S Corporation Returns, 1999

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by Kelly Bennett

ince 1996, S corporations are the single largest

corporate entity type filing Form 1120, U.S.

Tax Return for a Corporation. For Tax

Year 1999, over 55.2 percent of all corporations filed

a Form 1120S, up from 53.4 percent filed for Tax

Year 1998. The total number of returns filed by

S corporations for Tax Year 1999 increased by over

5.3 percent to 2.7 million, from nearly 2.6 million for

Tax Year 1998.

The continued growth in S corporations for Tax

Year 1999 was affected by four legislative acts: the

Tax Reform Act of 1986, the Revenue Reconciliation

Act of 1990, the Revenue Reconciliation Act of 1993,

and the Small Business Job Protection Act of 1996

[1]. Since the Tax Reform Act of 1986, the average

annual growth is 9.9 percent (Figure A). Over the

same period, the number of all other corporations

experienced an average annual decline of 1.2 percent

[2]. More than 301.8 thousand corporations elected

subchapter S status for the first time during Tax Year

1999. Nearly 216.5 thousand (7.9 percent of all

S corporations) were newly incorporated businesses.

The remaining 85.3 thousand converted from taxable

corporation to S corporation in 1999. Even though

the growth rate for all corporations slowed from Tax

Year 1998 to Tax Year 1999, the number of businesses electing S corporation status continued to

increase.

SCorporationBasics

An S corporation is an incorporated entity that has

many of the same attributes as the traditional

C corporation, including limited liability, freely

transferable ownership, and unlimited life span. But

in exchange for certain limitations, an S corporation

obtains the advantage of a flow-through entity for

income tax purposes. The election to be treated as

an S corporation allows income and expenses to pass

through the corporate structure to the shareholders.

Any resulting tax liability is the responsibility of the

shareholders. This benefit eliminates double taxation

of the corporation’s net income or capital gains. This

treatment is different from the treatment of a taxable

corporation, which incurs a tax liability first at the

Kelly Bennett is an economist with the Corporation

Special Projects Section. This article was prepared

under the direction of Doug Shearer, Chief.

corporate level on its net income and capital gains

and again when profits are distributed to shareholders

in the form of dividends. The elimination of double

taxation can result in considerable tax savings for a

corporation that is eligible to make a Subchapter S

election. The tax benefits of an S election are

equally valuable for corporations that report net

losses, as the losses flow through to the individual

shareholders and, for shareholders with active

participation in the business, can be used to offset net

income from other sources.

To qualify under Subchapter S, a corporation

must meet all criteria in Subchapter S of the Internal

Revenue Code for an election and file Form 2553,

Election by a Small Business Corporation, with the

IRS Submission Processing Center where the corporation files its Federal tax forms. All shareholders of

the corporation must concur with the election on

Form 2553, and all eligibility requirements must be

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

Year 1999 were that the corporation:

r be a domestic corporation (an unincorporated

association, that is treated as a corporation

under Internal Revenue Code section 7702, may

elect treatment as an S corporation);

r have no more than 75 shareholders (a husband

and wife (and their estates) are counted as one

shareholder for this requirement);

r have only individuals, estates, certain trusts, and

exempt organizations as shareholders [4];

r have no nonresident alien shareholders; and

r have only one class of stock.

Ineligible corporations were:

r affiliated group members eligible for inclusion on

a consolidated return;

r insurance companies subject to provisions of

Subchapter L of the Internal Revenue Code;

r Interest-Charge Domestic International Sales

Corporations (IC-DISC’s) or former Domestic

International Sales Corporations (DISC’s);

S Corporation Returns, 1999

Figure A

Form 1120 Series Returns by Percentage of Filings, Tax Years 1986-1999

Percentage of filings

100

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Tax years

S corporations

r corporations eligible to elect the possessions tax

credit; and

r banks or thrift institutions that use the reserve

method of accounting for bad debts under

Internal Revenue Code section 585.

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

month following the close of the tax year. Also,

S corporations must generally use a calendar year

for their tax year. While S corporations may obtain

an exemption from the calendar year rule if they can

establish a business purpose for a different tax year,

for Tax Year 1999, over 90.0 percent of all S corporations filed a calendar year return [5].

Subsidiaries

The Small Business Job Protection Act of 1996

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

All other corporations

subsidiary and to elect to have the subsidiary’s

operations taxed as part of the parent and not separately [6]. The elected subsidiary is known as a

qualified subchapter S subsidiary or QSUB. A

QSUB is not treated as a separate corporation;

instead, all assets, liabilities, income, deductions, and

credit items are treated as part of the parent.

Since 1997 returns filed with a QSUB have

grown over 51.7 percent to nearly 2,900 for Tax

Year 1999 (Figure B). Approximately 1,900 S corporations reported a QSUB election in 1997. These

S corporations reported total assets of $153.6 billion

and total net income (less deficit) of $9.1 billion for

Tax Year 1999. Many of the S corporations that

made the election to treat a subsidiary as a qualified

subsidiary made the election for multiple subsidiaries

owned. Figure B displays S corporations reporting

the QSUB election for Tax Year 1999, along with

total assets and total net income (less deficit), by

industrial division.

S Corporation Returns, 1999

Figure B

S Corporation Filings with Qualified Subchapter S Subsidiaries, by Industrial Division,

Tax Year 1999

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

Industrial division

Number of

returns

(1)

All industries........................................................................................................................

2,884

Total

assets

Total net income

(less deficit)

(2)

(3)

153,628,315

9,114,942

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

105

4,723,149

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

668

33,884,970

140,740

4,668,081

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

889

19,664,426

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

7,012,451

1,374,762

466,316

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

423

28,531,189

1,103,529

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

558

56,467,912

1,231,706

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

380,691

29,198

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

104

2,651,296

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

*73

*312,231

58,455

*42,155

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

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

FinancialDataHighlights

Figure C presents total net income (less deficit) for

each industrial sector. For S corporations, total net

income (less deficit) includes the following: net

income (less deficit) from trade or business, real

estate rental income (less deficit), net income (less

deficit) from other rental activity, and portfolio

income (less loss) distributed to shareholders.

Table 1 groups the data for all S corporations by

industrial divisions and sectors. Total net income

(less deficit) increased to $193.8 billion for Tax Year

1999, a 6.6-percent increase over the $181.8 billion

reported for Tax Year 1998 [7]. The largest component of total net income (less deficit) is net income

(less deficit) from a trade or business. This accounted for 70.9 percent of total net income (less

deficit), as compared to 1998, when it accounted for

68.7 percent. Both portfolio income and net income

(less deficit) from other rental activity, elements of

net income less deficit, decreased from Tax Year

1998 to Tax Year 1999, reporting 2.5 percent and

24.6 percent respectively. (See definition of portfolio

income in Explanation of Selected Terms.) For Tax

Year 1999, net long-term capital gain (less loss) was

$33.9 billion, down from nearly $38.0 billion in 1998, a

decrease of 10.8 percent. S corporations reported a

372.6-percent increase in net short-term capital gain

(less loss) for Tax Year 1999, $2.4 billion compared

with $0.5 billion reported in Tax Year 1998.

Four industrial divisions earned over 85.0 percent

of total net income (less deficit) for Tax Year 1999

and accounted for 74.2 percent of all returns filed:

goods production; distribution and transportation of

goods; professional and business services; and finance, insurance, real estate, and rental and leasing.

Goods production, which includes the construction

and manufacturing sectors, reported total net income

(less deficit) of $62.1 billion. Distribution and transportation of goods, which includes the wholesale and

retail trade and transportation and warehousing

sectors, accounted for $42.2 billion. Professional and

business services reported $39.0 billion, and the

finance, insurance, real estate, and rental and leasing

division reported $21.3 billion. The finance, insurance, real estate, and leasing division, although one of

the four largest divisions for Tax Year 1999, reported

a decrease in net income of 21.2 percent from Tax

Year 1998 when $27.0 billion were reported.

Table 2 presents S corporations that reported

positive total net income, by industrial division and

industrial sector. S corporations reported $240.6

billion in positive total net income for Tax Year 1999,

an increase of $16.6 billion from Tax Year 1998.

Over 1.7 million (64.8 percent) S corporations reported positive total net income, a slight increase

from 64.5 percent in Tax Year 1998. For Tax Year

1999, net income (less deficit) from a trade or business was $182.9 billion, up 9.6 percent from Tax

S Corporation Returns, 1999

Figure C

S Corporations: Total Net Income (Less Deficit), by Industrial Sector, Tax Year 1999

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

All

Industries

Item

(1)

Agriculture,

forestry,

fishing, and

hunting

(2)

Mining

Utilities

(3)

(4)

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

193,756,411

1,365,099

2,037,505

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

137,348,605

378,649

1,171,390

Portfolio income (less deficit) distributed to shareholders......................................................................

50,205,070

696,374

850,499

Dividend income......................................................................1,863,975

35,250

97,313

Interest income...................................................................... 11,209,086

265,901

219,764

Royalty income...................................................................... 684,217

38,577

93,579

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

2,396,942

12,176

17,763

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

33,857,755

334,389

420,935

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

193,096

10,081

1,144

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

5,510,971

251,626

10,914

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

691,765

38,450

4,702

Item

Wholesale and

retail trade

Wholesale

trade

Retail

trade

(7)

(8)

(9)

242,427

186,061

56,406

1,369

50,141

*487

*4,395

-*-482

*443

Wholesale

and

retail trade

not allocable

(10)

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

39,471,708

21,390,089

18,075,378

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

32,958,902

18,051,891

14,903,482

Portfolio income (less deficit) distributed to shareholders......................................................................

5,949,490

3,057,574

2,889,712

Dividend income...................................................................... 258,812

152,673

106,131

Interest income...................................................................... 1,982,476

922,172

1,057,859

Royalty income...................................................................... 179,957

137,986

41,941

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

-13,723

22,519

-21,783

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

3,482,352

1,814,674

1,653,497

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

59,616

7,550

52,066

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

373,834

172,125

201,365

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

189,482

108,499

80,819

Item

Finance

and

insurance

Real estate

and rental

and

leasing

Professional,

scientific,

and technical

services

(13)

(14)

(15)

Health care

and social

assistance

Arts,

entertainment,

and recreation

(19)

(20)

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

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

(5)

(6)

37,082,034

28,768,846

8,104,704

242,965

1,436,954

86,872

67,394

6,266,943

3,577

143,258

65,226

Transportation

and warehousing

Information

(11)

(12)

6,242

3,529

2,205

2,445

*-14,459

14,181

-*344

165

2,765,560

2,075,641

662,153

36,020

232,871

327

20,531

369,309

3,096

53,224

-25,458

6,677,029

2,988,385

3,630,900

66,470

432,497

17,567

2,772

3,104,830

6,764

48,870

8,874

Management

companies

(16)

10,793,943

1,822,633

9,013,900

352,450

689,359

8,136

238,188

7,691,100

34,667

3,779

-46,369

6,084,902

4,412,903

1,627,443

21,058

247,060

*1,270

2,424

1,355,278

354

-1,049

45,605

Accommodation and food

services

Other

services

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

7,600,475

2,806,814

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

6,793,519

1,178,085

Portfolio income (less deficit) distributed to shareholders......................................................................

766,123

1,565,451

Dividend income..........................................................................................................23,445

28,086

Interest income..........................................................................................................219,580

190,854

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

-130,356

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

248,480

9,431

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

278,135

1,190,313

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

*-3,516

16,411

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

35,636

54,485

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

5,197

8,793

Manufacturing

24,975,895

21,779,086

3,002,383

138,862

1,308,568

6,052

87,160

1,459,087

2,653

179,271

15,155

Administrative

and support

and waste

management

and remediation

services

(17)

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

9,587,976

11,714,772

22,149,530

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

4,605,484

3,675,791

17,779,336

Portfolio income (less deficit) distributed to shareholders......................................................................

4,941,006

3,647,600

4,217,325

Dividend income...................................................................... 182,107

184,229

154,313

Interest income...................................................................... 1,106,736

1,592,536

724,461

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

974

83,078

31,905

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

1,244,200

157,106

223,800

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

2,356,984

1,622,510

3,084,785

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

50,005

8,141

-1,939

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

37,408

4,100,083

106,764

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

4,078

291,298

46,105

Item

Construction

(21)

(22)

3,838,744

2,839,843

911,172

24,257

340,194

4,013

59,380

481,305

*2,023

62,216

25,513

3,594,027

3,083,320

446,666

12,407

123,923

*1,517

19,114

289,685

*19

49,682

14,359

Educational

services

(18)

645,446

538,378

111,921

4,546

41,740

*23

200

65,412

--5,165

312

Nature of

business

not allocable

(23)

322,523

312,353

3,554

*16

3,471

-59

-*6,617

S Corporation Returns, 1999

Year 1998 when $166.8 billion were reported. Net

income (less deficit) from other rental activity was

less than $1.0 billion, a decrease of 15.6 percent from

Tax Year 1998. This decrease is due to the reduction in net income (less deficit) from the finance,

insurance, real estate, and rental and leasing division,

which reported $0.5 billion. This sector is down 31.1

percent from the previous tax year when $0.7 billion

were reported.

Table 3 presents S corporation data reported on

the balance sheet, by industrial division and sector.

S corporation total assets increased 11.9 percent to

$1,628.7 billion for Tax Year 1999 [8]. The two

largest asset categories for Tax Year 1999 were net

depreciable assets and notes and accounts receivable. Net depreciable assets accounted for $372.8

billion, or 22.9 percent of total assets. Notes and

accounts receivable accounted for $352.4 billion, or

21.6 percent of total assets for all S corporations.

Overall, other investments increased 24.7 percent

$172.5 billion. This asset category reported the largest percentage increase. Other categories of assets

that displayed large percentage increases were net

intangible assets (amortizable), which increased 17.1

percent to $32.7 billion; tax exempt securities, which

increased 14.0 percent to $9.3 billion; and notes and

accounts receivable, which increased 13.3 percent to

$352.4 billion.

Four industrial divisions accounted for more than

85.0 percent (or $1,385.1 billion) in total assets:

goods production; distribution and transportation of

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

leasing; and professional and business services (Figure D). With $447.2 billion, or 27.5 percent of total

assets for all S corporations, the goods production

division reflects the largest percentage of total assets.

S corporations in distribution and transportation of

goods held $432.1 billion in total assets, accounting

for 26.5 percent of all total assets. S corporations in

finance, insurance, real estate, and rental and leasing

accounted for $284.6 billion in total assets, or 17.5

percent of all total assets. Professional and business

services for S corporations held the fourth largest

share of total assets. These corporations reported

13.6 percent or $221.2 billion in total assets.

Figure D

S Corporation Total Assets, by Industrial Division, Tax Year 1999

All other ¹

15.0%

Goods production

27.5%

Professional and business

services

13.6%

$1.7 Trillion

Finance, insurance, real

estate, and rental and

leasing

17.5%

Distribution and

transportation of goods

26.5%

¹ All other includes: Not allocable, raw materials and energy production, other services, education services, information, and

leisure, accommodation and food services.

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

S Corporation Returns, 1999

IncomefromRentalRealEstate

For the 1999 Tax Year, 225,049 S corporations

reported Rental Real Estate Income on Form 8825,

Rental Real Estate Income and Expenses of a

Partnership or an S Corporation. S corporations

report on Form 8825 income and deductible expenses

from rental real estate activities, including net income

(loss) from rental real estate activities that flow through

from partnerships, estates, and trusts. Table 4 shows

rental real estate income by selected industrial

divisions and industrial sectors. Net rental real estate

income (less deficit) increased 21.2 percent, from

$4.5 billion for Tax Year 1998 to $5.5 billion for 1999.

The real estate rental and leasing sector accounted

for the majority of net rental income (less deficit) at

74.4 percent. The real estate group reported 73.8

percent of all net rental income (less deficit) for all S

corporations. This group also represented 68.1

percent of all returns reporting income on Form 8825.

Net gain from sales of business property, an activity

related to rental real estate and reported on this form,

decreased 67.3 percent to $35.6 million from Tax

Year 1998 when $109 million in gains were reported.

This decrease was due not only to the decrease in

gains from sales of business property but also from

an increase in losses reported by the sales of business property. Gains from sales of business property

for Tax Year 1998 were $113.8 million, while, for

Tax Year 1999, they were $44.8 million. Gross

income for returns reporting rental real estate income

was $24.3 billion, an increase of 6.6 percent.

Net income (less deficit) from partnerships and

fiduciaries reported an increase from $490.0 million

to $725.9 million between Tax Years 1998 and 1999.

Data By Number of Shareholders

Even though the Tax Year 1999 data show that 98.6

percent of S corporations are owned by 10 or fewer

shareholders, the number of S corporations with 11–30

shareholders increased 3.1 percent to 18,563 in Tax

Year 1999 from 18,000 in Tax Year 1998. Even with

this slight increase, the total number of returns in this

category is still 8.8 percent below the 20,369 reported

in Tax Year 1997. The number of S corporations

with more than 30 shareholders increased 80.0

percent from almost 1,400 in Tax Year 1998 to

nearly 2,500 in Tax Year 1999. Still, the majority of

all new S corporations, 98.7 percent, reported 10 or

fewer shareholders.

The number of shareholders for a small number

of existing S corporations increased. Nearly 1,700

S corporations had more than 35 shareholders during

Tax Year 1999, an increase of 136.2 percent from

Tax Year 1998 and an increase of 181.5 percent

since the inception of the Small Business Job Protection Act of 1996. This act eased restrictions on the

limitation to the number of shareholders. (See Explanation of Selected Terms for further detail on the

Small Business Job Protection Act of 1996.) Overall,

the number of shareholders increased to 81,336 in

Tax Year 1999 from 34,319 in Tax Year 1998, for

returns with more than 35 shareholders.

SCorporationTaxation

S corporations, because they are flow-through

entities, generally do not pay income tax. However,

they may be liable for any of four types of Federal

income tax. The most common of these Federal

taxes is the “built-in gains” tax. The built-in gains tax

accounted for nearly $358.7 million, or 78.0 percent

of all Federal income tax reported by S corporations

in Tax Year 1999. The built-in gains tax does not

apply to S corporations that were incorporated before

1987 or had a valid S election in place since the

inception of the business. S corporations are liable for

the built-in gains tax if there is a gain realized from

the sale of an asset within 10 years from the first day

of the S corporation’s election to convert from a C

corporation. The built-in gains tax is limited to net

appreciation occurring prior to a C corporation’s

election as an S corporation [9].

S corporations are also subject to the net passive

income tax, the investment recapture tax, and the

LIFO recapture tax (included in “Adjustments to tax”

in Figure E). (See Explanation of Selected Terms.)

These taxes only apply to S corporations that operated as a taxable corporation prior to making an

S corporation election. S corporations with total net

passive investment income accounting for more than

25 percent of gross receipts and with subchapter C

earnings are subject to the excess net passive income

tax. (See definition of excess net passive income tax

in Explanation of Selected Terms). S corporations

are liable for the recapture attributable to credits

allowed in the years before the corporation made an

S corporation election. Finally, the LIFO recapture

tax applies to S corporations that used the last in, first

out (LIFO) method for maintaining inventory. The

S Corporation Returns, 1999

Figure E

S Corporation Taxes, Tax Years 1998 and 1999

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

Items

1998

1999

Percent

change

(1)

(2)

(3)

increased to nearly 5.1 million, up 4.9 percent

from the previous year.

r Total assets increased 11.9 percent from $1.5

trillion in Tax Year 1998 to $1.6 trillion in Tax

Year 1999, with four industrial divisions accounting for 85.0 percent of total assets reported.

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

479,411

459,754

-4.1

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

393,321

358,704

-8.8

r Total net income (less deficit) increased to

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

17,466

13,905

-20.4

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

66,594

84,727

27.2

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

*755

1,415

*87.4

$193.8 billion, or 6.6 percent. As the largest

component of total net income less deficit, net

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

*1,275

1,004

*-21.3

income (less deficit) from a trade or business

*Estimate should be used with caution because of the small number of

sample returns on which it is based.

reported 70.9 percent of the total, or $137.3

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

billion. Portfolio income (less deficit) fell slightly

to $50.2 billion. This decrease was largely due

to the 10.8-percent decline in net long-term

LIFO recapture amount is derived from the inventory

capital gains. The 372.6-percent growth in net

amount by which the first in, first out (FIFO) method

short-term capital gains helped offset the $4.1exceeds the valuation of inventory under the LIFO

billion drop in net long-term capital gains,

method. Inventory that is transferred to an S corpothereby causing portfolio income to decrease

ration during a tax-free reorganization of a C corpoonly 2.5 percent.

ration is also subject to the LIFO method.

The tax liability of S corporations for Tax Year

r Consistent with prior years, less than half of 1.0

1998 and Tax Year 1999 is shown in Figure E. The

percent of all S corporations reported Federal

adjustments to tax include Internal Revenue Code

tax liability, for a total tax liability of $459.8

section 1363(d) LIFO recapture taxes and interest

million. This was a 4.1-percent decrease from

due from Form 8697, Interest Computation under

Tax Year 1998, when $479.4 million were

Look-Back Method for Completed Long-Term

reported. The largest component of total tax

Contracts. The income tax adjustment includes

liability was the built-in gains tax, which repreInternal Revenue Code section 1291(c)(2) deferred

sented $358.7 million in total tax liability.

tax of a shareholder in a passive foreign investment

company.

r Qualified subchapter S subsidiaries have grown

Total net income of $193.8 billion and total tax

over 51.7 percent to nearly 2,900 QSUB elecliability of $0.5 billion were reported for S corporations since the first statistics were published in

tions in 1999. Of the 2.7 million S corporations that

1997. S corporations making the QSUB election

filed for 1999, only 9,800 posted a tax liability. Altoreported total assets of $153.6 billion and total

gether, S corporations reporting tax obligations reprenet income (less deficit) of $9.1 billion.

sent less than half of 1 percent (0.36 percent) of all S

corporation returns filed.

ExplanationofSelectedTerms

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

Conclusion

corporate level tax on S corporations that dispose of

assets that appreciated in value during years when

r For Tax Year 1999, the number of S corporathe corporation was a C corporation. The S corporations grew with a 5.3-percent increase in the

tion may be liable for the tax on its built-in gains if: it

number of returns filed compared to Tax Year

was a C corporation prior to making its S corporation

1998. S corporations are the most popular

election; the S corporation election was made after

corporate entity with 55.2 percent of all U.S.

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

corporations electing treatment under Subchapter

recognition period of 10 years; and the net recognized

S. The number of shareholders for S corporations

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

S Corporation Returns, 1999

unrealized gain minus the net recognized built-in gain

for prior years in the recognition period, to the extent

that such gains were subject to tax.

Excess Net Passive Income.--The excess net

passive income is the income that bears the same

ratio to net passive income as the amount of passive

investment income, exceeding 25 percent of gross

receipts, bears to passive investment income.

LIFO Recapture Tax.--The LIFO recapture

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

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

method exceeds the inventory amount of such assets

under the LIFO method.

Limited Liability Company (LLC).--The limited

liability company is a State-registered entity that can

be taxed like a partnership for Federal income tax purposes, but its members, like corporate shareholders, are

not personally liable for the entity debts and liabilities.

Net Passive Income.--Net passive income is

passive investment income reduced by any allowable

deduction directly connected with the production of

such income except for the net operating loss deduction under Internal Revenue Code section 172 and

the special deductions allowed to corporations by

Internal Revenue Code section 241.

Passive Investment Income.--Passive investment income is gross receipts derived from royalties,

rents, dividends, interest (excluding interest on installment sales of inventory to customers and income of

certain lending and financing businesses), annuities,

and sales or exchanges of stock or securities to the

extent of any gain therefrom.

Portfolio Income.--Portfolio income (less deficit) consists of interest, dividends, annuities, and

royalties, as well as gain or loss from the disposition

of income-producing or investment property that is

not derived in the ordinary course of trade or business.

Qualified Subchapter S Subsidiaries (QSUB).-A qualified subchapter S subsidiary is any domestic

subsidiary of an S corporation (a) that is itself eligible

to be an S corporation under Subchapter S of the

Internal Revenue Code, and (b) in which the S corporation holds 100 percent of the stock and which the

S corporation elects to treat as a QSUB.

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

a number of changes related to S corporations.

Among the changes, it increased the number of

permitted shareholders for S corporations from 35 to

75, allowed an electing small business trust with

multiple beneficiaries to qualify as an S corporation

shareholder, allowed charitable organizations and

qualified retirement plans (but not individual retirement accounts) to be S corporation shareholders,

allowed S corporations to hold certain subsidiaries,

and provided a special qualified subchapter S subsidiary election so that wholly owned subsidiaries could

be considered part of the S corporation for Federal

income tax purposes.

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

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

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

portfolio income, net income (loss) from rental real

estate activities, net income (loss) from other rental

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

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

S corporation net income (less deficit) was represented by ordinary income (loss). The sum of the

above components is a comprehensive measure of S

corporation profits and losses which enables comparisons to be made with years prior to 1987.

Total Receipts.--Total receipts are defined as

the sum of business receipts; interest on government

obligations, State and local; net gain on noncapital

assets; and other receipts. S corporations report

receipts for interest, rents, royalties, net capital gains,

and dividends on Form 1120S, Schedule K and are

not included in these statistics.

Trusts.--Trust refers to “electing small business

trust” which can be an S corporation shareholder.

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

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

does not have “potential current beneficiaries.” This

type of trust is different from the qualified subchapter

S trust (QSST).

DataSourcesandLimitations

The statistics for Tax Year 1999 are based on a

sample of S corporation income tax returns (Form

1120S) with accounting periods ending July 1999

through June 2000. These returns posted to the

Internal Revenue Service Business Master File

between July 1999 and the end of June 2001.

The estimates in this article were based on a

stratified probability sample of 44,676 S corporation

S Corporation Returns, 1999

returns drawn from a total population of 2,866,963

returns. Returns in the sample were stratified based

on combinations of total assets and ordinary income.

These returns were selected at rates ranging from

0.25 percent to 100 percent. The sample was selected after administrative processing, but before

audit examination. The sample for Tax Year 1999

included 43,503 active S corporation returns estimating a total population of 2,725,775.

Because the estimates are based on a sample,

they are subject to sampling error. To properly

interpret the statistical data provided, coefficients of

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

of this sampling error. See the section on sampling

variability in the “SOI Sampling Methodology and

Data Limitations” appendix of this publication for a

definition of coefficients of variation. Figure F presents the CV’s for S corporations for selected variables by industrial division. The CV’s are intended

only as a general indication of the reliability of the

data. The smaller the coefficient of variation, the

more reliable the estimate is judged to be.

NotesandReferences

[1] For detailed information on the impact of these

legislative acts on S corporations, see the

following articles. For more information on the

impact of Tax Reform Act of 1986 on S corporations, see Gill, Amy, “S Corporation Returns,

1992,” Statistics of Income Bulletin, Spring

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

Wittman, Susan, “S Corporation Election After

the Tax Reform Act of 1986,” Statistics of

Income Bulletin, Spring 1998, Volume 17,

Number 4. For more information on the impact

of the Revenue Reconciliation Act of 1993, see

Wittman, Susan, “S Corporation Returns, 1994,”

Statistics of Income Bulletin, Spring 1997,

Volume 16, Number 4. For more information on

the impact of the Small Business Job Protection

Act of 1996, see Wittman, Susan, “S Corporation Returns, 1997,” Statistics of Income

Bulletin, Spring 2000, Volume 19, Number 4.

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

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

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

1120-RIC, while not filed by taxable corporations, are included in the statistics. Limited

liability companies that choose to be taxed as a

corporation can file Form 1120; however, only

an “LLC” designation in the name can identify

such entities as the form is not designed to

clearly identify these unincorporated associations. The number of returns with an “LLC”

designation in the Statistics of Income corporate

file is unpublished and small.

Figure F

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

and Interest, by Industrial Division, Tax Year 1999

Industrial division

Number of

returns

Number of

shareholders

Total

receipts

Dividend

income

Interest

income

(1)

(2)

(3)

(4)

(5)

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

0.25

0.80

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

4.38

5.81

0.68

4.21

3.89

6.66

1.84

4.49

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

1.71

2.22

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

1.58

2.02

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

7.02

8.21

0.99

1.25

5.30

4.20

9.25

12.07

1.95

3.02

5.29

Finance, insurance, real estate, and

rental and leasing.........................................................................................

1.73

4.38

9.59

5.35

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

1.94

2.36

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

3.94

6.18

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

2.71

3.59

2.68

2.81

5.54

2.55

9.53

20.46

12.38

6.42

11.52

5.45

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

3.92

4.48

12.79

9.48

4.72

¹ Includes returns not allocable by industrial division.

S Corporation Returns, 1999

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

to be considered as timely made. See Revenue

Procedure 97-40 for extended filings. For

further detail on filing an S election, see Internal

Revenue Service, Internal Revenue Code,

Subchapter S [Section 1362(a), (b)].

[4] Eligible trusts are defined in the Internal

Revenue Code section 1361(c)(2)(A); eligible

trusts include trusts that are treated as owned by

an individual who is a citizen or resident of the

United States. Eligible exempt organizations are

described in Internal Revenue Code section

401(a) and section 501(c)(3); these organizations include qualified pension plans, profit

sharing plans, stock bonus plans, and certain

organizations exempt from Federal income taxes.

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

business purpose can be estimated to the

satisfaction of the Internal Revenue Service

(IRS), or they may use an alternate tax year but

make “required payments” to the IRS per

Internal Revenue Code section 1378.

[6] For more information on the impact of the Small

Business Job Protection Act of 1996, see

Wittman, Susan, “S Corporation Returns, 1997,”

Statistics of Income Bulletin, Spring 2000,

Volume 19, Number 4.

[7] For further detail, see Wittman, Susan,

“S Corporation Returns, 1998,” Statistics of

Income Bulletin, Spring 2001, Volume 20,

Number 4.

[8] Ibid. (see [7]).

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

Internal Revenue Code, Subchapter S, Section

1374. Also see Gill, Amy, “S Corporation

Returns, 1992,” Statistics of Income Bulletin,

Spring 1995, Volume 14, Number 4.

SOURCE: IRS, Statistics of Income Bulletin,

Spring 2002, Publication 1136 (Revised 6-02).

S Corporation Returns, 1999

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

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

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

Raw materials and energy production

Agriculture, forestry, fishing, and hunting

All

Item

industries

Support

Total

Forestry

Total

activities and

Agriculture

and

fishing,

production

logging

hunting,

Mining

Utilities

(3)

(4)

(5)

71,372

48,720

5,678

16,974

(7)

16,077

(8)

1,460

188,056

128,673

15,205

44,178

40,574

3,238

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

3,300,868,762

68,811,145

50,887,522

32,825,625

5,425,146

12,636,752

14,634,840

3,288,783

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

3,242,797,429

64,116,477

47,316,333

29,769,918

5,340,553

12,205,861

13,622,233

3,177,912

and trapping

(1)

(2)

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

2,725,775

88,909

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

5,076,763

231,868

(6)

Income and deductions from a trade

or business:

Interest on Government obligations:

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

1,350,743

51,044

40,125

36,820

*1,921

*1,384

10,457

462

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

6,234,481

569,983

302,009

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

50,486,109

4,073,640

3,229,055

230,052

2,788,835

41,105

41,566

30,851

398,655

232,026

770,124

35,949

74,460

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

3,162,169,414

67,024,001

50,468,748

32,875,878

5,479,904

12,112,966

13,452,993

3,102,260

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

2,059,319,673

35,407,805

26,352,113

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

131,111,982

1,465,620

1,021,075

15,364,843

512,802

3,293,022

135,919

7,694,247

372,355

6,629,198

422,528

2,426,495

22,017

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

335,790,495

5,157,467

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

20,333,638

1,471,752

4,131,084

1,221,444

2,888,593

799,229

351,387

148,243

891,105

273,972

904,530

240,294

121,853

10,014

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

6,568,655

75,333

48,417

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

77,617,605

2,473,701

2,059,053

40,223

1,803,033

3,386

54,067

4,808

201,952

24,785

369,470

2,131

45,179

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

66,861,519

1,465,712

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

40,351,393

1,759,465

937,250

1,258,516

656,368

934,748

80,944

156,492

199,938

167,277

489,603

418,847

38,859

82,102

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

4,235,894

112,163

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

56,874,046

3,243,818

61,444

2,230,841

48,720

1,569,046

2,338

262,537

10,385

399,258

45,140

916,452

5,579

96,526

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

691,031

305,631

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

31,483,025

277,660

167,119

251,708

21,274

184,527

145,163

4,682

682

62,499

137,411

20,862

1,101

5,090

Pension, profit-sharing, stock

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

12,060,415

137,793

83,793

41,619

7,808

34,366

48,550

5,450

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

24,189,995

425,466

246,253

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

1,398,860

33,135

20,765

181,695

20,473

15,464

49,095

*291

169,564

12,332

9,649

7,808,685

818,453

1,750,737

2,603,429

230,176

-50,253

-54,759

523,786

1,181,847

186,523

-87,073

1,970,125

-56,680

165,466

522,402

841,779

1,171,390

1,850,650

186,061

260,293

2,598,721

2,057,198

222,146

319,377

679,260

74,232

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

50,205,070

1,603,278

696,374

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

1,863,974

133,932

35,250

600,575

22,507

43,466

2,078

52,333

10,665

850,499

97,313

56,406

1,369

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

293,281,188

13,211,480

10,377,874

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

138,699,348

1,787,144

418,774

Net income (less deficit)

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

137,348,605

1,736,100

378,649

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

187,376,075

5,088,313

2,977,370

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

50,027,470

3,352,214

Portfolio income (less deficit)

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

11,209,087

535,807

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

684,219

132,170

265,901

38,577

214,955

37,434

13,559

*1,079

37,387

219,764

93,579

50,141

Net short-term capital gain

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

2,396,941

30,426

12,176

11,613

345

*218

17,763

*487

Net long-term capital gain

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

33,857,754

759,719

334,389

304,061

26,328

4,000

420,935

*4,395

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

193,095

11,225

10,081

10,005

-1

1,144

-*-482

Real estate rental net income

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

5,510,971

262,058

251,626

241,376

2,462

7,788

10,914

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

7,443,236

274,746

261,182

250,247

2,474

8,460

13,284

280

9,556

8,871

*673

2,369

*762

38,450

31,492

*740

*6,218

4,702

*443

39,255

*805

31,584

*1,082

342

*6,588

*370

4,852

150

*443

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

193,756,411

3,645,031

1,365,099

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

240,561,633

6,561,691

3,653,779

786,370

2,574,079

-10,012

182,463

588,740

897,237

2,037,505

2,611,941

242,427

295,972

1,787,709

192,475

308,497

574,436

53,545

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

1,932,265

12,688

Net income (less deficit)

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

691,765

43,595

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

1,140,058

44,550

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

448,293

955

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

46,805,222

2,916,660

2,288,680

Footnotes at end of table.

S Corporation Returns, 1999

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

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

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

Goods production

Construction

Manufacturing

Building,

Item

Total

Special

developing,

Heavy

trade

and general

construction

contractors

Beverage

Total

Food

and tobacco

manufacturing

contracting

(9)

(10)

(11)

product

manufacturing

(13)

(14)

133,245

12,070

188,213

145,890

8,366

1,256

249,847

23,465

291,958

339,379

31,372

4,055

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

963,677,612

460,697,949

211,861,533

59,287,201

189,549,215

502,979,663

53,328,646

8,351,652

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

954,730,995

456,551,484

209,643,656

58,358,141

188,549,687

498,179,511

52,889,352

8,229,045

Interest on Government obligations:

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

252,655

110,281

43,080

18,325

48,876

142,373

11,279

3,986

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

1,768,628

705,471

111,748

280,629

313,094

1,063,157

146,127

24,239

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

479,418

333,527

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

904,649

565,270

(12)

(15)

(16)

Income and deductions from a trade

or business:

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

6,925,335

3,330,713

2,063,049

630,106

637,558

3,594,622

281,888

94,383

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

912,877,025

438,808,582

203,617,694

56,724,459

178,466,429

474,068,443

51,396,315

7,767,309

175,132,625

44,314,811

124,886,950

338,151,210

39,586,653

4,654,996

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

30,343,304

14,618,896

4,264,037

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

58,641,962

21,795,973

6,405,517

1,273,874

2,445,147

9,080,985

12,945,309

15,724,409

36,845,989

922,558

3,038,754

130,651

835,218

458,451

191,346

411,703

92,617

941,193

330,297

2,268,904

1,058,354

280,906

79,905

70,953

10,118

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

13,429,739

6,447,575

1,466,798

1,576,830

3,403,948

6,982,164

596,719

94,264

961,436

420,957

4,597,711

1,086,997

10,344,805

5,997,466

724,304

524,246

358,047

121,646

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

682,485,596

344,334,386

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

4,080,251

1,811,347

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

1,672,614

614,260

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

17,968,380

7,623,575

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

9,158,000

3,160,534

2,064,429

1,652,580

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

673,177

138,226

82,157

10,220

45,848

534,951

50,403

20,137

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

19,499,632

6,525,725

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

371,937

25,395

1,256,376

630

1,913,570

20,536

3,355,779

4,229

12,973,907

346,542

1,099,255

311,227

3,053

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

6,039,858

1,322,542

760,999

4,717,316

865,708

460,981

504,407

57,136

Pension, profit-sharing, stock

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

3,717,756

1,415,975

351,087

233,892

830,996

2,301,781

192,507

28,383

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

9,427,950

3,674,547

816,157

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

253,088

53,403

18,103

390,101

6,332

2,468,289

28,967

5,753,403

199,685

482,256

27,599

97,401

*19,396

8,952,996

2,595,296

13,697,933

29,867,558

2,924,542

550,837

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

50,800,587

21,889,367

8,243,839

2,562,742

11,082,786

28,911,220

1,932,331

584,344

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

55,113,783

25,246,225

Net income (less deficit)

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

50,547,932

21,779,086

8,200,759

2,544,417

11,033,910

28,768,846

1,921,052

580,358

10,518,044

2,317,284

2,943,769

399,352

12,135,870

1,101,960

34,446,421

5,677,575

2,375,604

454,552

683,299

102,941

Portfolio income (less deficit)

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

11,107,087

3,002,383

1,457,839

100,981

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

60,044,104

25,597,683

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

9,496,172

3,818,597

773,773

770,771

8,104,704

2,437,709

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

381,827

138,862

71,159

24,986

42,717

242,965

17,975

9,400

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

2,745,522

1,308,568

751,728

226,472

330,368

1,436,954

113,655

31,272

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

92,925

6,052

Net short-term capital gain

1,276

3,711

1,066

86,872

4,007

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

154,553

87,160

Net long-term capital gain

56,868

19,246

11,046

67,394

4,974

-472

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

7,726,030

1,459,087

580,813

493,428

384,847

6,266,943

2,296,031

60,749

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

6,230

2,653

-4,005

5,931

727

3,577

*1,067

Real estate rental net income

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

322,530

179,271

133,350

21,202

24,719

143,258

10,208

7,740

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

469,646

300,557

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

147,116

121,286

246,162

112,811

24,370

3,168

30,025

5,306

169,088

25,830

12,083

1,875

7,846

*106

Net income (less deficit)

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

80,380

15,155

3,435

9,396

2,323

65,226

2,042

*3,735

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

101,707

28,647

16,068

9,894

2,686

73,059

2,047

*3,757

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

21,326

12,633

497

362

7,834

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

62,057,930

24,975,895

9,795,384

3,348,788

11,831,723

37,082,035

4,371,012

692,813

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

70,590,646

28,451,199

11,957,419

3,660,372

12,833,408

42,139,446

4,791,389

784,140

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

8,532,716

3,475,305

2,162,035

311,584

1,001,685

5,057,412

420,378

91,327

Footnotes at end of table.

13,493

S Corporation Returns, 1999

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

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

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

Goods production--continued

Manufacturing--continued

Textile mills

Item

Printing

Petroleum

and textile

Apparel

allied

product

Paper

and related

and coal

Chemical

product

manufacturing

product

manufacturing

support

products

manufacturing

activities

manufacturing

(20)

(21)

(22)

(23)

mills

(17)

Leather and

Wood

manufacturing

(18)

(19)

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

2,910

7,852

(24)

1,111

6,214

1,718

19,212

190

3,911

1,880

13,885

6,100

35,741

461

11,832

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

13,511,400

23,363,523

3,024,388

30,699,129

16,413,779

31,107,399

3,458,225

17,214,220

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

13,401,635

22,989,437

3,009,826

30,424,664

16,269,159

30,894,275

3,390,549

17,080,431

Interest on Government obligations:

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

4,696

3,347

*323

7,254

5,521

6,685

*941

6,527

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

4,966

7,677

*172

40,723

63,183

33,307

12,967

16,704

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

5,590

12,856

Income and deductions from a trade

or business:

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

100,102

363,061

14,066

226,488

75,915

173,132

53,768

110,558

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

13,044,058

22,656,975

2,845,556

29,070,176

15,760,332

29,602,457

3,279,838

16,099,265

1,836,205

23,023,844

11,369,090

17,535,101

2,511,458

10,342,296

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

422,861

791,822

114,185

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

805,915

1,959,673

349,990

630,191

1,506,307

437,897

1,177,516

1,648,857

3,162,119

52,896

200,302

582,180

1,651,885

5,225

3,986

129,855

34,685

83,165

26,289

214,659

97,993

37,805

4,180

94,489

57,885

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

122,924

349,125

50,770

233,310

221,089

849,259

48,957

259,380

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

232,364

514,709

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

149,930

283,175

514,729

334,224

311,756

273,005

766,817

452,784

47,860

40,757

315,732

197,907

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

10,131,396

16,306,370

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

39,104

66,593

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

29,628

56,916

57,319

54,488

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

6,844

10,231

2,611

13,586

18,986

67,217

3,014

50,248

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

361,134

269,402

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

---

29,806

669,969

157,180

598,380

*170,020

1,184,500

134,717

1,710

412,796

1,194

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

45,582

246,304

65,509

162,612

47,684

326,941

15,047

235,535

Pension, profit-sharing, stock

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

39,163

57,296

7,216

121,871

86,521

154,259

11,408

84,002

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

131,436

180,224

30,867

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

1,131

4,838

937

282,647

5,946

152,418

15,864

328,466

5,952

31,582

194,839

21,541

236,443

1,249,220

770,655

2,807,472

138,065

1,597,356

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

467,342

706,548

178,832

1,628,953

653,447

1,504,943

178,387

1,114,955

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

524,648

1,560,299

Net income (less deficit)

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

462,645

703,201

178,508

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

653,219

1,028,420

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

190,574

325,219

1,621,699

647,925

1,498,258

177,446

1,108,428

229,553

51,044

1,811,589

189,890

907,650

259,724

1,966,611

468,354

189,102

11,656

1,329,407

220,979

452,103

Portfolio income (less deficit)

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

62,180

155,360

769

198,243

124,585

158,912

19,992

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

5,017

9,141

3,396

3,351

34,191

4,297

812

10,994

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

39,284

42,759

5,680

75,979

45,390

84,625

8,069

58,733

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

1,752

11,715

Net short-term capital gain

*2,355

5,029

143

7,073

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

276

2,255

Net long-term capital gain

-127

2,728

5,322

1,062

*227

22,063

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

15,843

88,893

-8,205

113,419

34,557

68,785

10,884

353,208

412

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

307

5,663

*136

10,737

4,894

-975

932

4,728

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

2,710

10,791

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

*2,403

*5,129

244

*108

12,945

2,208

6,199

1,304

3,222

4,197

932

5,505

*777

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

596

Real estate rental net income

Net income (less deficit)

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

1,024

2,065

11,850

*-375

7,153

*488

260

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

1,046

2,065

11,867

*433

*7,281

*488

545

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

808

129

285

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

526,157

866,288

179,413

1,842,530

777,030

1,663,347

198,857

1,565,519

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

703,518

1,157,557

235,141

2,005,368

988,490

2,090,345

208,145

1,736,143

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

177,361

55,727

162,838

211,460

426,998

9,288

170,624

291,269

Footnotes at end of table.

S Corporation Returns, 1999

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

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

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

Goods production--continued

Manufacturing--continued

Electrical

Item

Plastics and

Nonmetallic

Primary

Fabricated

rubber

mineral

metal

products

manufacturing

products

manufacturing

(25)

(26)

Computer

equipment,

Machinery

and electronic

appliance, and

equipment

manufacturing

products

component

manufacturing

(30)

(31)

manufacturing

(27)

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

7,066

4,727

(28)

(29)

Transportation

(32)

2,677

27,407

9,362

5,457

5,394

5,554

7,460

62,167

24,955

13,683

11,221

10,513

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

33,761,951

15,642,936

21,180,169

77,395,205

30,055,756

19,619,291

21,208,790

28,512,660

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

33,426,604

15,498,113

Interest on Government obligations:

20,952,234

76,695,379

29,704,885

19,481,293

21,058,589

28,228,560

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

10,839

3,975

2,969

24,266

12,250

10,474

4,846

12,655

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

107,041

42,935

40,972

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

217,465

97,913

183,994

210,260

465,300

126,835

211,786

11,028

116,497

8,532

136,823

61,139

210,306

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

17,857

9,928

Income and deductions from a trade

or business:

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

31,636,078

14,506,223

20,490,075

71,953,848

28,074,449

18,136,024

19,589,644

26,688,235

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

22,725,364

9,766,895

16,557,764

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

1,054,352

468,787

421,168

50,604,166

3,171,478

19,684,913

1,117,905

12,318,912

556,158

13,373,165

579,573

21,017,822

460,691

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

2,189,530

1,239,637

886,618

5,359,263

2,165,010

2,011,241

2,116,521

1,565,168

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

148,910

138,663

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

77,323

33,162

97,725

11,826

316,865

150,226

119,941

60,139

61,016

55,132

72,737

48,022

82,627

30,095

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

422,434

305,059

186,968

1,159,049

385,256

269,304

250,749

251,229

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

701,557

387,084

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

447,917

186,506

1,802,162

916,727

720,213

380,372

422,944

178,110

419,932

210,909

574,732

256,405

310,172

381,074

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

34,701

15,733

15,497

77,090

29,669

17,210

21,314

21,062

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

1,153,208

590,718

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

-12,184

477,057

640

2,412,943

790,618

457,035

430,294

553,780

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

189,100

133,055

Pension, profit-sharing, stock

29,376

380,198

199,876

186,394

357,585

161,415

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

135,605

72,720

102,004

502,404

173,620

94,579

103,684

103,356

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

443,474

154,213

201,876

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

1,175

638

28,737

1,094,651

32,964

528,157

7,508

210,936

7,298

288,709

3,609

320,286

2,982

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

1,911,430

1,001,169

3,973,660

1,711,253

1,289,754

1,312,800

1,286,584

5,441,357

1,981,307

1,483,268

1,619,146

1,824,425

781,574

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

2,125,872

1,136,712

690,094

Net income (less deficit)

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

2,115,033

1,132,737

687,125

5,417,091

1,969,057

1,472,793

1,614,300

1,811,770

971,998

284,873

6,241,974

824,883

2,366,415

397,358

1,780,022

307,228

1,814,042

199,742

2,076,496

264,727

Portfolio income (less deficit)

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

834,917

107,341

241,588

305,170

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

2,504,763

1,299,570

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

389,730

166,833

1,381,370

381,070

322,513

434,841

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

13,910

2,341

13,970

32,251

13,494

9,277

26,348

9,921

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

101,114

51,575

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

4,372

753

70,408

7,562

245,093

6,509

99,927

10,644

59,109

3,281

69,854

5,066

87,478

10,504

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

-303

3,359

Net long-term capital gain

8,009

12,284

2,762

871

-2,075

795

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

715,632

49,298

141,740

Net short-term capital gain

1,084,844

254,208

249,976

335,645

196,421

-101

388

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

9,345

10,706

6,065

36,333

8,491

2,125

3,322

8,120

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

9,690

11,744

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

345

*1,037

6,757

691

37,835

1,502

8,851

360

2,251

125

6,896

*3,574

8,155

Net income (less deficit)

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

-49

*243

2,517

10,840

13,936

-20

2,966

3,446

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

237

*243

3,167

11,607

14,379

628

2,966

7,167

651

767

*443

648

3,721

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

2,959,247

1,251,027

937,295

6,845,634

2,372,554

1,797,412

2,055,429

2,128,506

1,161,625

7,554,382

2,733,050

2,084,498

2,247,309

2,373,788

224,330

708,748

360,496

287,086

191,880

245,282

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

192

Real estate rental net income

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

285

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

3,293,316

1,395,960

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

334,070

Footnotes at end of table.

144,933

S Corporation Returns, 1999

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

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

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

Goods production--continued

Distribution and transportation of goods

Manufacturing--continued

Wholesale and retail trade

Furniture

Item

Retail trade

Wholesale trade

and related

Miscellaneous

products

manufacturing

Total

Durable goods

Nondurable

goods

(38)

(39)

Total

(40)

manufacturing

(33)

(34)

(35)

(36)

(37)

581,118

493,598

160,561

99,185

61,376

332,563

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

9,297

48,526

1,042,248

890,601

306,088

188,825

117,263

583,936

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

4,371

21,137

Income and deductions from a trade

or business:

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

14,007,825

41,122,719

1,463,711,480

1,374,315,838

578,846,923

281,524,539

297,322,383

794,656,255

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

13,819,882

40,735,600

1,446,123,959

1,358,093,667

573,424,760

278,610,894

294,813,866

783,869,987

Interest on Government obligations:

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

1,748

7,791

141,526

129,207

76,838

43,966

32,873

52,368

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

9,453

94,897

1,428,348

725,308

381,232

284,016

97,216

343,777

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

176,743

284,432

16,017,646

15,367,655

4,964,092

2,585,664

2,378,428

10,390,123

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

13,146,812

38,324,775

1,428,535,411

1,341,227,729

560,718,193

270,487,783

290,230,410

779,700,405

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

9,514,915

25,289,885

1,106,394,920

1,073,672,781

451,575,571

210,985,873

240,589,697

621,497,377

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

403,850

1,756,348

28,198,458

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

1,063,754

3,561,570

106,468,017

25,587,965

93,302,276

12,761,662

37,381,860

7,679,988

20,970,718

5,081,674

16,411,141

12,817,246

55,840,860

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

52,974

154,695

6,987,239

5,101,302

1,973,974

908,713

1,065,262

3,124,723

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

26,890

163,954

2,056,913

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

195,965

730,354

27,768,556

1,904,528

21,743,177

1,004,129

6,673,430

578,162

3,641,050

425,967

3,032,379

893,581

15,053,088

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

308,262

854,111

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

121,856

485,428

17,138,640

9,839,095

7,326,171

4,353,726

3,150,204

2,419,875

4,175,967

1,933,851

9,803,633

5,473,409

20,018,870

11,313,633

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

12,483

46,916

924,144

859,294

369,535

127,124

242,411

488,895

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

243,660

793,410

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

-457

15,576,204

12,946

10,421,156

12,433

4,477,361

5,464

2,519,936

*5,129

1,957,425

334

5,936,170

*6,969

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

137,861

470,553

1,628,231

1,495,947

9,927,138

13,326,781

13,056,982

3,124,178

Pension, profit-sharing, stock

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

44,937

186,247

2,629,549

2,307,295

1,346,049

801,176

544,874

960,885

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

140,196

458,768

6,374,488

5,331,785

2,317,272

1,355,389

961,883

3,012,099

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

7,558

3,933

197,098

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

871,651

3,368,147

80,287,594

181,629

60,767,392

70,838

25,956,975

42,539

13,673,677

28,299

12,283,298

110,653

34,753,678

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

861,014

2,797,944

35,176,069

33,088,109

18,128,730

11,036,756

7,091,973

14,955,850

Net income (less deficit)

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

859,266

2,790,153

35,034,543

32,958,902

18,051,891

10,992,791

7,059,101

14,903,482

45,782,699

10,748,156

41,565,543

8,606,641

21,306,008

3,254,117

12,910,054

1,917,264

8,395,953

1,336,853

20,242,498

5,339,016

Portfolio income (less deficit)

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

199,487

185,572

6,611,643

2,889,712

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

986,589

3,230,101

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

127,323

439,948

5,949,490

3,057,574

1,551,551

1,506,023

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

3,633

19,246

294,832

258,812

152,673

72,278

80,395

106,131

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

30,540

116,409

2,215,347

1,982,476

922,172

487,184

434,988

1,057,859

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

111

5,966

Net short-term capital gain

180,284

179,957

137,986

103,147

34,839

41,941

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

2,424

961

Net long-term capital gain

6,808

-13,723

22,519

-119

22,638

-21,783

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

162,041

42,975

3,851,661

3,482,352

1,814,674

881,825

932,849

1,653,497

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

739

62,712

59,616

7,550

7,237

313

52,066

Real estate rental net income

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

1,656

12,724

427,058

373,834

172,125

91,511

80,615

201,365

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

1,677

12,756

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

465,979

38,921

404,712

30,878

181,748

9,623

95,356

3,846

86,391

5,777

222,621

21,255

Net income (less deficit)

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

*138

2,969

164,025

189,482

108,499

80,725

27,774

80,819

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

*138

2,998

262,666

209,316

114,907

86,583

28,324

94,245

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

98,642

19,834

6,409

5,858

*550

13,425

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

1,060,547

2,991,418

42,237,269

39,471,709

21,390,089

12,716,577

8,673,512

18,075,378

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

1,177,130

3,418,152

52,046,324

47,227,365

24,183,612

14,410,749

9,772,863

23,024,830

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

116,583

9,809,055

7,755,656

2,793,523

1,694,172

1,099,351

4,949,452

426,734

Footnotes at end of table.

S Corporation Returns, 1999

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

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

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

Distribution and transportation of goods--continued

Wholesale and retail trade--continued

Retail trade--continued

Building

Item

Motor vehicle

Furniture

Electronics

material

Food,

Health

and

and home

and

and garden

beverage,

and

Gasoline

Clothing and

clothing

parts dealers

furnishings

appliance

equipment

and

personal care

stations

accessories

and supplies

liquor stores

stores

dealers

(41)

(42)

(43)

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

52,712

17,990

(44)

(45)

(46)

(47)

(48)

16,549

21,218

49,049

21,455

19,335

26,412

32,162

40,570

91,966

34,867

35,531

43,008

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

406,669,415

30,009,341

26,424,979

42,661,693

90,236,677

26,397,662

58,624,314

17,989,760

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

400,464,625

29,714,241

Interest on Government obligations:

26,036,113

42,412,399

88,953,630

26,294,716

58,108,199

17,830,790

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

5,224

12,103

4,529

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

168,179

9,440

5,951

2,278

20,979

8,810

76,583

2,451

*555

8,316

23,333

3,893

731

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

88,559

34,052

Income and deductions from a trade

or business:

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

6,031,387

273,557

378,386

226,037

1,197,654

99,940

484,467

154,346

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

401,330,902

29,066,454

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

350,780,702

18,411,084

25,654,904

19,041,413

41,005,139

30,187,987

88,705,125

65,779,768

25,494,047

17,757,073

58,154,068

49,285,268

17,512,733

10,387,367

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

3,936,172

875,403

533,966

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

19,350,671

3,603,572

2,528,143

997,167

3,915,682

1,328,142

8,546,142

1,178,514

2,816,450

532,131

2,765,511

625,588

2,175,387

66,755

51,759

223,851

85,847

693,340

79,723

77,747

16,409

325,133

24,386

180,169

26,770

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

3,544,842

1,291,103

497,312

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

3,175,140

593,581

414,913

818,302

764,020

2,355,407

1,574,863

733,899

410,225

979,724

645,831

1,197,411

412,075

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

2,522,847

180,651

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

98,925

18,065

105,762

10,647

360,604

17,053

586,702

104,643

164,885

50,690

404,615

60,464

169,045

16,012

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

1,645,887

236,811

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

750

184,732

430,681

2,396

1,031,430

167,284

831,376

100

169,028

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

3,917,852

1,140,169

Pension, profit-sharing, stock

306,449

354,246

952,333

271,464

139,918

587,663

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

232,937

76,367

41,491

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

1,323,278

165,695

111,991

95,300

237,095

134,090

511,697

64,775

90,636

42,584

79,814

48,168

66,204

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

25,250

6,739

*2,463

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

9,658,072

2,235,316

1,757,108

3,940

2,510,968

9,054

5,017,780

*18,035

1,675,961

7,643

2,029,570

15,861

1,435,983

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

5,338,513

942,887

770,076

1,656,554

1,531,552

903,616

470,246

477,027

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

832,332

169,213

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

285,246

62,684

Net income (less deficit)

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

5,333,289

930,785

765,547

1,654,276

1,522,743

901,165

461,930

473,134

991,543

225,996

1,825,528

171,252

2,193,461

670,718

1,213,544

312,379

860,487

398,557

940,341

467,207

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

1,122,816

264,342

307,430

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

6,506,445

1,204,958

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

1,173,156

274,173

Portfolio income (less deficit)

120,033

359,269

92,741

106,639

36,211

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

15,470

9,493

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

447,806

59,739

4,738

30,684

15,310

77,692

21,538

157,362

5,033

23,164

4,764

59,350

3,842

22,091

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

231

807

Net short-term capital gain

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

9,907

606

1,223

220

1,740

5,215

9,598

10,892

-77,387

*470

8,313

1,390

Net long-term capital gain

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

648,309

143,248

262,411

16,131

256,430

63,854

32,407

3,673

104

1,733

*1,749

4,726

6,411

54,995

56,594

6,070

*8,138

25,295

28,939

276

1,592

*1,685

*1,599

*2,068

3,644

*1,317

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

1,093

*50,449

Real estate rental net income

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

50,605

8,172

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

52,450

10,570

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

1,845

*2,398

Net income (less deficit)

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

37,732

*19,687

698

6,370

11,461

*313

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

50,279

*19,687

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

12,547

1,556

857

6,370

11,461

*313

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

6,544,441

1,222,985

1,074,720

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

7,573,370

1,464,572

1,287,888

1,779,733

1,939,656

1,943,377

2,647,631

1,000,001

1,285,660

605,325

963,153

509,934

967,886

159,923

704,255

285,659

357,828

457,953

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

1,028,929

241,587

Footnotes at end of table.

213,168

S Corporation Returns, 1999

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

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

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

Distribution and transportation of goods--continued

Wholesale and retail trade--continued

Transportation and warehousing

Retail trade--continued

Item

Sporting

Wholesale

goods,

General

hobby, book,

merchandise

and music

(49)

Air, rail,

Miscellaneous

Nonstore

and retail trade

store

retailers

not allocable

(52)

(53)

Total

and water

transportation

Truck

transportation

retailers

(50)

(51)

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

20,474

5,435

(54)

(55)

(56)

61,277

20,656

474

87,520

6,707

45,243

99,548

34,662

577

151,647

10,226

79,463

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

13,345,942

8,013,320

50,673,067

23,610,085

812,661

89,395,642

7,685,558

47,250,327

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

13,160,676

7,897,821

Interest on Government obligations:

49,889,336

23,107,439

798,921

88,030,292

7,404,195

46,686,155

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

221

722

2,003

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

2,243

272

14,681

1,820

20,830

-299

12,319

703,040

1,383

199,687

3,266

351,258

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

39,065

9,945

Income and deductions from a trade

or business:

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

182,803

114,504

767,047

479,996

13,440

649,991

80,293

209,647

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

13,074,729

7,732,164

49,171,661

22,798,480

809,131

87,307,682

8,033,414

46,128,144

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

8,424,825

5,183,922

32,927,867

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

307,483

150,105

1,707,594

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

1,449,621

938,844

5,020,867

13,330,102

644,979

2,729,971

599,833

9,057

79,556

32,722,139

2,610,492

13,165,741

3,425,235

107,192

856,803

13,674,374

1,307,265

7,885,858

292,933

53,696

139,493

176,811

2,605

6,819

1,885,937

152,385

328,637

22,775

1,097,375

92,537

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

741,632

303,452

2,144,915

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

278,807

156,247

928,029

445,089

449,902

16,660

8,836

6,025,379

2,880,231

488,273

157,071

3,759,794

1,816,926

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

128,816

77,475

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

8,123

3,610

542,259

51,214

229,749

49,450

11,960

*863

1,474,538

64,850

316,432

10,121

674,303

19,149

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

198,867

72,736

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

---

547,526

*3,713

419,811

7,625

5,155,048

514

983,970

2,932,534

514

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

295,316

164,936

Pension, profit-sharing, stock

682,803

1,113,989

5,666

269,799

33,839

108,320

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

15,379

16,288

102,322

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

46,062

35,527

182,714

91,184

161,386

360

2,414

322,254

1,042,703

20,970

71,137

183,314

689,278

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

*6,843

2,294

11,828

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

1,076,965

568,712

3,971,380

703

2,815,862

138

56,739

15,470

19,520,202

*1,624

1,209,335

3,254

11,883,350

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

271,213

281,156

1,501,406

811,605

3,529

2,087,960

-347,856

1,122,183

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

76,374

47,383

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

19,616

10,633

Net income (less deficit)

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

270,992

280,434

1,499,403

809,785

3,529

2,075,641

-349,240

1,118,916

2,218,053

718,650

1,351,873

542,088

*17,037

13,508

4,217,156

2,141,515

458,168

807,408

1,832,053

713,137

Portfolio income (less deficit)

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

76,593

3,396

177,701

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

583,466

352,799

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

312,474

72,365

222,540

2,205

662,153

141,378

176,318

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

2,226

628

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

14,645

11,498

17,761

76,412

5,327

77,416

2,445

36,020

232,871

4,656

59,330

9,922

78,059

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

Net short-term capital gain

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

*-300

*-7

*29,025

3,464

327

7,632

7,103

-14,459

20,531

3,216

16,799

46,513

129,232

14,181

369,309

73,994

69,786

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

--*359

-3

3,096

*1,737

33,300

35,513

14,749

15,260

344

53,224

61,267

3,843

3,972

8,559

8,964

*2,214

511

8,043

*129

405

Net long-term capital gain

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

*60,018

*-8,729

Real estate rental net income

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

221

1,225

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

*1,179

4,226

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

*958

*3,002

Net income (less deficit)

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

231

*407

*3,860

165

-25,458

-47,576

6,762

*413

*3,874

165

53,350

78,808

28,372

75,948

9,282

2,520

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

348,037

285,080

1,710,812

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

655,747

363,721

2,377,537

1,050,934

1,498,008

6,242

*18,923

2,765,560

4,818,958

-251,596

592,962

1,310,555

1,967,944

447,075

12,681

2,053,399

844,558

657,389

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

231

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

307,710

78,641

666,726

Footnotes at end of table.

S Corporation Returns, 1999

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

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

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

Distribution and transportation of goods--continued

Information

Motion

Transportation and warehousing--continued

Transit and

Other

Warehousing

Item

ground

Pipeline

transportation

and

passenger

transportation

and support

storage

transportation

(57)

Total

picture

Broadcasting

Publishing

and sound

and telecom-

industries

recording

munications

activities

(58)

industries

(59)

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

10,091

*201

(60)

(61)

(62)

(63)

(64)

22,292

2,986

58,468

16,151

14,522

17,402

37,392

11,654

116,157

34,590

22,381

40,413

22,043,000

5,938,743

52,333,653

21,743,933

8,429,911

16,201,310

21,783,498

5,786,355

50,894,824

20,937,637

8,256,671

16,357,249

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

12,461

*452

Income and deductions from a trade

or business:

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

5,509,422

*968,591

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

5,406,092

*963,997

Interest on Government obligations:

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

*43

4,028

3,599

58,126

21,221

10,113

26,139

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

67,025

*76

75,089

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

36,262

*4,519

180,384

9,904

138,885

325,031

1,055,673

131,117

653,958

53,354

109,773

135,882

-317,961

21,264,080

11,165,615

5,558,599

2,030,989

49,287,142

18,333,514

19,814,780

7,583,427

8,262,921

3,133,179

16,101,466

5,810,074

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

232,209

*3,721

769,459

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

1,087,672

*3,993

2,302,161

190,646

1,029,252

3,294,799

8,627,902

1,403,472

3,998,980

730,310

925,566

661,304

2,827,175

207,618

25,461

116,949

4,508

345,350

204,609

99,189

96,912

65,068

12,814

149,993

84,084

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

344,436

*2,762

710,911

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

227,143

*2,080

482,078

719,202

194,932

1,372,826

1,372,411

435,530

539,297

375,716

181,449

361,372

481,368

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

112,370

*2,353

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

8,491

*4,115

251,499

14,658

117,581

8,315

956,905

708,591

221,659

149,177

136,676

256,398

525,875

283,899

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

369,234

*8,754

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

---

660,608

199,949

1,722,081

406,609

451,014

772,387

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

41,192

*102

72,017

Pension, profit-sharing, stock

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

34,098

-46,939

14,329

839,460

389,720

101,156

300,917

36,934

357,072

194,513

50,386

72,004

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

86,308

-114,551

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

*1,254

-*8,433

81,429

905

524,418

33,223

294,335

2,242

37,711

*11,638

154,225

19,236

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

1,101,744

*81,024

812,678

10,593,981

3,999,719

1,793,841

3,597,553

380,145

3,046,511

1,929,153

166,990

99,845

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

5,370,716

*952,728

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

1,582,692

*843,234

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

134,768

*590

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

7,104

4,432,072

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

138,706

*15,864

778,919

Net income (less deficit)

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

138,663

*15,864

774,891

376,546

2,988,385

1,907,932

156,877

73,705

1,190,992

416,100

411,423

34,878

6,420,790

3,432,405

2,540,537

632,605

986,773

829,897

1,839,167

1,765,462

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

171,333

*2,065

104,675

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

291,226

*33,294

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

152,563

*17,430

Portfolio income (less deficit)

66,384

3,630,900

686,288

1,131,304

1,285,599

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

7,079

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

11,789

*2,065

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

---

12,262

35,647

226

2,101

45,981

66,470

432,497

17,567

32,769

128,661

5,383

8,458

65,283

*389

23,365

215,361

5,778

Net short-term capital gain

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

*418

-669

766

2,772

-12,620

23,011

-4,679

Net long-term capital gain

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

150,837

57,145

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

*1,209

17,547

3,104,830

531,947

1,034,164

1,039,270

-13

6,764

149

*-2

*6,504

Real estate rental net income

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

2,867

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

*2,941

---

-5,425

1,777

43,381

43,613

48,870

50,056

19,795

20,187

10,358

11,010

11,481

11,605

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

*7,202

232

1,186

392

*652

124

Net income (less deficit)

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

6,129

*5,032

*4,187

8,874

1,946

*1,915

4,587

*5,364

332

*4,195

10,028

1,154

2,312

366

*1,930

5,360

773

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

318,991

*17,937

879,174

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

435,930

*35,300

1,282,418

490,498

504,404

6,677,030

9,468,476

2,615,960

3,135,644

1,300,454

1,858,442

1,375,372

2,928,568

13,906

2,791,446

519,684

557,989

1,553,195

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

6,129

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

116,939

*17,363

Footnotes at end of table.

403,244

S Corporation Returns, 1999

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

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

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

Information--

Finance, insurance, real estate, and rental and leasing

continued

Finance and insurance

Securites,

Information

Item

services

Total

and data

Total

processing

Depository

Non-

commodity

Insurance

Other

credit

depository

contracts,

carriers and

financial

inter-

credit inter-

other financial

vehicles and

mediation

investments,

activities

services

other

and related

investment

activities

(65)

(66)

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

10,394

410,939

(67)

(68)

(69)

(70)

companies

(71)

(72)

103,754

1,044

23,720

22,976

49,897

6,116

181,455

9,062

40,820

41,607

77,905

12,062

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

5,958,499

125,960,850

64,310,580

2,730,781

13,388,450

22,859,884

24,768,828

562,638

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

5,343,268

116,596,231

58,089,202

1,061,549

11,818,069

20,328,533

24,379,380

501,671

Interest on Government obligations:

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

652

427,009

380,595

59,944

21,882

284,162

9,515

5,094

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

4,677

1,027,575

191,400

47,230

45,348

80,391

16,749

*1,683

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

18,774

891,865

Income and deductions from a trade

or business:

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

609,902

7,910,036

5,649,382

1,562,058

1,503,151

2,166,798

363,184

54,191

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

5,107,975

117,252,566

59,324,500

2,203,714

12,262,258

21,740,033

22,514,783

603,712

8,459,768

*8,195

2,285,286

1,379,341

4,657,271

*129,675

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

499,712

13,063,342

8,806,930

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

876,181

31,931,467

16,937,903

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

1,806,833

23,322,371

162,983

318,457

744,320

3,273,120

4,713,874

6,005,584

3,138,995

7,219,271

46,758

121,471

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

31,099

1,161,349

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

10,799

949,343

313,651

641,191

24,249

43,975

72,946

444,985

77,180

62,804

135,543

53,450

3,734

35,978

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

200,208

5,040,180

2,027,872

50,290

461,019

595,315

904,890

16,358

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

170,297

3,653,631

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

72,695

6,452,119

1,742,414

4,577,447

64,095

1,032,151

331,909

1,226,230

652,293

2,051,994

673,622

213,693

20,496

53,380

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

19,118

298,130

206,986

18,084

76,063

29,905

82,343

590

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

92,072

4,550,627

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

-*156

768,546

*66

54,418

146,420

284,290

260,703

*63

22,716

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

47,667

1,911,766

821,975

34,260

255,186

164,558

362,274

5,696

Pension, profit-sharing, stock

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

40,169

927,501

590,862

15,238

37,222

292,748

244,241

*1,413

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

38,148

1,144,821

631,146

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

*107

672,182

581,217

35,803

7,678

88,614

10,189

157,498

561,291

345,807

*789

3,424

1,270

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

1,202,869

22,173,579

12,216,525

333,836

2,808,750

4,711,357

4,221,828

140,755

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

850,524

8,708,284

4,986,080

527,067

1,126,193

1,119,850

2,254,045

-41,074

Net income (less deficit)

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

849,872

8,281,275

4,605,484

467,123

1,104,311

835,689

2,244,530

-46,168

9,022,094

4,416,610

536,846

69,723

1,788,677

684,366

3,853,230

3,017,541

2,671,113

426,583

172,229

218,396

Portfolio income (less deficit)

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

527,710

8,588,605

4,941,006

485,035

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

1,054,313

15,960,079

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

204,441

7,678,804

52,746

478,363

3,608,317

316,544

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

1,878

366,336

182,107

2,144

7,690

126,530

26,376

19,366

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

23,192

2,699,272

1,106,736

32,506

245,015

540,643

194,477

94,093

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

6,016

84,052

Net short-term capital gain

974

102

814

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

-2,939

1,401,305

Net long-term capital gain

1,244,200

2,345

55,392

1,022,432

854

163,176

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

499,449

3,979,494

2,356,984

15,635

168,801

1,875,640

89,435

207,473

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

*114

58,146

50,005

*1,425

42,257

*5,402

908

Real estate rental net income

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

7,236

4,137,491

37,408

4,963

14,702

346

14,915

2,482

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

7,253

5,690,197

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

1,552,706

77,027

39,619

6,335

1,371

19,302

4,600

28,105

27,760

15,375

*461

7,910

5,427

*-6,237

Net income (less deficit)

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

427

295,376

4,078

-86

-584

10,947

*39

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

427

541,996

16,885

227

825

15,026

*785

*23

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

12,807

314

*1,409

4,079

*746

*6,260

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

1,385,244

21,302,747

9,587,976

246,620

524,746

1,596,791

4,455,299

2,576,027

435,113

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

1,545,822

28,217,072

12,522,305

578,900

2,110,441

6,281,778

2,947,739

603,447

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

160,578

6,914,324

2,934,329

54,154

513,650

1,826,479

371,711

168,335

Footnotes at end of table.

S Corporation Returns, 1999

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

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

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

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

Professional and business services

Real estate and rental and leasing

Lessors of

Item

Total

(73)

Real

Rental

nonfinancial

estate

and leasing

intangible

services

assets

(75)

(76)

(74)

Total

Professional,

scientific, and

technical

services

Management

(79)

companies

(77)

(78)

278,203

28,412

571

551,096

397,693

19,720

648,869

60,725

815

920,385

638,538

65,056

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

61,650,270

44,333,906

17,161,471

154,893

316,875,762

209,275,206

9,344,687

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

58,507,028

Interest on Government obligations:

42,310,905

16,072,531

*123,593

306,013,938

205,339,810

3,691,329

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

46,413

39,383

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

836,175

278,927

7,030

557,243

-4

363,422

552,865

74,945

207,791

275,842

39,184

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

307,185

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

710,410

Income and deductions from a trade

or business:

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

2,260,654

1,704,691

524,667

*31,296

9,945,535

3,652,660

5,338,331

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

57,928,066

41,238,896

16,575,551

113,619

292,497,468

191,420,925

7,246,211

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

14,862,603

9,168,874

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

4,256,412

3,672,025

5,685,641

561,206

8,088

23,180

107,626,272

28,977,240

63,564,631

23,713,457

155,698

593,873

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

14,993,563

Repairs........................................................................................... 847,698

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

308,153

12,863,577

476,784

243,341

2,109,840

369,285

63,995

20,147

1,629

817

60,765,948

1,764,948

756,115

39,160,071

1,012,415

365,554

936,155

91,797

199,668

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

3,012,308

1,889,408

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

1,911,217

1,372,168

1,117,989

536,037

4,911

3,012

8,968,979

9,829,585

6,510,626

5,998,948

74,151

235,969

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

1,874,672

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

91,144

1,200,504

58,773

670,006

28,581

4,162

3,790

5,258,492

520,652

1,363,510

311,521

3,162,931

63,544

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

3,782,081

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

817,869

2,961,482

2,730

4,314,923

292

2,426,443

217,773

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

1,089,791

Pension, profit-sharing, stock

836,584

245,808

7,399

2,956,717

1,920,051

67,864

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

336,639

286,282

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

513,676

376,493

49,264

136,408

1,092

775

2,400,245

3,439,856

2,072,804

2,168,766

63,359

132,302

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

90,965

41,863

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

9,957,054

7,934,290

48,662

1,991,318

440

31,446

107,726

54,809,479

55,514

40,776,593

47,818

1,203,310

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

3,722,204

3,095,010

585,920

41,274

24,378,294

17,854,281

2,098,475

Net income (less deficit)

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

3,675,791

3,055,627

578,890

41,273

24,014,872

17,779,336

1,822,633

5,582,246

2,526,619

1,314,465

735,575

41,273

31,079,479

7,064,608

22,310,980

4,531,645

2,788,333

965,700

Portfolio income (less deficit)

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

3,647,600

3,293,869

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

6,937,985

Deficit...........................................................................................3,262,195

285,216

68,515

14,858,668

4,217,325

9,013,900

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

184,229

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

1,592,536

178,306

1,468,287

5,909

115,830

8,420

527,821

1,660,879

154,313

724,461

352,450

689,359

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

83,078

Net short-term capital gain

3,406

*19,594

*60,079

41,312

31,905

8,136

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

157,106

Net long-term capital gain

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

1,622,510

135,717

21,390

-1

464,412

223,800

238,188

1,499,715

122,791

12,131,163

3,084,785

7,691,100

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

8,141

8,439

*-298

33,081

-1,939

34,667

Real estate rental net income

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

4,100,083

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

5,613,170

4,066,463

5,571,405

33,213

41,358

407

109,494

202,185

106,764

136,300

3,779

53,783

Deficit...........................................................................................1,513,087

1,504,942

8,145

92,691

29,536

50,004

Net income (less deficit)

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

291,298

33,192

261,277

*-3,171

45,341

46,105

-46,369

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

525,111

61,214

463,877

115,094

56,605

11,289

Deficit........................................................................................... 233,812

28,022

202,600

*3,191

69,753

*10,500

57,657

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

11,714,771

10,449,151

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

15,694,767

13,575,858

1,158,596

2,008,694

107,024

110,215

39,028,375

47,051,219

22,149,530

26,118,708

10,793,943

13,431,881

850,098

*3,191

8,022,844

3,969,179

2,637,937

Deficit...........................................................................................3,979,995

Footnotes at end of table.

3,126,706

S Corporation Returns, 1999

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

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

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

Professional and business services--continued

Education, health, and social assistance

Administrative and support and waste

Item

Health care and social assistance

management and remediation services

Waste

Total

Administrative

management

and support

and

services

remediation

Educational

services

Offices of

Total

physicians

and dentists

services

(80)

(81)

(85)

(86)

125,706

7,978

158,456

20,843

137,613

100,970

197,045

19,745

243,779

30,049

213,730

138,360

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

98,255,869

90,470,509

7,785,360

96,103,451

9,009,067

87,094,384

54,871,655

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

96,982,799

89,408,113

7,574,686

94,139,176

8,917,614

85,221,562

53,593,024

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

12,635

8,302

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

305,890

203,334

4,334

102,557

10,757

145,068

6,714

14,362

4,044

130,706

2,065

68,579

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

133,684

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

216,790

(82)

(83)

(84)

Income and deductions from a trade

or business:

Interest on Government obligations:

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

954,544

850,760

103,784

1,808,450

70,378

1,738,072

1,207,988

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

93,830,331

86,539,398

7,290,933

88,760,797

8,463,976

80,296,821

49,309,655

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

43,905,944

40,778,697

3,127,247

10,124,712

1,799,981

8,324,731

3,959,496

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

4,669,910

4,373,767

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

20,669,723

19,798,443

296,143

871,280

13,670,064

26,683,906

647,293

2,317,966

13,022,771

24,365,940

11,799,521

12,420,220

Repairs........................................................................................... 660,736

518,558

142,178

814,009

92,660

721,349

375,884

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

190,892

161,859

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

2,384,203

2,104,097

29,033

280,106

503,391

5,174,699

23,987

562,564

479,403

4,612,135

149,414

2,695,534

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

3,594,668

3,313,369

281,300

3,867,751

334,479

3,533,272

1,850,565

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

732,051

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

145,587

579,404

110,599

152,647

34,989

1,145,521

160,930

56,617

12,737

1,088,904

148,193

393,200

89,801

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

1,670,707

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

269

1,217,898

131

452,809

138

1,473,114

157,068

1,316,046

661,608

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

968,803

923,109

438,070

744,912

564,414

45,694

1,182,983

Pension, profit-sharing, stock

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

264,082

234,071

30,010

1,376,000

35,830

1,340,170

1,189,393

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

1,138,788

1,009,962

128,826

1,305,735

149,690

1,156,046

543,482

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

4,393

3,747

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

12,829,576

11,411,687

646

1,417,889

14,699

21,263,283

*4,104

1,830,929

10,595

19,432,354

8,295

12,608,827

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

4,425,538

3,931,111

494,427

7,342,654

545,092

6,797,562

5,562,000

Net income (less deficit)

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

4,412,903

3,922,810

490,093

7,331,897

538,378

6,793,519

5,559,935

5,234,442

1,311,633

745,723

255,630

9,149,605

1,817,708

674,706

136,328

8,474,899

1,681,380

6,333,421

773,486

Portfolio income (less deficit)

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

1,627,443

860,466

256,994

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

5,980,166

Deficit........................................................................................... 1,567,263

766,978

878,045

111,921

766,123

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

21,058

19,428

1,630

27,991

4,546

23,445

17,049

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

247,060

204,201

42,858

261,320

41,740

219,580

115,542

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

1,270

Net short-term capital gain

1,007

263

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

2,424

7,055

-4,631

248,679

200

248,480

15,162

Net long-term capital gain

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

1,355,278

628,421

726,857

343,547

65,412

278,135

112,992

*-3,516

*-3,750

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

354

Real estate rental net income

(less deficit)...........................................................................................-1,049

-1,142

30,471

-5,165

35,636

14,495

Net income...........................................................................................12,102

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

13,151

9,894

11,036

2,208

*2,115

43,866

13,395

1,184

*6,350

42,681

7,045

17,623

*3,128

Net income (less deficit)

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

45,605

44,625

980

5,509

312

5,197

*2,317

Net income...........................................................................................47,200

45,776

1,424

5,841

312

5,529

*2,335

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

1,151

444

*332

*18

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

6,084,902

4,826,758

1,258,144

8,245,921

645,446

7,600,475

5,833,741

1,595

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

7,500,630

6,041,466

1,459,164

9,967,556

756,223

9,211,333

6,557,927

Deficit........................................................................................... 1,415,728

1,214,708

201,020

1,721,635

110,777

1,610,858

724,185

Footnotes at end of table.

S Corporation Returns, 1999

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

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

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

Item

Education, health, and social

assistance--continued

Health care and social assistance-continued

Miscellaneous

Hospitals,

Leisure, accommodation, and food services

Arts, entertainment, and recreation

Amusement,

health care and

nursing,

entertainment,

gambling, and

social

and residential

and

recreation

assistance

care facilities

recreation

industries

(87)

(88)

(91)

(92)

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

26,128

Total

Other arts,

(89)

Total

(90)

Accommodation

and food

services

Total

(93)

10,515

215,881

58,346

26,925

31,421

157,536

24,016

445,680

117,383

41,397

75,986

328,297

18,326,524

17,914,049

144,437,679

141,841,156

33,056,004

31,924,402

15,098,974

14,421,522

17,957,030

17,502,880

111,381,675

109,916,755

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

51,353

Income and deductions from a trade

or business:

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

13,896,205

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

13,714,489

Interest on Government obligations:

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

*906

1,073

36,960

15,917

12,856

3,061

21,043

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

20,381

41,747

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

160,429

369,655

281,067

2,278,496

152,168

963,517

105,557

559,039

46,611

404,478

128,899

1,314,979

17,835,028

140,382,790

31,862,001

14,714,017

17,147,984

108,520,789

1,880,639

48,766,748

6,061,813

2,137,232

3,924,582

42,704,934

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

936,182

287,067

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

4,590,905

7,354,815

Repairs........................................................................................... 164,331

181,133

7,446,139

26,801,931

2,911,473

4,207,680

6,800,002

708,815

3,588,559

3,414,549

91,052

619,122

3,385,452

617,763

3,238,459

20,001,930

2,202,658

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

105,909

224,080

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

731,928

1,184,673

149,969

9,313,459

35,206

2,042,575

13,219

433,002

21,988

1,609,574

114,762

7,270,884

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

652,006

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

168,394

1,030,701

527,310

6,280,993

3,265,861

1,464,561

708,602

377,811

191,817

1,086,750

516,785

4,816,433

2,557,259

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

25,974

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

293,885

32,417

360,552

625,810

4,849,999

223,819

1,369,801

147,181

313,255

76,638

1,056,547

401,991

3,480,197

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

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

96,871

-83,628

*63

3,775,476

*63

598,494

*63

168,070

-430,424

-3,176,982

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

13,152,138

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

2,484,596

Pension, profit-sharing, stock

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

101,928

48,849

273,248

147,971

106,958

41,013

125,276

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

183,234

429,330

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

*294

*2,006

932,955

82,321

222,510

24,244

68,768

1,671

153,743

22,573

710,445

58,077

24,906,345

7,245,843

3,660,813

3,585,031

17,660,502

4,054,889

1,194,002

384,956

809,046

2,860,886

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

2,615,700

4,207,826

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

744,067

491,496

Net income (less deficit)

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

743,161

490,423

4,017,929

1,178,085

372,101

805,985

2,839,843

1,031,618

541,195

9,129,279

5,111,350

3,156,523

1,978,437

1,383,690

1,011,590

1,772,833

966,848

5,972,756

3,132,913

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

137,206

371,924

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

2,830

3,567

2,476,623

52,343

1,565,451

28,086

876,032

21,724

689,419

6,362

911,172

24,257

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

1,109,859

Deficit........................................................................................... 366,699

Portfolio income (less deficit)

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

28,361

Royalty income...........................................................................................--

75,677

531,048

134,370

190,854

130,356

95,610

70,589

95,244

*59,767

340,194

4,013

Net short-term capital gain

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

*6,100

227,218

68,811

9,431

1,476

7,955

59,380

Net long-term capital gain

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

*99,681

65,461

1,671,618

1,190,313

670,221

520,092

481,305

18,434

16,411

*2,023

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

234

Real estate rental net income

(less deficit)........................................................................................... *-550

21,691

116,701

54,485

11,063

43,422

62,216

Net income........................................................................................... 109

24,950

184,220

64,354

14,551

49,803

119,866

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

3,258

67,519

9,869

*3,488

6,381

57,650

*659

Net income (less deficit)

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

*1,368

*1,511

34,306

8,793

-2,772

11,565

25,513

*1,826

*314

38,320

*4,014

12,312

3,519

708

3,479

11,604

26,008

*495

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

881,185

885,549

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

1,234,982

1,418,424

6,645,558

11,486,722

2,806,814

4,614,766

1,256,423

2,195,061

1,550,392

2,419,705

3,838,744

6,871,956

4,841,163

1,807,951

938,638

869,313

3,033,212

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

*1,368

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

Deficit........................................................................................... 353,797

Footnotes at end of table.

532,875

S Corporation Returns, 1999

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

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

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

Leisure, accommodation, and food

services--continued

Other services

Accommodation and food

services--continued

Food

Item

Total

Religious,

Nature of

Repair

Personal

grantmaking,

business

and

and laundry

civic,

not

maintenance

services

professional,

allocable

Accom-

services

modation

and drinking

and similar

places

organizations

(94)

(95)

(96)

135,033

164,805

85,308

79,032

*465

16,683

270,044

257,316

128,216

128,607

*494

22,816

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

17,871,128

93,510,548

64,880,028

38,560,932

26,241,754

77,342

4,077,103

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

17,531,654

92,385,100

64,365,591

38,308,608

25,977,336

79,648

3,975,082

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

22,502

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

58,253

(97)

(98)

(99)

(100)

Income and deductions from a trade or business:

Interest on Government obligations:

17,718

9,244

*392

8,852

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

36,959

91,940

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

3,325

135,914

91,692

44,216

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

299,189

1,015,789

369,279

160,241

211,350

-2,311

102,021

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

17,453,232

91,067,557

61,787,464

36,886,293

24,821,006

*80,164

3,764,750

38,896,097

25,776,461

18,342,150

7,364,251

70,060

1,081,275

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

427,630

2,810,829

4,310,681

2,478,971

1,828,982

2,728

342,336

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

3,370,410

16,631,519

10,280,212

5,300,764

4,978,634

814

431,682

Repairs........................................................................................... 584,702

1,617,956

741,004

374,140

366,857

56,262

Bad debts...........................................................................................18,475

96,288

196,647

56,681

139,966

*3,721

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

883,162

6,387,722

3,885,042

1,812,037

2,071,698

1,307

190,424

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

1,104,636

3,711,797

2,298,664

1,315,802

982,400

*462

105,522

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

1,293,662

1,263,598

854,248

499,235

354,699

315

187,148

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

69,611

332,379

196,201

85,622

110,565

*13

*16,098

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

1,218,481

2,261,716

1,593,884

789,896

803,690

298

49,764

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

443,930

2,733,052

1,152,492

568,355

583,216

920

19,832

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

3,808,838

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

Pension, profit-sharing, stock

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

24,574

100,703

199,046

81,401

117,646

42,206

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

158,607

551,838

570,954

365,304

205,128

521

43,352

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

16,628

41,448

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

4,029,886

13,630,616

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

417,896

2,442,991

5,388

5,204

184

9,726,537

4,810,732

4,913,087

*2,718

1,195,127

3,092,564

1,674,639

1,420,748

*-2,823

312,353

Net income (less deficit)

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

414,571

2,425,273

3,083,320

1,674,247

1,411,896

*-2,823

312,353

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

1,335,937

4,636,819

4,313,576

2,276,784

2,036,446

346

408,150

Deficit........................................................................................... 921,366

2,211,546

1,230,256

602,537

624,551

*3,168

95,798

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

419,885

491,287

3,554

Portfolio income (less deficit)

446,666

144,557

301,979

*130

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

12,451

11,806

12,407

5,988

6,398

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

179,667

160,527

123,923

46,262

77,553

*109

3,471

Royalty income...........................................................................................--

4,013

1,517

170

1,348

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

46,030

13,350

19,114

5,713

13,402

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

179,715

301,590

289,685

86,425

203,260

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

*2,022

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

3,250

58,966

49,682

34,666

15,017

*6,617

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

48,099

71,767

53,379

35,325

18,054

*8,963

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

12,801

*3,697

*660

*3,037

*2,346

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

6,392

19,121

14,359

9,498

*4,860

---

44,849

Net income...........................................................................................6,843

19,165

19,857

14,969

*4,888

*5,498

*5,470

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

844,098

2,994,646

3,594,026

1,862,968

1,733,751

*-2,693

322,523

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

*451

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

1,768,679

5,103,277

4,751,474

2,434,026

2,316,986

462

420,454

Deficit........................................................................................... 924,581

2,108,632

1,157,448

571,058

583,235

*3,154

97,931

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

¹ Includes interest on Government obligations: State and local, which is not reflected in net income (less deficit) from a trade or business.

NOTE: Detail may not add to totals due to rounding.

S Corporation Returns, 1999

Table 2.--S Corporations with Net Income: Total Receipts and Deductions, Portfolio Income, Rental

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

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

Raw materials and energy production

Agriculture, forestry, fishing, and hunting

All

Item

industries

Support

Total

Forestry

Total

activities and

Agriculture

and

fishing,

production

logging

hunting,

Mining

Utilities

(3)

(4)

(5)

39,128

26,395

3,090

9,642

(7)

10,086

(8)

1,388

107,548

73,931

5,433

28,184

25,455

2,921

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

2,778,923,022

48,003,910

33,698,650

21,458,248

3,332,894

8,907,508

11,356,895

2,948,365

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

2,727,312,694

44,299,609

Interest on Government obligations:

31,007,859

19,145,677

3,293,413

8,568,770

10,467,314

2,824,436

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

1,181,691

44,677

34,101

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

5,233,248

430,485

178,294

30,961

154,161

*1,756

2,369

*1,384

21,763

10,179

216,561

397

35,630

and trapping

(1)

(2)

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

1,766,274

50,602

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

3,296,838

135,924

(6)

Income and deductions from a trade

or business:

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

45,195,390

3,229,138

2,478,395

2,127,448

35,357

315,590

662,841

87,902

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

2,594,871,449

43,079,369

30,819,816

19,574,289

3,177,081

8,068,446

9,566,580

2,692,973

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

1,736,020,223

22,810,943

15,600,957

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

109,245,290

981,869

702,688

8,603,572

360,997

1,967,364

83,616

5,030,021

258,074

5,032,329

263,270

2,177,657

15,910

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

268,979,750

3,390,109

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

15,141,483

884,435

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

4,273,866

32,991

2,752,500

726,174

16,210

1,899,255

513,424

12,469

176,952

68,929

*1,132

676,293

143,821

2,610

542,595

149,855

15,647

95,013

8,406

1,133

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

57,909,270

1,737,005

1,457,097

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

53,253,504

964,741

583,103

1,307,218

413,893

33,082

40,753

116,797

128,457

238,097

354,767

41,811

26,872

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

27,387,346

911,872

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

2,654,789

48,696

582,591

23,898

443,773

18,962

45,842

379

92,976

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