# Sole Proprietorship Returns, 2001 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ae415039d19e3afaa ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Sole Proprietorship Returns, 2001 by Michael Parisi and Brian Balkovic N 6 onfarm sole proprietorship profits increased 1.2 percent for Tax Year 2001 to $217.4 billion. However, when inflation is taken into account, net profits fell by 1.3 percent, the first such drop since 1995. The last time that constant dollar sole proprietorship profits fell by more than this percentage was the recession year of 1991. While a majority of the principal sole proprietorship industrial sectors reported increased growth in profits, a few sectors reported a decrease in growth. The largest percentage increase in profits for a major industrial sector was 7.8 percent for the transportation and warehousing sector. The next largest percentage growth in profits for a major industrial sector was 7.6 percent for the health care and social assistance sector, followed by a 6.9-percent growth reported by the construction sector. Five major industrial sectors showed a decline in profits. The largest percentage decrease in profits was in the wholesale trade sector, with a 22.7-percent decrease, followed by the administrative and support services sector [1] with a 2.3-percent decrease. The Tax Year 2001 low level of sole proprietorship growth in profits coincided with decreases of both receipts and deductions: total business receipts decreased 0.4 percent to $1,016.8 billion, while total business deductions fell 0.8 percent to $799.6 billion. With a 19.9-percent decline, the finance and insurance sector reported the largest percentage decrease in receipts, followed by an 8.9-percent drop in receipts reported by the wholesale trade sector. The finance and insurance sector also reported the largest percentage decrease in deductions at 23.0 percent for 2001. When inflation is taken into account, 2001 total nonfarm sole proprietorship receipts decreased 2.9 percent, and deductions decreased 3.3 percent. Along with declining profits, sole proprietorship deficits increased by 4.8 percent in real terms from 2000. Tax Year 1998 for the first time introduced the use of the North American Classification System (NAICS). Because of the coding changes, comparisons between data from 1998–2001 with 1997 and prior years may show inconsistencies. A reason for this was many sole proprietorships under the NAICS system were classified in completely different industrial groups, which makes prior-year comparisons inappropriate. For example, in 1997, finance, insurance, and real estate were grouped by Standard Industrial Classification (SIC) codes as one industry, while, under the NAICS system, the group has been split into two industrial sectors. The industrial sectors based on the NAICS codes, used for comparisons in this article with 2000 and future articles, are reported in Tables 1 and 2. ReturnsandReceipts The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2001 increased 2.4 percent to over 18.3 million (Figure A)[2]. The two largest industrial sectors (in numbers of returns) showed an increase in the number of returns for Tax Year 2001; the professional, scientific, and technical services sector increased 6.0 percent and the construction sector 5.7 percent. The largest growth was found in the other services sector (7.4 percent). Total business receipts (the sum of “income from sales and operations” and “other business income”) for all nonfarm sole proprietorship industries decreased 0.4 percent, from $1,021.0 billion to $1,016.8 billion [3]. The finance and insurance sector showed the largest percentage decrease in receipts, a decrease of $20.5 billion or 19.9 percent. The wholesale trade sector receipts fell 8.9 percent, the second largest percentage decrease in receipts for 2001. Several industrial sectors reported gains in business receipts for 2001, the largest being the health care and social assistance sector with a 7.5percent increase. The next largest increase in receipts was other services with 5.1 percent. Professional, scientific, and technical services was the sector with the third largest increase in receipts (4.0 percent). As shown in Figure B, total receipts decreased 2.9 percent (in constant dollars). This was the first decrease in business receipts since 1995 [4]. Deductions 6 This article was written by Michael Parisi and Brian Balkovic, economists with the Individual Returns Analysis Section, under the direction of Jeff Hartzok, Chief. Total business deductions (“cost of sales and operations” plus business expenses, including expenses for home office) in current dollars decreased 0.8 percent from $806.4 billion for 2000 to $799.6 billion for 2001 (Figure A) [5,6]. The health care and social assis- Sole Proprietorship Returns, 2001 Figure A Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors, Tax Years 2000 and 2001 [Number of returns is in thousands--money amounts are in billions of dollars] Number of returns Industrial sector 2000 2001 Total business receipts Percentage 2000 2001 increase (1) (2) (3) Total business deductions Percentage Percentage 2000 2001 (7) (8) (9) 806.4 133.8 85.7 37.4 170.2 45.0 89.3 28.2 24.5 799.6 135.7 86.5 34.8 175.2 44.6 68.8 28.8 24.6 -0.8 1.5 0.9 -7.0 2.9 -0.8 -23.0 2.0 0.4 66.1 70.0 5.8 28.6 50.1 5.2 15.1 28.0 53.8 5.4 15.9 -2.2 7.5 2.8 5.1 11.4 51.3 20.7 91.3 11.3 54.1 21.4 90.1 -1.0 5.3 3.5 -1.3 increase (4) (5) (6) All nonfarm industries........................................................................................................................... 17,904.7 18,338.2 2.4 1,021.0 1,016.8 -0.4 Construction........................................................................................................................... 2,244.8 2,372.9 5.7 160.5 164.2 2.4 Special trade contractors........................................................................................................................... 1,764.1 1,854.8 5.1 106.3 108.2 1.7 Wholesale trade........................................................................................................................... 371.3 310.4 -16.4 42.6 38.8 -8.9 Retail trade........................................................................................................................... 2,318.4 2,254.2 -2.8 179.9 184.8 2.7 Transportation and warehousing........................................................................................................................... 888.9 939.5 5.7 52.4 52.7 0.5 Finance and insurance........................................................................................................................... 570.2 576.6 1.1 103.1 82.6 -19.9 Real estate and rental and leasing........................................................................................................................... 935.1 968.1 3.5 48.7 49.2 0.9 Real estate........................................................................................................................... 871.4 895.9 2.8 44.8 44.9 0.2 Professional, scientific, and technical services........................................................................................................................... 2,444.8 2,592.3 6.0 114.3 118.8 4.0 Administrative and support and waste management and remediation services........................................................................................................................... 1,549.2 1,567.3 1.2 40.2 39.3 -2.2 Health care and social assistance........................................................................................................................... 1,595.4 1,679.0 5.2 87.0 93.5 7.5 Child day care services........................................................................................................................... 652.7 704.9 8.0 8.1 8.8 9.1 Arts, entertainment, and recreation........................................................................................................................... 1,075.6 1,037.3 -3.6 20.6 21.2 3.1 Performing arts, spectator sports, and related industries........................................................................................................................... 917.4 879.6 -4.1 16.2 16.1 Other services........................................................................................................................... 1,725.7 1,853.3 7.4 65.5 68.8 Personal and laundry services........................................................................................................................... 1,073.6 1,143.5 6.5 29.1 30.3 All other industries........................................................................................................................... 2,185.3 2,187.3 0.1 106.3 102.9 -0.5 5.1 4.0 -3.1 increase ¹ Less than 0.05 percent. NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. Figure B Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2001 [Money amounts are in billions of dollars] Total business receipts Tax year Total business deductions Constant dollars Current dollars (1) Amount (2) 2 Percentage Net income less deficit Constant dollars Current dollars increase (3) 1 (4) 1988....................................................................................................................... 672.0 837.8 -545.7 1989....................................................................................................................... 692.8 832.0 -0.7 560.2 730.6 844.5 1.5 589.2 1990....................................................................................................................... 1991....................................................................................................................... 712.6 794.8 -5.9 571.2 1992....................................................................................................................... 737.1 802.6 1.0 583.1 757.2 805.1 0.3 600.8 1993....................................................................................................................... 790.6 823.5 2.3 623.8 1994....................................................................................................................... 1995....................................................................................................................... 807.4 823.0 -0.1 638.1 1996....................................................................................................................... 843.2 843.2 2.5 666.5 870.4 853.7 1.2 683.9 1997....................................................................................................................... 918.3 889.6 4.2 716.2 1998....................................................................................................................... 1999....................................................................................................................... 969.3 925.2 4.0 761.4 953.8 2000....................................................................................................................... 1,021.0 3.1 806.4 926.2 2001....................................................................................................................... 1,016.8 -2.9 799.6 Amount 2 Percentage Constant dollars Current dollars increase Amount 2 Percentage increase (5) (6) (7) (8) (9) 680.3 672.8 681.1 637.1 634.9 638.8 649.7 650.5 666.5 670.8 693.8 726.8 753.4 728.4 --1.1 1.2 -6.5 -0.3 0.6 1.7 0.1 2.5 0.6 3.4 4.7 3.7 -3.3 126.3 132.7 141.4 141.5 154.0 156.5 166.8 169.3 176.8 186.6 202.3 207.9 214.7 217.4 157.5 159.4 163.4 157.8 167.7 166.4 173.7 172.5 176.8 183.1 196.0 198.5 200.6 198.0 -1.2 2.6 -3.4 6.3 -0.8 4.4 -0.7 2.4 3.6 7.0 1.3 1.1 -1.3 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 or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or deficit. ² 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 1996 = 100. NOTE: Percentage increases were calculated before rounding. 7 Sole Proprietorship Returns, 2001 Figure C 8 8 percent). The wholesale trade sector reported a decrease of 7.0 percent, representing the second Components of Nonfarm Sole Proprietorship largest decline in deductions. This was the first Business Deductions, Tax Years 2000 and 2001 decrease in business deductions (in constant dollars) [Money amounts are in millions of dollars] since 1992. When allowing for inflation, business Percentage deductions decreased 3.3 percent for 2001. Business deductions 2000 2001 increase Representing 45.4 percent of total 2001 business (1) (2) (3) deductions, the cost of sales and operations was Business deductions, total ¹.......................................................................................................... 806,386.1 799,633.1 -0.8 $363.4 billion (Figure C), a 6.2-percent decrease Cost of sales and operations.......................................................................................................... 387,381.1 363,355.6 -6.2 from the 2000 level. Total business “expenses” (total Inventory, beginning of year.......................................................................................................... 32,412.5 34,176.3 5.4 business deductions minus the cost of sales and Cost of labor.......................................................................................................... 29,278.7 28,022.3 -4.3 operations) were $436.3 billion for 2001, a 4.1-perPurchases.......................................................................................................... 268,790.0 246,541.1 -8.3 43,195.5 43,798.3 Materials and supplies.......................................................................................................... 1.4 cent increase from the 2000 amount. Figure D 48,046.8 46,550.1 Other costs.......................................................................................................... -3.1 graphically presents the main components of total 34,342.4 35,732.5 Inventory, end of year.......................................................................................................... 4.0 business expenses. The largest component, salaries 419,005.0 436,277.5 Business expenses, total.......................................................................................................... 4.1 and wages, accounted for 14.6 percent of the total. Advertising expenses.......................................................................................................... 10,148.7 10,774.1 6.2 983.9 1,176.3 Bad debts from sales or services.......................................................................................................... 19.6 For 2001, salaries and wages totaled $63.8 billion, a 45,711.2 47,351.9 Car and truck expenses.......................................................................................................... 3.6 0.5-percent increase from 2000 (Figure C). The next Commissions.......................................................................................................... 11,621.5 12,130.1 4.4 largest components of business expenses were car Depletion.......................................................................................................... 685.0 693.7 1.3 Depreciation ².......................................................................................................... 32,196.2 33,425.6 3.8 and trucks (10.9 percent), rent on business property, Employee benefit programs.......................................................................................................... 1,871.9 2,040.6 9.0 machinery, and equipment (7.7 percent), and depre13,623.8 14,367.0 Insurance.......................................................................................................... 5.5 ciation (7.7 percent). For 2001 these items were 7,312.7 7,482.6 Legal and professional services.......................................................................................................... 2.3 $47.4 billion, $33.6 billion, and $33.4 billion, respec4,664.7 4,735.3 Meals and entertainment deducted.......................................................................................................... 1.5 Mortgage interest.......................................................................................................... 5,250.9 5,456.2 3.9 tively. Car and truck expenses showed a 3.6-percent Other interest paid on business increase from 2000; rent on business property, maindebtedness.......................................................................................................... 6,982.0 7,053.3 1.0 chinery, and equipment a 1.3-percent increase; and 10,456.4 10,604.8 Office expenses.......................................................................................................... 1.4 depreciation, a 3.8-percent increase. 892.9 991.9 Pension and profit-sharing plans.......................................................................................................... 11.1 8,880.3 8,522.0 Rent on machinery and equipment.......................................................................................................... -4.0 Depreciation deductions first began to decline for Rent on other business property.......................................................................................................... 24,342.2 25,119.1 3.2 Tax Year 1986, following the enactment of the Tax Repairs.......................................................................................................... 12,280.5 12,129.8 -1.2 Reform Act of 1986 (TRA86). TRA86 reduced the Salaries and wages.......................................................................................................... 63,485.5 63,826.0 0.5 allowable depreciation deduction by lengthening the Supplies.......................................................................................................... 21,794.0 23,074.8 5.9 13,955.9 14,214.1 Taxes paid.......................................................................................................... 1.8 cost recovery periods and changing the depreciation 8,457.3 8,657.3 Travel.......................................................................................................... 2.4 methods for property placed in service after July 31, Utilities.......................................................................................................... 19,381.9 20,482.7 5.7 1986. In constant dollars, depreciation deductions Home office business deductions ².......................................................................................................... 5,642.5 5,981.4 6.0 Other business deductions.......................................................................................................... 87,025.9 94,612.3 8.7 dropped 9.6 percent for 1989 and continued to de¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for cline through 1992 (Figure E). Beginning with 1993, business deductions on Schedule C-EZ, the totals shown in the statistics exceed the sum the trend reversed and constant dollar depreciation of the detailed deductions; the detailed deductions are, therefore, slightly understated. ² Depreciation claimed on Form 8829 is included in "Home office business deductions" increased every year through 2001, except for 1995, and excluded from "Depreciation," shown above. when it decreased 2.0 percent to $26.7 billion [7]. NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. The 2001 depreciation deductions accounted for 4.2 percent of total business deductions and remained tance sector showed the largest increase in deducwell below the 1985 (pre-TRA86) level of 5.7 percent. Beginning with Tax Year 1992, certain smaller tions with 7.5 percent. The transportation and warehousing; wholesale trade; finance and insurance businesses could elect not to itemize depreciation and and administrative and support services were the sole other business deductions by filing Schedule C-EZ, Net Profit From Business, a simplified version of proprietorships principal sectors that did not show an increase in deductions for 2001. Sole proprietorships Schedule C, Profit or Loss From Business. (Schedin the finance and insurance sector showed the ule C and Schedule C-EZ are the source of sole proprietorship statistics.) Taxpayers could use largest percentage decrease in deductions (23.0 Sole Proprietorship Returns, 2001 Figure D Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2001 ¹ Type of expenses Repairs 2.8 Commissions 2.8 Insurance 3.3 Taxes paid 3.3 Utilities 4.7 Supplies 5.3 Depreciation 7.7 Rent on business property, machinery, and equipment 7.7 10.9 Car and truck expenses 14.6 Salaries and wages Other business deductions ² 37.0 0 5 10 15 20 25 30 35 40 Percent of total ¹ Total business expenses equal all business deductions minus cost of sales and operations. ² Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office business deductions. Other business deductions also include all Schedule C-EZ deductions ($1.4 billion). NOTES: Percents are based on an estimated total business expense of $436.3 billion. Detail may not add to 100 percent because of rounding. Figure E Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2001 [Money amounts are in billions of dollars] Current dollars Constant dollars 1 Percentage increase in constant dollars 1 Tax year Net income Deficit Depreciation ³ Net income Deficit Depreciation ³ Net income Deficit Depreciation ³ (1) (2) (3) (4) (5) (6) (7) (8) (9) 1988......................................................................................................... 145.5 19.2 26.1 181.4 1989......................................................................................................... 152.4 19.7 24.5 183.0 23.9 23.7 32.5 29.4 -0.9 --1.2 --9.6 1990......................................................................................................... 161.7 20.2 23.7 186.9 1991......................................................................................................... 162.4 20.9 23.1 181.1 23.3 23.3 27.4 25.8 2.1 -3.1 -1.3 -0.2 -6.9 -6.0 1992......................................................................................................... 173.5 19.5 23.3 188.9 1993......................................................................................................... 177.0 20.5 25.0 188.2 21.2 21.8 25.4 26.6 4.3 -0.4 -8.9 2.7 -1.5 4.8 1994......................................................................................................... 187.8 21.0 26.2 195.6 21.9 27.3 3.9 0.3 2.7 1995......................................................................................................... 191.7 22.5 26.2 195.4 22.9 26.7 -0.1 4.7 -2.0 1996......................................................................................................... 200.1 23.4 27.4 200.1 23.4 27.4 2.4 2.0 2.3 1997......................................................................................................... 210.5 23.8 28.6 206.4 23.4 28.1 3.2 (²) 2.6 1998......................................................................................................... 226.2 23.9 29.1 219.1 1999......................................................................................................... 233.4 25.5 30.6 222.8 23.2 24.3 28.2 29.2 6.1 1.7 -0.8 4.9 0.5 3.6 2000......................................................................................................... 245.2 30.5 32.2 229.1 28.5 30.1 2.8 17.3 2.9 2001......................................................................................................... 250.2 32.8 33.4 227.9 29.9 30.4 -0.5 4.8 1.2 ¹ 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 1996 = 100. ² Less than 0.05 percent. ³ Excludes depreciation claimed on Form 8829. 9 Sole Proprietorship Returns, 2001 Schedule C-EZ if they: had business expenses of $2,500 or less; used the cash accounting method; had no inventories; did not report a deficit 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 are slightly understated and will not add to the totals. Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial sector. Almost 2.8 million taxpayers filed Schedule C-EZ for Tax Year 2001. Of the returns filed for 2001 in the administrative and support services sector, taxpayers filed over 417 thousand Schedule C-EZ returns, or 26.7 percent. For 2001, business receipts from Schedule C-EZ filers totaled $15.1 billion, or 1.5 percent of total business receipts reported. However, the business deductions reported on Schedule C-EZ returns accounted for only 0.2 percent of total business deduc10 tions for all industries. Even in the administrative and support services sector with its higher concentration of Schedule C-EZ filers, deductions reported on Schedule C-EZ accounted for only 0.6 percent of that sector’s total business deductions. ProfitsandLosses For 2001, a little over half of the principal industrial sectors reported increased sole proprietorship profits (net income less deficit). Figure B presents total profits for all industries (in both current and constant dollars) since 1988, while Figure G presents profits by industrial sector for 2000 and 2001 [8]. Total profits increased 1.2 percent from $214.7 billion for 2000 to $217.4 billion for 2001. The wholesale trade sector reported the largest percentage change in profits for 2001, decreasing 22.7 percent to $4.0 billion. The administrative and support services sector reported the second largest percentage decrease in profits with 2.3 percent. The largest increase was for the transportation and warehousing sector, which showed a 7.8-percent increase in profits for 2001. The health care and social assistance sector had the largest dollar increase ($2.8 billion) and second largest Figure F Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2001 [Money amounts are in millions of dollars] Number of returns Total business receipts With Percentage On Percentage Schedule of Schedule of C-EZ total C-EZ total (2) (3) (5) (6) All nonfarm industries.................................................................................................. 18,338,190 2,753,568 15.0 1,016,834.7 Construction.................................................................................................. 2,372,880 311,119 Industrial sector Total (1) Total (4) Total business deductions On Total Percentage Schedule of C-EZ total (7) (8) (9) 0.2 15,144.2 1.5 799,633.1 1,374.6 13.1 164,238.2 1,809.2 1.1 135,708.4 161.2 0.1 Wholesale trade.................................................................................................. 310,393 15,894 5.1 38,751.8 122.0 0.3 34,779.6 9.1 (¹) Retail trade.................................................................................................. 2,254,164 194,819 8.6 184,800.6 753.8 0.4 175,174.3 97.0 0.1 Transportation and warehousing................... 9.7 52,688.2 620.6 1.2 44,621.7 44.7 0.1 82,622.7 433.6 0.5 68,760.1 28.7 (¹) Real estate and rental and leasing.................................................................................................. 968,089 63,131 6.5 49,152.1 568.6 1.2 28,752.0 46.2 0.2 2,555.4 2.2 70,008.1 216.5 0.3 0.6 939,523 91,253 Finance and insurance.................................................................................................. 576,604 49,263 8.5 Professional, scientific, and technical services.................................................................................................. 2,592,275 370,261 14.3 118,772.4 Administrative and support and waste management and remediation services.................................................................................................. 1,567,278 417,733 26.7 39,322.8 2,223.7 5.7 28,011.0 169.2 93,528.6 2,247.6 2.4 53,845.3 183.9 0.3 Arts, entertainment, and recreation.................................................................................................. 1,037,341 154,733 14.9 21,208.1 510.6 2.4 15,854.2 90.7 0.6 Health care and social assistance................. 1,678,997 383,468 22.8 Other services.................................................................................................. 1,853,299 287,048 15.5 68,834.7 1,471.9 2.1 54,062.6 153.7 0.3 All other industries.................................................................................................. 2,187,347 414,846 19.0 102,914.6 1,827.4 1.8 90,055.9 173.7 0.2 ¹ Less than 0.05 percent. 10 NOTE: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit for Business. See the text of the article for a full list of the requirements to be eligible to file Schedule C-EZ. Sole Proprietorship Returns, 2001 percentage increase, with 7.6 percent. This was followed by sole proprietors in the construction industry who reported increased gains of $1.8 billion representing a 6.9-percent increase from 2000 levels. The professional, scientific, and technical services sector, the largest of the industrial sectors with respect to profits, showed a 1.5-percent increase in profits. In constant dollars, total profits decreased 1.3 percent for 2001 (Figure B). This decrease was the first decline in profits since 1995 (constant dollars). Figure E presents net income and deficit separately between 1988 and 2001, in current and constant dollars. For 2001, net income (in constant dollars) decreased 0.5 percent, and deficit (in constant dollars) increased 4.8 percent (Figure E). IndustryTrends Using receipts as a measure of business size, Figures A and H show that retail trade was the largest sole proprietorship industrial sector for 2001 with 18.2 percent of all business receipts. Total receipts for this sector, at $184.8 billion, were 2.7 percent higher than the $179.9 billion reported for 2000, while deductions increased 2.9 percent. This resulted in a 1.5-percent decline in profits (Figure G). The second largest industrial sector was construction, with receipts totaling $164.2 billion. This amount was 16.2 percent of all sole proprietorship receipts for 2001, representing a 2.4-percent increase from the 2000 amount. Deductions likewise increased by 1.5 percent. Construction profits increased 6.9 percent for 2001, totaling $28.5 billion. Special trade contractors reported the largest portion (76.0 percent) of these profits. As a group, special trade contractors showed an increase of 1.7 percent for receipts and an increase of 5.1 percent for profits. The third largest sector was professional, scientific, and technical services, which accounted for 11.7 percent of sole proprietorship receipts for 2001. Receipts increased 4.0 percent to $118.8 billion, and deductions increased 5.8 percent to $70.0 billion, yielding a 1.5-percent increase in profits. Figures G and I also demonstrate that the professional, scientific, and technical service sector profits rose from $48.1 billion in 2000 to $48.8 for 2001, and accounted for the largest percentage of sole proprietorship profits for 2001 with 22.5 percent. The fourth largest sole proprietorship industrial sector with 9.2 percent of total receipts was the Figure G Nonfarm Sole Proprietorship Profits, by Selected Industrial Sectors, Tax Years 2000 and 2001 [Money amounts are in billions of dollars] Industrial sector Net income less deficit Percentage 2000 2001 increase (1) (2) (3) All nonfarm industries................................................................................................................. 214.7 217.4 1.2 Construction........................................................................................................................... 26.7 28.5 6.9 Special trade contractors............................................................................................................... 20.6 21.7 5.1 Wholesale trade........................................................................................................................... 5.2 4.0 -22.7 Retail trade........................................................................................................................... 9.7 9.6 -1.5 Transportation and warehousing........................................................................................................ 7.5 8.1 7.8 Finance and insurance...................................................................................................................... 13.8 13.9 0.2 Real estate and rental and leasing..................................................................................................... 20.5 20.4 -0.7 Real estate........................................................................................................................... 20.3 20.3 -0.1 Professional, scientific, and technical services.......................................................................................................................... 48.1 48.8 1.5 Administrative and support and waste management and remediation services......................................................................................... 11.6 11.3 -2.3 Health care and social assistance..................................................................................................... 36.9 39.7 7.6 Child day care services................................................................................................................... 2.8 3.4 20.8 Arts, entertainment, and recreation.................................................................................................... 5.4 5.3 -0.5 Performing arts, spectator sports, and related industries................................................................................................................. 4.8 4.8 0.2 Other services........................................................................................................................... 14.2 14.8 4.3 Personal and laundry services....................................................................................................... 8.4 8.8 5.2 All other industries........................................................................................................................... 15.1 12.9 -14.5 NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. health care and social assistance sector. A 7.5percent increase in receipts for this sector, accompanied by a 7.5-percent increase in deductions, led to an increase in profits of (7.6 percent). Summary Profits for nonfarm sole proprietorships for Tax Year 2001 grew 1.2 percent to a level of $217.4 billion. In constant dollars, total nonfarm sole proprietorship profits decreased 1.3 percent. The transportation and warehousing sector reported the largest percentage growth in profits at 7.8 percent, while, the health care and social assistance sector had the largest dollar increase ($2.8 billion) and the second largest percentage increase, with 7.6 percent. The professional, scientific, and technical services sector had the largest profits of any sector at $48.8 billion or 22.5 percent of total sole proprietorship profits. For all sole proprietorships, receipts and deductions decreased 0.4 percent and 0.8 percent, respectively. The largest sole proprietorship industrial sector, based 11 Sole Proprietorship Returns, 2001 Figure H Nonfarm Sole Proprietorship Total Business Receipts by Selected Industrial Sectors, Tax Year 2001 Other services 6.8% All other industries 10.1% Construction 16.2% Arts, entertainment, and recreation 2.1% Health care and social assistance 9.2% Wholesale trade 3.8% $1,016.8 billion Administrative and support and waste management and remediation services 3.9% Retail trade 18.2% Professional, scientific, and technical services 11.7% Real estate and rental and leasing 4.8% Transportation and warehousing 5.2% Finance and insurance 8.1% NOTE: Detail may not add to 100 percent because of rounding. 12 Figure I Nonfarm Sole Proprietorship Total Business Profits by Selected Industrial Sectors, Tax Year 2001 All other industries 5.9% Other services 6.8% Arts, entertainment, and recreation 2.5% Health care and social assistance 18.3% Administrative and support and waste management and remediation services 5.2% 12 Construction 13.1% Wholesale trade 1.8% Retail trade 4.4% Transportation and warehousing 3.7% $217.4 billion Finance and insurance 6.4% Real estate and rental and leasing 9.4% Professional, scientific, and technical services 22.5% NOTES: Profits is a designation for "net income less deficit," shown elsewhere in this article. Detail may not add to 100 percent because of rounding. Sole Proprietorship Returns, 2001 on business receipts, was the retail trade sector, accounting for 18.2 percent of receipts. This sector suffered a 1.5-percent decrease in profits. The finance and insurance sector showed the largest percentage decrease in both receipts and deductions, reporting a 19.9-percent decrease in receipts and a 23.0-percent decrease in deductions. DataSourcesandLimitations The 2001 sole proprietorship estimates are based on a stratified probability sample of unaudited Individual Income Tax Returns, Forms 1040 and 1040PC (including electronically-filed returns), processed by the Internal Revenue Service during Calendar Year 2002. 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 0.05 percent to 100 percent. The 2001 nonfarm sole proprietorship data are based on a sample of 51,275 returns and a population of 18,338,190 returns [9]. The corresponding sample and population for the 2000 data were 56,023 and 18,130,483 returns, respectively. Since the data presented in this article are estimates based on a sample of returns filed, they are subject to sampling error. To properly use the statistical data estimates provided, the magnitude of the potential sampling error must be known; coefficients of variation (CV’s) are used to measure that magnitude. Figure J presents estimated coefficients of variation for the number of returns and money amounts for selected items and industrial sectors. Generally, the smaller the coefficient of variation, the Figure J Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial Sectors, Tax Year 2001 [Coefficients of variation are in percentages] Coefficients of variation Industrial sector Total business receipts (1) ¹ Total business deductions Depreciation ² Net income Deficit (2) (3) (4) (5) 0.66 0.74 All nonfarm industries........................................................................................................................... 2.52 2.66 Construction........................................................................................................................... 1.25 0.89 1.60 4.03 3.00 7.04 Special trade contractors........................................................................................................................... 5.73 5.86 2.30 2.28 Wholesale trade........................................................................................................................... 9.54 4.40 8.77 3.92 14.25 4.64 Retail trade........................................................................................................................... 3.48 3.52 4.85 5.05 7.56 Transportation and warehousing........................................................................................................................... 2.29 2.23 7.63 Finance and insurance........................................................................................................................... 3.42 3.52 6.10 4.63 4.29 7.25 6.86 Real estate and rental and leasing........................................................................................................................... 2.22 2.49 4.03 Real estate........................................................................................................................... 3.98 4.64 6.99 2.63 4.26 5.64 10.99 Professional, scientific, and technical services........................................................................................................................... 2.24 2.34 3.99 2.66 10.30 Administrative and support and waste management and remediation services........................................................................................................................... 4.24 4.19 6.81 3.39 3.71 5.46 Health care and social assistance........................................................................................................................... 5.74 3.88 6.42 7.67 3.91 4.70 Child day care services........................................................................................................................... 2.67 2.73 3.92 Arts, entertainment, and recreation........................................................................................................................... 3.03 3.20 4.85 3.57 Performing arts, spectator sports, and related industries........................................................................................................................... 3.62 3.75 6.62 4.40 8.70 7.88 Other services........................................................................................................................... 6.31 6.91 14.39 Personal and laundry services........................................................................................................................... 4.78 4.63 7.77 7.34 6.21 17.67 7.01 All other industries........................................................................................................................... 4.53 5.11 5.10 10.37 8.41 ¹ Positive only. ² Excludes depreciation claimed on Form 8829. 13 Sole Proprietorship Returns, 2001 more reliable the estimate is judged to be. The Appendix to this issue of the Bulletin discusses the reliability of estimates based on samples, and the use of coefficients of variation for evaluating the precision of estimates based on samples. NotesandReferences [1] Based on the 2001 NAICS system the full name of the administrative and support services sector is administrative and support and waste management and remediation service sector. The waste management and remediation portion make up a small percentage of the overall numbers reported under this classification, which are detailed in Table 1. 14 [2] For 2001, the 18,338,190 nonfarm sole proprietorship returns accounted for 20,378,336 nonfarm businesses. Actually, more businesses may have existed than those counted; processing for tax administration purposes allows only three businesses (reported on separate Schedules C) per return, and combines any remaining businesses on one (or more) of the three Schedules C. Statistics of Income--1981, Sole Proprietorship Returns contains a more detailed explanation of the relationship between proprietors and proprietorships. It is estimate that 21,594 individual tax returns have four or more sole proprietorships attached (with an average of 4.59 businesses) to their returns. For purposes of the 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. 14 The North American Industry Classification System (NAICS) was used to classify data by industries for 2001. These classifications were applied on a “per business” (rather than on a “per establishment”) basis for Statistics of Income 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. [3] 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 in the statistics 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 non-business related investment income, as part of their total incomes on their Individual Income Tax Returns. [4] 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, August 2002. Indices used for this article were: Year Indices Year Indices 1988 1989 1990 1991 1992 1993 1994 80.2 83.2 86.5 89.7 91.8 94.1 96.0 1995 1996 1997 1998 1999 2000 2001 98.1 100.0 102.0 103.2 104.8 107.4 109.8 [5] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from business income or loss, which is reported on the attached Schedule C, Profit or Loss From Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid to owners qualify as personal income, not as a business expense, and are, therefore, part of the owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made through the business as personal expenses on Sole Proprietorship Returns, 2001 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. [6] Business deductions include the home office business deduction. 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. 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. [7] The increase in the depreciation deduction for 1993 may be attributed, in part, to a provision of the Omnibus Budget Reconciliation Act of 1993 (OBRA93). The cost of certain tangible property (as described in Internal Revenue Code section 179) may be treated as a current expense rather than a capital expenditure subject to depreciation deductions. The provision of OBRA93 (related to these expenses) increased the maximum amount of investment certain small businesses could immediately deduct on property placed in service after 1992, from $10,000 to $17,500. Following the enactment of this provision, the deduction increased 32.4 percent to $13.5 billion for 1993. Again, a change in law increased the “179” depreciation deduction amount to $20,000 for 2000, and $24,000 for 2001. [8] 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. [9] 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 returns and tentative returns are not reflected in these statistics. Source: IRS Statistics of Income Bulletin, Summer 2003, Publication 1136 (Rev. 09-2003.) 15 Sole Proprietorship Returns, 2001 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Industrial sector Number of returns Business receipts (1) (2) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (3) Rent paid on other business 1 property Interest paid 1,3 deduction Payroll 1,4 Net income less deficit (4) (5) (6) (7) (8) 8,522,008 158,001 25,119,124 149,940 12,509,547 357,058 91,848,309 1,701,837 217,385,116 1,323,126 Animal production (including breeding of cats and dogs).................................................................................................. 43,105 1,517,228 179,230 2,017 28,693 41,784 98,707 -268,798 All nonfarm industries.................................................................................................. 18,338,190 1,016,834,678 34,110,071 Agriculture, forestry, hunting, and fishing.................................................................................................. 270,075 16,243,523 1,454,445 Forestry and logging (including forest nurseries, 628,256 101,035 30,362 140,967 711,726 353,178 Fishing.................................................................................................. 71,246 2,780,591 349,739 Hunting and trapping.................................................................................................. 4,624 144,837 10,815 Support activities for agriculture and forestry.................................................................................................. 99,367 5,481,139 286,406 timber tracts).................................................................................................. 51,734 3,105 *3,408 48,436 42,137 *1,031 47,717 94,389 3,366 76,551 148,532 *1,364 741,508 711,858 6,501 520,387 Mining.................................................................................................. 114,535 6,815,806 450,240 48,734 23,024 298,577 261,687 607,212 Oil and gas extraction.................................................................................................. 97,986 5,394,211 290,839 29,763 21,046 268,305 96,265 437,439 *9,140 *464 *53 *1,940 *13,317 630 Metal ore mining.................................................................................................. *2,884 *29,478 *5,424 Nonmetallic mineral mining and quarrying.................................................................................................. 7,328 761,267 104,496 *3,174 *4,350 *23 *1,828 *219 23,427 *9,505 73,538 *-10,645 57,451 Support activities for mining.................................................................................................. 5,537 480,504 40,340 *10,983 *74 *4,685 *69,061 122,337 22,472 *4,879 *3,887 *2,452 *3,689 70,695 Construction.................................................................................................. 2,372,880 164,238,174 5,753,142 Land subdivision and land development.................................................................................................. 20,608 3,447,970 106,272 1,265,185 29,592 996,797 24,036 1,656,949 144,057 23,717,954 218,287 28,530,591 454,670 Coal mining..................................................................................................801 Utilities.................................................................................................. 9,007 150,346 260,486 Residential building construction.................................................................................................. 357,439 40,052,164 727,549 178,200 127,318 435,574 4,196,021 5,005,946 Nonresidential building construction.................................................................................................. 74,461 7,327,505 223,971 61,322 39,231 104,320 944,666 968,159 Heavy construction .................................................................................................. 65,532 5,239,527 535,133 142,506 28,548 140,424 768,996 422,815 Special trade contractors.................................................................................................. 1,854,841 108,171,008 Manufacturing.................................................................................................. 347,012 24,679,078 4,160,217 878,396 853,566 247,722 777,664 743,083 832,574 370,268 17,589,985 3,623,123 21,679,001 3,433,746 Food manufacturing.................................................................................................. 24,158 16 6,319,728 2,584,539 57,856 11,586 93,536 21,139 226,326 208,251 Textile and textile product mills.................................................................................................. 5,780 444,689 *13,980 *362 *4,293 *4,004 *68,547 81,970 Apparel.................................................................................................. 22,075 1,300,703 24,637 15,922 88,318 7,526 384,541 80,904 Leather and allied products.................................................................................................. *3,984 *220,139 Wood products.................................................................................................. 44,325 2,335,475 *6,746 114,644 -21,202 *760 29,984 *4,597 51,410 *55,478 342,185 *30,595 250,522 Paper products.................................................................................................. *742 *87,039 Printing and related support activities.................................................................................................. 37,634 3,797,844 Petroleum and coal products.................................................................................................. *937 *7,883 -- *3,731 *936 *20,314 *-7,624 94,513 158,493 39,667 510,880 359,976 -- -- -- -- *6,574 Chemical manufacturing.................................................................................................. 7,406 269,674 12,245 Plastics, rubber, clay, refractory, and glass products.................................................................................................. 28,274 1,150,328 49,650 *87 *6,569 *990 31,114 *34,415 70,702 *6,458 118,578 44,938 279,352 Nonmetallic mineral products.................................................................................................. 6,132 406,156 *21,754 *7,656 *354 *1,681 *82,981 42,023 Primary metal industries.................................................................................................. *3,186 *210,519 *15,471 *1,124 *5,500 *3,896 *18,255 *32,831 Fabricated metal products.................................................................................................. 40,087 3,506,805 211,105 29,939 109,666 47,175 619,885 418,801 Machinery.................................................................................................. 25,567 2,461,586 Computer and electronic products.................................................................................................. 8,884 280,145 118,483 *6,302 25,261 *18 48,603 *1,861 27,035 *4,993 559,434 *14,197 545,152 71,976 Electrical equipment, appliance, and components.................................................................................................. 8,091 716,700 8,178 *2,381 *2,897 3,167 *20,385 124,911 Transportation equipment.................................................................................................. 8,405 353,855 *16,711 *4,363 *6,697 *5,875 *18,384 44,523 Furniture and related products.................................................................................................. 27,324 2,174,089 52,334 12,936 84,971 21,818 307,151 530,754 Medical equipment and supplies.................................................................................................. 3,074 493,040 Other miscellaneous manufacturing.................................................................................................. 40,949 1,877,870 *4,148 52,337 *823 12,978 *44,505 26,811 *1,952 18,280 *48,766 200,376 59,558 227,757 582,081 Wholesale trade.................................................................................................. 310,393 38,751,812 *(Z) 142,260 446,198 337,327 1,315,986 3,987,195 Durable goods, including machinery, wood, metals, etc................................................................................................... 172,967 19,609,436 315,643 60,795 189,870 165,894 757,896 2,364,327 Nondurable goods, including food, fiber, chemicals, etc................................................................................................... 137,426 19,142,376 266,437 81,465 Retail trade.................................................................................................. 2,254,164 184,800,569 3,047,694 749,632 256,328 5,283,067 171,433 1,999,881 558,090 10,520,199 1,622,869 9,603,370 Motor vehicle and parts dealers.................................................................................................. 127,625 34,653,581 16 *8,296 83,518 320,082 62,646 326,801 380,464 1,407,109 945,141 Furniture and home furnishing stores.................................................................................................. 54,175 6,286,687 102,207 28,107 289,870 79,642 565,077 452,006 Electronic and appliance stores.................................................................................................. 38,322 5,351,829 25,810 179,177 41,244 447,618 426,207 Building material and garden equipment and suppliers dealers.................................................................................................. 42,299 7,381,522 223,638 35,488 Food and beverage stores.................................................................................................. 106,199 31,853,818 338,206 113,734 118,592 728,373 125,361 252,717 673,286 1,859,008 518,897 1,241,841 Health and personal care stores.................................................................................................. 125,922 8,195,897 103,502 41,364 199,078 36,036 459,736 647,631 Gasoline stations.................................................................................................. 24,914 22,232,361 266,944 51,506 373,680 238,769 998,575 337,988 Clothing and accessories stores.................................................................................................. 111,848 12,075,295 140,996 63,191 866,382 145,770 999,010 954,474 Sporting goods, hobby, book, and music stores.................................................................................................. 124,499 9,305,782 172,330 General merchandise stores.................................................................................................. 32,803 3,320,222 62,172 44,412 14,423 450,281 169,951 127,583 31,816 568,350 253,970 456,716 89,444 Miscellaneous store retailers.................................................................................................. 531,389 25,826,378 Nonstore retailers.................................................................................................. 934,171 18,317,194 192,911 76,041 1,329,875 251,007 369,133 171,349 1,749,322 539,137 2,182,198 1,350,826 Footnotes at end of table. 65,939 642,589 609,087 Sole Proprietorship Returns, 2001 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Industrial sector Number of returns Business receipts (1) (2) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (3) Transportation and warehousing.................................................................................................. 939,523 52,688,187 5,000,640 Rent paid on other business 1 property Interest paid 1,3 deduction Payroll 1,4 Net income less deficit (4) (5) (6) (7) (8) 1,500,766 610,945 1,166,457 3,697,294 8,090,490 Air and rail transportation.................................................................................................. 15,951 607,857 Water transportation.................................................................................................. 5,366 579,386 152,334 26,054 11,765 *1,774 29,955 *1,323 44,728 9,517 40,012 *2,516 -60,234 342,894 General freight trucking, local.................................................................................................. 209,287 15,229,981 1,480,487 352,069 90,597 342,245 1,547,104 2,436,501 freight trucking.................................................................................................. 272,733 24,530,092 2,821,019 Urban transit.................................................................................................. *2,320 *28,690 *5,418 Interurban and rural bus transportation.................................................................................................. *710 *10,054 *363 604,358 --- 226,454 --- 600,066 --- 1,450,579 -*124 2,436,734 *-1,517 *6,089 Taxi and limousine service.................................................................................................. 137,665 3,288,912 78,733 355,250 157,615 56,003 *25,906 966,276 School, employee, and charter bus industry.................................................................................................. 20,510 815,476 108,945 *62,175 *1,222 18,506 101,572 141,522 Other transit and ground passenger transportation.................................................................................................. **18,573 **47,1898 **55,313 **12,442 **4,646 **8,249 **8,882 **79,801 Pipeline transportation.................................................................................................. ** ** ** Scenic and sightseeing transportation.................................................................................................. 4,677 249,645 22,760 ** *10,345 ** *5,996 ** *2,350 ** *4,971 ** -22,286 157,849 47,843 49,772 64,867 299,604 391,857 81,900 9,464 40,700 *2,044 25,566 *17,800 12,952 *6,974 193,804 *22,220 1,365,477 7,379 7,625,492 418,463 87,359 171,762 76,261 546,614 1,681,707 Publishing industries.................................................................................................. 72,139 1,988,235 68,048 9,067 20,693 20,077 199,543 384,103 Motion picture and sound recording.................................................................................................. 60,950 2,046,392 222,359 42,109 61,629 29,229 130,041 467,755 Broadcasting and telecommunications.................................................................................................. 45,022 1,834,576 82,518 Information services and data processing services.................................................................................................. 106,862 1,756,290 45,539 26,956 9,228 46,537 42,904 19,691 7,266 160,113 56,917 196,795 633,054 807,294 311,196 1,151,538 622,656 3,222,090 13,874,308 Credit intermediation and related activities.................................................................................................. 68,146 3,697,480 68,121 20,354 69,373 58,431 145,120 877,480 Securities, commodity contracts, other financial investments.................................................................................................. 139,077 54,024,250 204,395 45,010 243,347 337,826 832,300 2,912,127 General freight trucking, long-distance and specialized Support activities for transportation (including motor vehicle towing).................................................................................................. 45,243 2,204,579 Couriers and messengers.................................................................................................. 204,017 4,529,532 Warehousing and storage facilities.................................................................................................. 2,470 142,086 Information.................................................................................................. 284,974 Finance and insurance.................................................................................................. 576,604 82,622,744 Investment bankers and securities dealers.................................................................................................. 10,704 3,794,092 4,444 Securities brokers.................................................................................................. 24,481 5,077,983 49,544 2,211 5,680 6,021 53,142 7,492 23,201 8,310 118,826 179,321 475,638 Commodity contracts brokers and dealers.................................................................................................. 8,936 8,795,618 23,129 7,435 16,666 12,890 33,330 23,382 Securities and commodity exchanges.................................................................................................. 812 1,107,454 534 *319 *6,084 807 *629 -5,022 Other financial investment activities (investment advice).................................................................................................. 94,143 35,249,103 126,744 29,365 161,434 293,436 671,205 2,238,808 838,818 789,787 226,399 211,191 2,244,670 2,112,026 10,084,700 8,938,882 Insurance agents, brokers, and related activities.................................................................................................. 369,381 24,901,014 534,778 Insurance agencies and brokerages.................................................................................................. 292,889 22,081,508 474,753 Other insurance related activities.................................................................................................. 76,492 2,819,506 245,832 221,133 60,025 24,699 49,031 15,208 132,643 1,145,818 Real estate and rental and leasing.................................................................................................. 968,089 49,152,061 2,396,248 469,290 818,663 982,795 1,283,462 20,408,100 Real estate.................................................................................................. 895,896 44,920,193 1,288,835 392,437 639,786 755,075 1,014,220 20,284,055 Lessors of real estate (including miniwarehouses and self storage).................................................................................................. 31,919 1,905,776 151,952 8,776 20,747 197,339 85,211 438,879 Offices of real estate agents, brokers, property managers, 992,705 349,210 531,802 435,704 702,630 18,515,396 Other activities related to real estate.................................................................................................. 101,877 5,116,886 144,177 and appraisers.................................................................................................. 762,099 37,897,531 34,451 87,237 122,032 226,379 1,329,781 Rental and leasing services.................................................................................................. 72,193 4,231,867 1,107,413 Automotive equipment rental and leasing.................................................................................................. 18,365 987,515 224,033 76,853 *27,172 178,877 17,557 227,720 47,715 269,242 33,106 124,045 -34,761 Consumer electronics and appliances rental.................................................................................................. *1,474 *85,853 *11,488 *652 *30 *6,213 *581 *16,023 -- *1,197 -- *1,554 *-3,702 Video tape and disc rental.................................................................................................. 11,541 728,455 115,261 *2,665 General rental centers and other consumer goods rental.................................................................................................. 13,090 816,004 111,377 9,771 86,030 45,768 *7,195 27,400 69,060 93,194 -14,098 83,066 Formal wear and costume rental.................................................................................................. *384 *15,440 *2,642 Commercial and industrial machinery and equipment 36,592 28,296 139,197 71,746 77,516 Professional, scientific, and technical services.................................................................................................. 2,592,275 118,772,355 3,328,798 rental and leasing.................................................................................................. 27,339 1,598,600 879,263 2,962,077 938,458 9,715,626 48,830,592 Legal services.................................................................................................. 351,062 32,053,388 468,476 Office of certified public accountants.................................................................................................. 52,040 3,311,265 127,314 207,368 27,674 1,342,190 155,576 236,823 52,213 3,459,144 505,360 14,282,629 1,337,404 Other accounting services.................................................................................................. 307,328 6,849,330 642,612 289,695 52,359 214,687 87,083 710,264 3,013,057 124,410 198,800 59,782 1,691,669 4,197,751 64,031 118,779 31,370 1,027,974 1,654,005 Engineering services.................................................................................................. 97,886 4,603,696 182,694 41,943 Drafting, building inspections, and geophysical surveying.................................................................................................. 45,356 971,530 16,531 *13,336 58,317 13,294 21,174 *4,420 491,342 61,136 1,749,519 528,184 Surveying and mapping (except geophysical) services.................................................................................................. 18,897 755,389 27,933 *5,057 Testing laboratories.................................................................................................. *2,736 *53,040 *2,054 *44 *8,409 -- *1,862 *957 108,467 *2,751 261,744 *4,300 Architectural, engineering, and related services.................................................................................................. 238,264 12,202,703 465,254 Architectural services.................................................................................................. 73,388 5,819,048 236,042 Footnotes at end of table. 17 Sole Proprietorship Returns, 2001 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Industrial sector Number of returns Business receipts (1) (2) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (3) (4) Rent paid on other business 1 property Interest paid 1,2 deduction Payroll (5) (6) (7) (8) 1,402,399 1,3 Net income less deficit Professional, scientific, and technical services --Continued Specialized design services.................................................................................................. 163,982 6,038,824 241,674 44,089 102,486 38,743 202,222 193,921 57,987 78,994 45,573 438,365 2,973,301 Other professional, scientific, and technical services.................................................................................................. 1,248,451 51,385,535 1,542,464 365,376 Management, scientific, and technical consulting services.................................................................................................. 630,797 26,813,698 720,663 161,705 Scientific research and development services.................................................................................................. 40,095 916,048 26,761 2,679 Advertising and related services.................................................................................................. 110,105 5,220,415 140,080 33,238 869,344 367,313 2,746 95,470 418,241 212,667 *551 19,627 2,708,602 902,780 17,504 213,125 21,624,052 13,903,761 503,976 1,529,652 Computer systems design services.................................................................................................. 231,148 6,931,310 Market research and public opinion polling.................................................................................................. 21,993 1,032,675 24,028 20,533 24,165 *1,106 56,769 368,381 Other miscellaneous services.................................................................................................. 445,461 17,402,700 630,932 147,221 379,650 184,290 1,518,424 5,318,282 1,830,271 516,188 534,393 376,428 4,680,060 11,314,902 Administrative and support services.................................................................................................. 1,541,263 38,020,303 1,705,737 Waste management and remediation services.................................................................................................. 26,016 1,302,526 124,533 448,114 68,074 512,160 22,232 342,449 33,979 4,574,824 105,236 11,224,261 90,641 Administrative and support and waste management and remediation services.................................................................................................. 1,567,278 39,322,829 Educational services.................................................................................................. 378,460 4,848,725 221,071 48,051 250,252 27,193 271,459 1,739,888 Health care and social assistance.................................................................................................. 1,678,997 93,528,558 2,329,684 683,208 3,807,150 979,706 12,627,275 39,694,351 Ambulatory health care services.................................................................................................. 800,282 80,412,174 1,855,683 613,433 3,465,920 741,706 11,392,193 35,224,454 Offices of physicians (except mental health specialist).................................................................................................. 177,907 28,023,407 478,360 271,092 Offices of physicians, mental health specialist.................................................................................................. 34,367 2,656,817 68,135 12,346 1,055,593 117,983 174,194 11,420 3,462,800 163,147 14,151,567 1,480,065 Offices of dentists.................................................................................................. 83,995 26,931,581 737,053 100,650 935,457 367,779 5,615,290 10,070,896 Offices of chiropractors.................................................................................................. 43,812 4,248,701 112,429 61,578 300,373 59,699 450,559 1,678,851 Offices of optometrists.................................................................................................. 16,115 2,962,675 79,810 32,561 215,241 36,074 496,441 827,054 Offices of mental health practitioners and social therapists.................................................................................................. 167,517 7,303,113 172,093 61,301 Offices of podiatrists.................................................................................................. 6,055 755,176 31,717 13,807 476,945 67,961 29,724 4,320 382,690 96,837 3,793,099 244,676 Outpatient care centers and other miscellaneous 18 health practitioners.................................................................................................. 87,474 3,286,241 Medical and diagnostic laboratories.................................................................................................. 21,757 1,560,721 92,242 25,861 33,673 17,421 182,195 44,278 15,776 7,201 207,272 235,553 1,393,639 559,340 Home health care services.................................................................................................. 137,347 2,107,110 Other ambulatory health care services (including ambulance 49,470 5,865 37,942 33,721 194,900 804,140 services, blood and organ banks).................................................................................................. 23,935 576,632 8,512 *3,138 31,951 *1,799 86,703 221,126 *3,719 *257 *2,566 *2,425 *39,607 101,172 Nursing and residential care facilities.................................................................................................. 46,014 2,379,778 82,535 8,715 85,485 136,771 579,402 210,558 Social assistance.................................................................................................. 118,177 1,732,826 Child day care services.................................................................................................. 704,912 8,791,380 47,312 340,435 7,036 53,768 86,415 166,765 20,330 78,473 100,390 515,683 735,075 3,423,093 Arts, entertainment, and recreation.................................................................................................. 1,037,341 21,208,134 1,390,475 187,660 679,179 206,804 835,172 5,347,817 Performing arts, spectator sports, and related industries.................................................................................................. 879,585 16,146,183 1,048,819 110,867 417,787 92,690 427,825 4,819,755 -- -- -- -- *20,914 Amusement, gambling, and recreation industries.................................................................................................. 152,783 5,036,495 341,630 76,793 Accommodation, food services, and drinking places.................................................................................................. 361,458 37,432,613 1,452,788 302,855 261,392 2,250,552 114,114 1,177,224 407,347 6,420,303 507,148 1,469,054 131,491 Hospitals.................................................................................................. 9,611 212,401 Museums, historical sites, and similar institutions.................................................................................................. *4,974 *25,455 *26 Accommodation.................................................................................................. 61,819 5,669,287 585,232 37,276 163,254 723,629 764,628 bed and breakfast inns).................................................................................................. 28,286 4,113,424 417,459 25,273 105,076 548,478 552,515 97,931 RV (recreational vehicle) parks and recreational camps.................................................................................................. 17,453 576,063 101,545 *1,063 Rooming and boarding houses.................................................................................................. 16,081 979,801 66,227 10,941 12,367 *45,811 78,399 96,753 37,752 174,361 -21,671 55,231 Travel accommodation (including hotels, motels, and Food services and drinking places.................................................................................................. 299,640 31,763,326 867,556 265,578 2,087,298 453,595 5,655,676 1,337,563 68,834,667 2,628,888 879,096 4,181,074 908,717 7,323,036 14,797,299 Auto repair and maintenance.................................................................................................. 346,310 25,019,221 992,734 339,891 824,666 390,217 3,233,451 3,056,252 396,900 187,716 151,444 126,584 1,498,634 1,044,501 1,386,693 1,004,212 Other services.................................................................................................. 1,853,299 Automotive mechanical and electrical repair and maintenance.................................................................................................. 167,350 12,673,557 458,157 174,860 Automotive body shops.................................................................................................. 93,170 7,231,685 294,793 75,974 Other auto repair and maintenance (including oil change, lubrication, and car washes).................................................................................................. 85,790 5,113,979 239,785 89,056 240,050 112,189 690,316 665,347 Miscellaneous repairs.................................................................................................. 363,451 13,523,070 550,806 79,390 314,109 139,277 1,146,294 2,893,338 Personal and laundry services.................................................................................................. 1,143,539 30,292,375 Religious, grantmaking, civic, professional 1,085,347 459,815 3,042,299 379,223 2,943,292 8,847,710 and similar organizations.................................................................................................. 231,591 2,837,353 81,400 7,898 24,900 17,403 *36,951 1,473,603 Unclassified establishments.................................................................................................. 190,234 2,171,513 35,581 32,764 30,643 6,933 44,491 1,107,071 Footnotes at end of table. 18 Sole Proprietorship Returns, 2001 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Industrial sector Number of returns Business receipts (9) (10) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (11) Rent paid on other business 1 property Interest paid 1,3 deduction Payroll 1,4 Net income (12) (13) (14) (15) (16) 6,669,381 87,909 19,851,865 109,836 7,826,237 180,512 77,386,296 1,304,860 250,178,322 2,340,738 Animal production (including breeding of cats and dogs).................................................................................................. 11,352 833,298 65,867 *988 *15,752 25,071 61,673 100,530 All nonfarm industries.................................................................................................. 13,603,907 860,547,942 23,854,978 Agriculture, forestry, hunting, and fishing.................................................................................................. 160,538 12,258,242 829,189 Forestry and logging (including forest nurseries, 444,848 63,919 29,206 79,574 503,596 544,047 Fishing.................................................................................................. 46,461 2,208,901 174,936 Hunting and trapping.................................................................................................. 3,657 106,198 *8,694 Support activities for agriculture and forestry.................................................................................................. 62,734 4,141,822 134,843 timber tracts).................................................................................................. 36,335 *2,351 -20,651 22,756 *504 41,618 41,448 *1,353 33,065 101,125 *55 638,411 908,490 20,764 766,907 Mining.................................................................................................. 82,137 4,968,023 5,080,394 298,578 42,127 12,082 81,918 183,196 1,561,736 Oil and gas extraction.................................................................................................. 71,123 3,980,274 170,547 24,460 10,591 56,958 48,881 1,338,644 *1,883 *450 -- *622 *5,679 *9,384 Metal ore mining.................................................................................................. *4 *29,434 *1,758 Nonmetallic mineral mining and quarrying.................................................................................................. 5,214 555,597 84,049 *1,884 *4,350 *20 *1,397 *145 19,510 *9,172 50,402 *3,187 82,841 Support activities for mining.................................................................................................. 5,377 477,797 40,340 *10,983 *74 *4,685 *69,061 127,681 14,487 *1,771 *3,861 *2,068 *2,286 87,097 Construction.................................................................................................. 2,020,139 148,213,738 4,579,006 Land subdivision and land development.................................................................................................. 16,846 2,610,816 81,743 1,060,102 28,312 836,119 21,354 1,109,162 51,418 21,170,306 149,679 31,476,524 605,804 Coal mining..................................................................................................*418 Utilities.................................................................................................. 4,783 *37,292 202,667 Residential building construction.................................................................................................. 309,140 35,701,534 582,918 140,102 100,077 281,708 3,815,818 5,642,394 Nonresidential building construction.................................................................................................. 58,970 6,195,665 155,746 37,017 22,470 57,935 777,627 1,071,071 Heavy construction .................................................................................................. 50,727 4,273,879 344,709 109,258 22,661 96,068 620,370 695,547 Special trade contractors.................................................................................................. 1,584,456 99,431,845 Manufacturing.................................................................................................. 242,005 20,688,869 3,413,891 602,071 745,413 199,209 669,557 510,132 622,033 263,027 15,806,812 2,876,955 23,461,708 4,091,449 Food manufacturing.................................................................................................. 14,444 2,203,054 29,607 9,858 62,296 11,218 168,341 290,460 Textile and textile product mills.................................................................................................. 5,742 410,071 *13,487 *279 *4,293 *2,606 *58,062 86,724 789,505 6,979 *9,103 55,312 *5,129 192,599 119,566 Leather and allied products.................................................................................................. *2,665 *197,143 Wood products.................................................................................................. 27,313 1,862,906 *4,480 74,758 -13,949 *760 *19,998 *2,124 29,344 *55,478 189,809 *42,077 347,904 Apparel.................................................................................................. 15,806 Paper products.................................................................................................. *17 *49,399 Printing and related support activities.................................................................................................. 28,341 2,844,466 Petroleum and coal products.................................................................................................. ** ** *348 -- *3,731 -- *9,003 *1,897 65,866 82,333 109,965 23,443 436,476 412,231 ** ** ** ** ** ** Chemical manufacturing.................................................................................................. **5,742 **246,601 **11,534 Plastics, rubber, clay, refractory, and glass products.................................................................................................. 20,339 974,452 *28,413 ** *1,494 **297 *17,379 **33,444 *64,955 **4,374 *112,760 **68,045 307,383 Nonmetallic mineral products.................................................................................................. 4,818 304,922 *18,366 *6,016 *328 *1,616 *71,633 45,296 Primary metal industries.................................................................................................. *2,005 *159,117 *4,018 -- -- *320 *13,909 *38,191 Fabricated metal products.................................................................................................. 27,658 3,049,518 143,343 27,006 68,274 27,122 542,174 532,945 Machinery.................................................................................................. 21,407 2,339,823 Computer and electronic products.................................................................................................. 7,932 273,851 108,092 *2,724 25,229 *18 36,896 *1,737 24,688 *4,993 512,024 *13,023 575,398 81,742 133,287 Electrical equipment, appliance, and components.................................................................................................. 6,119 684,520 *7,964 *1,311 *1,699 *2,901 *19,829 Transportation equipment.................................................................................................. *4,133 *305,154 *3,427 *4,183 *4,870 *3,008 *13,301 *77,101 Furniture and related products.................................................................................................. 22,202 1,932,612 33,898 *10,347 63,734 11,920 248,687 569,539 Medical equipment and supplies.................................................................................................. 1,658 488,559 Other miscellaneous manufacturing.................................................................................................. 23,665 1,565,314 *4,148 40,616 *823 7,261 *44,505 14,058 *1,952 12,244 *45,336 170,137 62,279 292,809 386,175 Wholesale trade.................................................................................................. 205,640 118,142 348,236 208,831 1,053,462 4,674,189 Durable goods, including machinery, wood, metals, etc................................................................................................... 114,807 17,251,249 206,507 42,395 33,782,348 161,901 82,545 608,124 2,778,335 Nondurable goods, including food, fiber, chemicals, etc................................................................................................... 90,833 16,531,099 179,668 75,746 Retail trade.................................................................................................. 1,216,855 152,474,965 1,849,204 535,613 186,335 3,836,928 126,285 1,229,085 445,338 8,167,266 1,895,854 15,681,820 Motor vehicle and parts dealers.................................................................................................. 84,407 28,138,107 223,774 42,210 227,873 247,280 993,396 1,521,659 Furniture and home furnishing stores.................................................................................................. 32,245 5,668,444 65,487 22,699 237,950 58,830 516,903 587,309 Electronic and appliance stores.................................................................................................. 26,984 4,423,626 18,123 134,162 31,915 395,875 532,448 Building material and garden equipment and suppliers dealers.................................................................................................. 33,093 6,283,140 162,810 29,977 Food and beverage stores.................................................................................................. 78,783 27,286,275 246,590 107,123 99,340 564,091 87,623 169,803 534,296 1,470,353 634,679 1,690,290 Health and personal care stores.................................................................................................. 59,975 7,588,204 74,874 39,121 149,535 23,089 438,710 922,709 Gasoline stations.................................................................................................. 19,312 17,949,585 185,048 44,272 305,610 154,616 785,186 473,117 Clothing and accessories stores.................................................................................................. 72,664 10,203,669 101,918 46,615 647,261 96,585 795,901 1,332,964 Sporting goods, hobby, book, and music stores.................................................................................................. 65,526 7,645,338 103,562 General merchandise stores.................................................................................................. 21,522 2,811,270 35,650 30,619 858 310,495 125,729 94,448 24,604 460,569 195,040 800,885 220,162 Miscellaneous store retailers.................................................................................................. 265,003 19,755,900 Nonstore retailers.................................................................................................. 457,341 14,721,408 100,839 53,157 849,492 185,389 178,756 61,536 1,173,837 407,201 3,846,351 3,119,247 Footnotes at end of table. 57,829 284,823 306,841 19 Sole Proprietorship Returns, 2001 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Industrial sector Number of returns Business receipts Depreciation 1,2 deduction (9) (10) (11) Rent paid on machinery and 1 equipment Transportation and warehousing.................................................................................................. 756,212 44,188,371 3,432,133 Rent paid on other business 1 property Interest paid 1,3 deduction Payroll 1,4 Net income (12) (13) (14) (15) (16) 1,204,778 477,662 835,852 2,906,461 9,653,768 Air and rail transportation.................................................................................................. 11,318 341,134 Water transportation.................................................................................................. 4,894 481,260 19,381 *9,191 *2,825 *1,774 13,480 *1,128 6,867 *2,193 *22,991 *1,962 116,048 362,994 General freight trucking, local.................................................................................................. 166,937 13,150,156 1,153,098 301,680 75,205 275,361 1,291,983 2,750,362 freight trucking.................................................................................................. 215,786 19,770,616 1,878,934 Urban transit.................................................................................................. *1,963 *1,921 -Interurban and rural bus transportation.................................................................................................. *710 *10,054 *363 414,849 --- 163,341 --- 423,369 --- 1,043,880 -*124 3,085,586 *1,698 *6,089 Taxi and limousine service.................................................................................................. 118,635 2,958,491 66,234 332,519 130,885 54,130 *18,380 1,045,951 School, employee, and charter bus industry.................................................................................................. 16,164 657,899 58,877 *59,963 *762 13,226 96,782 176,323 Other transit and ground passenger transportation.................................................................................................. **14,666 **447,921 **45,385 **12,436 **4,591 **5,731 **7,734 **104,961 Pipeline transportation.................................................................................................. ** ** ** Scenic and sightseeing transportation.................................................................................................. *1,562 *167,894 *7,671 ** -- ** *2,284 ** *151 ** -- ** *38,536 109,628 36,431 43,502 40,144 236,220 478,715 80,014 *3,357 40,336 *1,965 25,152 *17,331 12,656 *2,024 169,607 *16,797 1,468,270 18,236 6,613,989 244,103 66,410 140,860 42,187 448,234 2,271,996 Publishing industries.................................................................................................. 53,264 1,658,132 39,599 8,855 16,166 8,633 154,433 519,319 Motion picture and sound recording.................................................................................................. 37,080 1,719,101 120,524 31,798 46,678 14,432 110,097 646,457 Broadcasting and telecommunications.................................................................................................. 29,932 1,637,046 57,588 Information services and data processing services.................................................................................................. 70,124 1,599,710 26,392 22,746 3,011 42,003 36,012 12,593 6,528 135,432 48,272 362,403 743,816 668,703 261,389 983,672 321,408 2,724,116 16,261,266 Credit intermediation and related activities.................................................................................................. 49,403 3,327,355 52,021 13,302 56,697 33,834 97,694 1,110,427 Securities, commodity contracts, other financial investments.................................................................................................. 76,988 18,574,869 149,932 26,913 173,773 113,778 463,600 4,572,224 General freight trucking, long-distance and specialized Support activities for transportation (including motor vehicle towing).................................................................................................. 34,125 1,855,819 Couriers and messengers.................................................................................................. 167,203 4,239,488 Warehousing and storage facilities.................................................................................................. 2,250 105,718 Information.................................................................................................. 190,400 Finance and insurance.................................................................................................. 426,029 44,999,498 20 Investment bankers and securities dealers.................................................................................................. 6,173 1,928,159 3,949 Securities brokers.................................................................................................. 13,812 3,011,314 30,525 *2,008 5,285 5,548 45,607 *57 10,944 *7,013 102,993 280,756 612,561 Commodity contracts brokers and dealers.................................................................................................. 3,363 431,244 15,337 *298 *4,045 *2,673 *7,905 253,531 Securities and commodity exchanges.................................................................................................. 58 335,240 *431 *21 *1,585 *517 *610 23,348 Other financial investment activities (investment advice).................................................................................................. 53,583 12,868,912 99,690 19,301 116,988 99,587 345,079 3,402,028 753,202 723,423 173,796 161,623 2,162,823 2,037,175 10,578,615 9,327,116 Insurance agents, brokers, and related activities.................................................................................................. 299,638 23,097,274 466,750 Insurance agencies and brokerages.................................................................................................. 236,928 20,533,295 416,105 Other insurance related activities.................................................................................................. 62,710 2,563,979 221,174 204,344 50,646 16,830 29,780 12,173 125,648 1,251,499 Real estate and rental and leasing.................................................................................................. 710,561 44,009,276 1,491,976 384,620 621,352 454,866 990,242 22,432,020 Real estate.................................................................................................. 671,666 41,175,371 966,957 332,721 523,443 366,150 821,672 21,794,633 Lessors of real estate (including miniwarehouses and self storage).................................................................................................. 17,440 1,330,514 80,513 5,375 13,146 72,417 67,355 620,832 Offices of real estate agents, brokers, property managers, 809,398 299,870 441,389 249,733 586,135 19,471,652 Other activities related to real estate.................................................................................................. 74,521 4,354,809 77,047 and appraisers.................................................................................................. 579,705 35,490,047 27,476 68,907 44,000 168,182 1,702,148 Rental and leasing services.................................................................................................. 38,895 2,833,906 525,019 Automotive equipment rental and leasing.................................................................................................. 11,733 606,489 100,458 51,899 *16,917 97,909 *4,765 88,716 12,445 168,569 *30,152 637,388 100,201 Consumer electronics and appliances rental.................................................................................................. *1,466 *79,014 *11,010 *652 -- *4,907 -- *17,351 -- *1,197 -- *1,554 *11 Video tape and disc rental.................................................................................................. 4,013 484,783 78,571 *1,813 General rental centers and other consumer goods rental.................................................................................................. 8,926 500,899 61,440 5,026 53,779 22,705 *6,047 6,087 34,877 54,934 51,761 116,931 Formal wear and costume rental.................................................................................................. *40 *10,522 *5 Commercial and industrial machinery and equipment 27,491 15,464 59,230 47,053 351,133 Professional, scientific, and technical services.................................................................................................. 1,954,559 110,438,348 2,554,074 rental and leasing.................................................................................................. 12,717 1,152,199 686,381 2,468,114 692,122 8,715,452 52,931,930 Legal services.................................................................................................. 288,401 30,942,565 432,975 Office of certified public accountants.................................................................................................. 42,537 3,109,312 109,998 185,956 25,215 1,220,383 133,332 208,817 27,827 3,264,152 471,805 14,676,136 1,399,389 Other accounting services.................................................................................................. 253,354 6,524,663 273,535 228,933 38,960 165,326 74,038 658,186 3,190,446 106,652 180,084 47,101 1,539,039 4,487,829 57,142 117,107 27,974 887,378 1,744,798 Engineering services.................................................................................................. 72,653 4,401,971 140,049 31,451 Drafting, building inspections, and geophysical surveying.................................................................................................. 38,700 939,459 13,501 *12,958 41,326 *13,242 11,889 *4,420 480,108 61,136 1,921,492 544,485 Surveying and mapping (except geophysical) services.................................................................................................. 17,934 740,305 27,933 *5,057 Testing laboratories.................................................................................................. *2,391 *28,327 *2,032 *44 *8,409 -- *1,862 *957 107,793 *2,625 272,592 *4,461 Architectural, engineering, and related services.................................................................................................. 196,126 11,540,135 368,936 Architectural services.................................................................................................. 64,448 5,430,073 20 Footnotes at end of table. 185,421 Sole Proprietorship Returns, 2001 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Industrial sector Number of returns Business receipts Depreciation 1,2 deduction Rent paid on machinery and 1 equipment Rent paid on other business 1 property Interest paid 1,3 deduction Payroll (9) (10) (11) (12) (13) (14) (15) (16) 172,609 121,771 39,629 43,088 74,085 51,122 30,136 16,758 167,607 314,491 1,612,494 3,455,002 1,4 Net income Professional, scientific, and technical services --Continued Specialized design services.................................................................................................. 120,040 5,473,829 Computer systems design services.................................................................................................. 153,115 6,153,157 Other professional, scientific, and technical services.................................................................................................. 900,986 46,694,687 1,118,852 246,881 643,781 287,444 2,300,171 24,110,635 Management, scientific, and technical consulting services.................................................................................................. 452,030 24,360,020 492,246 103,051 Scientific research and development services.................................................................................................. 32,758 855,314 21,768 2,232 245,674 *1,462 121,930 *334 664,268 *11,724 15,329,154 564,553 Advertising and related services.................................................................................................. 82,222 4,812,821 100,759 Market research and public opinion polling.................................................................................................. 16,086 976,195 18,932 23,249 20,285 71,054 23,715 15,425 *652 156,590 *49,547 1,705,423 414,342 Other miscellaneous services.................................................................................................. 317,890 15,690,336 Administrative and support and waste management 485,147 98,064 301,876 149,103 1,418,042 6,097,162 and remediation services.................................................................................................. 1,285,952 34,522,595 1,249,511 362,503 400,878 261,682 3,716,058 12,758,426 Administrative and support services.................................................................................................. 1,271,256 33,433,639 1,161,466 346,803 390,946 233,622 3,631,335 12,552,881 Waste management and remediation services.................................................................................................. 14,695 1,088,956 88,044 Educational services.................................................................................................. 291,332 4,068,696 158,829 *15,700 33,211 9,933 163,300 28,060 16,362 84,723 169,746 205,545 2,061,127 Health care and social assistance.................................................................................................. 1,412,797 89,005,039 2,047,682 Ambulatory health care services.................................................................................................. 673,286 77,828,708 1,715,416 559,968 505,520 3,475,023 3,189,116 816,764 656,736 11,824,357 10,916,816 40,965,395 35,995,313 Offices of physicians (except mental health specialist).................................................................................................. 152,005 27,238,750 461,092 202,255 969,094 155,053 3,359,452 14,373,077 Offices of physicians, mental health specialist.................................................................................................. 28,270 2,559,129 57,714 Offices of dentists.................................................................................................. 80,088 26,603,379 705,527 12,243 99,536 103,731 918,187 11,403 350,555 162,606 5,543,638 1,497,347 10,124,286 Offices of chiropractors.................................................................................................. 37,744 4,133,019 52,381 288,096 50,114 440,547 1,740,865 Offices of optometrists.................................................................................................. 11,756 2,729,540 77,754 25,081 Offices of mental health practitioners and social therapists.................................................................................................. 135,248 6,959,674 150,523 54,385 104,919 186,662 421,977 32,942 27,278 453,770 324,082 834,185 3,891,559 Offices of podiatrists.................................................................................................. 2,661 709,415 19,875 *9,397 63,156 4,301 90,415 256,588 health practitioners.................................................................................................. 66,828 2,946,461 78,085 Medical and diagnostic laboratories.................................................................................................. 18,653 1,505,641 20,011 25,374 16,821 151,153 37,850 4,924 6,569 91,128 216,291 1,468,395 591,997 Home health care services.................................................................................................. 120,260 1,989,196 Other ambulatory health care services (including ambulance 32,995 5,849 31,968 12,034 190,745 986,698 services, blood and organ banks).................................................................................................. 19,772 454,505 6,919 Hospitals.................................................................................................. 9,451 159,259 *1,782 *2,200 -- 17,242 *1,519 *1,562 *1,441 44,141 *12,469 230,316 103,743 Nursing and residential care facilities.................................................................................................. 30,846 1,657,055 54,265 5,084 65,515 95,062 358,773 337,252 Social assistance.................................................................................................. 98,883 1,502,122 Child day care services.................................................................................................. 600,331 7,857,894 37,636 238,582 *5,136 44,228 73,326 145,547 7,274 56,251 100,105 436,194 806,217 3,722,871 Arts, entertainment, and recreation.................................................................................................. 624,239 17,396,169 641,726 Outpatient care centers and other miscellaneous 123,772 416,180 91,754 529,486 7,939,366 Performing arts, spectator sports, and related industries.................................................................................................. 514,005 13,834,763 450,088 63,508 Museums, historical sites, and similar institutions.................................................................................................. *4,630 *25,455 *26 -- 232,849 -- 50,157 -- 296,907 -- 7,015,488 *21,807 Amusement, gambling, and recreation industries.................................................................................................. 105,604 3,535,951 191,612 60,264 Accommodation, food services, and drinking places.................................................................................................. 224,858 27,312,714 777,348 205,832 183,331 1,493,832 41,596 559,448 232,579 4,516,134 902,071 3,273,790 26,938 101,904 322,546 502,837 649,610 bed and breakfast inns).................................................................................................. 15,353 2,748,870 187,540 15,500 RV (recreational vehicle) parks and recreational camps.................................................................................................. 8,489 358,266 40,640 *905 61,756 *10,456 237,709 *25,847 348,855 *26,560 425,855 64,633 Accommodation.................................................................................................. 36,160 3,868,256 254,372 Travel accommodation (including hotels, motels, and Rooming and boarding houses.................................................................................................. 12,318 761,120 Food services and drinking places.................................................................................................. 188,698 23,444,457 Other services.................................................................................................. 1,462,900 60,535,649 26,192 522,976 *10,534 178,893 *29,693 1,391,928 58,990 236,903 127,421 4,013,297 159,122 2,624,181 1,944,023 695,375 3,518,799 650,734 6,011,662 16,781,273 667,426 314,857 270,299 120,271 2,752,618 1,254,012 3,594,849 1,662,686 96,823 884,510 1,140,687 Auto repair and maintenance.................................................................................................. 267,453 21,474,367 717,328 287,828 Automotive mechanical and electrical repair and maintenance.................................................................................................. 131,823 10,677,472 304,330 139,165 Automotive body shops.................................................................................................. 70,053 6,249,839 252,424 67,452 141,098 Other auto repair and maintenance (including oil change, lubrication, and car washes).................................................................................................. 65,576 4,547,056 160,574 81,210 211,471 53,205 614,096 791,476 Miscellaneous repairs.................................................................................................. 288,730 12,023,491 425,440 60,876 247,151 112,964 961,833 3,270,951 Personal and laundry services.................................................................................................. 906,718 27,037,791 Religious, grantmaking, civic, professional 801,256 346,671 2,604,223 267,471 2,297,211 9,915,473 and similar organizations.................................................................................................. 174,932 2,699,120 Unclassified establishments.................................................................................................. 157,040 2,057,253 61,390 24,770 *7,561 32,709 21,131 13,869 *3,773 4,682 *36,932 39,085 1,718,877 1,215,533 * 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 information for specific taxpayers. ¹ Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly understated. ² Includes depreciation claimed on Form 8829. ³ Interest paid is the sum of mortgage interest and other interest paid on business indebtedness. 4 Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations. NOTE: Detail may not add to totals because of rounding. 21 Sole Proprietorship Returns, 2001 Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors Classified with the North American Industry Classification System [All figures are estimates based on samples--money amounts are in thousands of dollars] Agriculture, forestry, hunting and fishing Net income status, item Animal Forestry production and logging (including (including forest breeding nurseries, of cats and timber tracts) All nonfarm Total industries Mining Support Hunting Fishing activities and for trapping agriculture Total and forestry dogs) (1) (2) (3) (4) (5) (6) (7) (8) BUSINESSES WITH AND WITHOUT NET INCOME Number of returns ¹................................................................................................................... 18,338,190 270,075 43,105 51,734 71,246 4,624 99,367 114,535 Business receipts, total ¹................................................................................................................... 1,016,834,678 16,243,523 1,517,228 6,319,728 2,780,591 144,837 5,481,139 6,815,806 Income from sales and operations ¹................................................................................................................... 1,002,205,953 15,921,830 1, [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ae415039d19e3afaa. Public record. Not legal advice.