Sole Proprietorship Returns, Tax Year 2020

Sole Proprietorship Returns, Tax Year 2020

by Adrian Dungan

F

or Tax Year 2020, there were approximately 28.4 million individual income tax returns that reported nonfarm sole proprietorship activity, a 1.9-percent increase from Tax Year

2019. Total receipts reported by nonfarm sole proprietorships

decreased 2.1 percent, while deductions decreased 1.1 percent,

and profits fell 5.1 percent to $337.2 billion in 2020. In constant

dollars, total receipts fell by 3.4 percent, deductions fell by 2.4

percent, and profits decreased by 6.3 percent. Total profits as a

percentage of business receipts were 21.0 percent for the year,

down from 21.7 percent for the prior year. The professional,

scientific, and technical services sector remained the sector with

the largest share of profits at 24.9 percent, with profits decreasing by 4.8 percent to $83.9 billion. Most sectors saw decreases

in profits, with the largest percentage decrease in the arts, entertainment, and recreation sector, which decreased 26.2 percent

to $9.6 billion.

The construction sector reported the largest percentage of total

business receipts (18.3 percent) and total business deductions

(19.5 percent). The finance and insurance sector reported the

largest percentage increase in business receipts (30.3 percent)

and the largest dollar increase in business receipts, increasing

by $26 billion.

Returns and Receipts

Between Tax Years 2019 and 2020, the number of individual

income tax returns reporting nonfarm sole proprietorship activity increased 1.9 percent to 28.4 million (Figure A).1 The transportation and warehousing sector had the largest percentage

increase in the number of returns among all sectors, increasing

12.4 percent for Tax Year 2020 following a 13.3-percent rise

in Tax Year 2019. Unlike in years past, the subsector of the

transportation and warehousing sector specific to “Taxis, limousines, and other ride-sharing services” didn’t contribute at all

to this large increase. In fact, the number of returns for “Taxis,

limousines, and other ride-sharing services” dropped by 14.2

percent, while the business receipts in this subsector decreased

Figure A

Nonfarm Sole Proprietorship Returns, Receipts, and Deductions by Selected Industrial Sector, Tax Years 2019 and 2020

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

Selected industrial sector

2019

(1)

All nonfarm industries

Construction

Wholesale trade (merchant wholesalers)

Retail trade

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Professional, scientific, and technical services

Administrative and support and waste management services

Health care and social assistance

Arts, entertainment, and recreation

Other services

All other sectors

Number of returns

Percentage

2020

change

(2)

(3)

Total business receipts

Percentage

2020

change

(4)

(5)

(6)

2019

2019

Total business deductions [1]

Percentage

2020

change

(7)

(8)

(9)

27,817.2

28,353.4

1.9

1,639.7

1,605.2

-2.1

1,283.0

1,268.9

-1.1

3,044.4

307.5

2,364.2

2,934.5

668.8

1,365.0

3,662.3

2,766.0

2,180.5

1,731.0

3,639.4

3,153.5

3,279.0

332.8

2,602.6

3,298.0

709.6

1,431.3

3,599.4

2,795.6

2,158.6

1,592.4

3,588.2

2,965.9

7.7

8.2

10.1

12.4

6.1

4.9

-1.7

1.1

-1.0

-8.0

-1.4

-6.0

294.2

52.5

186.3

146.9

85.8

94.2

212.4

94.1

123.2

53.2

123.6

173.4

294.2

49.6

195.0

138.3

111.9

103.9

198.5

88.8

114.7

40.7

113.9

155.6

0.0

-5.4

4.7

-5.9

30.3

10.3

-6.5

-5.6

-6.9

-23.4

-7.9

-10.3

244.9

47.6

174.8

128.2

61.6

62.8

124.2

69.4

77.8

40.3

94.8

156.7

247.2

44.9

182.8

121.2

85.8

67.2

114.6

66.2

72.8

31.2

91.4

143.5

0.9

-5.6

4.6

-5.5

39.3

7.0

-7.7

-4.5

-6.4

-22.6

-3.5

-8.4

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

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

For Tax Year 2020, the 28,353,367 nonfarm sole proprietorship returns accounted for an estimated 32,001,788 nonfarm businesses. For purposes of these statistics, if a proprietor owned

more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that business activity. When this

occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting a deficit) yielded the profits for a specific industrial

group.

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

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

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

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

between data by industry from 1998–2020 with 1997 and prior years may show inconsistencies. A reason for this is that several types of sole proprietorships under NAICS were classified in

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

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

1

Statistics of Income

Statistics of Income Bulletin | Spring 2023

www.irs.gov/statistics

Sole Proprietorship Returns, Tax Year 2020

by 36.6 percent. This latter decrease contributed to an overall

5.4-percent decrease in receipts for the entire transportation and

warehousing industry. Between Tax Years 2013 and 2020, the

average business receipts per return in this subsector (taxis, etc.)

fell from $36,420 to $18,268 (Figure B). For the transportation and warehousing sector more broadly, 91 percent of the

returns had business receipts of $100,000 or less; these returns

accounted for 54.9 percent of total profits (Figure C). Similarly,

both the administrative and support and waste management services and the construction sectors had relatively large percentages of profits accounted for by returns with business receipts of

less than $100,000. In the administrative and support and waste

management services sector, 94.5 percent of returns had business receipts less than $100,000; these returns accounted for

58.4 percent of the sector’s total profits. The construction sector

had 83.8 percent of such returns, accounting for 44.6 percent

of its total profits. Conversely, the finance and insurance sector

(13.4 percent) and the wholesale trade (10.8 percent) and retail

trade (0.2 percent) sectors had much lower percentages of profits accounted for by returns with business receipts of $100,000

or less. The professional, scientific, and technical services sector

had the largest number of returns with business receipts less

than $100,000 with 3.2 million returns. Overall, returns with

business receipts of $100,000 or less comprised 90.1 percent

of all sole proprietor returns, but earned just 33.9 percent of the

profits.

For all nonfarm sole proprietorship industries, total business

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

Figure B

Nonfarm Sole Proprietorships: Income Statements for Taxis and Limousines, Including Ride-Sharing Services, Tax Years 2013–2020

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

Net income status, item

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns [1]

Business receipts, total [1,2]

Income from sales and operations [1]

Other business income (loss) [1]

Business deductions, total [1,2,3]

Cost of sales and operations

Advertising expenses

Car and truck expenses

Commissions

Contract labor

Depreciation

Insurance

Legal and professional services

Meals and entertainment deducted

Other interest paid on business indebtedness

Office expenses

Rent paid on machinery and equipment

Rent paid on other business property

Repairs

Supplies

Salaries and wages

Taxes paid

Travel

Utilities

Other business expenses

Net income less deficit [1,2]

Net income [1,2]

Deficit [2]

Returns with Schedule C-EZ:

Number of returns

Business receipts

Business deductions

Net income

Taxis and limousines, including ride-sharing services

2013

2014

2015

2016

2017

2018

2019

2020

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

230,481

8,394,177

8,238,769

155,408

6,026,516

85,707

58,833

1,446,115

179,673

193,757

252,269

303,001

36,102

68,614

49,441

21,934

1,244,278

149,334

209,576

41,890

115,582

89,953

53,945

145,183

1,206,370

2,367,665

2,629,448

261,783

331,281

10,874,894

10,658,172

216,722

8,405,469

220,143

46,425

2,154,758

230,200

278,918

362,876

403,056

45,489

85,709

13,270

29,264

1,676,672

120,421

289,536

125,806

103,728

139,797

73,095

199,119

1,669,365

2,470,162

2,940,526

470,364

555,046

12,808,899

12,680,939

127,959

10,153,715

200,268

60,397

2,725,539

487,736

199,810

488,304

382,624

60,581

89,987

34,864

57,056

1,613,450

234,897

359,142

99,870

109,566

122,103

74,806

320,180

2,206,131

2,656,632

3,457,190

800,558

847,065

16,667,209

16,445,007

222,202

13,459,248

168,933

69,043

4,480,628

794,283

179,858

459,246

487,139

77,012

224,901

30,653

75,168

1,622,525

227,218

375,638

199,312

219,346

211,215

105,037

429,427

2,728,782

3,223,125

4,382,503

1,159,378

1,037,701

21,538,304

21,283,180

255,124

17,853,556

203,540

90,730

6,469,898

1,222,840

489,904

678,466

520,928

135,018

273,547

39,506

97,634

1,484,949

242,263

528,036

245,197

129,258

222,812

206,122

581,156

3,685,076

3,694,665

5,485,379

1,790,714

1,103,024

26,481,055

26,077,063

403,992

22,749,710

137,168

114,344

8,946,327

1,661,332

277,689

649,395

551,804

189,579

295,317

62,813

130,595

1,407,164

263,762

640,663

387,074

115,582

263,331

291,242

749,740

5,292,885

3,760,332

6,176,837

2,416,505

1,363,610

33,718,564

33,303,882

414,682

28,736,655

327,319

86,927

12,245,949

2,211,004

342,311

839,486

639,088

187,871

329,951

46,371

96,745

1,410,343

421,073

699,347

445,042

247,937

230,948

212,532

924,816

6,649,634

5,023,587

7,907,572

2,883,985

1,170,553

21,383,832

20,922,905

460,927

19,263,108

172,508

80,094

7,857,552

1,168,043

231,378

770,476

562,811

140,485

272,742

33,338

104,520

827,056

205,482

584,932

448,008

109,566

155,745

167,705

746,199

4,458,200

2,259,454

5,181,445

2,921,992

23,418

223,733

39,465

184,268

36,026

197,099

39,656

157,444

126,124

502,216

164,642

337,574

193,612

595,387

198,272

397,116

169,286

731,185

224,661

506,525

107,768

522,547

160,568

361,979

[4]

[4]

[4]

[4]

[4]

[4]

[4]

[4]

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

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

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

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

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

[3] Total business deductions will not be equal to the total as items with an estimate based on a small number of sample returns have been removed.

[4] Schedule C-EZ was eliminated for Tax Year 2019 and beyond in accordance with the 2017 Tax Cut and Jobs Act.

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

Statistics of Income Bulletin

3

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Figure C

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

Equal to or Less than $100,000 by Selected Industry, Tax Year 2020

Industrial section

33.9%

All nonfarm industries

90.1%

0.2%

Retail trade

89.5%

10.8%

Wholesale trade (merchant wholesalers)

82.9%

13.4%

Finance and insurance

79.8%

24.1%

Real estate and rental and leasing

84.2%

26.1%

Arts, entertainment, and recreation

96.1%

27.2%

Professional, scientific, and technical services

88.7%

35.5%

Health care and social assistance

91.0%

44.6%

Construction

83.8%

54.9%

Transportation and warehousing

91.0%

58.4%

Administrative and support and waste management services

0%

20%

40%

Net income less deficit (profits)

60%

94.5%

80%

100%

Number of returns

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

Deductions

“other business income”) decreased 2.1 percent, from $1,639.7

billion to $1,605.2 billion (Figure A).2 The finance and insurance sector showed the largest percentage increase in business

receipts, increasing 30.3 percent to $111.9 billion for Tax Year

2020. The real estate and rental sector experienced the second

largest percentage increase in business receipts, increasing by

10.3 percent to $103.9 billion. In constant dollar terms, total

business receipts for Tax Year 2020 decreased 3.4 percent to

$1,410.9 billion (in 2012 dollars, Figure D).3

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

business expenses, including expenses for home offices) in current dollars decreased 1.1 percent, from $1,283.0 billion in Tax

Year 2019 to $1,268.9 billion in Tax Year 2020 (Figure A).4,5 In

constant dollars, total business deductions decreased 2.4 percent

in 2020 (Figure D).

Deductions for the construction sector, the largest sector in

terms of total business deductions, increased 0.9 percent, from

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

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

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

3

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

for this article were:

2

Year

Indices

Year

Indices

Year

Indices

1988

59.059

2000

78.078

2012

100

1989

61.374

2001

79.79

2013

101.755

1990

63.671

2002

81.052

2014

103.638

1991

65.825

2003

82.557

2015

104.624

1992

67.325

2004

84.78

2016

105.722

1993

68.92

2005

87.421

2017

107.71

1994

70.392

2006

90.066

2018

110.296

1995

71.868

2007

92.486

2019

112.290

1996

73.183

2008

94.285

2020

113.769

1997

74.445

2009

95.004

1998

75.283

2010

96.111

1999

76.37

2011

98.118

4

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

paid to owners are neither deducted as wages paid on Schedule C nor included as wages received on Form 1040, U.S. Individual Income Tax Return. Similarly, sole proprietors deduct charitable

contributions made through the business as personal expenses on Schedule A, Itemized Deductions. However, the owner of a sole proprietorship may choose to deduct any foreign taxes paid as

a business expense, unless the owner elects to claim these taxes as a credit against U.S. income tax.

5

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

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

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

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

Statistics of Income Bulletin

4

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Figure D

Nonfarm Sole Proprietorships: Receipts, Deductions, and Profits, Tax Years 1988–2020

[Money amounts are in billions of dollars]

Total business receipts

Tax year

Current dollars

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total business deductions [1]

Constant dollars [2]

(1)

672.0

692.8

730.6

712.6

737.1

757.2

790.6

807.4

843.2

870.4

918.3

969.3

1,021.0

1,016.8

1,029.7

1,050.2

1,139.5

1,222.9

1,278.4

1,324.4

1,317.4

1,178.4

1,195.5

1,265.9

1,301.6

1,341.6

1,393.9

1,443.6

1,422.2

1,531.3

1,589.7

1,639.7

1,605.2

Net income less deficit (profits)

Constant dollars [2]

Amount

Percentage

change

Current dollars

(2)

1,137.8

1,128.8

1,147.5

1,082.6

1,094.8

1,098.7

1,123.2

1,123.4

1,152.2

1,169.2

1,219.8

1,269.3

1,307.6

1,274.4

1,270.4

1,272.1

1,344.1

1,398.8

1,419.4

1,432.0

1,397.3

1,240.4

1,243.9

1,290.2

1,301.6

1,318.4

1,345.0

1,379.8

1,345.2

1,421.7

1,441.3

1,460.3

1,410.9

(3)

[3]

-0.8

1.7

-5.7

1.1

0.4

2.2

[4]

2.6

1.5

4.3

4.1

3.0

-2.5

-0.3

0.1

5.7

4.1

1.5

0.9

-2.4

-11.2

0.3

3.7

0.9

1.3

2.0

2.6

-2.5

5.7

1.4

1.3

-3.4

(4)

545.7

560.2

589.2

571.2

583.1

600.8

623.8

638.1

666.5

683.9

716.2

761.4

806.4

799.6

808.9

820.2

892.4

953.4

1,001.1

1,044.3

1,053.7

934.5

929.0

984.2

997.6

1,040.4

1,078.5

1,112.8

1,094.9

1,186.5

1,242.4

1,283.0

1,268.9

Amount

Percentage

change

(5)

924.0

912.8

925.4

867.8

866.1

871.7

886.2

887.9

910.7

918.6

951.3

997.0

1,032.8

1,002.2

998.0

993.5

1,052.6

1,090.6

1,111.5

1,129.2

1,117.6

983.7

966.6

1,003.1

997.6

1,022.4

1,040.6

1,063.6

1,035.6

1,101.6

1,126.4

1,142.5

1,115.3

(6)

[3]

-1.2

1.4

-6.2

-0.2

0.6

1.7

0.2

2.6

0.9

3.6

4.8

3.6

-3.0

-0.4

-0.5

5.9

3.6

1.9

1.6

-1.0

-12.0

-1.7

3.8

-0.6

2.5

1.8

2.2

-2.6

6.4

2.3

1.4

-2.4

Constant dollars [2]

Current dollars

(7)

126.3

132.7

141.4

141.5

154.0

156.5

166.8

169.3

176.8

186.6

202.3

207.9

214.7

217.4

221.1

230.3

247.6

269.9

278.0

280.6

264.5

244.8

267.7

282.6

304.9

302.3

317.1

331.8

328.2

346.2

348.5

355.2

337.2

Amount

(8)

213.9

216.2

222.1

215.0

228.7

227.0

237.0

235.5

241.5

250.7

268.7

272.3

275.0

272.4

272.8

279.0

292.0

308.8

308.7

303.4

280.5

257.7

278.5

288.1

304.9

297.1

305.9

317.2

310.4

321.5

316.0

316.3

296.4

Percentage

change

(9)

[3]

1.1

2.7

-3.2

6.4

-0.8

4.4

-0.6

2.6

3.8

7.2

1.3

1.0

-0.9

0.1

2.3

4.7

5.7

-0.0

-1.7

-7.5

-8.1

8.1

3.4

5.8

-2.6

3.0

3.7

-2.1

3.5

-1.7

0.1

-6.3

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

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

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

Department of Commerce, Bureau of Economic Analysis, in the Survey of Current Business. The deflator represents the annual average of current-weighted prices, based on 2012 = 100.

[3] Not calculated.

[4] Less than 0.05 percent.

NOTE: Percentages were calculated before rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

$244.9 billion in 2019 to $247.2 billion in 2020. The finance

and insurance sector had the largest percentage increase of total

business deductions, increasing 39.3 percent to $85.8 billion.

The cost of sales and operations represented 35.6 percent of

total Tax Year 2020 business deductions ($452.2 billion) (Table

2). Total business “expenses” (total business deductions minus

the cost of sales and operations) were $816.7 billion for 2020, a

3.2-percent decrease from the previous tax year.

Historically, constant dollar depreciation increased almost

every year from 1993 through 2003.6 Between Tax Years 2004

and 2009, constant dollar depreciation dropped significantly,

going from $50.6 billion to $36.4 billion. In Tax Year 2012,

it dropped to $34.2 billion, but subsequently climbed back to

$39.1 billion by 2017 (Figure E). Increases in Tax Years 2003

and 2008 coincided with legislative changes to section 179

of the Internal Revenue Code that substantially increased the

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

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

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

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

6

Statistics of Income Bulletin

5

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Figure E

Nonfarm Sole Proprietorships: Net Income, Deficit, and Depreciation, Tax Years 1988–2020

Tax year

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Current dollars [1]

Constant dollars [1]

Net income

Deficit

Depreciation [2]

(1)

145.5

152.4

161.7

162.4

173.5

177.0

187.8

191.7

200.1

210.5

226.2

233.4

245.2

250.2

257.3

269.1

290.5

314.8

326.8

335.1

325.3

308.9

323.2

337.0

357.1

357.4

374.5

392.1

389.1

415.8

430.0

443.3

436.4

(2)

19.2

19.7

20.2

20.9

19.5

20.5

21.0

22.5

23.4

23.8

23.9

25.5

30.5

32.8

36.2

38.8

42.9

44.8

48.7

54.5

60.8

64.1

55.5

54.3

52.2

55.1

57.5

60.3

60.9

69.5

81.5

88.1

99.2

(3)

26.1

24.5

23.7

23.1

23.3

25.0

26.2

26.2

27.4

28.6

29.1

30.6

32.2

33.4

36.6

41.8

42.9

39.1

39.0

39.6

41.4

34.5

35.1

35.6

34.2

35.4

36.6

38.4

38.4

42.1

50.8

52.0

55.1

Net income

Deficit

(4)

246.4

248.3

254.0

246.7

257.7

256.8

266.8

266.8

273.5

282.7

300.5

305.6

314.1

313.5

317.4

325.9

342.6

360.0

362.8

362.3

345.0

325.1

336.3

343.5

357.1

351.3

361.4

374.8

368.1

386.0

389.9

394.8

383.6

(5)

32.5

32.1

31.7

31.8

29.0

29.7

29.8

31.3

31.9

32.0

31.8

33.3

39.1

41.1

44.6

47.0

50.6

51.3

54.1

59.0

64.4

67.4

57.8

55.4

52.2

54.2

55.5

57.6

57.6

64.6

73.9

78.5

87.2

Percentage change in constant dollars [1]

Depreciation [2]

(6)

44.2

39.9

37.2

35.1

34.6

36.3

37.2

36.5

37.4

38.5

38.7

40.1

41.2

41.9

45.2

50.6

50.6

44.7

43.3

42.9

44.0

36.4

36.5

36.3

34.2

34.8

35.3

36.7

36.3

39.1

46.0

46.3

48.4

Net income

Deficit

Depreciation [2]

(7)

[3]

0.8

2.3

-2.9

4.5

-0.3

3.9

[4]

2.5

3.4

6.3

1.7

2.8

-0.2

1.2

2.7

5.1

5.1

0.8

-0.1

-4.8

-5.8

3.4

2.1

4.0

-1.6

2.9

3.7

-1.8

4.9

1.0

1.3

-2.8

(8)

[3]

-1.3

-1.2

0.1

-8.8

2.7

0.3

4.8

2.1

0.2

-0.7

4.9

17.2

5.2

8.6

5.2

7.8

1.3

5.5

9.0

9.3

4.6

-14.3

-4.1

-5.8

3.9

2.3

3.9

[4]

12.0

14.4

6.2

11.1

(9)

[3]

-9.7

-6.8

-5.7

-1.4

4.8

2.6

-1.9

2.4

2.8

0.6

3.7

2.8

1.6

7.9

11.9

0.1

-11.7

-3.1

-1.0

2.5

-17.3

0.5

-0.7

-5.7

1.5

1.5

4.1

-1.1

7.5

17.9

0.5

4.6

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

Department of Commerce, Bureau of Economic Analysis, in the Survey of Current Business. The deflator represents the annual average of current-weighted prices, based on 2012 = 100.

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

[3] Not calculated.

[4] Less than 0.05 percent.

NOTE: Percentage changes were calculated before rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

amount of certain investment property that could be expensed in

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

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

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

depreciation increase of 11.9 percent for 2003, which was the

second highest growth in depreciation of any year between Tax

Years 1988 and 2020. But the initial increase in depreciation

was followed by trends of decreased depreciation, which is consistent with deductions being accelerated into the year of expensing. Constant dollar declines of depreciation were reported

for Tax Years 2005, 2006, and 2007.7 This downward trend was

particularly pronounced in 2005, as constant dollar depreciation

fell by 11.7 percent, followed by decreases of 3.1 percent in

2006 and 1.0 percent in 2007. During this same 3-year period,

section 179 limits gradually increased for inflation, finally rising

to $125,000 in 2007. In 2008, the section 179 limit was doubled to $250,000 and there was a 2.5-percent increase in constant dollar depreciation. The $250,000 limit remained for Tax

Year 2009 and depreciation dropped 17.3 percent, which was

the largest decrease since at least 1988. In Tax Year 2010, the

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

dollar depreciation increased by only 0.5 percent, from $36.4

billion to $36.5 billion. The limit was increased as part of the

Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of a section 179 deduction increased four times between 2002 and 2006, from $24,000 (2002) to

$100,000 ( 2003) to $102,000 (2004) to $105,000 (2005), and then to $108,000 (2006). This was further expanded to $125,000 for 2007 by the Small Business and Work Opportunity Tax Act of

2007 (PL 110-28). The Jobs Creation and Worker Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the

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

expensing and, therefore, likely had less effect on their depreciation deductions.

7

Statistics of Income Bulletin

6

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

stimulus packages created in response to the Great Recession.8

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

through 2017. For 2011, constant dollar depreciation dropped

by 0.7 percent; in 2012 it dropped another 5.7 percent to $34.2

billion, the lowest level over the 31 years of this study. The

Tax Cut and Jobs Act of 2017 (TCJA) increased the additional

first-year depreciation deduction in IRC section 168(k) from

50 percent to 100 percent for qualified property acquired and

placed in service after September 27, 2017, and before January

1, 2023. The TCJA also expanded bonus depreciation to certain

used property. Tax Year 2019 was the first year that the TCJA

impacted depreciation and accordingly, constant dollar depreciation rose by 17.9 percent to $46.0 billion. This represents the

highest percentage real growth in depreciation for all 31 years

included in this study.

Beginning with Tax Year 1992, certain smaller businesses

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

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

(Schedules C and C-EZ are the sources of nonfarm sole proprietorship statistics.) However, for Tax Year 2020, Schedule

C-EZ was eliminated in accordance with Internal Revenue code

changes implemented by TCJA. Previously, for Tax Year 2019,

taxpayers could use Schedule C-EZ if they: had business expenses of $5,000 or less; used the cash accounting method; had

no inventory; did not report a loss from the business; had only

one business as a sole proprietor; had no employees; were not

required to file Form 4562, Depreciation and Amortization, for

the business; claimed no deduction for home business expenses;

and had no prior-year disallowed passive activity losses from

the business. Since taxpayers using Schedule C-EZ did not

itemize business deductions, the detailed deductions in Table 2,

based only on Schedule C returns, are slightly understated and

do not sum to the total deductions in Figure D.9

Figure F

Nonfarm Sole Proprietorship Profits by Selected Industrial

Sector, Tax Years 2019 and 2020

[Money amounts are in billions of dollars]

Selected industrial sector

All nonfarm industries

Construction

Wholesale trade (merchant wholesalers)

Retail trade

Transportation and warehousing

Finance and insurance

Real estate and rental and leasing

Professional, scientific, and technical services

Administrative and support and waste

management services

Health care and social assistance

Arts, entertainment, and recreation

Other services

All other sectors

Net income less deficit (profits)

Percentage

2020

change

(1)

(2)

(3)

355.2

337.2

-5.1

48.2

47.0

-2.4

4.8

4.8

-1.1

11.7

12.5

6.8

18.8

17.3

-7.8

23.8

25.6

7.5

31.1

36.9

18.5

88.1

83.9

-4.8

2019

24.6

22.6

-8.4

45.5

13.0

28.7

16.8

41.9

9.6

22.6

12.5

-7.9

-26.2

-21.1

-25.5

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

before rounding.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

over last year, dropping 2.4 percent to $47.0 billion. The largest

percentage increase in profits was realized in the real estate and

rental leasing sector, which increased 18.5 percent for a gain of

$5.8 billion. Figure D presents total profits for all industries (in

current and constant dollars) since 1988, while Figure F (for

2019 and 2020) presents profits by selected industrial sectors

and Figure G presents industrial profits as a percentage of total

profits.10

In constant dollars, total profits decreased by 6.3 percent

for 2020 going from $316.3 billion in 2019 to $296.4 billion

in 2020. Figure H shows net income less deficits as a percentage of business receipts for 1988 through 2020. In general, this

percentage has increased over time from a low of 18.8 percent

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

2008. For 2020, net income less deficits as a percentage of business receipts decreased for the fourth consecutive year going

from 21.7 percent in 2019 to 21.0 percent in 2020.

Profits and Losses

Total profits decreased 5.1 percent from $355.2 billion for Tax

Year 2019 to $337.2 billion for Tax Year 2020. By industrial

sector, changes to profits mostly decreased with 9 of the 12 sectors analyzed reporting decreased sole proprietorship profits (net

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

services sector reported the largest percentage of total profits of

all nonfarm sole proprietorships, with 24.9 percent ($83.9 billion), and the sector had a $4.2 billion (4.8 percent) decrease in

profits for 2020 compared to the previous year. The second largest sector by profits, construction, reported a decrease in profits

Limited Liability Companies

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

nonfarm sole proprietorship returns. LLC entities have limited

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

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

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

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

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

increase from 2009. For 2010, the amount deducted on all individual returns increased to $49.6 billion, a 20.3-percent increase from 2009. These numbers do not reflect depreciation solely

deducted on the Schedule C, as this could also include depreciation taken on the Schedule E, Supplemental Income and Loss, the Schedule F, Profit or Loss From Farming, and the Form 4835,

Farm Rental Income and Expenses.

9

The SOI sample includes a weighted amount of 94,735 prior-year returns that still had Schedule C-EZ attached. See IRS Publication 1304, Description of the Sample, for an explanation of

prior-year returns in the SOI sample..

10

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

8

Statistics of Income Bulletin

7

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

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

owner to be taxed), if owned by one individual. In 2001, there

were a little over 126,000 sole proprietorship returns that indicated status as an LLC or just 0.7 percent of total sole proprietorship returns (Figure I). In contrast, for Tax Year 2020, there

were 2.8 million such sole proprietorships, which accounted for

9.8 percent of the total nonfarm sole proprietorship returns, a

22-fold increase in the number of returns since 2001. The share

of total nonfarm sole proprietorship business receipts attributed

to LLCs also rose during this period, from approximately 2.3

percent in 2001 to 32.3 percent in 2020 (Figure J). Similarly,

the portion of total net income (less deficit) of all nonfarm sole

proprietorships attributable to LLCs increased, from 1.0 percent

in 2001 to 19.7 percent in 2020.

Figure G

Nonfarm Sole Proprietorships: Selected Industrial Sector

Profits as a Percentage of Total Profits, Tax Year 2020

Wholesale trade

(merchant wholesalers)

1.4

Arts, entertainment, and recreation

2.8

Retail trade

3.7

All other sectors

3.7

Transportation and warehousing

5.1

Administrative and support and

waste management services

6.7

Other services

6.7

Finance and insurance

7.6

Real estate and rental and leasing

Summary

Profits for the 28.4 million returns with sole proprietorship activity for Tax Year 2020 decreased by 5.1 percent from Tax Year

2019 to a level of $337.2 billion. In constant dollars, total nonfarm sole proprietorship profits for 2020 decreased 6.3 percent.

The professional, scientific, and technical services sector had

the largest profits of any sector, at $83.9 billion, representing

24.9 percent of total sole proprietorship profits, followed by the

construction sector, at $47 billion or 13.9 percent of total profits. Overall sole proprietorship business receipts decreased 2.1

percent to $1,605.2 billion. The largest industrial sector, based

on business receipts, was the construction sector, accounting for

10.9

Health care and social assistance

12.4

Construction

13.9

Professional, scientific,

and technical services

24.9

0

5

10

15

20

25

30

Percentage of total profits

NOTES: Percentages are based on estimated total profits of $337.2 billion. Detail may not add

to 100 percent because of rounding. Profits is a designation for "net income less deficit,"

discussed elsewhere in this article.

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

Figure H

Nonfarm Sole Proprietorship Net Income Less Deficit (Profits) as a Percentage of Total Business Receipts, Tax Years 1988–2020

Percentage

25

24

23.4

23.0

23

22.4

22.0

22

21.4

21.1

20.9

21

21.4

21.0

22.1

21.7

21.5

21.0

22.6

22.3 22.5

21.9

21.5

23.1

22.7

21.7

21.9

21.7

21.2

21.0

21.0

20.8

20.7

20.1

19.9

20

19.4

19

19.2

18.8

18

1988

1992

1996

2000

2004

2008

2012

2016

2020

Tax year

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

Statistics of Income Bulletin

8

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Figure I

Nonfarm Sole Proprietorships: Number Filing Returns Registered as a Limited Liability Company (LLC), Tax Years 2001–2020

Tax year

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2,783,413

2,460,292

2,119,147

2,066,851

1,868,459

1,715,430

1,619,099

1,474,592

1,324,196

1,125,132

1,059,910

991,809

842,819

746,885

606,889

455,734

309,665

220,615

145,839

126,437

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Number of returns filed by nonfarm sole proprietorships registered as LLCs

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

Figure J

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

Companies (LLC), Tax Years 2001–2020

[Money amounts are in thousands of dollars]

Number of returns

Tax Year

Total business receipts

All nonfarm

sole

proprietorships

Nonfarm sole

proprietorships

registered

as LLCs

LLCs percentage

of all

nonfarm sole

proprietorships

(1)

(2)

(3)

All nonfarm

sole

proprietorships

Net income less deficit

Nonfarm sole

proprietorships

registered

as LLCs

LLCs percentage

of all

nonfarm sole

proprietorships

(6)

All nonfarm

sole

proprietorships

(7)

Nonfarm sole

proprietorships

registered

as LLCs

LLCs percentage

of all

nonfarm sole

proprietorships

(8)

(9)

(4)

(5)

2001

18,338,190

126,437

0.7

1,016,834,678

23,357,818

2.3

217,385,116

2,259,135

1.0

2002

18,925,517

145,839

0.8

1,029,691,760

39,239,656

3.8

221,113,286

3,378,774

1.5

2003

19,710,079

220,615

1.1

1,050,202,446

55,626,849

5.3

230,308,100

3,847,617

1.7

2004

20,590,691

309,665

1.5

1,139,523,760

82,850,651

7.3

247,567,189

6,743,666

2.7

2005

21,467,566

455,734

2.1

1,222,880,231

119,603,018

9.8

269,919,995

10,902,821

4.0

2006

22,074,953

606,889

2.7

1,278,359,791

151,746,232

11.9

278,032,643

14,270,523

5.1

2007

23,122,698

746,885

3.2

1,324,403,080

185,837,712

14.0

280,557,010

16,235,182

5.8

2008

22,614,483

842,819

3.7

1,317,443,005

205,646,039

15.6

264,508,362

18,215,151

6.9

2009

22,659,976

991,809

4.4

1,178,437,093

205,194,197

17.4

244,821,815

18,522,837

7.6

2010

23,003,656

1,059,910

4.6

1,195,538,629

220,116,934

18.4

267,699,702

23,915,511

8.9

2011

23,426,940

1,125,132

4.8

1,265,939,196

244,024,850

19.3

282,649,926

27,093,827

9.6

2012

23,553,850

1,324,196

5.6

1,301,569,749

291,350,534

22.4

304,895,911

35,841,019

11.8

2013

24,074,684

1,474,592

6.1

1,341,571,082

316,224,871

23.6

302,269,621

37,151,475

12.3

2014

24,631,831

1,619,099

6.6

1,393,884,201

342,093,644

24.5

317,058,087

43,427,440

13.7

2015

25,226,245

1,715,430

6.8

1,443,584,972

370,123,809

25.6

331,832,538

48,902,901

14.7

2016

25,525,915

1,868,459

7.3

1,422,204,586

399,904,053

28.1

328,209,453

51,214,709

15.6

2017

26,426,406

2,066,851

7.8

1,531,346,020

449,128,268

29.3

346,241,776

55,889,306

16.1

2018

27,117,163

2,119,147

7.8

1,589,748,596

459,459,012

28.9

348,509,654

55,514,156

15.9

2019

27,817,189

2,460,292

8.8

1,639,728,938

504,169,598

30.7

355,177,263

62,278,066

17.5

2020

28,353,367

2,783,413

9.8

1,605,197,079

518,629,767

32.3

337,201,262

66,352,083

19.7

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

Statistics of Income Bulletin

9

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

$294.2 billion in business receipts. The transportation and warehousing sector had the largest percentage increases in returns

(12.4 percent) while the finance and insurance sector had the

highest percentage increase in receipts (30.3 percent).

were based on a sample of 101,004 returns and a population of

28,157,501 returns.

Since the data presented in this article are estimates based

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

To use the statistical data estimates provided, the magnitude

of the potential sampling error must be known; coefficients of

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

presents estimated CVs for total business receipts, total business

deductions, depreciation, net income, and deficit by selected industrial sector. Generally, the smaller the CV, the more reliable

the estimate is judged to be. The SOI Sampling Methodology

and Data Limitations section of the SOI Bulletin, available at

http://www.irs.gov/pub/irs-soi/sampling.pdf, discusses the reliability of estimates based on samples and the use of CVs for

evaluating the precision of estimates based on samples.

Data Sources and Limitations

The 2020 sole proprietorship estimates are based on a stratified

probability sample of unaudited Forms 1040, U.S. Individual

Income Tax Returns (including electronically filed returns),

processed by the Internal Revenue Service during Calendar

Year 2020. Returns in the sample were stratified based on: (1)

the presence or absence of Schedule C, Profit or Loss From

Business (Sole Proprietorship), or Schedule C-EZ, Net Profit

From Business, and Schedule F, Farm Income and Expenses;

(2) the larger of positive income or negative income (i.e., “adjusted gross income” before statutory adjustments); and (3) tax

year. The returns were selected at rates that ranged from 0.1

percent to 100 percent. The 2020 nonfarm sole proprietorship

data are based on a sample of 104,228 returns and a population of 28,737,055 returns.11 The corresponding data for 2019

Adrian Dungan is an economist with the Individual Special Studies

Section. This article was prepared under the direction of Michael

Strudler, Management and Program Analyst, Individual and Tax-Exempt

Branch.

Figure K

Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items by Selected Industrial Sector, Tax Year 2020

[Coefficients of variation are in percentages]

Coefficients of variation

Industrial sector

All industries (000000-999999)

Construction (236100-238990)

Wholesale trade (423100-425120)

Retail trade (441110-454390)

Transportation and warehousing (481000-493100)

Finance and insurance (522100-525990)

Real estate and rental leasing (531100-533110)

Professional, scientific, and technical services (541100-541990)

Administrative and support and waste management services (561110-562000)

Health care and social assistance (621111-624410)

Arts, entertainment, and recreation (711100-713900)

Other services (811110-813000)

All other industries

Total

business

receipts

Total business

deductions

Depreciation [1]

Net income

Deficit

(1)

(2)

(3)

(4)

(5)

0.60

1.98

4.78

2.48

2.28

2.06

2.58

1.72

2.88

2.01

3.56

2.73

2.30

0.66

2.08

4.91

2.50

2.26

2.00

2.89

2.09

3.20

2.15

3.68

2.93

2.28

1.48

4.09

10.85

5.97

3.94

5.88

4.75

5.18

6.29

6.09

7.46

5.64

3.57

0.75

2.29

6.66

3.47

2.98

3.51

3.14

1.96

2.89

2.57

4.28

2.83

3.04

1.24

4.41

10.36

4.26

3.99

5.90

4.78

3.97

5.13

5.25

5.15

3.82

3.26

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns, November 2022.

The difference between the number of returns in the population and the total number of returns in Tables 1 and 2 is mainly due to returns in which Schedule C income was moved to other

income or wages to avoid double counting of taxpayers for Gross Domestic Product calculations. In addition, data from amended and tentative returns are not reflected in these statistics.

11

Statistics of Income Bulletin

10

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020

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

Businesses with and without net income

Industrial sector

All nonfarm industries

Agriculture, forestry, hunting, and fishing

Number

of returns

Business

receipts

(1)

(2)

Depreciation

deduction [1]

(3)

28,353,367 1,605,197,079

Rent paid

on machinery

and

equipment

(4)

Rent paid

on other

business

property

Interest paid

deduction [2]

(5)

(6)

Net income

less deficit

Payroll [3]

(7)

(8)

56,261,977

11,599,028

40,382,893

10,451,607

141,242,788

337,201,262

295,976

23,900,795

2,370,506

216,247

343,454

325,279

2,312,242

1,637,430

Animal production (including breeding of cats and dogs)

46,595

1,858,848

237,237

1,889

28,137

22,079

178,473

-229,711

Forestry and logging (including forest nurseries, timber tracts)

41,205

6,537,900

828,888

53,712

25,524

84,901

716,909

625,128

Fishing, hunting, and trapping

69,564

2,776,463

504,606

26,133

58,317

60,017

134,348

192,796

Support activities for agriculture and forestry

138,612

12,727,585

799,775

134,513

231,476

158,281

1,282,512

1,049,217

Mining

Oil and gas extraction

83,602

6,944,617

800,233

49,495

74,967

92,142

725,297

-181,581

59,176

4,193,082

447,885

14,974

37,715

55,058

256,264

-201,037

Other mining

6,341

903,744

161,955

14,584

1,818

18,191

127,897

-148,822

Support activities for mining

18,085

1,847,791

190,393

19,938

35,433

18,893

341,136

168,278

10,725

1,009,790

209,629

3,334

4,936

19,937

44,196

64,894

3,278,992

294,232,197

9,592,107

1,888,442

2,352,608

1,229,571

34,655,385

47,026,415

Construction of buildings

698,494

83,991,078

2,393,675

458,211

479,033

453,998

9,791,349

10,795,106

Heavy and civil engineering construction

43,055

9,718,666

651,845

99,491

83,019

91,921

1,146,861

766,178

2,537,444

200,522,453

6,546,587

1,330,740

1,790,556

683,652

23,717,175

35,465,132

Utilities

Construction

Specialty trade contractors

Manufacturing

373,238

35,613,797

1,748,229

157,398

1,033,426

313,466

4,587,741

2,842,685

Food manufacturing

57,844

6,795,702

248,992

38,871

259,232

95,387

867,370

-58,334

Textile and textile product mills

11,528

494,242

31,384

* 3,580

* 8,397

* 6,141

* 66,794

2,388

Apparel

32,444

1,254,142

25,088

* 18,232

78,505

** 6,169

149,512

67,037

Leather and allied products

7,569

233,840

* 12,602

* 9,261

* 2,347

**

* 3,976

13,851

Wood products

23,106

3,403,923

300,045

6,223

** 32,198

28,281

** 388,710

137,452

Paper products

* 1,022

* 61,555

* 186

* 299

**

* 103

**

* -14,934

Printing and related support activities

29,616

1,775,943

28,513

22,904

67,658

12,809

163,816

113,402

Petroleum and coal products

2,832

85,191

* 22,728

**

* 1,797

**

**

826

Chemical manufacturing

24,454

2,178,110

55,927

** 10,562

44,378

** 10,325

** 173,348

280,435

Plastic and rubber products

4,642

1,032,687

21,676

* 4,468

17,824

35,743

55,053

273,748

Nonmetallic mineral products

10,315

1,102,403

57,600

9,114

23,468

6,466

230,211

104,700

Primary metal industries

6,192

280,033

* 21,597

**

* 12,606

* 639

* 60,519

18,832

Fabricated metal products

30,332

4,775,990

222,250

** 10,614

97,276

39,971

778,194

584,146

Machinery

21,288

1,705,318

152,151

4,544

65,770

13,410

333,532

190,608

Computer and electronic products

9,811

770,866

38,776

**

26,449

2,975

88,007

1,809

Electrical equipment, appliances, and components

6,852

706,201

127,412

** 2,377

22,659

8,965

108,133

-72,075

Transportation equipment

17,075

1,146,566

94,774

* 623

18,304

* 7,510

141,361

38,887

Furniture and related products

21,366

1,663,508

70,229

* 1,782

41,411

9,188

148,604

419,134

Miscellaneous manufacturing

54,951

6,147,579

216,299

13,944

213,147

29,384

830,603

740,773

332,831

49,641,218

1,037,998

134,108

872,570

249,913

2,609,756

4,764,312

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

145,763

21,077,481

494,554

67,370

419,443

110,414

1,119,789

1,945,732

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

113,667

23,015,763

455,324

51,034

368,418

117,802

1,214,088

1,331,889

Wholesale electronic markets and agents and brokers

73,401

5,547,974

88,120

15,704

84,710

21,696

275,879

1,486,690

2,602,607

195,022,471

3,813,471

721,266

5,657,883

997,880

10,610,493

12,458,750

Motor vehicle and parts dealers

147,166

41,226,741

709,056

72,171

680,138

307,102

1,864,179

1,550,956

Furniture and home furnishing stores

29,935

4,999,477

43,050

11,564

261,723

16,727

348,806

181,113

Electronic stores and household appliance stores

14,449

3,677,336

45,259

* 74,358

77,541

11,693

229,029

422,876

641,323

Wholesale trade (merchant wholesalers)

Retail trade

Building material and garden equipment and supplies dealers

26,807

7,580,966

233,940

37,797

136,483

31,210

741,348

Food and beverage stores

101,719

23,399,687

337,055

51,517

788,527

82,707

1,873,905

927,141

Health and personal care stores

157,714

8,376,043

128,500

47,402

383,249

41,694

592,928

518,295

Gasoline stations

11,585

13,859,994

294,476

24,494

154,818

66,490

752,732

242,321

Clothing and accessories stores

184,922

9,975,237

235,409

112,586

716,556

48,706

694,915

40,693

Sporting goods, hobby, book, and music stores

111,707

6,847,901

158,248

36,830

259,760

34,000

478,051

370,721

General merchandise stores

40,021

3,296,568

58,504

23,410

101,127

32,470

151,831

240,015

Footnotes at end of table.

Statistics of Income Bulletin

11

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with and without net income

Industrial sector

Number

of returns

(1)

Business

receipts

Depreciation

deduction [1]

Rent paid

on machinery

and

equipment

(2)

Rent paid

on other

business

property

Interest paid

deduction [2]

Net income

less deficit

Payroll [3]

(3)

(4)

(5)

(6)

(7)

(8)

Miscellaneous store retailers

592,831

35,697,841

713,622

145,915

1,527,191

210,202

1,973,214

3,390,293

Electronic shopping and mail-order houses

259,334

14,413,044

169,713

35,040

204,398

31,218

281,784

1,395,923

Nonstore retailers

924,417

21,671,636

686,638

48,181

366,374

83,661

627,772

2,537,080

3,298,005

138,273,544

9,325,916

3,340,544

1,381,260

908,681

6,995,046

17,337,498

Air and rail transportation

22,182

2,022,809

565,929

17,024

33,256

54,127

166,833

-128,237

Water transportation

5,351

1,037,493

252,404

7,409

8,257

30,447

257,864

-270,138

Truck transportation

776,103

89,346,568

6,414,657

2,064,866

755,686

586,870

4,533,200

12,317,738

1,170,553

21,383,832

772,223

827,056

205,482

47,977

249,983

2,259,454

141,116

3,943,701

241,881

105,170

21,801

26,231

384,834

502,696

* 325

* 280,005

* 16,117

* 1,359

* 2,583

**

* 16,978

* 6,167

12,233

450,777

211,313

* 970

40,380

** 16,467

35,341

-141,074

Transportation and warehousing

Taxi, limousine service, and ridesharing service

Other transit and ground transportation

Pipeline transportation

Scenic and sightseeing transportation

Support activities for transportation (including motor

vehicle towing)

Couriers and messengers

Warehousing and storage facilities

78,136

5,707,379

384,147

68,341

102,537

50,066

728,835

546,071

1,074,193

12,819,647

411,463

235,835

135,204

59,727

532,852

2,230,734

17,813

1,281,333

55,783

12,513

76,073

36,768

88,327

14,087

380,557

10,915,049

530,538

140,295

277,284

90,438

826,766

2,548,981

Publishing industries (except internet)

43,162

1,325,762

52,758

10,743

33,964

3,128

106,590

399,249

Motion picture and sound recording

Broadcasting (except internet) and telecommunications and

internet service providers

Data processing, internet publishing and broadcasting, and

web search portals

158,453

3,496,010

309,190

39,228

137,991

35,151

120,298

936,025

57,107

2,421,164

79,780

83,443

42,034

22,630

162,843

437,422

Information

Finance and insurance

121,835

3,672,112

88,810

6,881

63,296

29,528

437,035

776,285

709,552

111,850,784

1,163,807

225,178

1,697,945

853,993

5,558,236

25,607,398

Credit intermediation and related activities

40,572

3,804,708

194,792

20,409

88,259

164,876

312,422

860,885

Securities, commodity contracts, and other financial investments

216,775

71,355,461

514,900

96,404

710,029

387,051

2,610,330

10,804,463

Investment bankers and securities dealers

6,010

5,554,578

17,086

1,941

39,022

9,473

190,910

827,848

Securities brokers

13,763

5,151,228

43,797

15,631

17,779

6,296

65,886

650,873

Commodity contracts brokers and dealers

4,776

552,044

845

* 4,220

1,980

3,640

42,707

38,006

Securities and commodity exchanges

4,660

1,831,911

5,161

0

* 4,081

4,860

* 4,192

-188,548

187,567

58,265,700

448,011

74,613

647,168

362,782

2,306,635

9,476,283

442,018

36,297,520

448,104

108,087

899,342

299,974

2,629,551

13,927,879

Insurance agencies and brokerages

309,233

28,281,881

317,123

89,896

710,879

264,255

2,307,094

10,420,899

Other insurance related activities and other financial vehicles

132,785

8,015,640

130,981

18,191

188,463

35,719

322,456

3,506,980

10,187

393,094

6,011

* 277

* 314

* 2,091

* 5,932

14,172

1,431,336

103,941,405

4,750,069

430,144

1,670,963

1,160,363

4,014,268

36,871,041

1,360,127

97,905,600

2,695,040

344,405

1,557,740

977,874

3,541,200

37,227,273

62,099

2,785,583

513,309

19,129

66,986

227,665

213,680

-75,495

1,029,862

66,980,515

1,601,032

258,520

1,179,045

374,689

1,990,949

31,156,153

268,166

28,139,501

580,699

66,757

311,709

375,520

1,336,571

6,146,615

69,969

5,948,858

2,054,414

85,737

102,380

182,176

443,897

-334,236

Automotive equipment rental and leasing

20,573

987,088

396,481

16,089

28,343

41,554

44,563

-94,525

Consumer electronics and appliances rental

** 2,830

** 460,563

** 33,189

** 140

** 7,844

** 2,808

** 18,459

** 25,856

Other financial investment activities (investment advice)

Insurance agents, brokers, and related activities

Funds, trusts, and other financial vehicles

Real estate and rental and leasing

Real estate

Lessors of real estate (including miniwarehouses and

self storage)

Offices of real estate agents, brokers, property managers, and

appraisers

Other activities related to real estate

Rental and leasing services

Formal wear and costume rental

**

**

0

0

0

**

**

**

Video tape and disc rental

**

**

**

**

**

0

0

**

Home health equipment rental

Recreational goods rental

0

0

0

0

0

0

0

0

2,713

41,795

34,691

**

* 151

* 2,296

* 1,118

-37,917

All other consumer goods rental

12,965

462,704

121,101

** 3,177

11,153

18,680

20,168

-80,652

General rental centers and other consumer goods rental

Commercial and industrial machinery and equipment rental

and leasing

10,318

370,111

53,594

* 6,316

16,775

4,326

* 18,715

-437

20,571

3,626,597

1,415,358

60,015

38,114

112,511

340,873

-146,560

Footnotes at end of table.

Statistics of Income Bulletin

12

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with and without net income

Industrial sector

Lessors of nonfinancial intangible assets (except copyrighted

works)

Number

of returns

Business

receipts

Depreciation

deduction [1]

Rent paid

on machinery

and

equipment

Rent paid

on other

business

property

Interest paid

deduction [2]

Payroll [3]

Net income

less deficit

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

1,239

86,948

* 615

*1

* 10,843

* 314

* 29,171

-21,995

3,599,414

198,498,046

4,574,702

964,944

4,573,824

825,885

17,223,639

83,878,408

Legal services

344,852

37,280,459

357,682

202,376

1,689,243

165,333

4,266,043

16,188,917

Offices of certified public accountants

34,464

4,129,812

40,212

17,713

177,957

34,614

588,626

1,827,137

Other accounting services

326,718

9,314,105

287,035

81,234

289,722

39,089

930,087

4,007,252

Architectural, engineering, and related services

261,791

16,466,876

522,586

113,573

273,461

77,841

2,074,848

5,697,059

Professional, scientific, and technical services

Architectural services

106,957

7,170,628

247,365

86,485

146,031

32,424

968,571

1,726,479

Engineering services

84,169

6,620,770

216,648

16,340

94,187

36,302

854,142

2,897,783

Drafting, building inspections, and geophysical surveying

47,888

1,778,377

32,367

* 59

10,142

** 1,531

146,329

799,783

Surveying and mapping (except geophysical) services

12,213

401,516

20,816

0

* 5,787

**

* 44,049

174,521

Testing laboratories

10,565

495,585

5,390

* 10,689

* 17,314

* 7,584

* 61,758

98,493

293,179

10,469,917

481,916

45,109

247,641

50,639

400,799

2,742,332

Specialized design services

Computer systems design services

Other professional, scientific, and technical services

Management, scientific, and technical consulting services

285,013

13,027,796

234,130

74,380

149,884

40,759

1,156,406

4,810,851

2,053,397

107,809,080

2,651,141

430,559

1,745,915

417,611

7,806,829

48,604,861

29,928,780

1,011,511

55,557,222

1,132,900

160,267

745,159

198,879

3,563,003

Scientific research and development services

50,831

1,797,202

37,439

1,033

24,907

15,321

149,247

752,341

Advertising and related services

158,325

9,944,337

236,114

22,453

154,641

25,050

738,096

2,796,381

Market research and public opinion polling

37,135

1,318,382

38,276

14,738

24,749

2,680

103,814

404,201

Other miscellaneous services

795,595

39,191,937

1,206,412

232,068

796,460

175,681

3,252,669

14,723,159

2,795,588

88,778,029

4,107,508

825,067

1,085,620

492,798

10,703,312

22,579,136

9,441

778,018

68,760

5,335

6,016

16,812

135,047

-24,172

2,772,009

85,294,741

3,719,225

789,363

1,032,484

451,038

10,220,210

22,445,475

Administrative and support and waste management services

Management of companies and enterprises

Administrative and support services

Waste management and remediation services

14,138

2,705,271

319,523

30,369

47,119

24,948

348,055

157,833

789,418

11,956,293

370,978

100,609

676,652

84,153

745,380

3,720,614

Health care and social assistance

2,158,568

114,690,491

2,540,390

605,566

5,304,124

599,310

17,481,171

41,928,680

Ambulatory health care services

1,284,644

89,042,174

1,917,222

443,709

4,179,618

450,454

13,715,629

34,066,134

Offices of physicians (except mental health specialists)

190,926

26,306,176

456,059

83,649

935,491

78,253

3,587,448

12,177,025

Offices of physicians, mental health specialists

53,852

5,157,881

53,117

12,937

278,585

26,773

236,267

3,176,919

Offices of dentists

62,906

17,584,788

573,857

60,168

842,352

180,788

4,463,695

4,596,211

Offices of chiropractors

28,937

3,699,911

86,144

31,983

355,115

33,117

432,137

1,268,320

Offices of optometrists

10,501

3,217,365

82,285

8,597

204,892

15,537

781,412

495,161

Offices of mental health practitioners and social therapists

236,130

11,501,056

150,248

50,129

677,907

34,120

748,364

6,189,952

Offices of podiatrists

Outpatient care centers and other miscellaneous health

practitioners

4,603

937,603

7,889

* 1,377

69,458

* 2,520

155,119

356,927

234,418

8,404,889

217,667

55,288

492,090

31,212

721,944

3,031,906

Medical and diagnostic laboratories

21,877

1,380,890

32,549

22,817

86,103

6,291

267,476

226,694

Home health care services

Other ambulatory health care services (including ambulance

services, blood and organ banks)

395,571

9,527,711

225,256

114,507

209,263

37,166

2,144,062

2,134,948

44,923

1,323,903

32,150

2,255

28,362

4,678

177,703

412,072

7,491

907,976

17,543

* 1,722

17,604

8,621

149,561

373,807

101,348

5,553,850

141,617

33,071

304,571

80,726

1,361,929

847,621

6,641,119

Educational services

Hospitals

Nursing and residential care facilities

Social assistance

Arts, entertainment, and recreation

Performing arts, spectator sports, and related industries

765,085

19,186,491

464,008

127,064

802,330

59,509

2,254,052

1,592,400

40,720,518

2,049,317

317,097

1,556,852

282,809

2,209,555

9,578,374

1,410,043

30,488,562

1,335,358

228,740

916,713

** 172,412

1,129,070

8,743,249

Museums, historical sites, and similar institutions

2,921

111,126

* 31,502

* 73

* 1,317

**

* 3,972

550

Amusement, gambling, and recreation industries

179,436

10,120,830

682,457

88,284

638,823

110,397

1,076,514

834,575

Accommodation, food services, and drinking places

598,021

59,475,916

2,826,022

388,029

3,893,219

999,980

11,178,505

-12,284

Accommodation

Travel accommodation (including hotels, motels, and bed

and breakfast inns)

69,095

5,592,253

1,062,862

23,094

234,143

559,016

734,505

-968,845

41,473

3,875,648

777,849

21,420

126,612

442,088

631,283

-903,107

RV (recreational vehicle) parks and recreational camps

10,870

1,045,146

121,606

1,602

17,477

84,045

61,106

124,157

Rooming and boarding houses

16,753

671,459

163,407

* 71

90,054

32,883

42,116

-189,895

Footnotes at end of table.

Statistics of Income Bulletin

13

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with and without net income

Industrial sector

Number

of returns

(1)

Restaurants (full & limited service) and drinking places

Other services

Auto repair and maintenance

Business

receipts

(2)

Depreciation

deduction [1]

Rent paid

on machinery

and

equipment

Rent paid

on other

business

property

Interest paid

deduction [2]

Payroll [3]

Net income

less deficit

(7)

(8)

(3)

(4)

(5)

(6)

528,926

53,883,663

1,763,160

364,936

3,659,076

440,964

10,444,000

956,561

3,588,218

113,906,689

4,400,135

1,026,593

7,829,019

856,381

8,611,488

22,643,582

413,752

29,845,372

1,261,487

219,495

1,397,237

271,893

3,113,918

3,235,772

Automotive mechanical and electrical repair and maintenance

237,363

15,087,870

605,890

129,866

769,545

99,316

1,213,006

1,470,588

Automotive body shops

Other auto repair and maintenance (including oil change,

lubrication, and car washes)

70,267

7,513,978

245,387

33,430

240,916

35,294

837,556

1,353,682

Miscellaneous repairs

Personal and laundry services

Religious, grantmaking, civic, professional and similar

organizations

Unclassified establishments

106,122

7,243,524

410,210

56,198

386,776

137,282

1,063,356

411,503

423,237

18,786,217

774,015

146,941

422,566

207,979

1,661,566

3,351,553

2,523,057

62,784,342

2,302,694

617,763

5,911,363

368,938

3,814,169

15,469,982

228,172

2,490,757

61,939

* 42,394

97,853

7,571

21,835

586,275

434,320

5,825,429

50,421

64,672

96,287

68,628

150,313

1,906,929

Footnotes at end of table.

Statistics of Income Bulletin

14

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with net income

Industrial sector

All nonfarm industries

Agriculture, forestry, hunting, and fishing

Number

of returns

Business

receipts

(9)

(10)

Depreciation

deduction [1]

(11)

19,976,748 1,328,888,421

Rent paid

on machinery

and

equipment

(12)

Rent paid

on other

business

property

Interest paid

deduction [2]

(13)

(14)

Net income

Payroll [3]

(15)

(16)

30,875,492

7,905,451

27,177,994

5,529,609

102,815,737

436,416,303

180,099

17,767,560

1,153,238

155,394

214,968

181,947

1,574,663

3,716,620

Animal production (including breeding of cats and dogs)

16,718

1,198,663

54,595

* 240

22,079

9,338

59,752

312,129

Forestry and logging (including forest nurseries, timber tracts)

31,414

4,940,384

481,774

25,058

22,946

36,046

502,025

934,226

Fishing, hunting, and trapping

39,163

2,100,650

197,230

* 24,344

16,343

31,405

114,674

615,616

Support activities for agriculture and forestry

92,804

9,527,862

419,639

105,752

153,600

105,158

898,211

1,854,649

Mining

51,331

4,029,215

182,149

25,398

45,274

16,689

286,708

1,205,434

Oil and gas extraction

35,058

2,495,047

104,789

3,930

17,893

10,372

74,885

717,669

Other mining

3,828

293,620

18,168

* 12,320

* 126

* 937

* 39,133

86,566

Support activities for mining

12,445

1,240,549

59,191

9,149

27,256

5,380

172,689

401,198

Utilities

5,212

925,697

120,906

* 2,028

3,558

6,092

* 33,434

155,564

2,676,810

258,837,053

6,694,973

1,381,142

1,724,925

815,495

28,150,762

56,335,112

Construction of buildings

571,336

72,014,964

1,661,619

320,502

332,267

308,987

7,720,146

13,371,502

Heavy and civil engineering construction

28,238

7,567,614

309,271

54,779

52,698

47,933

787,411

1,253,924

2,077,237

179,254,474

4,724,083

1,005,861

1,339,960

458,574

19,643,205

41,709,686

Construction

Specialty trade contractors

Manufacturing

211,108

26,415,380

840,454

77,667

668,432

146,627

3,055,626

5,328,786

Food manufacturing

32,625

4,397,688

128,555

30,999

111,674

25,561

420,802

633,879

Textile and textile product mills

6,016

384,558

* 8,115

**

* 6,144

* 1,636

* 54,981

102,124

Apparel

19,923

1,085,146

14,098

** 9,430

** 69,975

** 4,316

** 112,429

198,470

Leather and allied products

* 3,722

* 174,875

* 11,584

**

**

**

**

* 50,822

Wood products

10,599

1,821,100

** 73,873

** 2,093

** 7,547

** 6,744

** 199,511

280,595

Paper products

* 10

* 51,711

**

**

**

**

**

* 4,815

15,522

1,314,187

6,556

5,425

42,268

3,291

88,609

294,211

486

60,853

* 5,548

0

0

**

0

47,180

12,649

1,651,809

50,336

* 1,044

27,804

** 8,027

128,583

383,733

Printing and related support activities

Petroleum and coal products

Chemical manufacturing

Plastic and rubber products

4,587

948,759

13,064

* 3,468

16,728

* 34,148

28,717

280,899

Nonmetallic mineral products

7,489

823,785

30,904

* 6,161

22,114

4,923

164,792

137,185

Primary metal industries

3,130

250,919

* 6,146

**

* 12,606

* 639

* 42,431

60,694

Fabricated metal products

17,677

4,055,441

163,064

** 6,214

82,234

22,442

665,542

759,285

Machinery

9,702

1,235,767

82,525

4,258

41,210

5,787

178,962

263,995

Computer and electronic products

5,860

655,829

14,180

0

19,277

* 1,027

54,658

109,722

Electrical equipment, appliances, and components

4,719

425,534

* 8,912

* 1,403

* 9,336

* 2,199

* 83,754

42,127

Transportation equipment

10,391

802,774

* 71,762

**

**

* 4,095

* 105,430

113,135

Furniture and related products

12,474

1,489,792

33,503

* 966

38,841

* 5,632

138,210

492,457

Miscellaneous manufacturing

33,528

4,784,855

117,730

** 6,206

** 160,674

16,159

588,216

1,073,459

Wholesale trade (merchant wholesalers)

199,999

40,223,020

599,897

99,709

537,977

138,918

1,835,220

6,664,297

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

87,452

17,469,187

334,337

47,882

267,340

73,154

799,582

2,756,742

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

67,236

18,104,609

220,028

38,202

222,049

59,227

825,320

2,224,543

Wholesale electronic markets and agents and brokers

45,311

4,649,224

45,532

13,626

48,588

6,537

210,318

1,683,011

1,470,351

153,625,777

2,101,457

458,911

3,582,168

611,256

7,163,547

23,320,963

Motor vehicle and parts dealers

92,804

32,771,365

389,251

47,335

424,763

203,280

1,345,268

2,634,187

Furniture and home furnishing stores

12,222

3,349,940

18,072

* 234

158,800

6,303

118,168

429,526

Electronic stores and household appliance stores

12,148

3,208,847

41,404

* 64,823

68,335

10,656

161,975

444,016

Building material and garden equipment and supplies dealers

15,765

6,183,212

169,311

33,273

114,425

22,804

560,477

796,341

Food and beverage stores

62,233

19,438,918

226,731

36,267

576,177

58,906

1,326,926

1,429,876

Health and personal care stores

81,209

6,860,197

59,591

29,168

272,242

20,881

455,609

1,102,343

Gasoline stations

5,973

9,758,289

103,669

14,918

90,418

30,912

468,993

394,644

Clothing and accessories stores

84,089

7,686,666

77,504

50,961

403,227

35,814

431,366

1,417,532

Sporting goods, hobby, book, and music stores

58,079

5,656,071

102,772

12,134

168,419

20,344

371,581

848,766

General merchandise stores

21,156

2,691,277

41,564

* 3,924

85,430

28,090

98,024

363,479

Retail trade

Footnotes at end of table.

Statistics of Income Bulletin

15

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with net income

Industrial sector

Number

of returns

(9)

Business

receipts

Depreciation

deduction [1]

Rent paid

on machinery

and

equipment

Rent paid

on other

business

property

Interest paid

deduction [2]

(10)

Net income

Payroll [3]

(11)

(12)

(13)

(14)

(15)

(16)

Miscellaneous store retailers

360,693

27,968,284

412,988

113,488

907,410

113,978

1,363,115

6,079,046

Electronic shopping and mail-order houses

157,820

11,939,675

106,892

19,960

140,597

26,402

166,184

2,259,971

Nonstore retailers

506,161

16,113,036

351,709

32,426

171,924

32,885

295,859

5,121,237

2,410,096

112,569,187

5,384,959

2,425,693

891,720

498,980

4,341,018

26,542,147

Air and rail transportation

17,015

1,386,568

72,210

4,624

11,257

9,366

87,459

506,816

Water transportation

3,262

355,313

22,580

* 719

* 1,618

* 4,663

* 70,021

101,535

Truck transportation

626,125

74,357,763

4,380,082

1,612,504

550,318

387,793

2,841,147

15,154,557

Taxi, limousine service, and ridesharing service

783,093

17,611,935

415,295

586,030

130,492

18,123

128,358

5,181,445

Other transit and ground transportation

97,056

3,215,170

139,995

36,590

6,571

20,727

245,215

903,642

**

**

**

**

**

**

**

**

Scenic and sightseeing transportation

Support activities for transportation (including motor

vehicle towing)

** 4,088

** 496,755

** 27,872

** 1,374

** 7,262

** 2,975

** 16,495

** 85,668

56,355

4,227,472

168,421

31,475

62,469

26,931

511,884

818,937

Couriers and messengers

814,760

9,809,294

121,694

147,670

71,202

5,639

380,466

3,650,510

8,342

1,108,916

36,811

4,707

50,531

22,763

59,973

139,037

219,621

8,286,207

210,082

83,067

93,102

40,831

338,712

4,137,167

Transportation and warehousing

Pipeline transportation

Warehousing and storage facilities

Information

Publishing industries (except internet)

30,695

891,163

27,597

* 3,628

* 3,285

* 346

* 11,554

499,988

Motion picture and sound recording

Broadcasting (except internet) and telecommunications and

internet service providers

Data processing, internet publishing and broadcasting, and

web search portals

81,424

2,903,020

97,543

3,597

44,406

17,958

70,462

1,676,178

39,623

2,087,645

49,252

71,124

23,533

16,791

106,737

699,230

Finance and insurance

67,879

2,404,379

35,690

4,719

21,878

5,735

149,959

1,261,770

504,965

74,715,096

673,502

151,905

1,386,179

412,649

4,320,454

29,311,341

Credit intermediation and related activities

27,680

3,110,952

119,355

15,152

63,819

35,131

174,165

1,178,949

Securities, commodity contracts, and other financial investments

138,848

40,505,841

212,327

50,818

568,242

141,117

1,850,095

13,319,747

Investment bankers and securities dealers

5,030

3,413,596

16,523

1,938

28,577

8,670

176,810

862,266

Securities brokers

10,022

2,416,782

18,937

13,121

11,811

4,289

54,524

927,042

Commodity contracts brokers and dealers

2,306

330,824

* 227

* 4,199

* 1,544

* 1,769

* 3,791

122,859

Securities and commodity exchanges

2,051

275,627

* 255

0

**

**

**

48,293

119,440

34,069,012

176,385

31,560

** 526,310

** 126,389

** 1,614,971

11,359,287

Other financial investment activities (investment advice)

Insurance agents, brokers, and related activities

331,910

31,042,692

341,529

85,935

753,956

236,351

2,294,689

14,785,538

Insurance agencies and brokerages

240,549

23,819,169

239,627

72,522

622,909

207,959

2,049,230

10,923,845

Other insurance related activities and other financial vehicles

91,361

7,223,523

101,902

13,413

131,047

28,392

245,458

3,861,693

6,527

55,611

* 291

0

* 162

* 50

* 1,505

27,108

957,445

89,845,964

2,177,598

282,619

1,190,618

536,532

2,876,605

43,204,680

921,392

86,014,085

1,540,359

238,563

1,162,024

466,216

2,603,048

42,375,458

24,162

2,064,283

182,348

4,326

34,752

100,427

157,783

648,214

733,776

61,172,224

1,138,032

187,224

969,992

202,252

1,509,610

33,687,487

163,454

22,777,578

219,980

47,013

157,280

163,538

935,655

8,039,757

35,993

3,809,787

637,086

44,055

27,752

70,288

268,512

818,076

Automotive equipment rental and leasing

10,685

585,684

130,705

9,742

5,811

22,562

19,383

192,316

Consumer electronics and appliances rental

** 2,682

** 420,414

** 25,442

0

** 7,836

* 1,533

** 7,787

** 32,329

Funds, trusts, and other financial vehicles

Real estate and rental and leasing

Real estate

Lessors of real estate (including miniwarehouses and

self storage)

Offices of real estate agents, brokers, property managers, and

appraisers

Other activities related to real estate

Rental and leasing services

Formal wear and costume rental

0

0

0

0

0

0

0

0

Video tape and disc rental

**

**

**

0

**

0

**

**

Home health equipment rental

Recreational goods rental

0

0

0

0

0

0

0

0

* 1,012

* 14,949

**

0

0

**

0

* 2,082

All other consumer goods rental

4,758

282,385

** 50,895

* 99

* 1,529

** 3,190

* 3,903

36,536

General rental centers and other consumer goods rental

Commercial and industrial machinery and equipment rental

and leasing

5,873

295,454

* 26,313

* 6,307

* 2,704

* 2,676

* 11,740

46,119

10,983

2,210,902

403,730

27,907

9,872

40,328

225,698

508,694

Footnotes at end of table.

Statistics of Income Bulletin

16

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with net income

Industrial sector

Lessors of nonfinancial intangible assets (except copyrighted

works)

Number

of returns

Business

receipts

Depreciation

deduction [1]

Rent paid

on machinery

and

equipment

Rent paid

on other

business

property

Interest paid

deduction [2]

Payroll [3]

(9)

(10)

(11)

(12)

(13)

(14)

(15)

Net income

(16)

* 61

* 22,092

* 153

*1

* 842

* 27

* 5,045

* 11,145

2,482,915

178,863,703

2,511,575

695,621

3,397,459

483,852

13,170,491

95,217,222

Legal services

261,093

34,863,313

251,820

152,106

1,421,018

101,060

3,588,143

17,413,170

Offices of certified public accountants

29,933

3,965,821

31,631

16,876

171,307

26,557

568,632

1,885,501

Other accounting services

265,776

8,300,113

187,370

68,438

215,744

24,070

644,499

4,438,682

Architectural, engineering, and related services

179,244

14,834,111

366,713

104,333

209,830

38,195

1,668,122

6,576,387

Professional, scientific, and technical services

Architectural services

74,904

6,354,021

153,789

80,740

119,387

23,986

758,516

2,091,336

Engineering services

56,782

6,053,934

170,734

13,345

69,359

10,768

667,268

3,228,077

Drafting, building inspections, and geophysical surveying

34,340

1,687,546

22,001

** 12

* 7,118

** 1,428

136,857

941,324

Surveying and mapping (except geophysical) services

7,751

344,296

* 16,009

**

* 3,165

**

* 44,049

181,859

Testing laboratories

5,469

394,313

* 4,180

* 10,237

* 10,801

* 2,014

* 61,432

133,791

180,640

9,139,826

181,885

26,964

153,632

33,494

266,783

3,762,012

Specialized design services

Computer systems design services

194,021

11,495,477

151,077

57,730

72,696

22,116

708,784

5,677,659

1,372,209

96,265,043

1,341,079

269,175

1,153,233

238,360

5,725,528

55,463,812

Management, scientific, and technical consulting services

677,382

50,624,386

612,346

123,099

508,088

112,540

2,375,780

33,516,597

Scientific research and development services

37,660

1,642,797

15,507

* 431

16,242

909

117,873

971,012

Advertising and related services

114,424

8,716,575

62,906

8,870

114,070

10,972

529,114

3,286,905

Other professional, scientific, and technical services

Market research and public opinion polling

22,989

1,169,692

14,244

* 466

9,646

1,925

103,667

554,711

Other miscellaneous services

519,754

34,111,593

636,076

136,309

505,186

112,015

2,599,095

17,134,588

2,154,463

77,087,913

2,276,590

521,644

627,396

254,315

8,117,105

30,315,248

6,628

525,595

19,674

* 460

3,110

* 2,725

90,640

187,730

2,136,513

74,366,970

2,089,526

493,026

610,666

236,100

7,796,844

29,790,590

Administrative and support and waste management services

Management of companies and enterprises

Administrative and support services

Waste management and remediation services

11,321

2,195,348

167,390

28,158

13,621

15,490

229,621

336,928

575,007

10,259,461

172,572

59,383

457,995

23,252

569,206

5,448,281

Health care and social assistance

1,644,377

100,578,889

1,654,248

410,463

4,002,962

398,913

13,789,439

47,355,206

Ambulatory health care services

941,284

79,189,126

1,273,851

304,856

3,290,112

326,290

11,207,721

37,808,673

Offices of physicians (except mental health specialists)

149,882

23,597,352

321,607

65,821

754,820

60,395

2,943,400

12,730,382

Offices of physicians, mental health specialists

45,817

4,990,332

43,046

12,937

253,208

24,636

196,536

3,214,323

Offices of dentists

44,674

16,133,445

469,744

48,646

721,818

158,745

4,035,513

4,881,989

Offices of chiropractors

23,084

3,376,024

63,200

23,919

270,655

10,586

362,434

1,350,806

Offices of optometrists

7,388

2,414,047

53,216

5,715

151,517

15,070

554,840

582,328

Offices of mental health practitioners and social therapists

185,169

10,571,062

111,265

48,377

590,061

17,429

562,115

6,532,244

Offices of podiatrists

Outpatient care centers and other miscellaneous health

practitioners

4,279

892,594

7,351

* 1,377

68,898

* 2,361

146,560

358,775

160,600

7,050,468

94,495

31,595

325,255

15,112

506,659

3,668,375

Medical and diagnostic laboratories

13,486

921,769

9,059

19,437

12,340

4,437

135,080

357,608

Home health care services

Other ambulatory health care services (including ambulance

services, blood and organ banks)

281,628

8,183,763

84,260

45,572

118,276

15,701

1,651,787

3,581,474

550,369

Educational services

25,278

1,058,270

16,608

1,459

23,263

1,818

112,797

Hospitals

6,461

776,173

12,071

* 1,255

11,701

5,921

98,702

413,851

Nursing and residential care facilities

74,448

3,949,489

62,767

15,994

158,663

45,438

774,729

1,226,830

Social assistance

622,184

16,664,101

305,559

88,358

542,486

21,264

1,708,286

7,905,853

983,520

31,965,196

647,966

193,506

784,196

109,413

994,838

15,382,800

13,439,429

Arts, entertainment, and recreation

Performing arts, spectator sports, and related industries

869,325

25,379,756

** 470,672

147,771

** 498,269

69,972

** 561,522

Museums, historical sites, and similar institutions

* 2,273

* 96,791

**

0

**

0

**

* 36,961

Amusement, gambling, and recreation industries

111,921

6,488,648

177,295

45,734

285,927

39,442

433,316

1,906,410

Accommodation, food services, and drinking places

339,591

41,636,425

1,079,526

209,254

2,371,377

359,703

6,375,934

6,036,494

Accommodation

Travel accommodation (including hotels, motels, and bed

and breakfast inns)

32,352

2,905,267

248,859

9,895

117,045

156,500

197,209

608,912

17,166

1,491,990

116,806

8,420

44,049

72,114

123,322

347,430

RV (recreational vehicle) parks and recreational camps

8,586

951,987

103,876

** 1,474

* 13,505

70,680

45,102

185,006

Rooming and boarding houses

6,601

461,289

28,177

**

* 59,491

* 13,707

* 28,785

76,476

Footnotes at end of table.

Statistics of Income Bulletin

17

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income by Industrial Sectors, Tax Year 2020—Continued

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

Businesses with net income

Industrial sector

Number

of returns

(9)

Business

receipts

Depreciation

deduction [1]

Rent paid

on machinery

and

equipment

(10)

Rent paid

on other

business

property

Interest paid

deduction [2]

Net income

Payroll [3]

(11)

(12)

(13)

(14)

(15)

(16)

38,731,159

830,667

199,360

2,254,332

203,203

6,178,725

5,427,582

2,571,695

95,989,505

2,354,664

628,801

5,152,673

482,419

5,715,021

33,909,561

264,833

23,884,600

742,637

146,714

883,426

142,844

2,174,700

5,055,660

Automotive mechanical and electrical repair and maintenance

155,775

12,479,338

447,765

91,007

528,517

56,703

868,361

2,415,685

Automotive body shops

Other auto repair and maintenance (including oil change,

lubrication, and car washes)

50,596

6,476,730

136,508

30,042

148,121

26,645

725,610

1,542,252

Restaurants (full & limited service) and drinking places

Other services

Auto repair and maintenance

Miscellaneous repairs

Personal and laundry services

Religious, grantmaking, civic, professional and similar

organizations

Unclassified establishments

307,239

58,463

4,928,532

158,364

25,665

206,789

59,496

580,729

1,097,724

312,693

16,253,666

480,832

95,643

284,406

130,483

1,178,752

4,736,411

1,825,319

52,757,341

1,104,314

345,735

3,913,611

203,134

2,351,062

22,180,073

168,849

3,093,898

26,881

* 40,710

71,229

* 5,959

* 10,506

1,937,416

338,143

5,267,172

39,136

43,247

45,016

11,727

106,953

2,829,381

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

** Data combined to prevent disclosure of taxpayer information.

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

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

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

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

SOURCE: IRS, Statistics of Income Division, Sole Proprietorship Returns 2020, November 2022.

Statistics of Income Bulletin

18

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020

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

Agriculture, forestry, hunting, and fishing

Net income status, item

All

nonfarm

industries

(1)

Total

Animal

production

(including

breeding

of cats and

dogs)

Forestry

and logging

(including forest

nurseries,

timber tracts)

Fishing,

hunting,

and trapping

Support

activities

for

agriculture

and forestry

(2)

(3)

(4)

(5)

(6)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

Business receipts, total [1]

Income from sales and operations

28,353,367

295,976

46,595

41,205

69,564

138,612

1,605,197,079

23,900,795

1,858,848

6,537,900

2,776,463

12,727,585

12,494,191

1,579,537,603

23,479,371

1,823,787

6,497,151

2,664,242

Other business income (loss)

25,659,477

421,424

35,061

40,749

112,221

233,394

Business deductions, total [1]

1,268,856,548

22,258,844

2,084,869

5,912,629

2,584,140

11,677,207

Cost of sales and operations, total

452,162,740

8,033,371

530,280

1,938,320

313,885

5,250,886

Inventory, beginning of year

44,656,040

442,831

28,013

45,670

* 43,251

325,898

Cost of labor

41,616,947

702,533

* 120,821

346,561

* 82,017

153,134

Purchases

255,083,122

4,862,478

244,208

476,163

161,234

3,980,872

Materials and supplies

72,035,489

927,646

50,525

110,859

21,208

745,055

Other costs

83,747,699

1,592,659

113,767

1,006,127

48,888

423,876

Inventory, end of year

44,976,557

494,775

27,054

47,060

* 42,713

377,947

Advertising expenses

18,029,036

86,295

15,113

9,216

18,243

43,722

Car and truck expenses

104,205,704

1,191,170

101,379

396,162

162,307

531,321

Commissions

19,220,238

56,760

25,938

4,825

6,608

19,389

Contract labor

76,881,428

1,214,579

57,760

423,369

171,729

561,721

Depletion

Depreciation

464,048

993

* 152

**

**

** 841

55,064,529

2,364,006

235,866

828,519

502,044

797,577

Employee benefit programs

3,220,708

22,542

* 1,807

5,481

* 5,816

9,439

Insurance

23,702,326

565,722

23,517

214,446

76,076

251,684

87,292

Legal and professional services

15,692,101

197,193

24,054

69,734

16,114

Meals deducted

10,220,269

68,428

11,666

4,649

22,734

29,379

Mortgage interest

3,514,348

136,483

7,919

30,751

36,556

61,258

Other interest paid on business indebtedness

6,937,259

188,795

14,160

54,150

23,462

97,023

Office expenses

16,678,703

106,821

26,823

23,726

12,633

43,640

Pension and profit-sharing plans

1,308,006

3,871

**

** 2,943

** [2]

927

Rent paid on machinery and equipment

11,599,028

216,247

1,889

53,712

26,133

134,513

Rent paid on other business property

40,382,893

343,454

28,137

25,524

58,317

231,476

Repairs

23,765,269

973,518

70,797

325,712

179,107

397,903

Supplies

54,702,358

898,323

132,698

254,591

167,233

343,801

Salaries and wages

99,625,841

1,609,709

57,652

370,348

52,330

1,129,379

Taxes paid

20,230,555

313,967

23,229

90,211

31,670

168,857

Travel

12,637,214

122,438

42,319

17,665

25,040

37,415

Utilities

36,412,843

343,446

65,092

45,904

59,492

172,958

Other business expenses

150,982,801

3,161,114

577,847

716,865

600,188

1,266,214

Home office business deductions, total

11,150,322

39,599

8,763

5,014

16,389

9,432

337,201,262

1,637,430

-229,711

625,128

192,796

1,049,217

Net income [1]

436,416,303

3,716,620

312,129

934,226

615,616

1,854,649

Deficit

99,215,041

2,079,190

541,840

309,098

422,820

805,432

71,028,914

954,745

143,559

207,993

167,259

435,934

Net income less deficit [1]

Qualified business deduction

Footnotes at end of table.

Statistics of Income Bulletin

19

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020—Continued

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

Mining

Net income status, item

Construction

Utilities

Total

Oil

and

gas extraction

Other

mining

Support

activities for

mining

Total

Total

Construction

of

buildings

Heavy and

civil

engineering

construction

Specialty

trade

contractors

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

Business receipts, total [1]

Income from sales and operations

83,602

59,176

6,341

18,085

10,725

3,278,992

698,494

43,055

2,537,444

6,944,617

4,193,082

903,744

1,847,791

1,009,790

294,232,197

83,991,078

9,718,666

200,522,453

198,711,276

6,414,406

3,809,135

861,974

1,743,297

985,568

291,537,279

83,211,313

9,614,691

Other business income (loss)

530,212

383,947

41,770

104,494

24,222

2,694,918

779,765

103,975

1,811,177

Business deductions, total [1]

7,172,646

4,438,729

1,054,409

1,679,509

1,037,340

247,190,699

73,211,892

8,951,915

165,026,892

Cost of sales and operations, total

2,031,497

1,266,978

445,874

318,645

226,802

108,584,945

39,808,226

4,859,704

63,917,015

Inventory, beginning of year

121,906

73,082

* 13,564

35,261

* 8,340

4,898,356

2,543,468

1,039,140

1,315,749

Cost of labor

162,471

50,037

* 60,901

* 51,533

* 17,593

21,184,276

6,922,857

512,486

13,748,933

Purchases

431,150

10,560

295,688

124,903

* 78,379

31,915,934

10,858,203

1,668,290

19,389,441

Materials and supplies

286,200

206,728

49,813

29,659

* 18,737

36,582,046

12,630,867

1,137,787

22,813,392

1,159,738

970,188

81,921

107,629

* 110,591

19,053,712

9,547,680

1,434,456

8,071,576

129,968

43,616

* 56,013

30,339

* 6,838

5,049,380

2,694,849

932,455

1,422,076

Advertising expenses

9,891

3,331

2,748

3,812

6,407

1,412,984

330,060

48,874

1,034,050

Car and truck expenses

194,026

110,604

3,022

80,400

110,071

19,988,920

4,384,461

368,424

15,236,035

Commissions

18,496

2,475

* 7,053

8,967

* 4,159

835,382

236,154

51,255

547,973

Contract labor

232,359

146,930

23,267

62,162

113,583

31,627,022

8,012,398

378,709

23,235,915

Depletion

259,675

247,931

* 4,464

7,280

0

67,083

* 889

* 952

* 65,242

Depreciation

798,699

447,485

161,955

189,260

208,401

9,505,918

2,370,867

651,651

6,483,401

Other costs

Inventory, end of year

Employee benefit programs

37,911

8,407

* 4,423

25,081

* 3,265

342,954

71,183

24,315

247,456

Insurance

118,039

48,162

10,136

59,741

12,938

5,151,556

1,260,915

193,742

3,696,900

Legal and professional services

123,300

92,515

7,546

23,239

23,029

1,424,677

390,660

76,088

957,929

Meals deducted

20,108

9,176

1,636

9,296

2,578

1,260,672

261,051

31,917

967,703

Mortgage interest

9,459

4,653

* 4,448

* 358

* 11,632

374,318

147,873

28,335

198,110

Other interest paid on business indebtedness

82,683

50,405

13,743

18,535

8,305

855,253

306,125

63,586

485,542

Office expenses

35,312

19,798

2,871

12,643

4,669

1,543,580

404,744

33,560

1,105,276

Pension and profit-sharing plans

8,259

1,474

* 3,813

* 2,972

* 175

56,992

15,645

8,378

32,970

Rent paid on machinery and equipment

49,495

14,974

14,584

19,938

3,334

1,888,442

458,211

99,491

1,330,740

Rent paid on other business property

74,967

37,715

1,818

35,433

4,936

2,352,608

479,033

83,019

1,790,556

Repairs

114,205

42,498

22,983

48,724

35,666

3,074,670

622,232

253,336

2,199,102

Supplies

77,789

21,405

19,303

37,081

47,087

15,781,031

3,862,588

180,273

11,738,170

Salaries and wages

562,826

206,227

66,996

289,603

26,603

13,471,109

2,868,493

634,375

9,968,242

Taxes paid

165,749

105,078

15,784

44,887

14,284

2,486,333

622,312

104,274

1,759,747

Travel

38,917

16,625

878

21,414

2,459

1,359,927

335,406

64,396

960,125

Utilities

96,110

56,066

5,202

34,841

16,599

4,134,280

915,657

86,168

3,132,456

1,978,264

1,458,887

209,832

309,545

144,325

18,585,057

4,829,827

620,078

13,135,152

34,612

18,931

**

** 15,681

* 6,033

1,000,010

206,182

7,014

786,814

-181,581

-201,037

-148,822

168,278

64,894

47,026,415

10,795,106

766,178

35,465,132

Net income [1]

1,205,434

717,669

86,566

401,198

155,564

56,335,112

13,371,502

1,253,924

41,709,686

Deficit

1,387,015

918,707

235,388

232,921

90,671

9,308,696

2,576,396

487,746

6,244,554

932,374

788,289

46,210

97,875

55,140

6,874,723

1,654,642

385,674

4,834,407

Other business expenses

Home office business deductions, total

Net income less deficit [1]

Qualified business deduction

Footnotes at end of table.

Statistics of Income Bulletin

20

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020—Continued

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

Manufacturing

Net income status, item

Total

Food

manufacturing

Textile

and textile

product mills

Apparel

Leather

and

allied

products

Wood

products

Paper

products

Printing

and related

support

activities

(16)

(17)

(18)

(19)

(20)

(21)

(22)

(23)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

Business receipts, total [1]

Income from sales and operations

373,238

57,844

11,528

32,444

7,569

23,106

* 1,022

29,616

35,613,797

6,795,702

494,242

1,254,142

233,840

3,403,923

* 61,555

1,775,943

1,756,634

34,929,545

6,650,756

489,385

1,214,397

232,464

3,368,773

* 49,696

Other business income (loss)

684,252

144,947

* 4,857

39,745

* 1,376

35,151

* 11,859

19,309

Business deductions, total [1]

32,877,784

6,924,337

491,856

1,187,105

219,988

3,266,568

* 76,489

1,663,906

Cost of sales and operations, total

17,000,594

3,773,922

176,577

486,505

109,944

2,027,924

* 37,272

713,728

Inventory, beginning of year

2,639,185

782,537

* 12,475

135,879

* 15,568

** 198,841

**

45,808

Cost of labor

1,624,595

211,631

* 5,736

** 46,910

**

** 212,889

**

28,364

Purchases

10,729,358

2,605,693

121,445

291,076

* 100,701

1,495,758

* 33,278

525,853

Materials and supplies

2,711,776

496,697

* 12,524

58,289

* 10,257

** 218,783

**

50,649

Other costs

2,059,223

437,799

* 42,073

** 104,219

**

** 126,501

* 635

106,068

Inventory, end of year

2,763,543

760,435

* 17,676

143,647

* 22,802

** 221,489

**

43,014

Advertising expenses

375,932

96,040

1,651

32,763

* 4,176

** 14,788

**

27,112

Car and truck expenses

1,232,303

128,026

* 41,962

44,284

* 5,634

87,201

* 9,899

96,381

Commissions

231,351

25,252

* 843

** 11,576

**

** 11,581

0

* 23,121

Contract labor

558,126

97,137

* 2,393

14,673

* 5,705

** 82,855

**

11,622

Depletion

11,020

* 712

0

0

0

** 40

**

0

1,710,028

248,460

20,402

24,873

* 12,602

299,304

* 186

27,030

Employee benefit programs

117,532

16,564

**

** 6,600

* 142

** 7,088

**

5,285

Insurance

420,923

75,585

6,892

12,847

* 4,019

44,440

* 1,581

8,994

Legal and professional services

320,848

66,066

8,722

12,673

* 3,213

13,221

* 151

24,709

Depreciation

Meals deducted

69,621

5,638

6,406

11,214

* 799

663

* 52

3,651

Mortgage interest

103,462

25,156

0

* 1,591

0

** 13,191

**

* 4,675

Other interest paid on business indebtedness

210,004

70,231

* 6,141

** 4,577

**

** 15,193

**

8,134

Office expenses

340,122

43,375

6,277

38,255

* 7,166

25,726

* 41

45,529

Pension and profit-sharing plans

18,066

1,915

**

** 409

0

** 1,461

**

* 621

Rent paid on machinery and equipment

157,398

38,871

* 3,580

* 18,232

* 9,261

6,223

* 299

22,904

Rent paid on other business property

67,658

1,033,426

259,232

* 8,397

78,505

* 2,347

** 32,198

**

Repairs

448,327

96,704

4,366

7,424

* 1,764

77,334

* 1,243

22,969

Supplies

1,244,871

198,268

47,700

64,096

8,137

91,284

* 131

86,569

Salaries and wages

2,963,145

655,739

* 61,058

102,626

* 3,953

** 175,821

**

135,452

Taxes paid

526,896

123,277

11,530

19,118

2,862

41,714

* 604

27,265

Travel

222,601

30,236

* 1,990

6,052

* 6,306

8,249

* 176

10,566

Utilities

768,421

157,431

24,590

67,328

7,531

57,315

* 3,134

74,383

2,593,231

685,441

31,448

118,128

20,531

132,533

* 12,035

174,398

199,534

5,057

* 18,562

** 7,022

**

** 8,906

**

41,153

2,842,685

-58,334

2,388

67,037

13,851

137,452

* -14,934

113,402

Other business expenses

Home office business deductions, total

Net income less deficit [1]

Net income [1]

5,328,786

633,879

102,124

198,470

* 50,822

** 285,410

**

294,211

Deficit

2,486,101

692,213

99,736

131,433

36,970

** 162,892

**

180,809

1,400,198

311,746

11,675

26,760

* 14,919

53,104

* 1,662

98,431

Qualified business deduction

Footnotes at end of table.

Statistics of Income Bulletin

21

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020—Continued

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

Manufacturing—continued

Net income status, item

Petroleum

and coal

products

Chemical

Plastic and

manufacturing rubber products

(24)

(25)

(26)

Nonmetallic

mineral

products

Primary

metal

industries

Fabricated

metal

products

Machinery

Computer and

electronic

products

(27)

(28)

(29)

(30)

(31)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

2,832

24,454

4,642

10,315

6,192

30,332

21,288

9,811

Business receipts, total [1]

85,191

2,178,110

1,032,687

1,102,403

280,033

4,775,990

1,705,318

770,866

Income from sales and operations

77,510

2,135,122

1,029,579

1,094,965

268,390

4,735,009

1,693,992

760,744

Other business income (loss)

* 7,680

42,988

* 3,108

7,438

**

** 52,624

11,326

10,122

Business deductions, total [1]

84,364

1,898,260

763,430

1,004,968

261,199

4,193,066

1,514,713

769,049

Cost of sales and operations, total

**

** 1,253,588

436,124

522,561

* 112,061

1,975,413

609,787

461,081

Inventory, beginning of year

0

87,769

* 17,122

49,745

**

** 206,031

110,621

119,771

Cost of labor

**

** 89,396

* 3,800

95,012

**

** 238,261

144,795

41,030

Purchases

**

** 1,009,961

100,296

223,808

* 45,862

1,177,841

276,988

286,667

46,900

Materials and supplies

**

** 89,924

224,471

83,133

**

** 345,471

130,648

Other costs

**

** 86,145

107,336

114,090

**

** 282,440

56,097

72,925

Inventory, end of year

0

109,607

* 16,901

43,228

**

** 208,432

109,362

106,212

Advertising expenses

0

24,356

11,514

7,989

* 9,783

19,537

5,672

5,671

Car and truck expenses

**

** 44,814

15,013

51,791

* 18,075

140,645

44,561

18,410

Commissions

**

** 17,223

**

** 3,360

**

** 34,617

* 6,399

* 11,579

Contract labor

0

14,377

* 29,263

10,460

**

** 84,158

21,935

* 6,571

Depletion

**

** 2,172

0

0

**

** 6

* 8,088

0

* 22,727

55,119

21,599

57,434

* 21,597

222,244

152,049

37,112

5,375

Depreciation

Employee benefit programs

0

2,218

* 2,581

* 7,597

* 1,004

13,439

17,952

Insurance

**

** 29,609

9,122

24,457

* 2,350

81,815

22,291

3,095

* 527

38,179

4,974

7,839

* 3,649

29,220

11,646

10,887

Meals deducted

**

** 4,122

912

1,715

* 1,741

11,471

3,705

1,840

Mortgage interest

0

* 7,890

**

** 3,473

0

21,141

* 3,735

**

Other interest paid on business indebtedness

**

** 2,434

35,435

3,302

* 639

18,830

9,674

2,510

Legal and professional services

* 18

21,320

4,388

6,678

* 7,883

45,378

20,640

2,632

Pension and profit-sharing plans

Office expenses

0

* 2,276

* 329

* 740

**

** 2,081

* 2,901

* 458

Rent paid on machinery and equipment

**

** 10,562

* 4,468

9,114

**

** 10,614

4,544

**

Rent paid on other business property

* 1,797

44,378

17,824

23,468

* 12,606

97,276

65,770

26,449

Repairs

* 8,360

24,778

8,183

14,086

* 2,404

69,941

18,102

1,278

Supplies

**

** 66,752

31,165

10,837

* 9,976

221,315

97,461

53,479

Salaries and wages

0

83,952

51,252

135,199

* 22,412

578,040

188,737

46,978

* 186

17,139

5,848

26,176

* 3,055

93,331

25,684

4,344

Travel

**

** 11,308

1,702

3,415

* 2,595

35,612

7,328

4,038

Utilities

**

** 34,139

8,676

21,812

* 5,870

103,333

40,396

8,739

36,932

Taxes paid

Other business expenses

Home office business deductions, total

Net income less deficit [1]

Net income [1]

Deficit

Qualified business deduction

18,892

110,384

41,220

51,932

* 6,875

297,847

122,023

**

** 7,024

* 21,362

**

**

** 2,393

* 3,635

**

826

280,435

273,748

104,700

18,832

584,146

190,608

1,809

47,180

383,733

280,899

137,185

60,694

759,285

263,995

109,722

* 46,354

103,299

* 7,151

32,486

* 41,862

175,139

73,387

107,913

9,954

76,835

130,735

26,171

* 6,249

161,931

63,102

41,170

Footnotes at end of table.

Statistics of Income Bulletin

22

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020—Continued

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

Manufacturing—continued

Net income status, item

Electrical

Transportation

equipment,

equipment

appliances, and

components

(32)

(33)

Wholesale trade (merchant wholesalers)

Furniture

and related

products

Miscellaneous

manufacturing

Total

Durable goods,

including

machinery,

wood, metals,

etc.

(34)

(35)

(36)

(37)

Nondurable

Wholesale

goods,

electronic

including food,

markets

fiber,

and agents and

chemicals,

brokers

etc.

(38)

(39)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

6,852

17,075

21,366

54,951

332,831

145,763

113,667

73,401

706,201

1,146,566

1,663,508

6,147,579

49,641,218

21,077,481

23,015,763

5,547,974

Income from sales and operations

671,459

1,145,336

1,649,833

5,905,504

49,087,465

20,880,554

22,810,102

5,396,809

Other business income (loss)

34,742

* 1,231

13,675

242,075

553,753

196,927

205,661

151,165

Business deductions, total [1]

778,301

1,125,434

1,244,373

5,410,376

44,918,537

19,127,395

21,719,387

4,071,755

Cost of sales and operations, total

394,456

462,810

512,767

2,934,074

31,156,900

12,786,895

16,339,869

2,030,135

Inventory, beginning of year

63,321

46,007

87,769

659,921

3,886,673

2,362,870

1,329,039

194,764

Cost of labor

* 54,999

* 125,016

* 20,023

306,733

680,381

246,403

420,207

* 13,772

Purchases

236,167

253,096

278,937

1,665,928

26,439,425

10,954,915

13,960,583

1,523,927

Materials and supplies

97,089

67,078

214,774

565,090

1,847,683

780,477

731,613

335,594

Other costs

65,781

11,765

33,207

412,144

2,463,974

1,017,857

1,313,517

132,601

Inventory, end of year

122,902

40,152

121,943

675,742

4,161,237

2,575,626

1,415,089

170,522

Business receipts, total [1]

Advertising expenses

16,947

4,695

12,417

80,823

380,000

164,011

129,290

86,699

Car and truck expenses

1,648

286,489

69,211

128,258

1,303,006

524,238

484,170

294,599

Commissions

* 8,452

**

** 19,350

57,996

446,982

271,527

93,716

81,739

Contract labor

24,397

* 3,260

86,656

62,665

716,045

310,715

293,458

111,872

0

0

0

*2

1,109

* 419

* 496

* 194

Depreciation

Depletion

127,234

94,768

60,119

205,170

1,010,947

479,159

449,100

82,688

Employee benefit programs

* 3,312

* 2,423

* 2,471

23,480

56,324

23,570

26,454

6,300

Insurance

6,099

11,718

25,777

50,231

330,552

158,553

143,626

28,374

Legal and professional services

15,733

4,953

12,129

52,357

301,073

139,371

121,705

39,997

578

3,768

1,905

9,439

120,263

51,405

43,112

25,745

Mortgage interest

** 8,248

* 5,506

* 2,909

5,946

68,754

18,257

43,572

* 6,924

Other interest paid on business indebtedness

14,772

Meals deducted

* 1,182

* 2,003

6,279

23,438

181,159

92,157

74,230

Office expenses

6,728

2,718

13,755

41,615

304,597

149,267

103,218

52,112

Pension and profit-sharing plans

* 975

**

** 223

3,677

23,997

9,324

13,647

* 1,025

Rent paid on machinery and equipment

** 2,377

* 623

* 1,782

13,944

134,108

67,370

51,034

15,704

Rent paid on other business property

22,659

18,304

41,411

213,147

872,570

419,443

368,418

84,710

Repairs

4,069

26,232

10,620

48,470

295,412

150,823

130,844

13,745

Supplies

20,659

14,616

53,651

168,775

965,179

470,496

289,494

205,189

Salaries and wages

53,134

16,344

128,581

523,869

1,929,375

873,386

793,881

262,107

Taxes paid

6,639

9,817

15,960

92,347

345,634

147,556

174,921

23,157

Travel

1,280

4,773

14,697

72,278

302,610

127,818

100,817

73,975

Utilities

7,665

27,887

30,882

87,311

549,576

235,594

228,746

85,236

Other business expenses

44,207

120,768

117,157

450,477

2,982,070

1,392,903

1,182,052

407,115

Home office business deductions, total

** 19,215

* 262

* 4,357

60,586

140,296

63,139

39,518

37,639

-72,075

38,887

419,134

740,773

4,764,312

1,945,732

1,331,889

1,486,690

Net income [1]

42,127

113,135

492,457

1,073,459

6,664,297

2,756,742

2,224,543

1,683,011

Deficit

114,201

74,248

73,323

332,685

1,899,985

811,010

892,654

196,321

12,533

17,736

83,129

252,358

1,498,585

613,804

606,975

277,806

Net income less deficit [1]

Qualified business deduction

Footnotes at end of table.

Statistics of Income Bulletin

23

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020—Continued

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

Retail trade

Net income status, item

Total

Motor

vehicle and

parts

dealers

Furniture

and home

furnishing

stores

Electronic

stores

and household

appliance

stores

Building

material and

garden

equipment and

supplies

dealers

Food and

beverage

stores

Health and

personal care

stores

Gasoline

stations

(40)

(41)

(42)

(43)

(44)

(45)

(46)

(47)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

Business receipts, total [1]

Income from sales and operations

2,602,607

147,166

29,935

14,449

26,807

101,719

157,714

11,585

195,022,471

41,226,741

4,999,477

3,677,336

7,580,966

23,399,687

8,376,043

13,859,994

13,624,787

192,056,669

40,538,995

4,970,058

3,653,248

7,555,215

22,950,629

8,250,713

Other business income (loss)

2,965,802

687,746

29,419

* 24,088

25,750

449,058

125,330

235,207

Business deductions, total [1]

182,808,649

39,704,473

4,826,158

3,254,460

6,939,179

22,472,496

7,861,527

13,617,943

Cost of sales and operations, total

116,154,225

30,759,923

3,262,087

2,153,079

4,746,872

15,544,364

4,355,864

11,088,330

Inventory, beginning of year

22,527,280

6,139,889

523,244

169,745

822,684

1,656,230

443,795

458,610

Cost of labor

1,905,575

565,622

214,241

**

** 196,721

116,104

51,487

47,296

Purchases

99,181,646

26,875,209

2,290,775

1,419,586

3,871,728

14,349,311

3,697,458

9,687,579

Materials and supplies

7,867,394

1,460,521

554,490

*

872,754

317,620

600,851

580,177

Other costs

6,732,234

1,576,443

142,882

232,065

227,530

781,014

64,676

677,362

Inventory, end of year

22,059,905

5,857,760

463,545

101,943

810,917

1,675,916

502,402

362,694

Advertising expenses

2,651,608

256,025

83,965

49,463

51,458

93,489

178,467

22,486

Car and truck expenses

5,580,842

655,977

129,454

42,041

142,817

270,584

215,799

21,550

Commissions

2,079,811

210,968

55,248

* 23,410

30,155

94,002

44,938

16,818

Contract labor

2,281,588

485,820

62,868

48,486

99,806

103,519

219,943

20,149

23,267

** 32

**

**

** 13

* 62

0

* 935

3,716,100

700,267

42,074

44,169

233,508

335,471

123,937

294,473

Depletion

Depreciation

275,989

109,735

7,318

* 4,293

18,084

23,968

16,587

4,336

Insurance

Employee benefit programs

1,513,024

294,320

55,754

38,832

81,897

169,170

71,601

84,898

Legal and professional services

40,702

1,179,911

123,586

25,665

10,683

47,535

87,265

68,007

Meals deducted

494,860

59,914

8,118

4,817

9,560

26,854

34,861

2,292

Mortgage interest

273,006

45,408

3,900

**

** 12,779

26,143

9,931

44,106

Other interest paid on business indebtedness

724,874

261,694

12,827

9,211

20,911

56,564

31,763

22,385

1,803,871

177,267

17,148

34,623

38,973

63,432

140,975

12,028

Pension and profit-sharing plans

41,653

8,872

* 2,825

* 758

8,033

1,086

4,667

4,341

Rent paid on machinery and equipment

721,266

72,171

11,564

* 74,358

37,797

51,517

47,402

24,494

Rent paid on other business property

5,657,883

680,138

261,723

77,541

136,483

788,527

383,249

154,818

Repairs

1,452,675

303,476

25,929

35,824

48,626

218,459

45,162

91,371

Supplies

5,083,271

679,767

82,622

39,975

105,767

554,293

230,487

75,013

Salaries and wages

8,704,917

1,298,557

134,566

227,579

546,075

1,757,801

541,441

705,436

Taxes paid

2,642,948

393,890

102,493

70,274

109,134

423,470

110,424

185,435

Travel

833,333

64,108

22,768

18,860

15,820

23,911

60,093

6,834

Utilities

3,914,190

422,855

119,596

48,713

107,571

481,565

152,624

164,054

Other business expenses

14,225,350

1,598,089

271,357

187,905

287,015

1,266,412

727,840

530,482

777,680

41,613

* 24,288

* 7,083

4,972

10,571

45,464

* 182

12,458,750

1,550,956

181,113

422,876

641,323

927,141

518,295

242,321

Net income [1]

23,320,963

2,634,187

429,526

444,016

796,341

1,429,876

1,102,343

394,644

Deficit

10,862,213

1,083,231

248,413

21,139

155,018

502,736

584,048

152,323

5,488,277

790,353

153,584

54,492

145,447

298,054

310,814

117,373

Office expenses

Home office business deductions, total

Net income less deficit [1]

Qualified business deduction

Footnotes at end of table.

Statistics of Income Bulletin

24

Spring 2023

Sole Proprietorship Returns, Tax Year 2020

Table 2. Nonfarm Sole Proprietorships: Income Statements by Industrial Sectors, Tax Year 2020—Continued

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

Retail trade—continued

Net income status, item

Clothing and

accessories

stores

Sporting goods,

hobby, book,

and music

stores

General

merchandise

stores

Miscellaneous

store

retailers

Electronic shopping

and mail-order

houses

Nonstore

retailers

(48)

(49)

(50)

(51)

(52)

(53)

BUSINESSES WITH AND WITHOUT NET INCOME

Number of returns

Business receipts, total [1]

Income from sales and operations

184,922

111,707

40,021

592,831

259,334

924,417

9,975,237

6,847,901

3,296,568

35,697,841

14,413,044

21,671,636

21,476,843

9,778,422

6,742,833

3,271,084

34,901,009

14,342,831

Other business income (loss)

196,814

105,068

25,484

796,832

70,213

194,793

Business deductions, total [1]

9,936,464

6,477,760

3,038,959

32,411,638

13,088,011

19,179,580

Cost of sales and operations, total

4,670,781

3,831,602

2,078,702

18,422,224

6,216,399

9,023,997

Inventory, beginning of year

1,763,164

1,735,835

229,658

5,636,016

966,200

1,982,211

54,649

129,797

* 52,233

350,852

38,161

88,412

3,859,135

3,288,927

1,797,667

15,535,656

4,794,527

7,714,088

Materials and supplies

404,665

219,553

48,813

1,585,103

537,722

685,127

Other costs

305,638

158,929

182,894

933,342

812,372

637,086

1,716,472

1,701,439

232,563

5,618,745

932,583

2,082,927

Advertising expenses

223,117

100,183

20,345

512,978

599,184

460,449

Car and truck expenses

306,906

152,041

63,186

1,349,517

402,658

1,828,315

Commissions

115,843

60,429

20,446

305,678

776,770

325,105

Contract labor

198,828

50,170

29,230

404,828

153,918

404,022

**

0

**

** 10,004

0

12,223

228,220

150,958

56,192

694,484

161,465

650,882

Cost of labor

Purchases

Inventory, end of year

Depletion

Depreciation

Employee benefit programs

13,469

6,123

* 3,575

36,100

16,186

16,215

Insurance

106,790

53,926

25,374

353,447

35,762

141,254

Legal and professional services

113,335

64,007

10,873

265,957

165,935

156,361

Meals deducted

37,990

13,601

7,054

127,310

20,368

142,120

Mortgage interest

5,569

12,098

25,885

61,398

* 1,989

23,799

Other interest paid on business indebtedness

43,138

21,902

6,585

148,804

29,229

59,862

Office expenses

225,654

115,069

11,615

363,508

270,981

332,597

Pension and profit-sharing plans

* 2,359

* 1,107

0

5,636

* 561

1,406

Rent paid on machinery and equipment

112,586

36,830

23,410

145,915

35,040

48,181

Rent paid on other business property

716,556

259,760

101,127

1,527,191

204,398

366,374

Repairs

103,726

58,975

24,091

312,404

20,569

164,065

Supplies

495,982

165,382

21,527

768,946

752,936

1,110,573

Salaries and wages

640,266

348,253

99,598

1,622,362

243,623

539,360

Taxes paid

162,265

130,125

59,584

543,866

146,346

205,641

Travel

93,224

18,520

6,920

221,869

49,087

231,320

Utilities

303,923

183,293

60,908

920,871

209,555

738,661

Other business expenses

948,473

610,211

269,796

3,106,870

2,473,126

1,947,776

Home office business deductions, total

67,460

33,195

* 9,949

182,463

101,926

248,516

40,693

370,721

240,015

3,390,293

1,395,923

2,537,080

Net income [1]

1,417,532

848,766

363,479

6,079,046

2,259,971

5,121,237

Deficit

1,376,839

478,044

123,464

2,688,753

864,049

2,584,157

351,030

201,028

52,028

1,220,374