# S Corporation Returns, 1999 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ab77274afe6f12fa5 ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text S Corporation Returns, 1999 by Kelly Bennett S 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); 59 S Corporation Returns, 1999 Figure A Form 1120 Series Returns by Percentage of Filings, Tax Years 1986-1999 Percentage of filings 100 90 80 70 60 50 40 30 20 10 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Tax years 60 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 60 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........................................................................................................................ 50 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........................................................................................................................ 13 380,691 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 61 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 14 *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 62 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) 62 *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 8 2,445 30 *-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 of 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 *8 -*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. 63 S Corporation Returns, 1999 IncomefromRentalRealEstate 64 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 64 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 65 S Corporation Returns, 1999 66 66 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. 67 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). 68 68 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 38 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 64 219,764 93,579 50,141 14 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 78 -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 12 *673 2,369 *762 38,450 31,492 *740 *6,218 4,702 *443 39,255 *805 31,584 92 *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. 69 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 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 70 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 8 (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 25 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 5 22 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. 70 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 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 59 134,717 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 80 194,839 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 24 *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 96 -- -- 32 (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)........................................................................................... 8 596 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........................................................................................... 22 -- 17 808 129 -- 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. 71 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 metal products products manufacturing products manufacturing manufacturing (25) (26) Computer equipment, Machinery and electronic appliance, and equipment manufacturing products component manufacturing manufacturing manufacturing (30) (31) manufacturing (27) Number of returns........................................................................................... 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 72 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 2 790,618 -- 457,035 -- 430,294 41 553,780 -- 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 36 -- 3 52 (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 34 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 15 Real estate rental net income Deficit........................................................................................... 285 -- Net income........................................................................................... 3,293,316 1,395,960 Deficit........................................................................................... 334,070 Footnotes at end of table. 72 144,933 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 Total 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 15 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........................................................................................... 21 32 465,979 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 30 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. 73 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 *9 167,284 -- 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 74 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 -- 7 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 -- 65 -- 1,733 *1,749 4,726 6,411 54,995 56,594 6,070 *8,138 25,295 28,939 276 1,592 16 *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 10 698 6,370 25 11,461 *313 Net income........................................................................................... 50,279 *19,687 Deficit........................................................................................... 12,547 -- 10 -- 1,556 857 6,370 -- 25 -- 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 74 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 8 2,445 36,020 232,871 4,656 59,330 9,922 78,059 Royalty income........................................................................................... 3 6 Net short-term capital gain (less loss)........................................................................................... *-300 *-7 *29,025 3,464 30 327 83 17 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 98 *1,737 33,300 35,513 14,749 15,260 344 344 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 25 *407 *3,860 165 -25,458 -47,576 6,762 *413 6 *3,874 15 165 -- 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........................................................................................... -- Deficit........................................................................................... 307,710 25 -- 78,641 666,726 Footnotes at end of table. 75 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 1 406,609 -- 451,014 -- 772,387 1 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 -- 76 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 2 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 65 -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........................................................................................... 74 -- *7,202 232 1,186 392 *652 124 Net income (less deficit) from other rental activity........................................................................................... 6,129 8 *5,032 *4,187 8,874 1,946 *1,915 4,587 *5,364 332 *4,195 8 10,028 1,154 2,312 366 *1,930 15 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........................................................................................... -- 8 -- Deficit........................................................................................... 116,939 *17,363 Footnotes at end of table. 76 403,244 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 related vehicles and mediation 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 2 146,420 -- 284,290 2 260,703 *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 39 814 -- 19 (less loss)...................................................................................... [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ab77274afe6f12fa5. Public record. Not legal advice.