897

Formal wear and costume rental

Video tape and disc rental

* 1,314

* 105,273

* 23,141

General rental centers and other consumer goods rental

10,912

1,194,624

** 93,266

* 9,162

** 26,496

** 22,134

** 66,924

419,887

Commercial and industrial machinery and equipment

rental and leasing

12,421

1,593,728

** 183,317

** 29,103

** 20,774

28,515

115,334

444,401

Lessors of nonfinancial intangible assets (except

copyrighted works)

* 1,167

* 30,183

* 11,378

Professional, scientific, and technical services

2,569,905

174,424,916

2,539,782

635,789

3,870,399

575,787

14,874,152

85,325,983

Legal services

284,319

39,351,795

325,466

172,515

1,734,649

136,726

4,224,676

18,246,729

Offices of certified public accountants

26,966

3,687,286

35,433

22,731

115,378

17,915

575,334

1,776,951

Other accounting services

296,417

8,731,510

182,158

47,883

167,624

33,689

797,691

4,478,754

Architectural, engineering, and related services

215,083

14,609,649

438,996

66,950

211,161

63,167

1,579,565

5,775,387

Architectural services

104,379

7,141,613

284,629

29,313

124,813

35,450

925,303

2,352,942

Engineering services

64,281

5,090,762

69,423

36,400

67,823

9,453

413,457

2,390,165

Drafting, building inspections, and geophysical

surveying

36,706

1,489,766

11,372

** 1,161

* 7,178

12,872

144,220

807,492

Surveying and mapping (except geophysical) services

5,193

416,270

* 47,404

* 3,020

* 591

* 61,593

135,531

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

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

by Industrial Sectors, Tax Year 2016—Continued

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

Businesses with and without net income

Industrial sector

Testing laboratories

Specialized design services

Computer systems design services

Number

of returns

Business

receipts

Depreciation

deduction [1,2]

Rent paid

on machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction [1,3]

Payroll [1,4]

Net income

less deficit

(1)

(4)

(5)

(6)

(7)

(8)

(2)

(3)

5,954

512,638

* 26,377

* 195

8,827

* 4,801

* 59,522

63,317

265,140

10,336,499

256,565

34,543

319,375

37,424

476,247

2,442,433

280,871

12,403,274

188,635

23,043

111,094

29,293

1,495,775

5,087,334

1,889,165

95,040,125

1,918,250

408,647

1,675,694

397,127

7,148,148

41,754,752

Management, scientific, and technical consulting services

930,088

50,476,497

834,293

170,941

739,829

204,546

3,214,921

26,238,310

Scientific research and development services

50,157

1,199,653

34,493

3,520

39,234

6,732

98,113

435,941

Advertising and related services

131,964

8,196,172

113,129

41,617

215,521

32,070

426,361

2,284,589

Other professional, scientific, and technical services

Market research and public opinion polling

42,940

1,195,734

6,250

3,513

31,603

* 93

160,196

331,023

734,017

33,972,069

930,085

189,056

649,507

153,686

3,248,557

12,464,889

2,557,938

75,647,974

2,787,303

508,452

811,179

374,190

8,201,652

21,240,361

2,538,754

72,981,513

2,556,426

494,050

779,599

347,505

7,855,013

21,014,858

19,183

2,666,461

230,877

14,402

31,580

26,685

346,639

225,503

823,153

12,991,265

261,145

66,852

808,232

56,478

892,877

4,501,012

Health care and social assistance

2,127,345

121,086,389

2,291,994

521,552

5,497,095

738,700

18,044,885

48,449,274

Ambulatory health care services

1,234,900

97,997,476

1,805,278

382,975

4,468,064

517,801

14,896,368

40,513,212

Offices of physicians (except mental health specialists)

191,001

31,370,296

415,897

123,144

1,164,598

106,210

4,259,927

14,789,444

Offices of physicians, mental health specialists

38,021

3,882,589

52,459

11,126

219,990

7,822

184,414

2,287,535

Offices of dentists

68,359

24,440,334

730,064

78,439

1,027,595

250,582

6,008,765

7,534,852

Offices of chiropractors

35,978

4,077,356

87,667

13,275

376,519

42,412

442,097

1,476,815

Offices of optometrists

20,172

4,086,358

75,924

11,985

260,568

26,013

757,850

1,170,733

Offices of mental health practitioners and social

therapists

201,148

11,125,667

94,492

50,659

692,722

19,828

1,059,389

5,796,567

4,486

1,002,086

11,953

* 4,681

77,475

* 3,759

109,455

462,201

3,131,089

Other miscellaneous services

Administrative and support and waste management

services

Administrative and support services

Waste management and remediation services

Educational services

Offices of podiatrists

Outpatient care centers and other miscellaneous

health practitioners

220,260

7,301,927

179,123

50,774

365,856

24,207

505,509

Medical and diagnostic laboratories

23,030

1,082,985

30,806

4,364

55,828

2,679

118,456

322,238

Home health care services

387,945

7,912,267

81,974

28,954

191,357

26,135

1,184,880

2,892,202

Other ambulatory health care services (including

ambulance services, blood and organ banks)

44,500

1,715,610

44,918

5,574

35,556

8,154

265,625

649,535

Hospitals

7,853

546,570

9,999

* 3,390

7,440

* 2,170

* 55,884

251,149

Nursing and residential care facilities

69,933

5,232,008

119,536

41,346

325,887

106,055

1,457,786

623,368

Social assistance

Arts, entertainment, and recreation

Performing arts, spectator sports, and related industries

814,658

17,310,335

357,180

93,841

695,705

112,674

1,634,848

7,061,545

1,642,700

44,086,606

1,762,129

317,421

1,663,518

180,132

2,119,455

11,325,415

10,216,830

1,367,392

32,095,805

1,180,744

186,938

916,837

96,659

1,099,333

Museums, historical sites, and similar institutions

5,291

115,733

* 1,153

* 10

* 815

* 305

* 4,742

56,133

Amusement, gambling, and recreation industries

270,018

11,875,068

580,233

130,473

745,865

83,167

1,015,380

1,052,452

487,183

62,821,629

2,187,806

292,164

3,868,164

707,372

11,322,098

3,583,469

70,618

6,699,754

778,708

17,947

214,394

374,954

721,931

324,492

Travel accommodation (including hotels, motels,

and bed and breakfast inns)

40,359

5,099,806

616,308

11,719

138,686

303,480

622,028

278,648

RV (recreational vehicle) parks and recreational camps

17,274

814,784

101,667

2,972

45,548

36,915

42,020

12,240

Rooming and boarding houses

12,984

785,163

60,733

* 3,256

30,160

34,559

57,882

33,605

Restaurants (full & limited service) and drinking places

416,565

56,121,875

1,409,098

274,217

3,653,770

332,418

10,600,168

3,258,977

Accommodation, food services, and drinking places

Accommodation

Other services

3,449,846

111,682,880

2,914,917

882,348

7,268,874

559,110

8,874,569

30,626,814

Auto repair and maintenance

393,785

27,947,917

1,020,265

131,312

1,320,260

225,466

2,957,175

3,719,998

Automotive mechanical and electrical repair and

maintenance

210,964

13,454,867

494,438

83,719

719,125

96,415

1,342,934

1,714,490

Automotive body shops

76,677

7,687,621

233,634

34,308

224,768

54,488

885,087

1,035,302

Other auto repair and maintenance (including oil

change, lubrication, and car washes)

106,144

6,805,429

292,193

13,285

376,367

74,563

729,154

970,206

Miscellaneous repairs

399,947

17,516,896

566,924

118,153

344,077

68,924

1,757,752

3,416,808

2,374,522

61,293,524

1,279,357

620,906

5,429,820

261,482

4,046,243

21,140,746

281,592

4,924,543

48,371

* 11,978

174,718

3,238

* 113,399

2,349,262

419,638

4,541,298

106,788

37,867

126,565

36,278

39,986

1,629,828

Personal and laundry services

Religious, grantmaking, civic, professional and similar

organizations

Unclassified establishments

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

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

by Industrial Sectors, Tax Year 2016—Continued

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

Businesses with net income

Industrial sector

Testing laboratories

Specialized design services

Computer systems design services

Number

of returns

Business

receipts

Depreciation

deduction [1,2]

Rent paid

on machinery

and

equipment [1]

Rent paid

on other

business

property [1]

Interest paid

deduction [1,3]

Payroll [1,4]

(9)

(10)

(11)

(12)

(13)

(14)

(15)

Net income

(16)

4,523

471,238

* 26,167

* 77

* 8,327

* 4,801

* 34,991

89,256

178,935

9,337,195

175,466

18,635

269,225

31,404

443,805

3,010,594

208,161

11,340,674

122,932

14,314

89,676

25,735

1,206,478

5,672,367

1,360,024

87,366,806

1,259,332

292,761

1,282,686

267,151

6,046,603

46,365,200

Management, scientific, and technical consulting services

659,397

47,311,044

504,969

108,116

530,280

126,511

2,680,259

29,063,727

Scientific research and development services

42,728

1,037,153

14,383

2,192

33,780

* 5,179

65,944

568,931

Advertising and related services

98,164

7,599,009

86,975

34,329

185,172

20,516

389,794

2,574,061

Other professional, scientific, and technical services

Market research and public opinion polling

Other miscellaneous services

Administrative and support and waste management

services

Administrative and support services

Waste management and remediation services

30,143

1,163,584

2,287

3,513

25,751

* 80

159,691

373,704

529,592

30,256,017

650,718

144,611

507,704

114,865

2,750,916

13,784,776

2,078,451

66,967,199

1,858,303

315,778

551,221

256,135

6,435,552

25,529,488

2,063,951

64,716,737

1,699,281

309,155

531,310

236,951

6,148,142

25,200,484

14,500

2,250,462

159,022

6,624

19,911

19,185

287,409

329,004

634,246

11,503,570

136,389

43,528

578,268

25,778

627,760

5,536,357

Health care and social assistance

1,770,937

111,659,319

1,750,219

421,438

4,788,488

573,594

15,451,207

51,715,888

Ambulatory health care services

1,005,025

91,783,694

1,454,737

315,654

4,014,394

441,319

13,296,900

42,726,775

Offices of physicians (except mental health specialists)

161,192

29,282,922

355,918

106,677

1,094,014

87,335

3,635,606

15,144,315

Offices of physicians, mental health specialists

31,221

3,792,223

41,960

10,573

197,294

7,263

164,944

2,338,649

Offices of dentists

60,777

23,567,595

579,880

74,246

978,765

227,913

5,739,582

7,735,881

Offices of chiropractors

31,655

3,985,563

86,725

12,541

352,153

41,692

424,250

1,509,150

Offices of optometrists

16,922

3,633,077

70,805

10,649

234,305

24,164

664,188

1,186,947

Offices of mental health practitioners and social

therapists

168,389

10,550,661

79,302

47,886

634,155

16,709

946,450

5,941,050

3,500

933,864

11,890

* 4,681

77,475

* 3,786

106,914

466,397

Outpatient care centers and other miscellaneous

health practitioners

168,754

6,519,218

133,228

32,391

282,388

14,383

388,830

3,581,063

Medical and diagnostic laboratories

20,617

909,962

17,383

3,426

22,898

1,870

91,758

370,752

Home health care services

305,973

7,045,740

44,235

9,185

106,832

9,646

891,377

3,758,777

Other ambulatory health care services (including

ambulance services, blood and organ banks)

36,025

1,562,870

33,412

3,399

34,116

6,558

243,002

693,795

Hospitals

6,250

443,992

3,887

* 2,904

* 2,254

* 1,363

* 45,435

259,197

Nursing and residential care facilities

56,440

3,706,509

43,036

35,386

181,580

39,660

789,137

1,065,866

Educational services

Offices of podiatrists

Social assistance

703,222

15,725,123

248,559

67,494

590,260

91,252

1,319,735

7,664,050

1,101,487

36,300,772

861,613

205,712

1,078,389

89,223

1,238,376

15,564,997

Performing arts, spectator sports, and related industries

906,318

27,885,344

** 625,919

** 125,243

612,440

** 59,947

** 754,756

13,516,412

Museums, historical sites, and similar institutions

* 4,216

* 108,767

* 68,700

Amusement, gambling, and recreation industries

190,952

8,306,660

235,694

80,470

465,949

29,276

483,620

1,979,885

312,182

49,278,101

1,173,071

209,962

2,835,114

379,103

8,142,929

6,255,759

45,257

4,686,268

381,482

8,170

110,551

180,417

439,566

929,288

Travel accommodation (including hotels, motels,

and bed and breakfast inns)

24,500

3,597,633

291,378

6,961

77,463

152,509

356,231

713,593

RV (recreational vehicle) parks and recreational camps

11,083

519,445

56,768

* 69

* 19,209

* 13,776

36,872

127,429

Arts, entertainment, and recreation

Accommodation, food services, and drinking places

Accommodation

Rooming and boarding houses

Restaurants (full & limited service) and drinking places

Other services

9,674

569,190

33,336

* 1,140

* 13,880

14,131

46,462

88,266

266,925

44,591,833

791,589

201,791

2,724,563

198,686

7,703,363

5,326,471

2,714,094

99,824,371

1,865,511

615,548

6,087,878

356,258

7,101,036

36,035,994

Auto repair and maintenance

288,376

23,629,139

691,379

89,287

1,054,854

149,501

2,376,712

4,704,320

Automotive mechanical and electrical repair and

maintenance

153,858

11,704,249

354,872

67,583

593,197

68,259

1,073,182

2,281,708

Automotive body shops

61,273

6,678,256

165,585

15,382

182,224

40,354

744,536

1,163,557

Other auto repair and maintenance (including oil

change, lubrication, and car washes)

73,246

5,246,634

170,922

6,322

279,434

40,889

558,995

1,259,054

Miscellaneous repairs

288,346

15,342,961

304,469

73,819

249,803

51,650

1,270,804

4,316,712

1,916,689

56,281,463

836,675

452,128

4,630,557

148,766

3,343,517

24,381,554

220,683

4,570,808

32,989

* 314

152,664

* 6,342

* 110,002

2,633,408

333,519

3,729,681

43,142

26,524

59,690

16,393

16,319

2,501,838

Personal and laundry services

Religious, grantmaking, civic, professional and similar

organizations

Unclassified establishments

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

** Data combined to prevent disclosure of taxpayer information.

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

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

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

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

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns 2016, August 2018.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016

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

Agriculture, forestry, hunting and fishing

Net income status, item

All

nonfarm

industries

(1)

Total

Animal

production

(including

breeding

of cats and

dogs)

Forestry

and logging

(including forest

nurseries,

timber tracts)

Fishing,

hunting,

and trapping

Support

activities

for

agriculture

and forestry

(2)

(3)

(4)

(5)

(6)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

25,525,915

297,031

40,722

56,377

72,671

127,262

1,422,204,586

21,199,514

1,165,708

5,241,701

3,439,540

11,352,566

11,229,057

1,404,235,056

20,749,876

1,108,316

5,104,257

3,308,247

Other business income (loss) [1]

17,969,530

449,639

57,392

137,444

131,294

123,509

Business deductions, total [1,2]

1,094,904,101

19,513,735

1,503,553

4,589,283

2,918,071

10,502,828

Cost of sales and operations, total

410,648,959

7,500,411

282,196

1,325,258

749,666

5,143,291

Inventory, beginning of year

40,996,287

602,265

231,199

146,691

* 25,923

198,452

Cost of labor

36,005,268

382,401

* 11,090

129,504

58,017

183,790

Purchases

239,341,682

5,362,388

187,410

763,851

532,580

3,878,547

Materials and supplies

64,083,272

473,731

36,876

57,691

88,525

290,640

Other costs

72,793,454

1,373,412

49,987

414,792

78,230

830,403

Inventory, end of year

42,571,004

693,786

234,366

187,271

33,609

238,539

Advertising expenses

16,189,658

117,255

30,232

7,520

28,281

51,222

Car and truck expenses

88,617,433

1,005,222

89,228

272,999

187,065

455,930

Commissions

16,350,703

59,883

13,569

5,016

13,955

27,343

Contract labor

56,858,822

967,960

40,576

385,970

179,004

362,410

Depletion

430,360

3,292

* 671

* 2,583

* 38

Depreciation

38,403,988

1,804,240

159,377

658,771

368,550

617,541

Employee benefit programs

2,891,865

12,506

1,150

2,854

413

8,090

Insurance

19,965,726

445,688

15,502

157,801

66,588

205,797

Legal and professional services

13,068,456

143,768

15,986

20,456

59,436

47,890

Meals and entertainment deducted

10,450,719

73,291

9,691

9,254

20,299

34,047

Mortgage interest

3,153,261

90,277

12,354

17,646

11,785

48,493

Other interest paid on business indebtedness

5,721,692

164,130

20,278

57,297

29,457

57,098

Office expenses

13,432,643

88,188

7,102

26,040

10,484

44,561

Pension and profit-sharing plans

1,158,099

4,815

* 869

* 1,253

[4]

* 2,692

Rent paid on machinery and equipment

10,308,934

200,916

2,122

102,505

32,384

63,905

Rent paid on other business property

37,543,375

198,525

27,663

10,150

66,774

93,937

Repairs

18,437,815

657,987

42,502

252,595

137,810

225,080

Supplies

39,079,658

620,926

60,896

128,901

184,637

246,492

Salaries and wages

90,936,052

1,463,147

61,565

235,988

26,032

1,139,562

Taxes paid

19,600,445

316,749

14,067

68,910

41,937

191,835

Travel

16,573,132

184,493

30,162

24,279

42,976

87,076

Utilities

31,602,681

329,636

36,811

70,713

52,345

169,766

Other business expenses

118,666,292

2,969,658

516,496

728,813

594,568

1,129,781

9,853,478

65,121

* 10,048

14,827

9,588

30,658

328,209,453

1,704,083

-331,591

652,241

524,619

858,814

Net income [1,2]

389,138,987

* 3,369,499

201,344

916,187

* 802,438

* 1,449,530

Deficit [2]

60,929,533

1,665,416

* 532,935

* 263,946

* 277,819

590,715

Home office business deductions, total

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Number of returns

5,432,242

48,517

* 3,337

* 5,193

10,869

29,118

Business receipts

42,370,565

243,824

* 9,526

* 12,251

48,084

173,963

Business deductions

4,962,814

25,652

* 2,439

* 884

4,033

18,296

Net income

37,407,751

218,171

* 7,087

* 11,367

44,051

155,667

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Mining

Net income status, item

Construction

Utilities

Total

Oil

and

gas extraction

Other

mining

Support

activities for

mining

Total

Construction

buildings

Heavy and

civil

engineering

construction

Specialty

trade

contractors

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

113,475

90,369

5,879

17,227

14,390

2,840,001

585,620

52,517

2,201,864

6,993,311

4,524,156

558,140

1,911,015

669,064

242,073,803

71,484,958

7,888,024

162,700,821

162,002,185

6,689,317

4,241,879

546,269

1,901,169

666,363

240,489,549

70,844,382

7,642,982

Other business income (loss) [1]

303,994

282,276

11,872

9,846

2,701

1,584,254

640,576

245,042

698,636

Business deductions, total [1,2]

6,893,110

4,649,374

562,392

1,681,344

557,652

201,473,661

62,645,487

6,985,046

131,843,127

Cost of sales and operations, total

1,469,367

883,433

267,446

318,488

99,651

98,244,800

39,488,740

3,908,038

54,848,023

Inventory, beginning of year

343,659

132,735

151,954

* 58,970

4,939,900

2,984,891

896,616

1,058,393

Cost of labor

124,148

29,192

* 24,840

* 70,116

16,845,799

5,342,581

673,517

10,829,701

Purchases

284,016

84,112

61,377

138,528

* 72,292

26,912,763

10,355,414

1,160,679

15,396,670

Materials and supplies

127,200

79,382

* 12,958

34,860

* 19,366

35,003,540

12,295,064

571,610

22,136,865

Other costs

820,467

693,643

59,773

67,051

* 6,882

19,468,171

11,520,880

1,541,879

6,405,412

Inventory, end of year

230,122

135,630

43,456

51,036

4,925,373

3,010,091

936,264

979,018

Advertising expenses

11,003

5,969

1,199

3,835

3,364

1,159,834

219,571

32,223

908,041

Car and truck expenses

262,241

139,156

13,900

109,185

101,652

15,976,506

3,264,303

269,031

12,443,172

Commissions

39,606

25,567

* 308

* 13,731

* 3,708

771,583

179,797

19,140

572,647

Contract labor

257,040

145,395

4,725

106,920

60,656

22,481,426

5,405,478

325,204

16,750,743

Depletion

305,736

293,983

10,569

1,184

* 913

52,375

20,822

* 132

31,422

Depreciation

595,547

382,162

46,639

166,746

69,542

6,412,071

1,341,807

511,273

4,558,990

Employee benefit programs

15,785

7,555

4,983

3,248

* 291

343,076

74,418

18,523

250,134

Insurance

142,494

72,762

11,609

58,123

12,128

4,293,402

904,147

175,135

3,214,120

Legal and professional services

115,244

96,244

8,689

10,312

8,801

1,183,898

345,186

113,912

724,800

Meals and entertainment deducted

20,219

10,388

155

9,676

3,447

991,506

180,755

28,833

781,918

Mortgage interest

18,641

10,054

* 3,563

5,024

* 2,594

343,378

144,738

55,301

143,339

Other interest paid on business indebtedness

107,562

83,171

8,773

15,618

5,939

834,131

246,109

55,646

532,375

Office expenses

43,475

28,810

2,151

12,514

2,567

1,158,368

244,963

26,224

887,181

Pension and profit-sharing plans

7,216

3,454

** 3,762

54,439

11,352

8,130

34,957

Rent paid on machinery and equipment

69,194

34,875

12,014

22,305

9,162

1,336,455

295,564

54,506

986,384

Rent paid on other business property

45,891

37,426

3,828

4,637

24,108

1,691,000

391,856

68,636

1,230,508

Repairs

122,930

47,643

34,939

40,347

20,887

2,092,223

402,183

151,025

1,539,014

Supplies

79,814

31,047

13,601

35,167

25,584

10,128,113

2,089,555

160,210

7,878,347

Salaries and wages

504,343

243,802

40,979

219,563

24,883

10,966,043

2,358,973

309,639

8,297,430

Taxes paid

181,646

144,332

13,604

23,710

11,284

2,312,826

531,186

128,384

1,653,256

Travel

74,915

39,443

865

34,607

5,857

1,358,804

257,517

79,950

1,021,337

Utilities

120,633

72,427

6,513

41,694

16,489

3,319,734

702,397

78,022

2,539,315

2,253,066

1,797,133

47,651

408,282

39,938

12,433,902

3,207,642

384,205

8,842,055

23,999

9,272

14,726

* 2,240

1,001,842

207,429

10,451

783,963

105,841

-119,464

-4,251

229,556

114,346

40,749,218

8,884,198

929,271

30,935,749

Other business expenses

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

1,354,470

895,474

90,050

368,947

171,253

* 45,534,242

* 10,283,441

1,327,738

33,923,063

Deficit [2]

1,248,629

1,014,938

94,301

* 139,391

56,907

4,785,024

1,399,242

* 398,468

2,987,314

Returns with Schedule C-EZ:

Number of returns

13,839

11,707

* 2,132

* 545

542,394

104,034

9,223

429,136

Business receipts

32,988

19,456

* 13,532

* 3,074

4,673,951

1,098,548

46,155

3,529,248

Business deductions

5,576

3,947

* 1,629

* 1,869

531,927

129,000

* 13,273

389,654

Net income

27,411

15,509

* 11,902

* 1,205

4,142,024

969,549

32,882

3,139,593

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Manufacturing

Net income status, item

Total

Food

manufacturing

Textile

and textile

product mills

Apparel

Leather

and

allied

products

Wood

products

Paper

products

Printing

and related

support

activities

(16)

(17)

(18)

(19)

(20)

(21)

(22)

(23)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

370,081

46,793

10,834

19,152

5,259

** 35,303

28,597

32,895,561

5,607,532

525,390

1,322,835

126,454

** 3,426,456

1,342,367

1,321,175

32,764,525

5,515,972

502,078

1,321,867

123,658

** 3,420,382

Other business income (loss) [1]

131,037

91,560

* 23,312

* 968

* 2,796

** 6,073

21,193

Business deductions, total [1,2]

29,045,936

5,293,300

473,908

1,156,696

81,961

** 2,942,166

1,265,474

Cost of sales and operations, total

15,024,710

3,069,700

202,999

530,039

37,938

** 1,794,018

475,175

Inventory, beginning of year

2,491,902

599,223

66,369

180,034

* 32,279

** 160,479

55,547

Cost of labor

1,682,626

212,734

* 12,649

* 66,995

* 8,407

** 89,684

53,656

Purchases

8,314,799

1,542,702

154,101

308,066

* 14,363

** 1,175,477

193,485

Materials and supplies

3,285,262

866,059

* 14,814

83,236

* 1,715

** 430,097

161,259

Other costs

1,846,286

495,711

* 19,599

72,924

* 10,143

** 111,399

67,417

Inventory, end of year

2,596,164

646,730

64,533

181,216

* 28,969

** 173,117

56,189

Advertising expenses

305,730

62,506

10,081

31,092

* 3,506

** 7,629

15,297

Car and truck expenses

1,104,266

92,156

20,261

46,036

* 3,850

** 96,601

77,043

Commissions

253,824

27,187

* 1,128

** 8,984

** 12,118

7,148

Contract labor

727,756

45,180

* 18,362

** 22,184

** 76,056

47,399

Depletion

* 1,666

** 1,421

Depreciation

1,188,280

154,358

6,711

30,278

* 3,858

** 144,092

67,139

Employee benefit programs

97,178

14,567

* 884

** 4,681

** 3,995

6,634

Insurance

378,900

58,211

4,766

13,859

* 880

** 40,396

15,420

Legal and professional services

279,242

56,248

3,230

11,258

* 1,458

** 9,874

19,371

Meals and entertainment deducted

76,883

12,245

444

8,498

* 28

** 2,060

2,843

Mortgage interest

71,439

14,474

** 499

* 125

** 14,095

* 2,122

Other interest paid on business indebtedness

289,551

138,775

** 3,154

16,461

** 8,808

16,487

Office expenses

219,052

22,020

4,649

13,998

* 374

** 10,559

17,919

Pension and profit-sharing plans

15,678

1,416

** 346

** 950

* 1,361

Rent paid on machinery and equipment

164,134

18,478

512

** 7,722

** 16,013

16,979

Rent paid on other business property

1,017,429

229,449

22,806

43,943

3,975

** 41,591

53,490

Repairs

375,848

68,166

3,122

20,399

* 992

** 100,314

23,383

Supplies

1,247,676

131,749

14,151

51,443

* 8,099

** 65,812

61,260

Salaries and wages

2,564,231

481,942

* 50,956

122,983

* 6,347

** 241,895

116,652

Taxes paid

508,296

132,281

11,560

18,699

* 1,065

** 38,060

33,673

Travel

234,824

27,324

1,887

27,800

* 302

** 13,142

6,066

Utilities

688,169

104,111

21,033

31,508

3,068

** 55,299

54,894

2,016,762

316,854

64,703

88,239

2,509

** 140,358

114,996

149,621

12,276

* 5,742

* 4,190

* 689

** 6,729

12,724

4,021,563

315,377

51,482

168,216

38,098

** 481,900

78,557

Net income [1,2]

5,606,164

680,143

92,544

261,752

55,508

** 526,027

246,683

Deficit [2]

1,584,601

* 364,765

* 41,063

* 93,536

* 17,410

** 44,126

* 168,126

Other business expenses

Home office business deductions, total

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Number of returns

37,706

* 4,077

* 4,284

** 5,112

** 604

Business receipts

315,897

* 17,523

* 35,017

** 43,164

** 19,313

Business deductions

44,787

* 208

* 5,222

** 1,702

Net income

271,110

* 17,315

* 29,795

** 41,462

** 19,313

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Manufacturing—continued

Net income status, item

Petroleum

and coal

products

Chemical

Plastic and

manufacturing rubber products

(24)

(25)

(26)

Nonmetallic

mineral

products

Primary

metal

industries

Fabricated

metal

products

Machinery

Computer and

electronic

products

(27)

(28)

(29)

(30)

(31)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

2,323

18,741

395

11,453

2,420

26,572

24,173

14,363

169,167

1,395,343

377,337

1,039,299

149,125

3,535,478

1,846,028

924,007

920,680

Income from sales and operations [1]

** 1,555,982

377,494

1,038,702

** 3,673,374

1,838,157

Other business income (loss) [1]

** 8,528

* -156

* 598

** 11,227

7,871

* 3,328

Business deductions, total [1,2]

168,676

1,224,265

355,576

932,925

129,068

2,999,096

1,501,377

896,542

545,239

Cost of sales and operations, total

* 98,153

715,517

163,142

386,728

* 90,094

1,595,673

578,630

Inventory, beginning of year

** 52,112

17,387

68,413

** 230,726

43,979

41,753

Cost of labor

** 193,980

* 15,498

* 24,648

* 29,047

283,667

53,238

* 50,161

435,065

Purchases

* 23,773

168,495

84,566

212,458

* 35,926

963,517

375,702

Materials and supplies

* 65,431

254,348

* 44,860

22,626

** 240,415

86,349

27,640

Other costs

* 8,124

97,415

17,466

129,431

* 23,800

136,395

65,063

* 46,514

** 50,007

16,636

70,849

** 257,725

45,700

55,894

Advertising expenses

Inventory, end of year

* 1,595

24,253

* 835

16,597

* 1,148

12,958

7,925

11,288

Car and truck expenses

* 4,887

28,840

3,622

61,275

* 2,304

68,608

128,024

33,227

Commissions

58,077

* 465

* 10,375

** 24,793

25,405

* 27,855

Contract labor

* 4,165

26,558

* 23,942

* 40,783

102,463

68,206

* 9,111

** 244

[4]

* 11,324

50,720

17,166

36,852

* 11,811

212,343

47,908

53,218

Depletion

Depreciation

Employee benefit programs

2,225

* 855

6,246

** 13,988

12,966

* 1,491

* 1,506

16,836

4,719

19,335

* 942

40,269

23,935

4,786

Legal and professional services

* 294

31,764

3,344

8,066

* 1,395

30,473

5,575

4,511

Meals and entertainment deducted

* 194

1,534

259

5,090

** 4,292

5,725

3,289

Mortgage interest

** 1,089

** 9,554

6,328

2,853

Other interest paid on business indebtedness

** 1,230

** 4,054

* 946

27,225

5,801

4,212

* 182

11,458

1,508

4,637

* 760

22,524

8,458

5,986

* 311

** 453

3,686

* 890

1,570

657

3,670

** 14,743

20,219

634

2,408

Rent paid on other business property

712

33,583

11,949

** 12,912

69,343

67,053

22,860

Repairs

* 736

6,778

2,647

14,180

* 453

34,112

8,208

1,362

Supplies

316

23,081

6,125

137,381

** 65,009

111,039

19,640

* 22,167

64,661

67,083

54,230

** 276,834

186,041

71,857

* 557

19,189

6,217

17,327

* 2,072

43,723

25,212

6,453

Travel

10,990

1,280

10,517

* 28

17,019

15,349

13,960

Utilities

* 1,877

21,978

12,789

16,639

* 2,399

61,718

54,343

20,322

Other business expenses

17,461

65,043

20,647

42,852

* 10,337

225,692

97,420

25,066

* 2,374

Insurance

Office expenses

Pension and profit-sharing plans

Rent paid on machinery and equipment

Salaries and wages

Taxes paid

Home office business deductions, total

** 4,072

* 5,030

19,788

12,683

491

155,586

21,108

106,132

20,822

545,434

344,615

27,464

Net income [1,2]

10,463

239,560

38,281

146,567

26,221

657,633

424,006

114,740

Deficit [2]

9,972

83,974

* 17,173

* 40,435

5,399

112,199

* 79,391

* 87,276

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Number of returns

* 3,058

** 2,337

* 2,627

* 3,058

* 2,034

Business receipts

* 23,346

** 24,185

* 10,547

* 7,709

* 37,977

Business deductions

* 4,550

** 1,629

* 3,148

* 3,949

* 3,176

Net income

* 18,796

** 22,555

* 7,400

* 3,760

* 34,800

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Wholesale trade (merchant wholesalers)

Manufacturing—continued

Net income status, item

Electrical

equipment,

Transportation

appliances, and

equipment

components

(32)

Furniture

and related

products

Miscellaneous

manufacturing

Total

(34)

(35)

(36)

(33)

Nondurable

Wholesale

Durable goods,

goods,

electronic

including

including food,

markets

machinery,

wood, metals, fiber, chemicals, and agents and

etc.

brokers

etc.

(37)

(38)

(39)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

9,277

10,681

28,173

75,572

342,687

155,506

120,392

66,788

916,114

892,760

3,023,451

6,276,419

48,439,075

22,073,343

21,082,353

5,283,380

Income from sales and operations [1]

913,278

890,647

3,017,171

6,333,910

48,101,540

21,898,748

20,940,234

5,262,558

Other business income (loss) [1]

* 2,836

* 2,113

6,280

-57,490

337,535

174,594

142,119

20,822

Business deductions, total [1,2]

791,200

827,993

2,536,317

5,469,397

43,923,297

19,890,967

19,715,623

4,316,707

Cost of sales and operations, total

405,974

346,345

1,151,431

2,837,914

30,879,517

14,139,689

14,318,382

2,421,446

Inventory, beginning of year

97,320

188,274

180,143

477,867

3,633,066

2,472,413

978,550

182,104

Cost of labor

* 63,801

* 75,090

175,841

273,532

406,685

227,401

142,573

* 36,711

Purchases

189,919

208,198

427,847

1,801,138

26,237,621

11,584,940

12,722,402

1,930,279

Materials and supplies

* 138,435

45,131

436,965

365,881

2,031,957

1,180,266

609,186

242,504

Other costs

* 10,703

20,296

108,895

404,990

2,403,504

1,267,996

943,201

192,307

Inventory, end of year

* 94,204

190,643

178,259

485,494

3,833,316

2,593,327

1,077,530

162,459

Business receipts, total [1,2]

Advertising expenses

1,643

13,933

15,012

68,433

340,988

118,469

146,096

76,423

Car and truck expenses

37,484

113,419

92,381

194,249

1,343,606

558,951

508,030

276,625

Commissions

* 2,083

* 4,875

6,081

37,251

469,475

235,054

154,922

79,498

Contract labor

* 1,084

60,940

87,827

93,494

688,520

312,714

239,359

136,447

Depletion

Depreciation

3,229

* 100

* 3,130

31,831

30,312

61,040

217,317

556,035

307,883

221,121

27,031

Employee benefit programs

5,175

* 688

* 5,218

17,567

63,838

31,576

24,412

7,850

Insurance

8,542

11,724

40,459

72,317

304,536

167,754

105,058

31,723

Legal and professional services

6,745

3,613

21,025

61,001

296,703

108,064

112,672

75,968

Meals and entertainment deducted

3,208

7,548

5,334

14,291

180,113

74,314

62,389

43,410

Mortgage interest

* 7,939

* 3,472

* 4,458

4,432

33,936

15,089

18,548

* 299

Other interest paid on business indebtedness

5,010

6,872

9,447

41,071

179,826

92,503

78,071

9,252

32,856

Office expenses

7,165

5,488

12,881

68,487

256,784

132,695

91,232

Pension and profit-sharing plans

* 1,350

460

* 393

4,060

27,603

8,903

12,662

6,039

Rent paid on machinery and equipment

2,659

146

46,886

10,839

222,123

136,007

52,925

33,190

Rent paid on other business property

8,314

26,899

151,490

217,061

755,099

342,845

317,370

94,884

Repairs

3,020

21,266

25,865

40,846

273,456

116,166

123,202

34,089

Supplies

56,950

18,361

273,287

203,973

640,587

339,425

197,146

104,017

Salaries and wages

135,456

51,379

219,546

394,203

1,722,540

831,191

759,485

131,864

Taxes paid

15,528

6,055

28,516

102,109

319,802

158,615

136,323

24,865

Travel

6,070

10,394

10,796

61,896

543,303

278,698

182,330

82,275

Utilities

15,090

23,452

69,591

118,059

599,144

268,472

236,586

94,086

Other business expenses

21,386

58,648

183,799

520,754

3,063,348

1,046,502

1,559,699

457,147

Home office business deductions, total

* 963

** 7,801

54,561

120,343

57,746

38,689

23,908

124,914

64,780

487,134

989,452

4,546,353

2,207,240

1,372,230

966,883

Net income [1,2]

165,017

126,893

516,135

1,277,990

6,032,294

2,714,735

2,054,875

1,262,685

Deficit [2]

* 40,104

62,113

29,001

* 288,538

1,485,941

507,494

* 682,645

* 295,802

Number of returns

** 1,027

* 3,039

6,449

39,326

16,152

13,111

10,062

Business receipts

** 1,720

* 56,070

39,328

394,003

106,425

90,165

197,413

** 533

* 7,457

13,213

38,844

11,544

15,785

* 11,514

** 1,185

* 48,613

26,115

355,159

94,881

74,380

185,898

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Business deductions

Net income

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Retail trade

Net income status, item

Total

Motor

vehicle and

parts

dealers

Furniture

and home

furnishing

stores

(40)

(41)

(42)

Building

Electronic

material and

stores

garden

and household

equipment and

appliance

supplies

stores

dealers

(43)

(44)

Food and

beverage

stores

Health and

personal care

stores

Gasoline

stations

(45)

(46)

(47)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

2,329,498

131,699

30,572

11,492

31,829

91,973

141,684

12,887

174,647,841

39,400,845

3,981,536

2,749,696

5,764,064

24,621,568

7,855,981

14,821,487

14,517,630

172,893,256

38,994,939

3,945,301

2,742,606

5,739,211

24,260,139

7,800,890

Other business income (loss) [1]

1,754,585

405,906

36,235

* 7,090

24,852

361,429

55,092

303,857

Business deductions, total [1,2]

164,143,585

38,155,051

3,619,062

2,599,317

5,166,439

23,755,346

7,487,938

14,440,701

Cost of sales and operations, total

109,514,174

31,299,944

2,114,970

1,832,826

3,198,220

17,060,111

4,528,787

12,050,649

Inventory, beginning of year

20,642,938

5,534,310

572,807

135,427

697,074

1,947,927

519,548

391,073

Cost of labor

1,714,257

568,265

122,908

* 56,506

135,225

158,375

51,193

* 39,318

Purchases

96,903,140

27,587,066

1,427,172

1,448,889

2,918,539

15,755,534

4,126,146

11,091,904

Materials and supplies

6,147,494

1,552,071

478,147

* 189,609

114,825

691,644

198,151

353,537

Other costs

5,572,986

1,919,474

144,278

147,663

68,555

296,217

175,425

575,771

Inventory, end of year

21,466,642

5,861,242

630,342

145,269

735,998

1,789,586

541,676

400,954

Advertising expenses

2,297,299

279,674

112,643

30,762

57,987

112,921

159,086

20,238

Car and truck expenses

5,266,790

569,501

169,709

52,971

131,219

236,223

258,114

59,229

Commissions

1,522,887

182,491

22,702

* 5,992

6,046

91,998

19,287

41,109

Contract labor

1,678,650

351,327

41,724

12,965

78,723

94,336

151,923

31,649

9,269

** 1,048

* 259

** 188

2,347,299

366,099

78,844

22,188

123,415

218,797

99,990

151,148

Depletion

Depreciation

Employee benefit programs

175,821

42,841

5,080

* 2,267

21,933

21,687

11,556

5,389

1,248,425

270,028

49,425

19,651

65,185

175,590

60,367

70,891

Legal and professional services

883,723

115,252

27,361

6,726

31,636

79,614

56,174

31,832

Meals and entertainment deducted

510,230

41,364

10,803

3,942

8,960

17,874

37,911

1,729

Mortgage interest

337,298

59,774

17,805

* 6,746

18,739

37,554

2,960

50,406

Insurance

Other interest paid on business indebtedness

664,137

194,836

19,143

5,774

39,813

47,572

44,974

24,109

1,135,008

109,190

26,475

30,261

22,419

78,025

76,057

13,401

Pension and profit-sharing plans

39,301

2,279

* 1,101

* 1,935

4,479

3,208

3,767

4,694

Rent paid on machinery and equipment

651,851

69,181

44,478

94,505

16,449

59,678

34,882

11,988

Rent paid on other business property

5,173,527

521,112

185,821

64,161

110,580

883,699

249,777

209,192

Repairs

1,158,407

216,664

31,432

11,877

48,965

197,006

36,798

84,023

Supplies

3,246,520

416,178

52,541

23,928

93,514

415,360

257,368

35,623

Salaries and wages

8,019,478

1,169,078

218,336

159,597

481,764

1,655,773

496,026

659,055

Taxes paid

2,458,831

358,679

75,648

52,408

133,093

462,428

93,574

182,969

Travel

1,218,793

64,454

41,238

7,218

13,757

17,140

81,246

2,940

Utilities

3,457,544

349,127

104,869

33,952

123,749

561,241

150,451

185,241

Other business expenses

10,252,048

1,050,664

157,176

113,928

323,014

1,212,136

510,023

511,397

659,787

50,178

** 9,935

9,584

2,942

43,167

* 577

10,600,092

1,257,406

362,937

156,665

597,148

875,587

369,885

380,782

* 18,598,124

1,844,255

497,514

200,222

707,090

1,328,364

992,768

453,149

7,998,032

* 586,849

* 134,577

43,557

* 109,942

* 452,777

* 622,883

72,367

Office expenses

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Returns with Schedule C-EZ:

Number of returns

322,048

10,400

* 1,451

** 4,110

17,361

** 19,442

Business receipts

1,677,639

81,042

* 813

** 28,924

111,028

** 102,810

217,011

5,133

* 174

** 4,509

* 12,175

** 24,789

1,460,628

75,909

* 640

** 24,414

98,854

** 78,022

Business deductions

Net income

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Retail trade—continued

Net income status, item

Transportation and warehousing

Clothing and

accessories

stores

Sporting goods,

hobby, book,

and music

stores

General

merchandise

stores

Miscellaneous

store

retailers

Nonstore

retailers

Total

Air and

rail

transportation

Water

transportation

(48)

(49)

(50)

(51)

(52)

(53)

(54)

(55)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

147,740

108,551

32,981

627,497

960,593

1,984,991

16,884

5,638

8,862,339

6,705,399

3,267,555

30,688,605

25,928,766

103,400,451

1,395,269

762,096

753,977

8,771,142

6,655,316

3,257,272

30,475,886

25,732,925

102,417,778

1,304,833

Other business income (loss) [1]

91,197

50,083

10,283

212,720

195,841

982,672

90,436

8,119

Business deductions, total [1,2]

8,431,641

6,582,399

3,087,519

27,652,418

23,165,752

88,263,776

1,500,619

802,879

Cost of sales and operations, total

4,287,267

4,061,830

2,102,776

15,484,703

11,492,091

10,029,928

417,731

355,049

Inventory, beginning of year

1,886,586

1,873,566

376,496

4,323,465

2,384,658

223,931

21,269

Cost of labor

54,398

34,163

* 27,794

356,404

109,709

1,591,694

18,747

* 65,530

Purchases

3,798,108

3,671,027

1,907,910

13,241,478

9,929,368

2,565,410

9,689

382,249

430,937

36,829

1,264,830

454,665

903,360

130,202

* 9,568

276,846

Materials and supplies

Other costs

170,463

67,866

155,810

826,962

1,024,501

5,011,869

257,148

2,004,537

2,015,729

402,062

4,528,435

2,410,811

266,336

19,326

Advertising expenses

226,762

88,532

30,500

525,968

652,225

277,766

5,937

1,470

Car and truck expenses

263,785

159,015

109,218

1,341,490

1,916,318

24,090,054

43,588

14,131

Commissions

55,527

96,527

30,694

300,013

670,503

1,719,258

7,329

3,335

Contract labor

92,597

67,570

11,630

337,405

406,800

6,892,013

37,679

4,814

* 7,530

** 107

* 131

14,646

* 47

Depreciation

113,891

144,263

38,669

600,909

389,085

6,288,335

273,126

150,361

Inventory, end of year

Depletion

Employee benefit programs

14,392

3,005

* 5,656

30,723

11,293

88,873

5,797

* 2,712

Insurance

69,266

61,387

20,384

260,321

125,929

3,838,031

24,106

11,149

Legal and professional services

73,687

37,146

8,160

181,240

234,895

511,325

23,405

4,421

Meals and entertainment deducted

33,524

22,368

4,401

153,381

173,973

2,531,664

16,766

1,774

Mortgage interest

10,420

25,958

* 4,985

67,853

34,098

257,066

16,177

3,979

Other interest paid on business indebtedness

71,694

26,081

2,890

91,748

95,502

526,385

26,156

18,873

Office expenses

1,503

134,784

81,357

14,944

275,516

272,579

478,057

7,142

Pension and profit-sharing plans

5,275

** 899

8,655

3,010

5,472

* 239

Rent paid on machinery and equipment

50,133

27,781

33,176

135,078

74,522

3,524,852

7,829

11,307

Rent paid on other business property

736,349

312,251

115,538

1,364,055

420,992

844,361

27,788

4,403

Repairs

44,298

56,995

20,314

233,808

176,226

5,778,953

93,935

30,198

Supplies

307,033

115,004

50,183

638,844

840,944

1,416,249

11,809

5,070

Salaries and wages

648,548

345,189

108,395

1,587,479

490,238

3,062,329

66,885

69,325

Taxes paid

164,612

119,981

35,414

527,233

252,792

1,513,037

14,247

10,180

Travel

108,281

75,068

10,754

342,745

453,952

1,117,664

86,475

3,349

Utilities

218,349

174,671

90,585

795,140

670,170

1,783,802

22,200

5,709

Other business expenses

636,167

428,478

234,026

2,162,161

2,912,880

11,083,492

254,531

87,811

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

51,282

39,119

* 469

141,208

311,325

201,196

* 5,792

* 696

442,362

126,568

180,035

3,046,421

2,804,295

14,926,404

-71,347

-48,719

1,186,631

603,145

402,371

* 5,078,996

5,303,619

* 19,285,687

225,889

71,584

744,269

476,577

* 222,336

2,032,575

2,499,323

4,359,283

297,236

* 120,303

Returns with Schedule C-EZ:

Number of returns

7,779

9,946

* 4,379

118,884

128,295

349,833

* 2,349

* 448

Business receipts

45,212

55,182

* 35,623

698,522

518,481

1,746,047

* 7,434

* 3,892

Business deductions

13,642

* 5,700

* 2,969

64,641

83,280

388,969

* 3,904

* 1,193

Net income

31,570

49,482

* 32,655

633,881

435,201

1,357,077

* 3,530

* 2,699

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Transportation and warehousing—continued

Net income status, item

Truck

transportation

Other transit

and ground

transportation

(56)

(57)

Pipeline

transportation

Scenic

and

sightseeing

transportation

Support

activities for

transportation

(including

motor vehicle

towing)

Couriers

and

messengers

Warehousing

and

storage

facilities

(58)

(59)

(60)

(61)

(62)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

623,265

** 1,020,896

10,688

62,465

229,829

15,326

68,851,259

** 20,416,980

490,337

4,026,108

7,091,955

366,447

357,892

68,425,962

** 20,158,171

485,611

3,872,011

7,059,320

Other business income (loss) [1]

425,297

** 258,809

4,726

154,097

* 32,635

8,554

Business deductions, total [1,2]

58,963,980

** 16,640,888

524,257

3,753,057

5,711,192

366,905

Cost of sales and operations, total

7,143,078

** 240,657

23,338

1,160,350

639,287

50,439

Inventory, beginning of year

** 90,952

** 33,359

** 50,632

* 3,977

* 23,741

Cost of labor

1,191,221

** 78,607

* 447

161,338

* 74,130

* 1,673

Purchases

** 2,118,337

** 46,248

* 20,791

193,227

* 164,368

* 12,751

* 2,576

647,622

** 26,040

** 61,439

* 25,914

Other costs

Materials and supplies

3,214,359

** 93,327

* 863

761,316

* 373,828

34,182

Inventory, end of year

** 116,308

** 36,924

* 6,707

* 59,658

* 2,929

* 24,485

Advertising expenses

124,809

** 79,291

21,813

23,182

18,802

2,463

Car and truck expenses

15,198,325

** 5,490,923

22,742

414,858

2,855,038

50,450

Commissions

644,479

** 873,028

* 2,433

91,739

96,865

* 49

Contract labor

5,601,883

** 402,637

8,420

221,936

604,212

10,434

Depletion

* 14,439

** 160

Depreciation

4,599,380

** 693,862

175,001

298,568

80,911

17,125

* 2,252

Employee benefit programs

69,415

** 2,935

* 405

4,209

* 1,149

2,935,160

** 631,876

18,498

118,049

91,659

7,533

Legal and professional services

287,805

** 98,437

13,464

24,346

51,557

7,890

Meals and entertainment deducted

Insurance

2,147,166

** 262,904

3,515

35,544

59,204

4,792

Mortgage interest

114,707

** 101,502

* 6,436

9,492

* 2,383

* 2,390

Other interest paid on business indebtedness

372,439

** 48,922

4,666

27,584

24,911

2,834

Office expenses

287,546

** 92,521

7,458

31,661

38,602

11,625

* 1,089

Pension and profit-sharing plans

** 3,231

** 488

* 425

Rent paid on machinery and equipment

1,543,829

** 1,752,536

3,241

56,662

144,362

5,084

Rent paid on other business property

368,006

** 266,642

19,602

86,661

43,543

27,715

Repairs

4,810,221

** 546,251

23,144

146,213

116,296

12,697

Supplies

889,236

** 248,866

11,758

63,750

174,916

10,844

Salaries and wages

2,071,640

** 433,378

35,326

223,895

106,776

55,104

Taxes paid

9,255

1,121,524

** 263,959

7,398

64,212

22,263

Travel

762,668

** 133,912

24,062

35,833

62,415

8,951

Utilities

960,400

** 527,394

6,110

88,605

151,279

22,104

6,732,563

** 3,149,651

84,809

510,779

223,372

39,976

107,064

** 49,563

* 581

7,778

29,721

9,620,826

** 3,791,564

-32,891

280,993

1,386,426

-449

Other business expenses

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

11,349,224

** 5,318,351

* 77,557

462,382

1,688,517

92,182

Deficit [2]

1,728,398

** 1,526,787

* 110,448

* 181,389

* 302,091

92,631

Number of returns

43,202

** 235,378

* 588

14,165

48,119

* 5,584

Business receipts

554,564

** 715,884

* 7,439

68,402

340,215

* 48,218

Business deductions

53,035

** 248,755

* 39

* 6,692

71,668

* 3,684

Net income

501,528

** 467,129

* 7,400

61,710

268,547

* 44,534

Returns with Schedule C-EZ:

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Information

Net income status, item

Total

Publishing

industries

(except internet)

Motion

picture and

sound

recording

(63)

(64)

(65)

Finance and insurance

Broadcasting

Data processing,

(except internet)

internet

and telepublishing

communications and broadcasting,

and internet

and web search

service providers

portals

(66)

(67)

Total

Credit

intermediation

and related

activities

(68)

(69)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

367,766

54,718

122,541

66,741

123,766

609,412

33,640

11,744,041

1,702,220

3,850,279

3,154,057

3,037,485

76,056,618

2,389,765

2,271,942

11,544,129

1,689,633

3,722,359

3,111,030

3,021,107

74,754,150

Other business income (loss) [1]

199,912

12,587

127,920

43,026

16,379

1,302,468

117,823

Business deductions, total [1,2]

9,476,807

1,292,253

3,246,926

2,724,493

2,213,135

55,216,156

1,791,704

Cost of sales and operations, total

2,541,951

294,232

698,239

868,779

680,701

21,890,001

386,386

Inventory, beginning of year

74,167

20,255

5,404

29,808

18,699

366,797

82,653

Cost of labor

388,051

92,721

264,195

* 7,821

23,314

233,169

* 5,055

Purchases

1,237,123

49,432

88,980

648,537

450,174

13,549,018

128,301

Materials and supplies

71,406

21,768

17,670

4,549

27,418

242,755

* 178,925

Other costs

852,899

133,751

341,645

197,565

179,938

7,903,087

31,873

Inventory, end of year

81,695

23,696

19,656

19,500

18,842

404,825

40,421

Advertising expenses

274,777

33,050

57,894

52,477

131,355

1,098,336

42,781

Car and truck expenses

688,614

166,117

232,361

170,549

119,586

2,581,843

103,627

Commissions

243,668

17,494

26,356

118,478

81,339

2,981,844

58,068

Contract labor

589,137

53,292

249,873

167,609

118,362

1,323,658

45,986

* 10

** 10

4,001

* 34

Depreciation

Depletion

301,068

22,142

186,049

39,611

53,265

675,248

35,670

Employee benefit programs

21,527

5,999

6,015

6,265

3,247

184,970

3,147

Insurance

70,987

7,830

26,959

23,390

12,809

574,929

21,948

Legal and professional services

175,915

26,478

59,998

23,924

65,516

862,150

39,966

Meals and entertainment deducted

128,955

14,612

75,042

25,970

13,331

553,913

18,209

Mortgage interest

5,737

* 1,264

2,616

* 1,743

* 114

101,590

4,083

Other interest paid on business indebtedness

59,143

2,517

34,028

11,772

10,826

347,130

85,719

Office expenses

164,440

23,266

56,022

41,827

43,324

946,201

33,706

Pension and profit-sharing plans

11,775

* 7,057

2,761

890

* 1,067

126,816

* 11,777

Rent paid on machinery and equipment

72,564

5,700

48,005

10,989

7,869

213,310

4,075

Rent paid on other business property

317,038

29,299

108,973

118,210

60,556

1,554,863

71,206

Repairs

60,510

6,367

21,237

15,956

16,950

302,085

25,506

Supplies

396,958

22,367

160,506

165,470

48,615

545,206

38,762

Salaries and wages

637,150

87,590

175,041

270,225

104,294

4,780,430

206,190

Taxes paid

95,687

19,965

29,047

32,225

14,449

625,390

35,493

Travel

345,684

47,781

164,800

61,142

71,961

949,151

32,293

Utilities

386,467

40,447

132,734

90,417

122,869

1,181,451

57,527

1,654,907

318,766

583,602

386,005

366,533

10,431,570

410,635

Other business expenses

Home office business deductions, total

Net income less deficit [1,2]

192,963

32,747

94,213

13,907

52,096

308,598

18,730

2,333,927

434,649

622,201

436,127

840,950

20,879,459

598,105

Net income [1,2]

* 3,663,219

611,957

* 1,255,260

668,465

* 1,127,537

* 23,378,008

791,827

Deficit [2]

1,329,292

* 177,308

633,060

* 232,338

* 286,587

2,498,549

* 193,722

Number of returns

80,029

11,489

21,030

18,159

29,352

83,709

5,384

Business receipts

419,987

95,126

145,355

54,589

124,917

656,371

64,500

Returns with Schedule C-EZ:

Business deductions

39,178

5,875

14,546

6,656

12,101

71,471

* 181

Net income

380,809

89,252

130,808

47,932

112,816

584,901

64,319

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Finance and insurance—continued

Insurance agents, brokers, and related activities

Securities, commodity contracts, and other financial investments

Total

Investment

bankers and

securities

dealers

Securities

brokers

Commodity

contracts

brokers

and dealers

(70)

(71)

(72)

(73)

Net income status, item

Other financial

Securities and investment

activities

commodity

(investment

exchanges

advice)

(74)

(75)

Total

Insurance

agencies and

brokerages

Other

insurance

activities

and other

financial

vehicles

(76)

(77)

(78)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

173,466

5,979

13,309

3,662

1,003

149,512

402,306

310,944

91,362

42,625,116

6,213,122

3,363,991

695,012

952,876

31,400,116

31,041,737

26,040,881

5,000,855

4,880,812

41,672,288

6,232,461

3,082,374

** 1,612,615

30,744,837

30,809,920

25,929,108

Other business income (loss) [1]

952,829

-19,339

281,616

** 35,273

655,279

231,817

111,774

120,043

Business deductions, total [1,2]

34,240,205

6,001,041

2,493,540

621,991

944,805

24,178,828

19,184,248

16,329,304

2,854,944

Cost of sales and operations, total

20,658,377

5,552,643

1,372,559

219,366

* 877,665

12,636,143

845,238

702,191

143,047

Inventory, beginning of year

165,095

** 44,134

120,961

119,049

50,095

* 68,954

* 12,067

Cost of labor

68,375

* 19

68,356

159,739

147,671

13,312,054

5,422,400

* 354,605

* 175,181

* 877,254

6,482,615

108,663

90,412

18,251

18,311

** 3,877

14,434

45,519

21,542

* 23,976

7,327,667

* 131,666

1,010,505

** 40,159

6,145,338

543,547

449,777

93,770

233,126

* 34,688

** 2,878

195,561

131,278

57,307

* 73,972

Advertising expenses

257,985

5,583

21,255

23,919

207,219

797,569

735,802

61,768

Car and truck expenses

451,722

9,918

49,716

7,551

* 57

384,481

2,026,494

1,651,686

374,808

Purchases

Materials and supplies

Other costs

Inventory, end of year

Commissions

1,135,649

81,409

122,187

** 92,490

839,564

1,788,127

1,534,560

253,567

Contract labor

691,037

33,704

70,266

* 5,554

581,514

586,634

453,374

133,260

621

558

3,345

* 131

* 3,215

214,974

6,533

27,507

1,100

* 352

179,483

424,604

322,607

101,997

Employee benefit programs

81,627

3,572

4,899

** 1,946

71,211

100,196

92,162

8,034

Insurance

130,322

3,889

11,231

361

* 442

114,398

422,660

342,908

79,752

Legal and professional services

510,410

25,555

14,614

16,512

* 577

453,153

311,774

216,125

95,649

Meals and entertainment deducted

169,759

8,661

15,887

4,514

* 229

140,468

365,946

302,923

63,022

Mortgage interest

29,057

** 4,161

24,895

68,450

53,809

14,641

Other interest paid on business indebtedness

136,062

8,015

3,336

802

* 319

123,590

125,350

101,906

23,444

80,551

Depletion

Depreciation

Office expenses

288,903

6,083

31,032

15,170

258

236,361

623,591

543,041

Pension and profit-sharing plans

72,790

* 2,289

2,811

** 898

66,791

42,249

38,063

4,186

Rent paid on machinery and equipment

99,620

5,646

5,148

** 142

88,684

109,616

101,596

8,020

Rent paid on other business property

516,263

11,636

26,586

13,708

679

463,654

967,394

829,461

137,932

Repairs

91,609

868

6,785

* 349

* 54

83,553

184,970

172,182

12,789

Supplies

133,209

1,901

9,134

4,989

* 11

117,173

373,236

322,147

51,089

284,363

Salaries and wages

1,800,714

40,364

102,827

** 62,393

1,595,130

2,773,527

2,489,164

Taxes paid

206,517

9,936

17,215

933

* 492

177,941

383,380

340,675

42,705

Travel

416,242

14,478

16,312

18,590

* 266

366,596

500,616

413,575

87,041

Utilities

Other business expenses

Home office business deductions, total

271,085

7,861

22,329

3,403

424

237,068

852,839

729,389

123,450

5,753,270

156,334

523,162

132,169

57,033

4,884,573

4,267,665

3,656,079

611,586

107,632

2,990

12,989

* 298

* 492

90,862

182,237

142,153

40,084

8,392,362

211,932

870,450

73,515

8,071

7,228,393

11,888,992

9,735,465

2,153,527

Net income [1,2]

* 9,763,822

289,891

914,723

219,922

23,599

* 8,315,687

12,822,359

10,465,348

2,357,011

Deficit [2]

1,371,460

77,959

* 44,273

* 146,407

* 15,528

1,087,294

933,367

729,882

* 203,484

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Number of returns

23,297

* 653

3,076

** 448

19,120

55,027

37,961

17,066

Business receipts

232,746

* 22,574

18,108

** 2,653

189,411

359,126

215,041

144,085

Business deductions

14,750

* 683

* 25

** 281

13,761

56,540

41,597

14,944

Net income

217,996

* 21,891

18,083

** 2,372

175,650

302,586

173,444

129,141

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Real estate and rental and leasing

Real estate

Net income status, item

Total

Offices of real

Lessors of

real estate

estate agents,

Other

(including

brokers,

activities related

miniwarehouses

property

to real estate

and self

managers and

storage)

appraisers

Total

(79)

Rental and leasing services

(80)

(81)

(82)

(83)

Consumer

Automotive

electronics and

equipment rental

appliances

and leasing

rental

Total

(84)

(85)

(86)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

1,282,230

1,209,604

51,244

896,765

261,595

71,092

19,377

2,336

Business receipts, total [1,2]

82,601,087

77,274,746

2,760,329

52,673,186

21,841,231

5,277,327

938,181

70,268

Income from sales and operations [1]

80,608,583

75,485,609

2,684,155

51,178,326

21,623,128

5,076,254

913,978

** 289,427

Other business income (loss) [1]

1,992,504

1,789,137

76,174

1,494,861

218,102

201,073

24,203

** 1,948

Business deductions, total [1,2]

53,520,159

48,442,283

2,259,291

29,582,319

16,600,674

5,033,952

910,167

* 55,520

Cost of sales and operations, total

13,789,932

12,599,635

339,081

3,794,874

8,465,680

1,175,149

169,174

* 4,479

Inventory, beginning of year

2,809,908

2,593,550

38,187

351,170

2,204,194

216,358

104,431

Cost of labor

512,528

457,712

54,392

241,201

162,119

54,816

* 359

Purchases

6,464,533

5,641,640

193,526

1,395,938

4,052,176

** 822,894

** 112,653

Materials and supplies

1,286,237

1,158,989

20,687

234,873

903,428

127,249

* 21,958

Other costs

5,612,937

5,350,953

71,681

2,012,318

3,266,954

** 261,983

** 44,276

2,896,213

2,603,209

39,392

440,626

2,123,191

293,003

110,024

Advertising expenses

Inventory, end of year

2,452,915

2,382,345

21,217

1,977,096

384,032

70,004

8,997

* 667

Car and truck expenses

5,609,450

5,291,722

142,707

4,148,552

1,000,463

** 317,728

107,163

* 3,152

Commissions

3,544,401

3,488,865

38,747

2,894,794

555,325

53,843

37,377

Contract labor

1,913,911

1,745,610

95,229

1,253,200

397,181

163,262

** 18,405

Depletion

5,770

1,649

1,616

4,121

** 13

2,976,101

1,636,838

324,370

797,172

515,296

** 1,339,263

270,907

* 20,088

Employee benefit programs

124,500

110,739

8,636

71,311

30,792

** 13,762

** 1,963

Insurance

689,392

598,452

48,877

395,100

154,476

90,323

19,185

* 4,196

Depreciation

Legal and professional services

1,234,068

1,169,886

35,757

786,004

348,125

61,782

6,613

* 368

Meals and entertainment deducted

736,621

691,393

13,925

556,907

120,561

45,155

13,557

* 298

Mortgage interest

536,030

479,079

122,449

202,690

153,939

** 56,952

3,582

Other interest paid on business indebtedness

444,267

340,013

49,030

141,470

149,514

104,123

21,283

* 446

* 971

Office expenses

1,155,239

1,118,994

29,467

861,165

228,362

35,381

6,136

Pension and profit-sharing plans

45,881

44,704

* 10,562

28,145

5,996

1,177

* 20

Rent paid on machinery and equipment

407,769

313,184

15,555

219,701

77,929

** 94,584

29,161

** 623

Rent paid on other business property

** 1,701

1,219,766

1,102,200

105,723

718,557

277,919

117,157

15,825

Repairs

979,868

825,265

129,762

483,940

211,564

154,324

** 37,188

Supplies

1,101,973

965,369

37,604

665,970

261,795

135,833

9,394

* 282

Salaries and wages

2,556,632

2,244,602

136,190

1,401,875

706,536

** 312,030

** 42,961

990,854

867,138

127,256

499,612

240,269

123,187

9,777

* 2,624

Taxes paid

Travel

772,949

712,272

13,487

515,740

183,046

60,051

4,740

* 339

Utilities

1,995,077

1,895,138

140,010

1,375,809

379,319

98,903

11,513

* 1,650

Other business expenses

7,313,243

6,945,793

248,840

5,105,363

1,591,590

358,232

65,266

* 4,950

722,027

678,081

20,950

524,746

132,385

** 43,946

** 1,776

29,166,991

28,883,614

499,410

23,126,122

5,258,082

276,444

30,558

14,748

* 33,679,724

* 32,609,417

919,561

25,065,303

* 6,624,553

1,058,929

151,603

19,897

4,512,733

3,725,803

420,151

1,939,181

1,366,472

* 782,485

121,045

* 5,149

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Returns with Schedule C-EZ:

Number of returns

139,742

131,817

3,547

97,444

30,826

** 7,925

** 5,205

Business receipts

1,824,814

1,760,127

121,162

1,154,851

484,113

** 64,688

** 28,504

Business deductions

Net income

201,524

193,318

* 3,860

162,494

26,964

8,207

* 7,145

1,623,290

1,566,809

117,303

992,357

457,149

** 56,481

** 21,359

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Real estate and rental and leasing—continued

Professional, scientific, and technical services

Rental and leasing services—continued

Net income status, item

Formal wear

and costume

rental

Video tape

and disc

rental

(87)

(88)

Lessors of

Commercial

General rental

nonfinancial

and

centers and

intangible

industrial

other

machinery and assets (except

consumer

copyrighted

equipment

goods

works)

rental

and leasing

(89)

(90)

(91)

Total

(92)

Offices of

Legal services certified public

accountants

(93)

(94)

Other

accounting

services

(95)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

605

1,761

23,930

23,082

1,534

3,466,550

347,931

36,668

366,590

Business receipts, total [1,2]

291

221,107

1,578,485

2,468,995

49,014

188,626,180

40,868,244

4,056,721

9,536,589

9,413,304

Income from sales and operations [1]

* 291

1,563,683

2,308,875

46,721

185,149,616

40,186,760

4,014,368

Other business income (loss) [1]

14,802

160,120

* 2,293

3,476,564

681,484

42,353

123,286

Business deductions, total [1,2]

* 14,795

* 221,972

1,326,113

2,505,385

43,924

110,999,480

23,280,413

2,367,036

5,522,508

Cost of sales and operations, total

* 73,720

** 335,341

592,434

* 15,148

24,323,644

2,787,434

47,986

344,855

Inventory, beginning of year

** 67,893

44,033

891,388

58,058

* 19,678

8,437

Cost of labor

** 5,010

49,447

3,556,777

212,324

* 569

* 53,997

Purchases

* 59,527

** 332,218

** 318,496

9,432,142

47,065

** 18,665

Materials and supplies

** 18,311

86,979

3,292,697

165,479

** 16,914

Other costs

** 47,344

** 170,364

8,117,673

2,372,647

42,574

256,198

Inventory, end of year

** 121,242

61,737

967,033

68,139

* 19,973

* 4,218

Advertising expenses

416

* 1,235

47,773

10,916

* 565

2,833,054

902,399

32,948

64,449

Car and truck expenses

* 4,564

** 120,039

** 82,810

7,397,376

887,964

116,053

632,309

Commissions

* 1,793

14,673

* 1,693

1,373,116

286,209

30,035

78,029

Contract labor

** 80,915

63,943

* 5,039

6,430,007

1,139,549

91,150

235,419

Depletion

4,108

11,989

1,569

** 14

Depreciation

* 11,695

** 202,952

** 833,622

3,275,242

322,765

104,451

210,571

28,330

Employee benefit programs

4,569

** 7,231

676,080

233,714

33,302

Insurance

* 4,787

25,653

36,501

* 617

1,699,708

585,638

63,328

88,650

Legal and professional services

** 21,352

33,449

2,401

3,158,393

827,801

54,154

202,910

73,537

Meals and entertainment deducted

* 145

** 13,553

17,602

* 73

1,501,040

259,953

32,406

Mortgage interest

** 22,812

** 30,558

246,478

62,966

3,407

23,014

Other interest paid on business indebtedness

* 5,961

** 10,653

65,781

* 131

556,026

117,519

21,151

25,986

Office expenses

* 1,653

** 13,364

13,257

* 864

3,038,290

880,181

173,062

228,921

Pension and profit-sharing plans

* 631

* 526

334,466

94,716

11,221

12,419

Rent paid on machinery and equipment

13,565

** 51,236

809,949

179,707

22,780

55,309

224,137

Rent paid on other business property

28,585

33,928

37,118

409

4,658,143

1,871,880

149,290

Repairs

* 1,354

37,333

78,450

* 278

1,011,972

170,379

37,334

94,640

Supplies

* 4,561

** 77,240

44,356

* 771

3,098,325

344,999

45,334

161,095

Salaries and wages

* 47,419

62,355

** 159,296

13,706,454

4,503,517

610,770

885,453

Taxes paid

* 6,201

** 49,313

55,272

* 530

2,020,696

575,536

77,762

118,376

Travel

** 21,621

33,351

* 625

4,645,939

451,844

33,708

123,478

* 10,754

** 46,889

28,097

* 1,035

4,310,980

900,713

90,164

379,295

* 461

* 11,116

63,514

212,926

9,218

16,559,658

4,610,232

446,669

899,370

Utilities

Other business expenses

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

** 40,832

** 1,340

2,674,305

234,976

30,079

223,204

-14,504

-865

256,189

-9,681

6,933

77,705,005

17,591,812

1,689,686

4,017,363

23,141

419,887

444,401

11,378

85,325,983

* 18,246,729

1,776,951

* 4,478,754

* 14,504

24,006

* 163,698

* 454,082

4,445

7,620,978

654,917

* 87,265

461,391

Returns with Schedule C-EZ:

Number of returns

** 140

** 2,579

644,553

44,879

3,853

103,710

Business receipts

** 19,758

** 16,426

6,827,216

626,361

35,517

696,910

Business deductions

* 1,062

648,354

46,254

8,478

108,748

Net income

** 19,758

** 15,364

6,178,862

580,107

27,038

588,162

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Professional, scientific, and technical services—continued

Architectural, engineering, and related services

Net income status, item

Total

Architectural

services

Engineering

services

(96)

(97)

(98)

Surveying and

Drafting,

mapping

building

(except

inspections, and

geophysical)

geophysical

services

surveying

(99)

(100)

Testing

laboratories

Specialized

design

services

Computer

systems design

services

(101)

(102)

(103)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

280,184

129,573

90,208

47,176

7,272

5,954

265,140

280,871

16,384,728

8,033,296

5,824,908

1,579,742

434,146

512,638

10,336,499

12,403,274

12,382,642

16,211,318

7,873,243

5,812,334

1,579,673

** 946,068

10,178,124

Other business income (loss) [1]

173,410

160,053

12,574

* 68

** 716

158,375

20,631

Business deductions, total [1,2]

11,267,744

6,001,433

3,688,253

822,748

305,990

449,321

7,885,318

7,322,694

Cost of sales and operations, total

3,486,585

1,804,350

1,496,772

** 185,463

* [4]

3,771,361

1,852,685

Inventory, beginning of year

86,024

* 14,162

** 71,861

104,282

115,637

Cost of labor

412,553

293,698

** 118,855

167,459

574,986

Purchases

1,132,646

516,516

582,017

14,136

659

* 19,319

2,285,178

698,541

Materials and supplies

Other costs

Inventory, end of year

932,816

737,751

133,001

* 7,019

** 55,045

706,221

75,720

1,006,359

254,710

662,526

** 89,124

623,540

516,175

83,814

* 12,488

** 71,327

115,319

128,374

Advertising expenses

112,734

70,177

21,622

17,376

* 610

* 2,949

128,202

188,598

Car and truck expenses

767,547

410,023

169,769

135,697

9,760

* 42,299

450,674

527,677

Commissions

66,212

59,472

4,857

** 1,885

53,779

78,853

Contract labor

800,643

317,850

257,349

67,098

78,387

* 79,958

350,668

707,515

Depletion

* 151

** 151

* 26

Depreciation

548,593

375,067

79,613

21,293

* 47,041

* 25,579

207,408

155,871

44,398

Employee benefit programs

78,097

38,847

31,626

* 4,565

* 1,122

* 1,936

8,344

Insurance

298,884

185,385

66,522

30,750

12,678

3,550

42,942

42,735

Legal and professional services

237,287

124,311

89,056

16,338

3,765

3,817

113,365

114,886

Meals and entertainment deducted

90,387

41,906

34,497

12,202

569

* 1,213

70,334

93,539

Mortgage interest

28,709

10,470

* 6,861

* 11,154

** 224

6,962

5,164

Other interest paid on business indebtedness

55,906

28,254

20,082

* 2,402

* 367

* 4,801

30,463

24,129

185,042

Office expenses

193,955

94,224

61,864

31,224

4,136

2,507

130,480

Pension and profit-sharing plans

28,453

8,327

11,577

* 3,645

** 4,904

* 2,155

49,757

Rent paid on machinery and equipment

85,919

39,057

41,121

** 5,546

195

34,543

23,043

Rent paid on other business property

306,672

161,352

124,956

7,734

3,803

8,827

319,375

111,094

Repairs

159,729

120,423

24,101

6,406

2,468

* 6,332

33,802

38,913

Supplies

315,271

189,921

83,088

29,754

9,039

* 3,470

383,778

199,615

920,789

Salaries and wages

1,463,878

801,739

392,260

143,156

* 67,200

* 59,522

308,788

Taxes paid

234,553

135,379

63,099

16,648

11,481

* 7,945

91,436

99,418

Travel

256,750

74,237

154,865

16,016

* 3,457

8,175

160,571

370,784

Utilities

322,388

165,357

97,293

39,898

8,277

11,564

248,886

267,567

Other business expenses

989,080

553,512

269,504

114,281

20,375

31,408

675,279

972,709

Home office business deductions, total

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

310,763

175,949

76,674

48,356

** 9,783

228,737

207,761

5,121,625

2,036,093

2,137,065

756,995

128,156

63,317

2,442,433

5,087,334

* 5,775,387

* 2,352,942

* 2,390,165

807,492

135,531

89,256

3,010,594

* 5,672,367

653,762

316,849

253,100

* 50,498

7,376

25,939

568,161

585,033

Returns with Schedule C-EZ:

Number of returns

43,219

24,709

11,948

** 6,561

42,355

61,217

Business receipts

470,422

229,147

195,039

** 46,236

285,453

775,807

Business deductions

28,597

15,842

9,227

** 3,529

32,983

40,127

Net income

441,824

213,306

185,812

** 42,706

252,469

735,680

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Professional, scientific, and technical services—continued

Administrative and support and waste

management and remediation services

Other professional, scientific, and technical services

Total

Management,

scientific, and

technical

consulting

services

Scientific

research and

development

services

Advertising

and related

services

(104)

(105)

(106)

(107)

Net income status, item

Market

Other

research

miscellaneous

and public

services

opinion polling

(108)

(109)

Total

(110)

Waste

Administrative

management

and

support

remediation

services

(111)

(112)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

1,889,165

930,088

50,157

131,964

42,940

734,017

2,557,938

2,538,754

19,183

Business receipts, total [1,2]

95,040,125

50,476,497

1,199,653

8,196,172

1,195,734

33,972,069

75,647,974

72,981,513

2,666,461

Income from sales and operations [1]

92,763,101

49,081,900

1,186,893

8,143,474

1,188,326

33,162,508

74,738,925

72,115,347

2,623,578

Other business income (loss) [1]

2,277,024

1,394,596

12,760

52,698

* 7,408

809,561

909,049

866,166

42,883

Business deductions, total [1,2]

53,353,769

24,277,748

764,031

5,913,444

864,711

21,533,835

54,459,303

52,017,917

2,441,386

705,946

Cost of sales and operations, total

12,032,739

4,200,258

90,213

1,982,032

447,369

5,312,867

14,385,049

13,679,102

Inventory, beginning of year

499,273

** 172,790

42,325

* 5,077

279,081

206,866

197,138

9,727

2,134,888

** 1,150,634

57,859

* 84,815

841,580

2,542,735

2,499,121

43,613

Purchases

5,250,047

1,318,809

* 15,915

1,170,772

* 181,729

2,562,822

5,191,107

4,800,747

390,360

Materials and supplies

1,395,546

356,107

11,672

** 182,102

845,665

2,589,696

2,538,590

51,106

Other costs

3,300,180

1,433,527

43,144

** 749,416

1,074,093

4,065,912

3,828,069

237,843

Cost of labor

547,196

208,043

* 4,085

43,200

* 1,494

290,373

211,267

184,563

26,703

Advertising expenses

Inventory, end of year

1,403,724

634,142

13,686

380,667

7,275

367,954

787,849

751,817

36,031

Car and truck expenses

4,015,152

1,972,786

70,582

364,778

36,101

1,570,905

7,168,546

7,005,128

163,418

Commissions

779,999

343,995

3,563

167,667

* 10,628

254,146

709,434

699,483

* 9,951

Contract labor

3,105,063

1,702,357

62,080

457,177

48,517

834,933

3,458,219

3,413,289

44,931

Depletion

10,229

6,155

** 3,433

641

8,395

** 8,395

Depreciation

1,725,582

726,093

28,808

95,870

5,269

869,543

2,721,755

2,491,076

230,679

Employee benefit programs

249,896

133,122

4,229

19,439

2,551

90,556

126,302

114,218

12,084

Insurance

577,531

257,368

9,929

41,279

4,923

264,033

1,384,363

1,296,853

87,511

Legal and professional services

1,607,990

972,542

25,534

128,301

11,358

470,256

614,895

601,003

13,892

Meals and entertainment deducted

880,884

507,019

6,089

72,443

3,434

291,899

467,574

457,311

10,263

Mortgage interest

116,255

46,102

* 4,657

11,504

53,993

107,355

93,745

13,610

Other interest paid on business indebtedness

280,872

158,444

2,075

20,566

* 93

99,694

266,835

253,760

13,075

19,902

Office expenses

1,246,648

634,610

15,907

111,447

17,883

466,801

732,425

712,523

Pension and profit-sharing plans

135,744

91,320

1,753

4,636

* 2,644

35,392

44,631

43,937

* 694

Rent paid on machinery and equipment

408,647

170,941

3,520

41,617

3,513

189,056

508,452

494,050

14,402

Rent paid on other business property

31,580

1,675,694

739,829

39,234

215,521

31,603

649,507

811,179

779,599

Repairs

477,174

183,892

6,531

21,816

2,489

262,447

1,250,218

1,152,233

97,984

Supplies

1,648,232

543,316

38,028

169,622

21,118

876,147

2,898,005

2,837,800

60,205

Salaries and wages

5,013,260

2,084,351

78,049

368,503

75,381

2,406,976

5,658,918

5,355,892

303,026

823,614

331,364

10,464

46,858

16,475

418,452

929,515

872,825

56,690

Travel

3,248,803

2,124,202

62,092

209,691

13,539

839,279

783,347

775,771

7,575

Utilities

2,101,967

1,118,104

17,462

210,818

23,949

731,635

1,837,382

1,780,312

57,070

Other business expenses

7,966,318

3,593,791

129,040

634,190

52,827

3,556,470

5,435,330

4,995,423

439,907

Home office business deductions, total

1,438,784

809,478

31,544

114,612

4,414

478,736

639,239

628,307

10,932

41,754,752

26,238,310

435,941

2,284,589

331,023

12,464,889

21,240,361

21,014,858

225,503

Net income [1,2]

46,365,200

* 29,063,727

568,931

2,574,061

373,704

* 13,784,776

* 25,529,488

* 25,200,484

329,004

Deficit [2]

4,610,448

2,825,418

* 132,990

289,473

* 42,681

1,319,887

4,289,127

4,185,626

103,501

Taxes paid

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Number of returns

345,321

142,845

20,294

23,542

19,113

139,526

770,204

** 770,203

Business receipts

3,936,746

2,263,950

135,012

177,145

135,230

1,225,409

5,877,331

** 5,877,331

Business deductions

Net income

383,167

192,169

5,859

22,157

21,265

141,716

724,950

** 724,950

3,553,580

2,071,781

129,152

154,987

113,965

1,083,693

5,152,381

** 5,152,381

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

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

Health care and social assistance

Educational

services

Net income status, item

Ambulatory health care services

Total

(113)

(114)

Total

Offices of

physicians

(except mental

health

specialists)

Offices of

physicians,

mental

health

specialists

Offices

dentists

Offices

chiropractors

Offices

optometrists

(115)

(116)

(117)

(118)

(119)

(120)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

823,153

2,127,345

1,234,900

191,001

38,021

68,359

35,978

20,172

12,991,265

121,086,389

97,997,476

31,370,296

3,882,589

24,440,334

4,077,356

4,086,358

4,031,905

12,787,414

119,351,156

96,675,955

30,645,434

3,874,253

24,297,489

4,012,432

Other business income (loss) [1]

203,852

1,735,234

1,321,521

724,862

8,335

142,845

64,924

54,452

Business deductions, total [1,2]

8,500,048

72,717,227

57,517,015

16,590,434

1,595,127

16,905,891

2,600,541

2,921,706

Cost of sales and operations, total

916,395

6,478,778

5,635,585

1,886,126

24,739

1,591,450

248,424

817,663

Inventory, beginning of year

96,551

432,186

374,606

74,672

* 3,335

** 49,806

101,125

Cost of labor

115,148

1,203,518

1,012,511

** 299,775

264,135

* 4,880

* 1,030

Purchases

396,262

2,146,517

1,896,866

** 780,911

193,592

103,980

581,766

Materials and supplies

102,045

920,631

864,568

134,855

* 5,855

447,567

* 7,296

118,224

Other costs

322,012

2,245,708

1,895,159

682,116

* 11,633

690,124

129,529

124,809

Inventory, end of year

115,625

469,783

408,125

79,188

* 3,100

** 51,035

109,292

Advertising expenses

226,061

1,089,481

936,839

167,313

22,341

318,439

107,279

39,043

Car and truck expenses

910,627

3,771,397

2,671,100

342,203

99,476

158,360

128,505

43,055

Commissions

133,662

493,807

447,476

63,788

* 16,638

58,518

* 10,117

* 3,735

Contract labor

50,055

430,082

2,896,298

2,240,153

673,671

149,952

400,318

76,447

Depletion

* 832

397

396

* 225

** 91

Depreciation

234,079

2,162,450

1,760,233

402,504

46,722

728,876

85,917

75,809

35,900

Employee benefit programs

12,392

602,771

526,122

210,556

11,283

144,051

21,756

Insurance

129,887

1,930,906

1,622,533

704,529

64,023

334,354

73,061

46,343

Legal and professional services

168,655

1,513,832

1,333,598

453,967

76,926

290,291

46,918

35,244

Meals and entertainment deducted

112,481

1,171,741

452,784

96,105

25,012

55,031

15,712

8,037

Mortgage interest

20,922

293,634

161,340

38,459

* 4,095

76,110

* 5,977

* 2,489

Other interest paid on business indebtedness

35,556

445,066

356,461

67,751

3,726

174,472

36,435

23,524

Office expenses

231,269

1,845,179

1,584,256

447,952

55,135

432,857

135,371

52,178

Pension and profit-sharing plans

7,386

380,834

377,096

155,276

4,011

172,598

* 3,204

5,243

Rent paid on machinery and equipment

66,852

521,552

382,975

123,144

11,126

78,439

13,275

11,985

Rent paid on other business property

808,232

5,497,095

4,468,064

1,164,598

219,990

1,027,595

376,519

260,568

Repairs

121,696

1,018,285

684,796

151,207

18,207

242,046

37,357

16,022

Supplies

395,942

4,336,021

3,310,230

885,875

43,345

1,323,102

233,027

52,632

Salaries and wages

777,729

16,841,367

13,883,857

3,960,152

184,414

5,744,630

437,217

756,820

Taxes paid

174,507

2,210,889

1,808,223

502,151

51,976

677,451

74,722

94,150

Travel

426,703

1,073,900

923,381

278,605

61,033

97,733

36,718

18,333

Utilities

414,814

2,730,490

1,908,874

404,130

81,347

405,323

109,322

70,387

1,331,351

11,612,802

9,340,993

3,299,022

275,284

2,352,502

256,818

395,969

236,011

1,319,169

422,449

75,498

40,039

13,023

21,037

1,438

4,501,012

48,449,274

40,513,212

14,789,444

2,287,535

7,534,852

1,476,815

1,170,733

Net income [1,2]

* 5,536,357

* 51,715,888

* 42,726,775

15,144,315

2,338,649

7,735,881

1,509,150

1,186,947

Deficit [2]

1,035,344

3,266,614

2,213,563

354,871

* 51,113

* 201,029

* 32,335

* 16,214

Other business expenses

Home office business deductions, total

Net income less deficit [1,2]

Returns with Schedule C-EZ:

Number of returns

273,675

585,946

303,460

40,940

3,293

11,158

* 4,337

* 3,651

Business receipts

1,257,203

5,598,162

3,295,877

795,242

19,838

98,602

* 93,536

* 47,720

Business deductions

Net income

175,925

479,085

277,200

35,627

4,285

8,244

* 9,396

* 5,083

1,081,277

5,119,077

3,018,677

759,615

15,553

90,358

* 84,139

* 42,637

Footnotes at end of table.

Statistics of Income Bulletin

Spring 2019

Sole Proprietorship Returns, Tax Year 2016

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2016—Continued

[All figures are estimates based on samples—money amounts are in

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