S Corporation Returns, 1995

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SCorporationReturns,1995

by Susan M. Wittman

Corporation data for Tax Year 1995 show a

continuation of the increasing number of returns

filed, which began following the Tax Reform Act

of 1986 (TRA 86). The number of S Corporation income

tax returns filed for Tax Year 1995 increased by 6.4

percent to 2,153,119 (Figure A). This growth started

when the number of S Corporation returns filed for Tax

Year 1987, the first post-TRA 86 tax year, increased by

36.5 percent [1,2]. One advantage of S Corporation

election is the avoidance of double taxation as S Corporations are generally subject to income tax only at the

shareholder level. The Revenue Reconciliation Act of

1993, which raised the top individual tax rate above the

top corporate tax rate, however, has apparently not slowed

the rate of growth in the number of S Corporation returns

filed [3]. The avoidance of double taxation may be the

key determinant of continued growth for S Corporations

despite an increase in the top individual income tax rate.

S Corporation returns represent 48.1 percent of the

total number of corporate returns filed for Tax Year 1995.

The growth rate of taxable corporations slowed from 9.5

percent for Tax Year 1994 to 0.1 percent for Tax Year

1995 [4,5]. The term “taxable corporations,” used herein,

refers to all corporations other than S Corporations.

S Corporations continue to represent a small portion of

the overall corporate net income (less deficit) despite the

increase in number of returns filed. Total net income (less

deficit) as reported by S Corporations for Tax Year 1995

was $99.1 billion (Table 1), an 8.2-percent increase from

Tax Year 1994. Net income (less deficit) for taxable

corporations was $637.3 billion for Tax Year 1995. S

Corporations’share of total adjusted corporate net income

(less deficit) decreased slightly from 18.2 percent for Tax

Year 1994 to 15.6 percent for Tax Year 1995.

Nearly 270 thousand returns were filed for new S

Corporations for Tax Year 1995. Of these, 70.7 percent

were for newly-incorporated businesses. The remaining

29.3 percent were returns filed by corporations that

elected Subchapter S status for the first time.

Advantages to Subchapter S Election

Organizing as an S Corporation offers many advantages.

One advantage of S Corporation status is the avoidance of

double taxation on income. Unlike taxable corporations,

whose income is subject to tax at both the corporate level

Susan M. Wittman is an economist with the Corporation Special

Projects Section. This article was prepared under the direction

of Doug Shearer, Chief.

and then again at the shareholder level, the income of S

Corporations is generally subject to tax only at the

shareholder level. Shareholders of S Corporations report

their pro rata shares of income or loss on their own tax

returns and are assessed tax at their individual income tax

brackets. This ability to “pass through” income can result

in significant tax savings.

Election as an S Corporation also offers the advantages

of limited liability, unlimited life span, and freely transferable corporate ownership. These attributes are shared

with taxable corporations.

S Corporation Criteria

An S Corporation is required to file Form 1120S, U.S.

Income Tax Return for an S Corporation, by the 15th day

of the third month following the close of the tax year [6].

Provisions of TRA 86 required that S Corporations

generally file a calendar tax year to conform to the tax

year of the majority of its shareholders. A business entity

must meet all of the criteria in Subchapter S of the Internal

Revenue Code to qualify as an S Corporation. The criteria

for S Corporation election for Tax Year 1995 are [7]:

r no more than 35 shareholders;

r shareholders can only be individuals, estates, or

certain defined trusts;

r no nonresident alien shareholders; and

r only one class of stock.

Corporations that are ineligible to elect Subchapter S

status include:

r insurance companies subject to provisions of

Subchapter L of the Internal Revenue Code;

r corporations eligible to elect a possessions tax

credit;

r banks or building and loan associations to which

Internal Revenue Code section 585 applies;

r Interest-Charge Domestic International Sales

Corporations or former Domestic International

Sales Corporations; or

r affiliated group members that are eligible for

inclusion on a consolidated return.

If any of the criteria for qualifying as an S Corporation

is no longer met, then status as an S Corporation is automatically terminated. Corporations that converted from

Subchapter C to Subchapter S status have additional

restrictions. If a corporation reports three consecutive

years of accumulated earnings and profits as a C Corpora43

S Corporation Returns, 1995

Figure A

All Returns: Selected Items for Selected Industrial Division, Tax Years 1994 and 1995

[Money amounts are in thousands of dollars]

Industrial division, item

1994

1995

Percentage

change

(1)

(2)

(3)

All industries

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

2,023,754

2,153,119

6.4

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

73,951,541

76,899,029

4.0

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

106,971,622

115,087,307

7.6

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

33,020,082

38,188,278

15.7

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

91,676,443

99,128,672

8.1

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

123,970,916

134,958,619

8.9

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

32,294,473

35,829,947

10.9

Manufacturing

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

129,408

138,856

7.3

20,477,819

21,083,883

3.0

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

24,578,526

26,207,148

6.6

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

4,100,708

5,123,265

24.9

23,625,110

24,934,073

5.5

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

27,424,187

29,682,061

8.2

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

3,799,078

4,747,988

25.0

Wholesale and retail trade

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

517,812

537,539

3.8

20,517,727

19,831,198

-3.3

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

28,957,479

29,933,470

3.4

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

8,439,752

10,102,272

19.7

23,887,745

24,075,672

0.8

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

31,830,108

33,428,372

5.0

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

7,942,363

9,352,701

17.8

Finance, insurance, and real estate

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

314,490

326,149

3.7

4,153,682

4,533,532

9.1

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

9,411,766

10,055,178

6.8

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

5,258,084

5,521,646

5.0

8,576,635

10,671,258

24.4

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

14,816,449

16,330,818

10.2

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

6,239,814

5,659,560

-9.3

Services

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

687,981

753,890

9.6

18,257,112

20,149,971

10.4

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

26,243,712

29,309,851

11.7

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

7,986,600

9,159,880

14.7

21,567,432

24,785,445

14.9

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

29,117,434

33,255,123

14.2

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

7,550,001

8,469,678

12.2

tion and also reports passive investment income that

exceeds 25.0 percent of reported gross receipts, then

Subchapter S status will be revoked beginning the following tax year.

S Corporation Size

Although S Corporations share many advantages of

corporate organization, restrictions on the number of

shareholders and consequently on the ability to raise

capital means that, on average, S Corporations are

considerably smaller than C Corporations. For Tax Year

1995, as in prior years, the vast majority (82.0 percent) of

S Corporations have only one or two shareholders (Figure

B). Although there are no restrictions on the amount of

income an S Corporation can earn or on the size or type of

assets it can hold, both income and assets are, on average,

S Corporation Returns, 1995

Figure B

Percentage of S Corporations, by Number of Shareholders, Tax Year 1995

7.6%

30.0%

4-10

8.7%

Other ¹

1.6%

2.2 million

52.0%

¹ Other category includes returns with more than 10 shareholders and returns for which a

number of shareholders was not reported.

NOTE: Detail may not add to 100 percent due to rounding.

smaller than those for taxable corporations. Average total

assets for S Corporations were $473 thousand for Tax

Year 1995, while average total assets for taxable corporations were $10.8 million (Table 3)[8].

Distribution of Returns by Industrial Division

Figure A presents selected 1994 and 1995 data for all S

Corporations. These data show that, as in prior years, S

Corporations remain concentrated in the services,

wholesale and retail trade, and finance, insurance, and

real estate industrial divisions. The services division

comprises 35.0 percent of all S Corporation returns filed

for Tax Year 1995 with 753,890 returns. This is a 9.6percent increase over the 687,981 returns filed for Tax

Year 1994. The wholesale and retail trade division

accounted for 25.0 percent of the total number of S

Corporation returns for Tax Year 1995, a 3.8-percent

increase over Tax Year 1994. The finance, insurance,

and real estate division reported the third largest number

of S Corporation returns filed for Tax Year 1995 with

326,149, which represents 15.2 percent of the total number

of returns filed for Tax Year 1995. These three industrial

divisions comprise three-fourths of all S Corporation

returns filed for Tax Year 1995, as they also did for Tax

Year 1994.

S Corporation Income from a Trade or

Business

S Corporations reported an increase of 4.0 percent in net

income (less deficit) from a trade or business for Tax Year

1995. Overall net income (less deficit) from a trade or

business increased to $76.9 billion for Tax Year 1995 from

$74.0 billion reported for Tax Year 1994 (Figure A).

While positive net income (less deficit) from a trade or

business increased by 7.6 percent to $115.1 billion for Tax

Year 1995, deficits also increased 15.7 percent to $38.2

billion (Table 1). Returns with positive net income from a

trade or business represent 60.4 percent of all S Corporations for Tax Year 1995 (Table 2). Seven of the nine

industrial divisions reported increases in positive net

S Corporation Returns, 1995

income from a trade or business, and eight of nine

reported increases in deficits from a trade or business.

The services division reported a 10.4-percent increase

in net income (less deficit) from a trade or business with a

$1.9 billion increase. This increase was bolstered by a

14.5-percent increase reported by other services that had

net income (less deficit) from a trade or business of $10.4

billion for Tax Year 1995. This group reported $9.0

billion for Tax Year 1994. Business services accounted

for 41.2 percent of the increase in this division, as net

income (less deficit) from a trade or business increased

from $6.4 billion for Tax Year 1994 to $7.0 billion for

Tax Year 1995. These two major groups (other services

and business services) also reported the largest increases

for Tax Year 1994.

Wholesale and retail trade reported a modest decline of

3.3 percent, while still

accounting for 25.8 percent

Totalnetincome(less

of net income (less deficit)

from a trade or business.

deficit)was$99.1

Total receipts increased by

billionforTaxYear

5.8 percent, while total

deductions increased by

1995,anincreaseof

5.9 percent. Increases in

8.1percentoverthe

the cost of goods sold

accounted for 76.7 percent

$91.7billionreported

of this increase. Positive

forTaxYear1994.

net income from a trade or

business increased by 3.4

percent, while deficits from a trade or business increased

by 19.7 percent over Tax Year 1994. This increase in

deficits from a trade or business compared with a decrease

of 1.2 percent from Tax Year 1993 to Tax Year 1994.

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

Tax Year 1995 for the manufacturing division was $21.1

billion, an increase of 3.0 percent. This represents 27.4

percent of the total net income (less deficit) from a trade

or business for all S Corporations for Tax Year 1995.

The construction division reported an increase of $1.3

billion for net income (less deficit) from a trade or business for Tax Year 1995. This was a 18.8-percent increase

over Tax Year 1994 and was the largest percentage increase of any industrial division (Table 1). Special trade

contractors accounted for nearly all ($1.2 billion) of the

increase.

The agriculture division reported a decline in net deficit

from a trade or business from $146.6 million for Tax Year

1994 to $34.1 million for Tax Year 1995. This improvement is attributable to an increase in positive net income

from a trade or business of $472.5 million. The number

of returns filed for Tax Year 1995 remained relatively

constant with only a 1.0-percent increase.

The transportation and public utilities division reported

a 25.6-percent ($0.6 billion) decrease in net income (less

deficit) from a trade or business for Tax Year 1995, while

the number of returns filed increased by 11.9 percent.

This is mainly attributable to increases in deficits from a

trade or business and a $0.8-billion decrease in net longterm capital gain (less loss) for this division.

Income from Rental Real Estate

For 1995, 178.7 thousand S Corporations reported rental

real estate income and expenses on Form 8825, Rental

Real Estate Income and Expenses of a Partnership or an S

Corporation (Table 4). This is an increase of 6.0 percent

over the number of returns filed for Tax Year 1994. Net

rental income (less deficit) increased from $1.8 billion for

Tax Year 1994 to $2.3 billion for 1995, an increase of

26.0 percent. As might be expected, the finance, insurance, and real estate division accounts for 61.9 percent of

all real estate rental net income (less loss) and 73.3

percent of all returns filed (Figure C). The real estate

industrial group reported $1.4 billion in net rental income,

61.8 percent of the net rental income reported by all S

Corporations. Net rental income for this industrial group

increased 46.2 percent over the $945.6 million reported

for Tax Year 1994. The increase in net rental income

(less deficit) for the real estate industrial group is attributable to a 21.3-percent increase in positive net rental

income to $3.1 billion and a 6.6-percent decrease in the

net rental deficit to $1.7 billion.

S Corporation Total Net Income

Total net income (less deficit) for an S Corporation

includes net income from a trade or business (less deficit),

portfolio income (less loss) distributed to shareholders,

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

(less deficit) from other rental activity (Figure D).

Portfolio income (or loss) includes interest income,

dividend income, royalty income, net long-term and shortterm capital gains and losses, and other portfolio income.

Total net income (less deficit) is thus a much more

comprehensive measure of S Corporation income than

trade or business net income. Total net income (less

deficit) was $99.1 billion for Tax Year 1995, an increase

of 8.1 percent over the $91.7 billion reported for Tax Year

1994 (Figure A). Net income (less deficit) from a trade or

business was the largest component of total net income

(less deficit) at 77.6 percent. Portfolio income as a

percentage of total net income (less deficit) increased

S Corporation Returns, 1995

Figure C

Real Estate Rental Net Income (Less Deficit), by Selected Industrial Division, Tax

Year 1995

Transportation and

public utilities

4.4%

Manufacturing

3.9%

Services

11.3%

Wholesale and

retail trade

13.5%

All other ¹

4.9%

$2.3 billion

Finance, insurance,

and real estate

61.9%

¹ Includes agriculture, forestry, and fishing; mining; construction; and nature of business not allocable.

NOTE: Detail may not add to 100 percent due to rounding.

from 16.5 percent for Tax Year 1994 to 19.3 percent for

Tax Year 1995. Net long-term capital gain (less loss)

increased by 17.1 percent to $9.0 billion for Tax Year

1995. Interest income increased by 31.7 percent to $7.7

billion for Tax Year 1995. The increase in interest income

is consistent with increases in interest rates reported in the

overall economy for 1995. One such rate is the prime

lending rate, which increased from 7.15 percent for 1994

to 8.83 percent for 1995, a 24-percent increase. Manufacturing, services, and wholesale and retail trade combined

to account for nearly three-fourths of the total net income

(less deficit) (Figure E).

The services division reported continued growth for

Tax Year 1995, as total net income (less deficit) was

$24.8 billion, an increase of 14.9 percent from Tax Year

1994. The two largest major groups within this industry

are business services and other services. An increase of

10.1 percent was reported by the business services group

for Tax Year 1995, as total net income (less deficit) was

$8.5 billion, up from the $7.7 billion reported for Tax

Year 1994. Overall, S Corporations in the services divi-

sion derived 81.3 percent of total net income (less deficit)

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

Other services reported $12.0 billion in total net income

(less deficit), an increase of 15.6 percent for Tax Year

1995.

Manufacturing reported an increase of 5.5 percent for

total net income (less deficit). This division accounted for

$24.9 billion, the largest amount of total net income (less

deficit) reported. This represents 25.2 percent of total net

income (less deficit) reported by all S Corporations for

Tax Year 1995.

Wholesale and retail trade did not continue to report

large increases in total net income (less deficit) as reported

for Tax Year 1994. This division reported an increase of

only 0.8 percent in total net income (less deficit) for Tax

Year 1995. While positive total net income increased by

5.0 percent to $33.4 billion, total deficit net income

increased by 17.8 percent to $9.4 billion. This increase in

deficits is consistent with the increase in deficits from a

trade or business. Tax Year 1994 data show a decrease of

3.5 percent in total deficit income, while data for Tax

S Corporation Returns, 1995

Figure D

Total Net Income (Less Deficit), by Industrial Division, Tax Year 1995

[Money amounts are in thousands of dollars]

Item

All industries

Agriculture,

forestry, and

fishing

Mining

Construction

Manufacturing

(1)

(2)

(3)

(4)

(5)

76,899,029

-34,123

1,077,589

8,407,250

21,083,883

Portfolio income (less deficit)....................................................................................................................................................................

19,145,525

451,802

561,129

868,454

3,689,419

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

936,893

24,273

38,574

53,339

138,078

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

7,672,052

222,511

164,393

660,170

1,098,248

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

510,708

23,146

106,116

3,193

96,028

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

874,524

4,705

-2,867

-10,386

-3,950

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

9,010,772

175,241

253,239

158,498

2,348,093

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

140,576

*1,926

*1,674

3,641

12,922

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

2,287,046

47,951

9,421

54,280

89,990

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

797,072

17,984

9,610

26,416

70,780

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

99,128,672

483,613

1,657,750

9,356,399

24,934,073

99,128,672

483,614

1,657,749

9,353,208

24,934,072

Item

Transportation

and public

utilities

Wholesale

and retail

trade

Finance,

insurance,

and real estate

Services

Nature of

business

not allocable

(6)

(7)

(8)

(9)

(10)

1,862,419

19,831,198

4,533,532

20,149,971

-12,690

Portfolio income (less deficit)....................................................................................................................................................................

1,083,679

3,710,996

4,670,037

4,109,704

*305

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

35,486

156,918

336,542

153,683

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

398,712

1,637,995

2,080,844

1,408,875

*305

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

*1,435

53,616

45,897

181,275

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

-17,673

77,478

731,155

96,064

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

662,101

1,776,446

1,380,995

2,256,159

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

3,618

8,543

94,604

13,648

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

100,898

309,806

1,414,706

259,128

*867

128,985

223,672

52,982

266,643

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

3,175,980

24,075,672

10,671,258

24,785,445

-11,519

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

NOTE: Detail may not add to total due to rounding.

Year 1995 show an increase of 17.8 percent.

Taxation of S Corporations

Since S Corporations are flow-through entities, taxes,

generally, are not levied at the corporate level. S Corporations report distributions of income, credits, deductions,

and other miscellaneous items for each shareholder.

Shareholders are responsible for reporting and paying

taxes on amounts received or credits allowed. A few taxes

are levied at the corporate level, the built-in gains tax

being the most common tax paid by an S Corporation.

Other taxes include the excess net passive income tax, the

investment recapture tax, and the “last-in, first-out”

(LIFO) inventory recapture tax and interest due under the

“look-back method” for completed long-term contracts

[9].

Total taxes paid by S Corporations continued to increase,

from $121.1 million for Tax Year 1994 to $173.2 million

for Tax Year 1995, an increase of 43.1 percent. The largest

increase was from the built-in gains tax, which increased

by 46.6 percent. The built-in gains tax, which applies

only to those S Corporations that converted from C Corporation status after 1986, accounted for $141.2 million,

or 82.0 percent, of the total taxes paid by all S Corporations for Tax Year 1995 (Figure F). The S Corporation is

taxed on the built-in gain, which is recognized on the

disposition of any asset within ten years from the first day

of the S Corporation’s first tax year. Gain is built in to the

S Corporation Returns, 1995

Figure E

Total Net Income (Less Deficit), by Selected Industrial Division, Tax Year 1995

Finance, insurance,

and real estate

10.8%

All other ¹

2.1%

Wholesale and

retail trade

24.3%

Construction

9.4%

$99.1 billion

Transportation and

public utilities

3.2%

Services

25.0%

Manufacturing

25.2%

¹ Includes agriculture, forestry, and fishing; mining; and nature of business not allocable.

NOTE: Detail may not add to 100 percent due to rounding.

Figure F

S Corporation Taxes, Tax Years 1994 and 1995

[Money amounts are in thousands of dollars]

Item

1994

1995

(1)

(2)

extent of net appreciation arising prior to a C Corporation’s

election as an S Corporation. The increase in the built-in

gains tax from 1994 to 1995 can be largely attributed to

the increase in returns filed by S Corporations that elected

Subchapter S status for the first time for Tax Year 1995.

Balance Sheet Data

The wholesale and retail trade industrial division reported

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

121,051

173,240

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

96,325

141,218

$315.7 billion in total assets for Tax Year 1995, accountExcess net passive income tax.......................................................................................................................

8,123

8,924

ing for 31.5 percent of the total assets of all S CorporaAdjustments to tax.......................................................................................................................

15,149

20,781

tions (Figure G and Table 3). Not surprisingly, the largest

asset item for this division is inventories. Inventories

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

*132

*936

reported by this division accounted for nearly 61.0 percent

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

of all inventories reported by S Corporations for Tax Year

on which it is based.

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

*1,322

*1,381

S Corporation Returns, 1995

Figure G

Total Assets, by Selected Industrial Division, Tax Year 1995

Wholesale and

retail trade

31.0%

Finance, insurance,

and real estate

17.5%

$1,017.6 billion

Transportation and

public utilities

4.7%

All other ¹

13.2%

Manufacturing

18.7%

Services

14.9%

¹ Includes agriculture, forestry, and fishing; mining; construction; and nature of business not allocable.

NOTE: Detail may not add to 100 percent due to rounding.

1995, and 37.4 percent of total assets reported within the

division. This division also reported the largest amount of

net worth at $87.5 billion, nearly 28.0 percent of the net

worth of all S Corporations.

The manufacturing division reported the second largest

amount of total assets with $191.0 billion. The largest

asset item for this division was net depreciable assets,

which accounted for 27.1 percent of the total assets for

Tax Year 1995. This division also accounted for $82.1

billion in net worth for Tax Year 1995, or 28.1 percent of

the net worth of all S Corporations.

The finance, insurance, and real estate division reported

the third largest amount of total assets for Tax Year 1995

with $178.2 billion. The largest asset item was net depreciable assets with $51.5 million, accounting for 29.0

percent of the total assets held by the division.

The services division reported the fourth largest amount

of total assets with $151.4 billion. Net depreciable assets

were the largest single asset item for the services division

with $57.3 billion reported, accounting for nearly 38.0

percent of the total assets of the division.

Data by Number of Shareholders

The majority of S Corporations (98.4 percent) have ten or

fewer shareholders (Table 5). More than 82.0 percent of

all S Corporations have one or two shareholders for Tax

Year 1995 (Figure B). S Corporations with one or two

shareholders accounted for 57.0 percent of total net income

(less deficit). S Corporations with ten or fewer shareholders had average total assets of $437.5 thousand and average

S Corporation Returns, 1995

Figure H

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

and Interest, by Industrial Division, Tax Year 1995

Number

Industrial division

Number

Total

returns

shareholders

receipts

(1)

(2)

Dividends

Interest

(3)

(4)

(5)

0.74

4.98

1.45

Agriculture, forestry, and fishing.......................................................................................................................

5.64

6.45

5.76

Mining.......................................................................................................................

12.77

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

0.29

0.95

20.95

7.76

16.27

8.95

13.02

11.44

Construction.......................................................................................................................

3.36

3.51

2.58

12.70

4.48

Manufacturing.......................................................................................................................

3.79

4.38

1.98

7.20

2.69

Transportation and public utilities.......................................................................................................................

5.36

5.65

4.85

16.89

6.11

Wholesale and retail trade.......................................................................................................................

1.86

2.32

1.32

8.42

2.54

Finance, insurance, and real estate.......................................................................................................................

2.48

3.79

4.25

11.41

3.66

Services.......................................................................................................................

1.58

11.51

4.16

2.11

2.49

¹ Includes returns not allocable by industrial division.

total net income (less deficit) of $42.2 thousand for Tax

Year 1995. These averages are up slightly from $432.7

thousand and $41.4 thousand, respectively, for Tax Year

1994. S Corporations with more than ten shareholders

had average total assets of $4.0 million and average total

net income (less deficit) of $432.0 thousand for Tax Year

1995. These averages are up from Tax Year 1994 averages

of $3.5 million and $397.0 thousand, respectively.

Summary

S Corporations continued to show steady growth for Tax

Year 1995, as the number of returns increased by 6.4

percent to nearly 2.2 million. Total net income (less

deficit) for all S Corporations was $99.1 billion for Tax

Year 1995, which represents an increase of 8.1 percent

over Tax Year 1994. S Corporation returns accounted for

48.1 percent of all corporate returns filed for Tax Year

1995, up slightly from 47.0 percent for Tax Year 1994. S

Corporations with one or two shareholders continued to

dominate the number of returns filed with 82.1 percent of

the total. S Corporations also continued to be concentrated in the services, wholesale and retail trade, and

finance, insurance, and real estate divisions, as over threefourths of all returns filed are from these divisions.

Data Sources and Limitations

The statistics for Tax Year 1995 are based on a sample of

S Corporation income tax returns with accounting periods

ending between July 1995 and June 1996 that posted to

the Internal Revenue Service Business Master File between

July 1995 and the end of June 1997.

The estimates in this article were based on a stratified

probability sample of 24,188 S Corporation returns drawn

from a total population of 2,267,178. The stratification

was based on combinations of total assets and ordinary

income from a trade or business. Sample rates ranged

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

examination. The selected sample included 23,608 active

S Corporation returns. Based on this count, the number of

active S Corporations for Tax Year 1995 was estimated to

be 2,153,119.

Because the estimates are based on a sample, they are

subject to sampling error. To properly use the data, the

magnitude of the potential sampling error needs to be

known. Coefficients of variation (CV’s) are used to

measure this magnitude. Figure H presents coefficients of

variation for S Corporations by industrial division. The

smaller the coefficient of variation, the more reliable the

estimate is judged to be [10].

Notes and References

[1] Provisions of TRA 86 required an S Corporation to

align its tax year with the tax year of the majority of

its shareholders. Individuals comprise the majority

of S Corporation shareholders. Thus, many corporations that converted from C to S status had to change

over to a calendar year accounting period. The 36.5percent growth rate includes S Corporations that

filed two returns to meet the required changeover to

a calendar year accounting period. Approximately

S Corporation Returns, 1995

100,000 filed such returns for Tax Year 1987.

Excluding these returns, the number of S Corporation returns filed increased by 20.5 percent for 1987.

For a more complete explanation of the effects of

TRA 86 on S Corporations, see Gill, Amy, “S

Corporation Returns, 1992,” Statistics of Income

Bulletin, Spring 1995, Volume 14, Number 4.

[2] For more information on the effects of TRA 86 on S

Corporation election, see, in this issue, Gill, Amy

and Wittman, Susan, “S Corporation Elections After

and Tax Reform Act of 1986,” Statistics of Income

Bulletin, Spring 1998, Volume 17, Number 4. The

study of S Corporation Elections After Tax Reform

Act of 1986 findings were presented at the 1996

Annual Allied Social Science Associations Conference in San Francisco, CA.

[3] For more information, see Wittman, Susan, “S

Corporation Returns, 1994,” Statistics of Income

Bulletin, Spring 1997, Volume 16, Number 4.

[4] Over half of the 9.5-percent increase for Tax Year

1994 is attributable to a sampling change that, for the

first time since 1987, subjected all personal service

corporations to sampling. Excluding the increase in

the number of personal service corporation returns, a

4.2-percent increase in the total number of returns

would have been realized for Tax Year 1994.

Statistics for taxable corporation data for Tax Year

1995 are unpublished Statistics of Income tabulations.

[5] Taxable corporation return types include Form

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

Form 1120-PC, Form 1120-REIT, and Form 1120RIC.

[6]

For further detail, see Internal Revenue Service,

Internal Revenue Code, Subchapter S [Section

1361(a)].

[7] The Small Business Jobs Protection Act of 1996

modified some of the criteria for Subchapter S

election. Provisions of this Act are effective for tax

years beginning after December 31, 1996. One of

the modifications is an increase in the number of

shareholders allowed, from 35 up to 75.

[8] For more corporation data, see Internal Revenue

Service, Statistics of Income, Corporation Income

Tax Returns, Publication 16. See also Internal

Revenue Service, Statistics of Income, Corporation

Source Book, Publication 1053. Source Book data

are classified by size of total assets and by major

and minor industries for taxable corporations. For S

Corporations, data are presented by size of total

assets and by industrial division. Data presented are

balance sheet, income and deductions, tax, and

selected items.

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

Internal Revenue Code, Subchapter S [Section

1374].

[10] For further information on data sources and

limitations, see SOI Sampling Methodology and

Data Limitations in this issue.

SOURCE: IRS, Statistics of Income Bulletin, Publication

1136, Spring 1998.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group

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

Mining

Item

All

industries

(1)

Agriculture,

forestry,

and fishing

(2)

Total

Metal

mining

Coal

mining

Oil

and

gas

extraction

Nonmetallic

minerals,

except fuels

(3)

(4)

(5)

(6)

(7)

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

2,153,119

72,085

14,794

*845

780

10,822

2,347

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

4,227,544

190,020

39,681

*6,690

2,465

Income from a trade or business:

25,583

4,943

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

2,405,073,461

40,130,194

13,232,848

*200,531

3,800,647

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

2,366,453,853

38,098,929

12,155,204

*156,177

3,727,135

Interest on Government obligations:

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

612,389

18,148

10,706

*65

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

4,811,274

356,652

164,074

25,571

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

33,195,945

1,656,464

902,864

*44,287

47,941

5,900,253

5,036,419

3,331,417

3,235,472

8,272

114,615

740,946

*2,369

23,885

69,691

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

2,327,562,043

40,146,168

12,144,553

*158,916

3,826,597

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

1,558,014,880

20,383,176

6,029,053

*26,493

2,241,223

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

88,534,774

1,128,057

363,721

*3,973

30,143

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

214,023,087

3,346,546

1,006,007

*27,143

268,630

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

14,923,736

935,948

227,245

*19,008

65,080

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

4,904,519

79,705

14,603

*416

*776

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

48,007,962

1,379,237

154,192

*10,151

56,653

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

50,605,800

906,629

486,374

*9,199

149,266

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

27,807,346

1,083,263

388,097

*2,548

77,142

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

3,070,907

40,358

33,683

*1,640

12,692

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

41,283,783

1,804,820

709,632

*11,133

185,753

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

255,183

*7,027

117,978

*1,999

44,573

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

23,417,922

122,007

15,036

*97

2,436

Pension, profit-sharing, stock

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

7,857,924

65,467

49,419

*119

*11,311

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

16,759,491

204,610

281,576

*6,417

188,971

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

525,930

36,212

18,791

-*794

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

227,568,799

8,623,106

2,249,146

*38,580

491,152

5,077,772

1,906,442

220,836

503,699

72,622

7,976

62,613

232,084

248,275

16,365

303,750

*4,038

5,880

3,081,268

1,854,896

108,769

206,535

70,535

5,436

24,775

95,824

60,132

2,987

208,996

67,368

6,622

10,832

52,873

*17,554

1,411,934

27,157

33,315

443

307,479

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

77,511,418

-15,975

1,088,295

*41,615

-25,950

822,481

250,149

Net income (less deficit)

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

76,899,029

-34,123

1,077,589

*41,551

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

115,087,307

2,296,664

1,631,137

*56,044

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

38,188,278

2,330,787

553,548

*14,494

-25,950

155,197

181,147

Portfolio income (less deficit)

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

19,145,525

451,802

561,129

*8,478

33,029

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

936,893

24,273

38,574

-*2,690

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

7,672,052

222,511

164,393

*3,977

18,992

Royalty income (less loss).......................................................................................................................................................

510,708

23,146

106,116

-*4,625

Net short-term capital gain

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

874,524

4,705

-2,867

-*1,743

Net long-term capital gain

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

9,010,772

175,241

253,239

*4,502

*4,175

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

140,576

*1,926

*1,674

-*803

814,209

1,132,725

318,516

247,780

287,171

39,391

485,003

32,689

120,097

96,863

34,619

3,195

21,327

*4,628

-6,436

*1,825

240,978

*811

3,585

*59

Real estate rental net income

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

2,287,046

47,951

9,421

*13

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

4,285,458

84,310

16,433

*13

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

1,998,412

36,360

7,012

*1,594

*1,676

*82

10,303

13,945

*3,642

-2,488

*800

*3,288

Net income (less deficit)

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

797,072

17,984

9,610

-Net income.......................................................................................................................................................

1,031,811

19,870

10,964

-Deficit.......................................................................................................................................................

234,740

*1,887

*1,354

*7,423

2,213

*3,191

*978

*-25

*351

*376

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

99,128,672

483,613

1,657,750

*50,042

16,095

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

134,958,619

2,630,822

2,139,716

*64,420

176,937

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

35,829,947

2,147,209

481,966

*14,378

160,842

1,311,728

1,578,667

266,939

279,885

319,692

39,807

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Construction

Item

Total

(8)

General

building

contractors

and

operative

builders

(9)

Manufacturing

Heavy

construction

contractors

Special

trade

contractors

Total

Food and

kindred

products

Tobacco

manufactures

Textile

mill

products

(10)

(11)

(12)

(13)

(14)

(15)

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

216,192

85,601

7,836

122,755

138,856

7,159

3,256

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

354,575

137,116

15,592

201,867

334,974

30,177

Income from a trade or business:

7,958

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

241,113,967 109,901,478

25,575,223 105,637,266 431,543,312

56,404,112

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

239,286,056 109,121,067

25,183,504 104,981,485 427,646,655

55,997,489

Interest on Government obligations:

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

54,824

23,328

18,717

12,779

143,373

8,983

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

307,452

54,887

116,629

135,936

822,798

94,345

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

1,465,636

702,196

256,374

507,066

2,930,486

303,294

18,650,494

18,550,594

4,846

13,030

82,024

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

232,651,893 107,245,031

24,585,503 100,821,359 410,316,056

54,404,647

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

182,238,890

92,157,322

19,129,916

70,951,653 302,253,399

42,711,660

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

8,091,209

2,604,266

610,476

4,876,467

12,907,824

919,157

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

11,109,521

3,101,418

980,102

7,028,002

24,378,611

2,507,765

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

1,137,086

237,788

240,550

658,748

1,870,065

281,579

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

309,657

92,652

21,123

195,882

890,679

68,586

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

2,003,303

508,526

210,051

1,284,726

4,079,499

375,949

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

4,950,924

1,330,936

456,305

3,163,683

8,698,427

904,627

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

1,666,062

731,777

235,130

699,154

4,971,147

516,231

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

71,568

12,489

2,819

56,259

422,698

48,395

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

3,574,589

710,739

1,062,791

1,801,060

9,815,376

1,187,574

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

14,990

*1,732

13,076

*181

83,398

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

686,492

267,796

25,757

392,939

3,518,885

872,234

Pension, profit-sharing, stock

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

815,592

214,172

122,784

478,636

1,829,719

160,833

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

1,664,302

378,151

197,340

1,088,811

4,450,404

466,190

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

14,089

3,988

*1,229

8,873

129,226

4,243

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

14,303,618

4,891,278

1,276,054

8,136,286

30,016,699

3,379,626

18,193,386

14,421,760

451,170

648,753

77,261

55,843

130,130

349,126

278,244

13,760

515,093

-42,474

48,752

228,384

*2,841

929,794

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

8,462,074

2,656,447

989,720

4,815,906

21,227,256

1,999,465

457,108

452,262

758,817

306,555

57,436

7,208

50,403

595

-771

Net income (less deficit)

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

8,407,250

2,633,120

971,003

4,803,127

21,083,883

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

10,946,176

3,862,917

1,300,046

5,783,213

26,207,148

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

2,538,926

1,229,797

329,043

980,086

5,123,265

1,990,482

2,437,638

447,156

Portfolio income (less deficit)

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

868,454

343,671

196,272

328,510

3,689,419

516,233

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

53,339

19,474

11,236

22,629

138,078

11,794

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

660,170

314,396

130,428

215,346

1,098,248

128,522

Royalty income (less loss).......................................................................................................................................................

3,193

*49

*3,143

96,028

*17,659

Net short-term capital gain

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

-10,386

-23,406

4,402

8,618

-3,950

-7,925

Net long-term capital gain

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

158,498

30,503

46,252

81,742

2,348,093

364,028

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

3,641

*2,655

*812

*174

12,922

*2,155

Real estate rental net income

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

54,280

48,130

10,536

-4,386

89,990

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

92,272

73,335

10,625

8,312

116,215

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

37,992

25,205

*89

12,698

26,225

3,040

5,506

2,466

9,725

9,764

*39

Net income (less deficit)

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

26,416

4,414

7,492

14,510

70,780

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

26,962

4,415

7,580

*14,967

72,799

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

*546

*457

2,019

873

*1,628

*755

*270

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

9,356,399

3,029,335

1,185,303

5,141,761

24,934,073

2,510,628

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

11,671,566

4,156,137

1,477,009

6,038,420

29,682,061

2,944,402

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

2,315,167

1,126,802

291,706

896,659

4,747,988

433,774

519,694

810,537

290,843

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Apparel

and

other

textile

products

Lumber

and

wood

products

Furniture

and

fixtures

Paper

and

allied

products

Printing

and

publishing

Chemical

and

allied

products

Petroleum

(including

integrated)

and coal

products

Rubber and

miscellaneous

plastics

products

(16)

(17)

(18)

(19)

(20)

(21)

(22)

(23)

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

8,022

7,533

4,472

1,485

29,151

5,411

351

5,880

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

17,662

18,616

9,295

3,816

54,657

14,034

Income from a trade or business:

1,014

15,508

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

28,254,919

25,388,802

10,205,881

16,759,608

35,962,420

21,515,394

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

27,849,218

25,169,257

10,095,340

16,633,032

35,380,645

21,329,545

Interest on Government obligations:

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

4,324

3,067

*3,919

10,856

15,204

5,954

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

12,963

55,599

4,191

45,193

118,087

45,041

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

388,415

160,879

102,431

70,526

448,484

134,854

2,406,367

2,372,191

25,109,101

24,944,283

*44

*797

33,335

16,237

49,370

99,210

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

27,637,327

24,347,011

9,834,116

15,735,559

34,415,532

20,340,762

2,330,698

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

20,523,247

19,386,713

7,346,025

12,322,016

19,754,746

14,323,641

1,831,330

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

976,631

596,205

266,982

403,424

1,645,640

657,522

46,360

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

1,836,474

884,289

453,390

810,153

3,800,984

1,354,395

109,453

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

60,672

159,582

30,299

58,693

206,961

106,964

*14,214

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

82,827

26,124

27,575

26,956

133,292

51,041

*5,109

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

391,212

157,730

110,789

127,546

611,331

227,748

14,022

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

531,264

498,069

257,831

280,950

930,133

358,187

34,490

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

400,894

325,101

104,332

172,808

545,234

270,581

23,296

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

13,878

15,302

4,009

11,453

99,791

28,896

*3,477

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

313,018

648,460

181,977

426,860

1,096,139

487,983

58,376

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

-*61,364

-*3,323

-*3,941

*121

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

219,343

93,686

102,771

44,774

405,706

259,269

4,970

Pension, profit-sharing, stock

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

89,293

73,910

34,303

92,310

222,156

82,724

*5,230

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

216,335

185,319

131,577

134,400

429,657

203,633

*8,599

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

*14,503

*7,007

*87

*531

6,771

11,501

-Other deductions.......................................................................................................................................................

1,967,737

1,228,150

782,167

819,360

4,526,990

1,912,737

171,653

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

617,593

1,041,791

371,765

1,024,050

1,546,888

1,174,631

75,669

23,557,309

17,275,187

739,812

1,201,252

112,778

52,047

186,989

590,530

325,638

16,363

812,101

-132,668

Net income (less deficit)

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

613,269

1,038,724

367,847

1,013,193

1,531,684

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

1,191,906

1,411,026

544,803

1,080,292

2,126,043

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

578,637

372,302

176,956

67,099

594,359

1,168,677

1,349,716

181,039

Portfolio income (less deficit)

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

164,763

93,320

39,953

188,603

849,862

59,671

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

5,998

3,894

3,186

2,084

17,868

4,880

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

55,380

62,326

22,212

28,603

139,361

48,056

Royalty income (less loss).......................................................................................................................................................

*4,294

*5,050

5,938

*3,854

Net short-term capital gain

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

*-42

*1,665

*71

392

2,577

-2,060

Net long-term capital gain

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

97,535

18,607

13,126

157,390

678,673

4,797

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

*1,599

*1,778

*1,352

101

*5,445

*144

106,305

323,325

28,626

1,653,688

1,551,791

75,625

*132,134

*56,509

1,535,554

1,705,202

169,648

9,897

*412

9,289

*104

110,104

7,240

65,391

*1,525

*22

11,539

*60

*11

24,372

*37

Real estate rental net income

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

7,705

7,027

*3,069

-942

7,995

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

10,046

7,712

*3,113

*1,254

13,336

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

*2,341

*685

*45

*2,196

5,341

1,207

1,453

*245

*248

6,165

7,922

*1,757

Net income (less deficit)

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

*337

18,464

*265

*-319

4,226

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

*337

18,464

*265

4,226

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

---*326

*3,325

*43

*7,626

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

786,074

1,157,535

411,133

1,200,535

2,393,767

1,232,881

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

1,348,052

1,494,248

578,058

1,257,484

2,895,346

1,408,645

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

561,978

336,713

166,925

56,950

501,579

175,764

85,814

139,092

*53,278

1,659,449

1,808,422

148,973

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Item

Leather

and

leather

products

Stone,

clay, and

glass

products

Primary

metal

industries

Fabricated

metal

products

(24)

(25)

(26)

(27)

Machinery,

except

electrical

Electrical

and

electronic

equipment

Motor

vehicles and

equipment

(30)

(28)

(29)

10,525

9,571

1,221

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

1,364

9,389

3,251

42,827

24,387

Income from a trade or business:

24,520

2,689

27,691,264

27,448,921

9,627,887

9,570,862

6,067

44,047

192,228

*6,440

23,187

27,398

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

2,795,063

9,746,747

19,735,495

55,158,352

23,999,817

25,939,201

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

2,120,516

6,650,005

17,265,775

41,368,107

16,410,654

18,671,567

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

134,284

309,338

278,206

2,030,960

1,122,271

908,336

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

107,680

674,083

513,170

2,888,711

1,844,503

1,961,847

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

4,374

87,326

76,574

262,135

92,484

82,228

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

4,457

36,924

12,952

95,525

54,094

38,954

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

16,435

122,970

56,917

591,343

241,377

253,381

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

47,816

260,855

240,180

1,277,024

613,218

555,272

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

39,594

140,924

155,127

648,067

287,022

268,746

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

*2,491

19,056

6,714

54,171

22,004

22,734

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

28,226

436,469

350,439

1,434,130

546,348

489,333

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

-14,626

---23

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

43,915

44,092

23,604

284,329

210,635

263,161

Pension, profit-sharing, stock

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

*5,583

38,586

62,455

303,429

176,757

108,809

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

26,328

127,655

126,927

734,765

360,490

261,265

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

*15

*875

*1,410

1,629

1,815

30,640

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

213,348

782,964

565,046

3,184,025

2,016,146

2,022,905

9,220,115

7,538,552

165,937

388,320

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

75,711

709,293

922,090

3,791,171

1,692,710

1,752,063

407,772

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

610

4,278

1,300

18,633

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

2,870,774

10,456,039

20,657,585

58,949,523

25,692,527

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

2,867,752

10,330,075

20,568,043

58,413,567

25,458,355

Interest on Government obligations:

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

*1,438

14,443

2,394

20,578

9,567

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

*146

32,407

24,238

159,598

29,343

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

1,438

79,114

62,910

355,779

195,262

Net income (less deficit)

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

74,274

694,850

919,695

3,770,593

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

130,820

812,191

1,007,634

4,281,219

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

*56,546

117,341

87,938

510,625

1,683,143

2,001,118

317,975

Portfolio income (less deficit)

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

13,547

134,843

50,943

613,853

166,257

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

*7,063

2,647

2,122

19,088

9,513

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

6,164

42,697

33,589

138,685

83,209

Royalty income (less loss).......................................................................................................................................................

-*553

319

2,312

6,397

Net short-term capital gain

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

-*138

*1,320

-280

3,016

Net long-term capital gain

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

*320

88,746

13,593

454,060

64,114

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

-*63

-*-12

Real estate rental net income

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

*12

9,270

3,503

19,259

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

*151

9,386

*3,614

20,980

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

*139

*116

*111

1,721

5,764

6,070

*306

Net income (less deficit)

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

*939

*421

*2,408

8,349

2,427

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

*939

*421

*2,455

8,355

3,271

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

--*47

*845

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

88,771

839,384

976,550

4,412,055

1,857,592

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

144,601

943,587

1,063,233

4,875,380

2,163,613

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

*55,829

104,203

86,683

463,325

306,021

Footnotes at end of table.

31,858

8,534

44,835

180,010

83,772

5,879

167,045

-28,330

25,240

113,429

*15,076

423,299

1,745,996

2,227,851

481,855

401,332

467,583

*66,250

352,056

21,169

74,009

5,312

41,115

*1,813

17,503

920

*109

250,404

242

*21,637

5,620

6,245

*625

*706

*8,041

*5,315

*8,041

-2,111,713

2,556,016

444,303

*5,315

-448,468

517,490

*69,022

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Manufacturing--continued

Transportation and public utilities

Transportation

equipment,

except

motor

vehicles

Instruments

and

products

Miscellaneous

manufacturing

and

manufacturing

not allocable

Total

Transportation

Communication

(31)

(32)

(33)

(34)

(35)

(36)

73,310

12,188

6,324

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

5,877

12,846

175,408

129,833

Income from a trade or business:

30,167

15,408

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

7,238,527

7,492,473

94,665,458

72,089,329

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

7,174,096

7,434,899

92,802,625

70,894,320

Interest on Government obligations:

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

*3,400

3,010

38,252

26,503

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

4,772

23,176

641,074

484,017

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

56,258

31,388

1,183,508

684,488

14,267,623

13,856,933

8,308,506

8,051,371

5,271

127,456

277,963

*6,478

29,600

221,057

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

6,863,078

6,853,629

92,764,787

71,161,868

13,717,919

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

5,300,639

4,074,046

42,460,360

33,141,991

5,985,716

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

132,680

320,905

2,597,699

1,790,288

490,788

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

339,573

782,081

11,939,690

9,315,181

1,794,158

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

20,588

29,015

1,787,010

1,454,857

110,083

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

12,607

23,654

338,903

189,779

135,281

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

48,290

107,699

3,282,922

2,807,761

293,734

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

179,547

175,500

2,970,469

2,278,394

411,644

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

77,844

67,069

1,857,004

1,170,293

480,994

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

4,151

10,515

363,256

94,474

224,078

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

131,756

138,434

4,692,518

3,680,418

588,530

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

--**

*8,831

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

47,656

128,203

596,725

302,964

270,434

Pension, profit-sharing, stock

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

46,472

69,630

306,595

234,565

31,074

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

82,983

90,590

1,030,077

857,079

72,319

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

*60

*109

13,331

4,871

*4,747

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

438,232

836,180

18,519,397

13,838,954

2,824,338

7,885,000

3,332,653

316,623

830,351

222,070

13,843

181,427

280,431

205,717

44,703

423,570

*8,831

23,328

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

375,448

638,844

1,900,671

927,461

549,704

423,506

Item

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

2,270

3,894

91,822

Net income (less deficit)

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

372,048

635,834

1,862,419

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

449,358

710,442

4,696,324

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

77,310

74,608

2,833,905

900,958

2,781,460

1,880,502

Portfolio income (less deficit)

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

25,839

32,415

1,083,679

523,959

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

*2,328

1,244

35,486

19,502

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

22,469

22,903

398,712

201,143

Royalty income (less loss).......................................................................................................................................................

1,027

*2,314

*1,435

*1,434

Net short-term capital gain

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

*94

-17,673

4,279

Net long-term capital gain

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

*-81

*5,951

662,101

296,898

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

--**

3,618

704

Electric,

gas, and

sanitary

services

(37)

40,956

100,679

*3,712

1,856,105

544,433

1,280,337

735,903

417,028

634,528

217,500

354,187

14,708

112,446

205,533

1,276

85,124

-21,968

*15

248,941

*60

116,262

*2,855

Real estate rental net income

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

*1,003

*-996

100,898

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

*1,003

*418

105,044

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

-*1,414

4,147

95,461

97,924

*2,463

2,294

2,353

3,143

*4,768

*1,625

Net income (less deficit)

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

*3,797

*273

128,985

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

*3,797

*273

168,771

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

--**

39,786

116,410

153,547

*37,137

12,303

14,574

*2,271

*272

*650

*378

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

402,687

667,526

3,175,980

1,636,787

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

474,841

735,817

5,807,611

3,419,136

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

72,154

68,291

2,631,631

1,782,349

913,217

1,599,935

686,718

625,976

788,540

162,564

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Wholesale and retail trade

Wholesale trade

Item

Total

(38)

(39)

Groceries

and

products

Machinery,

equipment,

and

supplies

Miscellaneous

wholesale

trade

(40)

(41)

(42)

Total

(43)

(44)

20,140

5,013

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

1,038,889

285,060

24,242

42,686

218,131

748,584

Income from a trade or business:

38,837

10,398

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

1,137,934,320 473,472,502 60,917,429 43,512,298 369,042,775

662,352,780

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

1,124,336,551 469,120,687 60,609,310 42,750,649 365,760,728

653,194,233

Interest on Government obligations:

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

124,643

73,869

4,919

10,188

58,761

50,232

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

815,181

345,793

16,502

171,415

157,876

469,084

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

12,657,945

3,932,153

286,698

580,046

3,065,410

8,639,231

29,999,843

29,751,073

7,837,212

7,763,188

1,441

13,314

234,015

*183

*640

73,201

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

1,117,978,479 461,658,087 60,088,911 41,726,443 359,842,733

654,226,243 29,351,346

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

871,031,029 376,619,371 51,838,434 31,591,358 293,189,580

492,869,029 21,366,514

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

21,978,015 10,283,589

979,263

1,227,036

8,077,290

11,642,488

838,054

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

78,644,742 25,625,048

2,696,702

3,059,670

19,868,675

52,869,054

2,583,277

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

5,152,865

1,586,090

183,257

161,542

1,241,292

3,559,840

201,597

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

1,898,704

960,928

136,260

100,237

724,431

935,133

97,110

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

20,487,297

4,610,623

412,220

464,303

3,734,100

15,844,412

543,025

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

16,721,773

5,966,088

496,491

565,090

4,904,507

10,721,800

575,262

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

9,522,822

3,558,302

268,793

437,206

2,852,303

5,925,256

357,723

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

926,593

281,645

39,661

19,381

222,604

640,017

22,232

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

9,920,833

3,514,681

301,523

587,919

2,625,239

6,380,398

322,036

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

*3,261

*1,880

--*1,880

*1,381

1,184

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

12,443,969

2,431,972

275,680

186,063

1,970,229

10,000,220

390,133

Pension, profit-sharing, stock

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

1,716,170

1,057,258

87,917

156,628

812,713

654,857

72,624

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

4,505,088

1,791,460

161,341

265,831

1,364,288

2,701,038

153,161

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

132,366

37,421

*815

763

35,843

94,944

*3,584

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

62,892,952 23,331,729

2,210,554

2,903,415

18,217,760

39,386,375

1,823,828

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

19,955,841 11,814,415

828,518

1,785,855

9,200,042

8,126,537

648,498

7,791,779

5,237,246

147,093

952,643

41,130

11,341

309,742

194,542

80,208

7,842

80,819

-159,194

Net income (less deficit)

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

19,831,198 11,740,546

823,598

1,775,666

9,141,281

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

29,933,470 15,029,635

1,144,163

2,130,285

11,755,187

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

10,102,272

3,289,089

320,565

354,618

2,613,906

8,076,305

14,864,237

6,787,933

Portfolio income (less deficit)

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

3,710,996

1,606,258

116,315

166,898

1,323,045

2,099,099

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

156,918

91,490

16,352

9,416

65,722

64,276

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

1,637,995

803,277

65,804

93,958

643,515

830,277

Royalty income (less loss).......................................................................................................................................................

53,616

41,491

-*3

41,488

12,126

Net short-term capital gain

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

77,478

51,264

249

5,652

45,363

26,214

Net long-term capital gain

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

1,776,446

612,596

33,116

57,735

521,744

1,163,819

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

8,543

6,140

*793

*134

5,213

2,387

Building

materials,

General

garden

merchandise

supplies,

stores

and mobile

home dealers

395,052

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

537,539

140,160

11,275

21,926

106,959

Retail trade

(45)

11,722

30,163

*356

527,739

45,433

647,056

975,198

328,142

45,249

240,608

195,359

76,076

8,516

63,595

*335

8,185

*947

9,763

-583

*-1,633

4,156

*57

*-892

Real estate rental net income

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

309,806

135,525

10,849

8,681

115,995

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

356,855

150,703

12,108

10,147

128,448

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

47,050

15,178

*1,259

*1,466

12,453

173,300

205,172

31,872

13,349

20,297

*6,948

5,155

*5,157

Net income (less deficit)

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

223,672

119,425

*2,290

75,566

41,570

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

237,080

119,599

*2,341

75,566

41,693

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

13,407

*174

*51

-*123

104,247

117,480

13,234

2,287

----

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

24,075,672 13,601,755

953,052

2,026,811

10,621,891

10,452,951

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

33,428,372 16,534,192

1,242,669

2,349,163

12,942,360

16,849,211

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

9,352,701

2,932,437

289,616

322,352

2,320,469

6,396,261

738,768

1,045,087

306,319

58,589

246,938

188,350

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Wholesale and retail trade--continued

Retail trade--continued

Item

Food

stores

(46)

Automotive

dealers

and

service

stations

Apparel

and

accessory

stores

Furniture

and

home

furnishing

stores

(47)

(48)

(49)

Eating

and

drinking

places

Miscellaneous

retail

stores

Wholesale

and

retail

trade

not

allocable

(50)

(51)

(52)

116,932

120,300

2,328

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

73,782

91,810

37,264

38,369

231,944

Income from a trade or business:

226,181

5,246

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

71,365,171

339,044,103

15,050,584

25,298,045

72,089,882

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

70,453,893

334,055,041

14,879,728

24,757,148

71,208,057

Interest on Government obligations:

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

12,856

11,729

*4,904

*4,100

2,293

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

93,250

148,375

1,018

38,765

113,821

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

805,171

4,828,957

164,933

498,033

765,711

101,667,940

100,326,104

2,109,038

2,021,632

12,724

59,901

1,269,211

*542

*303

86,561

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

70,522,740

336,336,847

14,987,695

24,659,902

71,271,057

99,304,877

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

53,063,794

291,849,351

9,289,848

15,528,896

29,128,927

67,404,452

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

891,488

3,194,890

578,441

686,498

2,132,911

3,173,113

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

6,402,732

15,811,658

1,555,797

2,773,357

13,560,029

9,229,561

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

508,981

866,272

90,293

142,349

1,215,138

494,080

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

80,153

253,716

23,165

143,426

66,563

259,660

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

1,629,260

3,132,916

938,985

1,032,579

4,932,023

3,325,882

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

1,186,036

3,040,405

334,389

498,874

3,108,158

1,784,135

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

362,050

2,832,756

138,570

209,266

987,227

957,456

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

58,545

90,505

17,170

19,163

290,064

134,497

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

790,459

1,666,824

159,024

287,172

1,769,599

1,304,465

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

-*171

---*26

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

757,767

3,208,497

379,280

1,037,131

2,155,921

1,912,297

Pension, profit-sharing, stock

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

117,374

153,642

31,646

43,259

46,345

178,246

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

401,909

1,111,373

57,172

129,451

369,479

448,330

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

12,725

12,753

*1,300

*378

51,510

12,338

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

4,259,468

9,111,118

1,392,616

2,128,104

11,457,162

8,686,340

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

842,430

2,707,256

62,889

638,144

818,825

2,363,063

2,094,149

1,542,628

51,938

150,640

6,935

*2,643

32,262

33,885

39,264

4,930

25,754

-11,776

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

40,043

51,653

19,859

21,110

Net income (less deficit)

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

829,574

2,695,527

57,985

634,043

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

1,339,390

4,026,241

443,310

882,365

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

509,816

1,330,714

385,325

248,321

816,532

2,967,071

2,150,540

Portfolio income (less deficit)

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

202,481

556,521

28,345

69,351

239,554

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

10,942

12,374

873

3,047

8,270

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

86,849

304,480

17,737

52,777

143,753

Royalty income (less loss).......................................................................................................................................................

*757

*1,488

1,069

(²)

Net short-term capital gain

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

1,409

508

*714

*5,082

5,414

Net long-term capital gain

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

103,215

236,505

*7,533

7,288

81,823

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

*49

*1,897

-*88

*294

*4,054

12,590

-174,848

14,890

2,350,339

3,990,054

1,639,716

14,347

39,598

*25,250

918,587

19,308

151,323

*8,460

5,639

*1,152

4,441

15,302

724,191

*31

*16

Real estate rental net income

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

27,419

37,068

*1,572

8,516

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

29,978

46,881

*3,283

8,746

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

2,559

9,813

*1,711

*230

44,960

49,480

*4,521

35,261

41,349

6,089

*980

Net income (less deficit)

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

*3,692

50,001

*1,104

*8,248

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

*3,692

60,643

*1,104

*8,248

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

-10,642

---

*6,292

*7,308

*1,016

32,623

34,198

*1,575

----

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

1,063,167

3,339,116

89,005

720,159

1,107,337

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

1,531,001

4,534,464

458,773

951,351

3,217,058

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

467,833

1,195,348

369,768

231,192

2,109,721

3,336,809

4,864,538

1,527,729

20,967

44,969

*24,002

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Finance, insurance, and real estate

Total

Banking

Credit

agencies

other

than

banks

(53)

(54)

(55)

Insurance

agents,

brokers,

and

services

(56)

(57)

(58)

(59)

39,659

244,123

21,147

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

780,167

*116

20,041

16,919

-64,986

Income from a trade or business:

617,224

60,881

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

77,811,520

*13,163

6,279,646

9,073,117

-13,652,261

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

72,757,502

*11,769

5,247,685

8,185,439

-13,296,775

Interest on Government obligations:

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

132,725

-*6,558

29,956

-6,271

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

344,389

*1,259

65,950

15,110

-11,084

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

4,576,903

*134

959,452

842,611

-338,132

46,459,461

44,511,306

2,333,873

1,504,528

42,135

223,786

1,682,235

47,805

27,199

754,340

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

73,145,262

*11,400

5,702,928

8,493,132

-12,152,474

44,509,564

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

23,277,194

-464,300

369,070

-2,168,620

20,204,697

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

7,653,280

*526

570,841

1,971,614

-2,079,029

2,593,825

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

11,381,086

*2,625

1,315,279

2,258,222

-2,722,406

4,723,244

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

519,163

*41

31,914

21,984

-92,753

363,235

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

584,903

*11

220,319

16,415

-41,443

267,332

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

2,008,199

*266

213,411

220,049

-491,554

1,031,877

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

2,177,942

*231

195,770

277,271

-428,068

1,198,283

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

2,949,624

*4,386

815,552

400,527

-138,077

1,429,241

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

207,449

-19,498

10,250

-64,732

106,062

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

1,028,785

*96

72,896

89,500

-171,263

656,296

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

17,577

-----*17,257

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

1,166,213

*37

80,923

46,035

-224,066

805,352

Pension, profit-sharing, stock

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

454,904

-44,149

75,423

-154,922

153,148

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

563,695

-48,905

69,703

-168,367

252,181

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

78,694

-6,766

*2,922

-*6,851

57,920

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

19,076,556

*3,180

1,602,405

2,664,146

-3,200,323

10,649,613

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

4,666,257

*1,763

576,717

579,984

-1,499,787

1,949,897

2,275,764

70,506

437,445

359,309

9,236

39,384

51,041

78,318

161,840

6,906

38,734

*320

9,799

Item

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

326,149

*58

11,171

9,990

Net income (less deficit)

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

4,533,532

*1,763

570,160

550,028

-Net income.......................................................................................................................................................

10,055,178

*1,763

927,340

1,390,854

-Deficit.......................................................................................................................................................

5,521,646

-357,180

840,826

1,493,516

1,738,690

245,174

Portfolio income (less deficit)

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

4,670,037

*43

237,828

846,473

-208,448

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

336,542

-13,343

27,934

-15,429

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

2,080,844

*43

130,536

244,367

-145,667

Royalty income (less loss).......................................................................................................................................................

45,897

-*1

*29

--Net short-term capital gain

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

731,155

-33,455

260,082

-3,308

Net long-term capital gain

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

1,380,995

-57,293

308,784

-42,063

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

94,604

-*3,200

*5,277

-*1,980

Real estate rental net income

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

1,414,706

*-25

442

317

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

3,164,899

-3,495

1,545

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

1,750,193

*25

3,053

*1,229

Holding

and other

investment

companies,

except bank

holding

companies

Security,

commodity

brokers,

and

services

Real

estate

(60)

27,262

24,539

*4,235

956,890

58,109

1,907,762

4,982,552

3,074,790

10,303

1,013,979

1,003,676

1,878,794

76,049

1,088,495

1,985

1,498,452

203,786

471,737

43,883

74,915

359,396

590,617

46,734

382,238

37,412

----

5,911

*7,191

*1,280

1,382,082

3,088,058

1,705,975

25,979

64,610

38,631

Net income (less deficit)

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

52,982

-*-4,730

*907

-Net income.......................................................................................................................................................

85,625

-*1,022

*907

-Deficit.......................................................................................................................................................

32,643

-*5,752

---

*-36

-*36

55,377

79,066

23,689

1,464

4,630

*3,166

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

10,671,258

*1,781

803,699

1,397,725

-1,707,840

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

16,330,818

*1,781

1,066,349

1,773,880

-1,902,356

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

5,659,560

-262,650

376,155

-194,516

5,224,016

9,267,306

4,043,290

1,536,198

2,319,147

782,950

Footnotes at end of table.

S Corporation Returns, 1995

Table 1.--All Returns: Total Income and Deductions, Portfolio Income, Rental Income, and Total Net

Income, by Major Industrial Group--Continued

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

Services

Item

Total

(61)

Hotels

and other

lodging

places

Personal

services

Business

services

(62)

(63)

(64)

Auto repair;

Amusement

miscellaneous

and

repair

recreation

services

(65)

Nature of

business

not

allocable

(67)

(68)

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

753,890

16,404

55,745

220,053

73,397

61,770

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

1,309,310

48,875

89,002

373,714

118,078

119,985

Income from a trade or business:

326,521

559,655

1,791

4,520

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

368,278,859

13,482,279 17,503,195 129,732,673

30,216,950

30,806,140

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

359,018,268

13,205,665 17,216,479 126,379,258

29,407,026

29,446,802

Interest on Government obligations:

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

89,718

*4,913

*3,905

42,773

*1,198

10,997

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

1,359,655

35,896

78,076

254,301

508,649

205,573

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

7,811,218

235,805

204,735

3,056,341

300,077

1,142,767

146,537,622

143,363,039

*362,984

*352,062

25,932

277,159

2,871,493

--*10,921

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

348,039,170

13,194,678 16,554,960 122,710,226

29,209,842

30,214,676 136,154,788

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

110,068,618

2,195,394

4,921,133

49,919,210

14,192,518

9,669,230

29,171,132

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

33,810,334

325,844

1,251,371

9,685,794

1,629,698

2,113,033

18,804,593

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

72,201,783

2,595,328

3,362,106

24,134,871

3,714,103

4,826,982

33,568,394

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

3,291,801

459,562

242,603

768,053

298,009

517,101

1,006,473

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

787,363

34,802

55,151

253,321

71,299

33,884

338,905

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

14,600,491

758,594

1,545,546

3,373,031

1,415,846

1,485,900

6,021,573

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

13,689,693

869,605

716,407

4,204,491

1,074,487

1,236,707

5,587,996

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

5,358,489

1,031,905

213,819

1,195,570

617,129

720,734

1,579,332

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

1,005,303

35,864

74,873

204,510

45,573

404,614

239,869

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

9,730,887

913,854

442,515

2,723,289

1,777,044

1,493,564

2,380,622

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

*2,121

-*1,773

*45

-*48

*256

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

4,866,831

349,624

485,935

1,564,472

445,825

638,216

1,382,759

Pension, profit-sharing, stock

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

2,618,995

11,899

50,026

785,748

54,554

153,262

1,563,506

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

4,059,738

143,990

134,503

1,371,530

240,033

195,085

1,974,597

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

103,221

*1,913

*24,163

10,623

*12,227

27,694

26,601

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

71,843,503

3,466,503

3,033,034

22,515,667

3,621,497

6,698,621

32,508,181

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

20,239,689

287,601

948,235

7,022,447

1,007,109

591,464

10,382,834

375,674

*273,161

*4,636

*15,101

*2,554

-*12,822

3,567

*10,839

-*6,343

-*1,764

Net income (less deficit)

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

20,149,971

282,688

944,330

6,979,674

1,005,910

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

29,309,851

1,049,614

1,278,527

9,736,935

1,517,509

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

9,159,880

766,926

334,197

2,757,261

511,599

(66)

Other

services

580,466

2,437,774

1,857,307

Portfolio income (less deficit)

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

4,109,704

227,169

174,072

1,240,011

60,501

892,198

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

153,683

5,647

5,170

77,783

3,569

12,257

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

1,408,875

161,523

44,507

530,589

48,794

163,935

Royalty income (less loss).......................................................................................................................................................

181,275

*5,612

-50,665

340

87,250

Net short-term capital gain

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

96,064

*753

10,251

-19,488

*-884

8,559

Net long-term capital gain

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

2,256,159

45,241

113,423

599,842

8,681

616,951

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

13,648

*8,394

*722

620

-*3,246

*1,064

--43,822

-12,690

10,356,902

13,289,492

2,932,590

-12,690

*11,358

*24,048

1,515,752

49,258

459,527

37,407

*305

-*305

96,873

872,020

*666

---

Real estate rental net income

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

259,128

55,194

7,832

86,602

15,844

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

348,563

74,157

12,517

112,636

24,324

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

89,435

18,963

*4,685

26,033

*8,480

21,058

29,902

8,844

72,597

95,027

22,430

*867

Net income (less deficit)

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

266,643

*1,868

*574

220,178

3,338

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

409,741

*1,942

*606

327,818

31,668

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

143,098

*74

*32

107,640

28,330

7,705

7,723

32,980

39,984

7,003

----

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

24,785,445

566,920

1,126,807

8,526,466

1,085,594

1,501,428

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

33,255,123

1,244,173

1,431,595

11,108,171

1,588,675

3,204,061

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

8,469,678

677,253

304,787

2,581,706

503,081

1,702,633

11,978,231

14,678,448

2,700,217

-11,519

*12,530

*24,048

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

** Data deleted to avoid disclosure of information for specific corporations. Deleted data are included in the appropriate totals.

¹ Includes interest on Government obligations: State and local, which is not reflected in net income (less deficit) from a trade or business.

² Less than $500 per return.

NOTE: Detail may not add to total due to rounding.

S Corporation Returns, 1995

Table 2.--Returns With Net Income: Total Income and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group

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

Mining

Item

All

industries

(1)

Agriculture,

forestry,

and fishing

(2)

Total

Metal

mining

Coal

mining

(3)

(4)

(5)

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

1,301,174

38,274

8,422

*34

263

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

2,536,633

103,801

19,675

*38

746

Nonmetallic

minerals,

except fuels

(6)

(7)

6,428

15,025

1,697

3,867

Income from a trade or business:

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

1,934,015,111

28,071,725

10,327,303

*197,464

2,315,468

5,008,823

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

1,901,490,452

26,568,607

9,421,922

*153,110

2,263,043

4,285,429

Interest on Government obligations:

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

514,140

14,837

8,260

*65

-5,826

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

3,707,701

270,849

130,845

*23,444

84,560

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

28,302,819

1,217,432

766,276

*44,287

28,981

633,007

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

1,820,401,955

25,844,894

8,726,741

*141,355

2,161,897

3,906,869

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

1,246,414,915

13,712,722

4,516,757

*26,492

1,359,813

1,628,768

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

72,058,130

816,729

275,004

*3,973

*13,442

163,541

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

162,248,074

2,315,228

744,657

*21,405

171,868

361,965

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

10,827,111

545,020

168,150

*18,464

43,701

51,893

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

3,055,851

20,496

13,073

*416

*637

7,066

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

34,034,003

805,437

127,224

*8,637

*48,375

46,176

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

38,162,060

604,924

357,023

*8,505

70,572

200,970

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

17,819,165

596,476

237,095

*2,422

20,531

171,836

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

1,778,129

12,327

14,748

-*783

11,759

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

28,531,068

908,644

519,630

*8,840

99,219

240,559

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

169,179

*645

97,428

*1,999

*31,649

*2,905

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

17,744,016

86,662

12,026

*97

*632

5,417

Pension, profit-sharing, stock

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

6,709,619

57,886

39,958

-*9874

9,833

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

12,985,732

157,714

178,333

*6,417

111,139

36,977

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

112,155

*1,076

*383

-*8

*375

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

167,752,750

5,202,908

1,425,251

*33,688

179,654

966,828

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

113,613,156

2,226,831

1,600,563

*56,109

153,571

1,101,954

Net income (less deficit)

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

113,099,016

2,211,994

1,592,302

*56,044

153,571

1,096,127

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

114,993,692

2,285,840

1,631,137

*56,044

155,197

1,132,725

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

1,894,675

73,846

38,835

-*1,626

36,597

Portfolio income (less deficit)

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

17,273,675

350,313

536,262

*8,363

22,161

473,218

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

808,510

19,326

35,906

-*2,260

30,518

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

6,310,994

147,755

141,455

*3,861

11,579

105,677

Royalty income (less loss).......................................................................................................................................................

465,171

9,004

102,979

-*2,968

95,383

Net short-term capital gain

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

909,930

3,995

2,463

-*1,614

-976

Net long-term capital gain

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

8,643,760

169,005

251,869

*4,502

*2,937

241,890

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

135,310

*1,227

*1,588

-*803

*726

Real estate rental net income

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

3,708,007

57,219

8,950

*13

*1,190

7,109

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

3,943,113

60,503

12,831

*13

*1,272

*10,751

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

235,106

3,284

3,881

-*82

*3,642

Net income (less deficit)

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

877,922

11,296

2,202

-15

2,213

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

903,220

11,352

3,556

-15

*3,191

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

25,299

*56

*1,354

--*978

Total net income.......................................................................................................................................................

134,958,619

2,630,822

2,139,716

*64,420

176,937

1,578,667

Footnotes at end of table.

Oil

and

gas

extraction

2,805,549

2,720,340

*2,369

22,838

60,002

2,516,620

1,501,684

94,049

189,419

54,092

4,954

24,036

76,977

42,306

*2,206

171,011

60,874

5,880

20,251

23,800

-245,080

288,929

286,560

287,171

*612

32,520

*3,129

20,338

*4,628

*1,825

*2,541

*59

638

*795

*157

*-25

*351

*376

319,692

S Corporation Returns, 1995

Table 2.--Returns With Net Income: Total Income and Deductions, Portfolio Income, Rental Income,

and Total Net Income, by Major Industrial Group--Continued

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

Construction

Item

Total

(8)

General

building

contractors

and

operative

builders

(9)

Manufacturing

Heavy

construction

contractors

Special

trade

contractors

Total

Food and

kindred

products

Tobacco

manufactures

Textile

mill

products

(10)

(11)

(12)

(13)

(14)

(15)

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

144,300

52,919

4,993

86,388

85,655

3,585

1,736

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

235,455

83,050

11,076

141,329

210,041

14,565

Income from a trade or business:

4,728

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

196,891,925 89,087,586

21,349,072

86,455,267 365,388,839

47,431,659

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

195,511,358 88,587,669

21,033,027

85,890,662 361,956,197

47,044,425

Interest on Government obligations:

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

41,534

17,913

14,295

9,327

137,051

8,554

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

258,950

39,259

105,990

113,700

703,223

90,872

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

1,080,083

442,745

195,760

441,579

2,592,367

287,808

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

186,017,658 85,273,020

20,044,103

80,700,535 339,211,753

44,994,492

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

147,224,836 73,978,944

15,695,031

57,550,861 252,607,189

35,642,873

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

6,436,726

2,028,976

492,468

3,915,281

10,843,651

807,140

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

8,747,807

2,422,622

788,935

5,536,250

19,820,556

2,004,891

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

856,804

184,508

208,336

463,960

1,517,262

215,292

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

214,302

43,826

14,657

155,819

603,327

49,061

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

1,490,023

384,942

175,949

929,132

3,005,445

260,327

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

3,790,115

1,031,420

364,432

2,394,264

7,112,331

761,689

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

1,095,419

453,804

154,994

486,621

3,563,446

373,905

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

56,836

6,671

1,142

49,023

288,730

37,595

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

2,841,260

542,955

917,429

1,380,876

7,684,333

907,565

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

10,926

*1,732

9,012

*181

33,629

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

497,590

189,488

18,147

289,955

2,845,863

742,626

Pension, profit-sharing, stock

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

659,819

191,621

79,362

388,835

1,661,901

149,299

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

1,354,958

298,253

155,791

900,913

3,668,136

366,940

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

5,709

1,697

*1,080

2,931

15,868

4,086

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

10,734,527

3,511,559

967,336

6,255,632

23,940,088

2,671,202

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

10,874,268

3,814,567

1,304,968

5,754,733

26,177,086

2,437,168

Net income (less deficit)

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

10,832,733

3,796,654

1,290,673

5,745,406

26,040,035

2,428,613

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

10,934,268

3,851,172

1,300,046

5,783,050

26,200,595

2,431,085

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

101,535

54,518

9,372

37,644

160,560

*2,471

Portfolio income (less deficit)

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

761,111

305,767

174,655

280,689

3,517,517

513,710

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

46,197

17,474

9,706

19,017

116,865

11,010

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

530,407

244,434

111,870

174,103

977,681

117,331

Royalty income (less loss).......................................................................................................................................................

*3,192

*3,143

93,734

*17,642

Net short-term capital gain

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

19,752

8,124

3,791

7,838

18,412

2,915

Net long-term capital gain

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

159,041

33,436

46,049

79,556

2,301,045

362,657

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

2,522

*2,251

*97

*174

9,779

*2,155

Real estate rental net income

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

52,314

49,759

4,788

-2,234

82,327

1,984

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

69,635

58,201

4,856

6,577

97,376

4,450

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

17,321

8,442

8,811

15,049

2,466

Net income (less deficit)

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

25,408

3,957

6,893

14,559

42,183

*94

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

25,819

3,958

6,894

*14,967

43,845

*822

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

*410

*408

1,663

*727

Total net income.......................................................................................................................................................

11,671,566

4,156,137

1,477,009

6,038,420

29,682,061

2,944,402

13,762,618

13,689,297

4,664

8,956

59,701

13,007,558

10,480,840

357,170

446,550

59,213

23,982

68,773

239,543

151,280

5,645

338,993

-25,455

39,548

160,678

*1,314

608,574

755,060

750,396

758,817

*8,421

53,809

7,151

46,836

595

-774

*6,061

*6,100

*39

*270

-810,537

Footnotes at end of table.

S Corporation Returns, 1995

Table 2.--Returns With Net Income: Total Income an

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