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SoleProprietorshipReturns,1998
by Michael Parisi and Therese Cruciano
rofits for nonfarm sole proprietorships increased 8.4 percent to $202.3 billion for 1998,
with all of the principal sole proprietorship
industrial divisions reporting increased profits. The
largest percentage increase in profits for a major
industrial division was 25.0 percent for the finance,
insurance, and real estate division. Within this
division, profits for the finance group increased 77.9
percent, and profits for the real estate group increased 28.1 percent. The next largest growth in
profits for a major industrial division was 10.0 percent
for the construction division. Sole proprietorships in
the services division (the largest industrial division
with 55.1% of total profits) showed a 5.3-percent
increase in profits.
In addition, both receipts and deductions showed
healthy growth during 1998. Total business receipts
increased 5.5 percent to $918.3 billion, while total
business deductions grew 4.7 percent to $716.2
billion. The growth rates of both receipts and deductions exceeded their 1997 levels of 3.2 percent and
2.6 percent, respectively. The finance, insurance,
and real estate division reported the largest percentage increases in receipts (33.6 percent) and deductions (37.6 percent) for 1998. Within this division, the
finance group reported a 72.2-percent increase in
receipts and a 71.6-percent increase in deductions.
When inflation is taken into account, 1998 total nonfarm sole proprietorship profits increased 7.4 percent,
receipts increased 4.5 percent, and deductions increased 3.7 percent.
Tax Year 1998 was the first year sole proprietorships and other types of business tax returns used the
new North American Industry Classification System
(NAICS) codes to describe their primary business
activity. To maintain comparability of data for 1997
and 1998, the NAICS codes were converted to the
Standard Industrial Classification (SIC) codes used
for prior years. Because of these conversions, there
may be some discrepancies in comparing data between 1997 and 1998 for certain industrial groups.
For example, a comparison of personal services
between the 2 years and business services between
the 2 years would be misleading. However, when
P
8
Michael Parisi and Therese Cruciano are economists
with the Individual Returns Analysis Section. This article
was prepared under the direction of Jeff Hartzok, Chief.
8
combined into business and personal services, a valid
comparison can be made. Also, because of the vast
changes in the coding scheme, some sole proprietors
may have classified their businesses under a completely different industrial group. Therefore, some of
the differences between 1997 and 1998 could be
attributed simply to the change in the coding system.
The industrial divisions based on the SIC codes, used
for comparisons in this article with prior years, are
reported in Tables 1 and 2. The industrial divisions
based on the NAICS codes, presented in Tables 3
and 4 of this article, will be the basis for future sole
proprietorship statistics and articles.
ReturnsandReceipts
The number of individual income tax returns reporting
nonfarm sole proprietorship activity for 1998 increased 1.4 percent to more than 17.4 million (Figure
A) [1]. Of the two largest industrial divisions, the
number of sole proprietorship returns increased 1.4
percent in the services division and decreased 5.0
percent within the wholesale and retail trade division.
Total business receipts (the sum of “income from
sales and operations” and “other business income”)
for all nonfarm sole proprietorship industries increased 5.5 percent, from $870.4 billion to $918.3
billion [2]. All of the principal sole proprietorship
industrial divisions reported growth in business
receipts for 1998, except wholesale and retail trade,
which decreased 1.9 percent. The finance, insurance, and real estate division showed the largest
growth in receipts, an increase of $25.4 billion or
33.6 percent. The construction division receipts
increased 8.9 percent, the second largest percentage
increase in receipts for 1998.
As shown in Figure B, total receipts increased
4.5 percent (in constant dollars), the largest percentage increase since 1988.
Deductions
Total business deductions (“cost of sales and operations” plus business expenses, including expenses for
a home office) in current dollars increased 4.7
percent from $683.9 billion for 1997 to $716.2 billion
for 1998 (Figure A)[4,5]. All of the sole proprietorship principal divisions, except wholesale and retail
trade, showed increased business deductions for
1998. Sole proprietorships in the finance, insurance,
and real estate division showed the largest percent-
Sole Proprietorship Returns, 1998
FigureA
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Groups,
Tax Years 1997 and 1998
[Number of returns is in thousands--money amounts are in billions of dollars]
Number of returns
Industrial group
Total business receipts
Percentage
Total business deductions
Percentage
Percentage
1997
1998
increase
1997
1998
increase
1997
1998
increase
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
All nonfarm industries...........................................................................................................................
17,176.5
17,408.8
1.4
870.4
918.3
5.5
683.9
716.2
4.7
142.4
8.9
107.3
116.6
8.7
97.6
1.0
76.7
77.0
0.3
Transportation and public utilities...........................................................................................................................
781.0
890.9
14.1
45.7
49.0
7.2
38.7
41.7
7.7
Wholesale and retail trade...........................................................................................................................
3,132.6
2,975.4
-5.0
254.6
249.8
-1.9
237.4
232.0
-2.3
Construction...........................................................................................................................
2,196.8
2,228.6
1.4
130.8
Special trade contractors...........................................................................................................................
1,908.8
1,789.7
-6.2
96.6
Wholesale trade...........................................................................................................................
348.2
376.6
8.2
39.4
40.2
2.1
34.4
35.1
1.8
Retail trade...........................................................................................................................
2,784.4
2,598.8
-6.7
215.3
209.6
-2.7
203.0
197.0
-3.0
Food stores...........................................................................................................................
131.6
107.8
-18.1
34.6
27.8
-19.6
33.3
26.4
-20.6
8.9
Automotive dealers and service
54.0
8.5
48.1
52.4
Eating and drinking places...........................................................................................................................
252.8
246.4
-2.5
28.8
28.6
stations...........................................................................................................................
168.5
166.5
-1.2
49.7
-0.6
26.0
26.8
3.1
Finance, insurance, and real estate...........................................................................................................................
1,314.0
1,409.9
7.3
75.6
101.0
33.6
51.3
70.6
37.6
71.6
Finance...........................................................................................................................
182.7
211.2
15.6
23.2
39.9
72.2
21.0
36.1
Insurance...........................................................................................................................
373.5
387.8
3.8
19.8
21.4
8.1
11.2
12.2
9.1
Real estate...........................................................................................................................
757.8
810.9
7.0
32.7
39.7
21.6
19.1
22.3
16.9
Services...........................................................................................................................
8,408.0
8,524.3
1.4
309.4
3.5
193.3
198.1
2.5
Business and personal services...........................................................................................................................
3,481.7
3,178.6
-8.7
84.8
87.5
299.0
3.2
61.2
60.8
-0.7
-0.8
Medical services...........................................................................................................................
804.5
812.1
0.9
72.7
72.7
(¹)
40.4
40.1
Legal services...........................................................................................................................
294.4
318.0
8.0
25.7
27.3
6.3
13.6
14.5
6.8
All other industries...........................................................................................................................
1,344.1
1,379.8
2.7
64.7
66.8
3.2
55.8
57.1
2.4
¹ Less than 0.05 percent.
NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.
age growth in deductions (37.6 percent), as well as
the largest dollar increase in deductions ($19.3
billion). The construction division reported an increase of 8.7 percent, representing the second largest
growth in deductions. When allowing for inflation,
business deductions increased 3.7 percent for 1998,
the largest percentage increase since 1988 (Figure B).
Representing 47.6 percent of total 1998 business
deductions, the cost of sales and operations was
$341.1 billion (Figure C), a 6.8-percent increase from
the 1997 level. Total business “expenses” (total
business deductions minus the cost of sales and
operations) were $370.9 billion for 1998, a 1.8-percent increase from the 1997 amount. Figure D
graphically presents the main components of total
business expenses. The largest component, salaries
and wages, accounted for 15.7 percent of the total.
For 1998, salaries and wages totaled $58.9 billion, 1.9
percent more than for 1997 (Figure C). The next
largest components were car and truck expenses
(10.6 percent), rent on business property, machinery,
and equipment (8.1 percent), and depreciation (7.8
percent). For 1998, these items were $39.7 billion,
$30.5 billion, and $29.1 billion, respectively. Car and
truck expenses showed a 2.6-percent increase from
1997; rent on business property, machinery, and
equipment increased 3.9 percent; and depreciation
increased 1.8 percent.
The depreciation deduction first began to decline
for 1986, following the enactment of the Tax Reform
Act of 1986 (TRA86). TRA86 reduced the allowable depreciation deduction by lengthening the cost
recovery periods and changing the depreciation
methods for property placed in service after July 31,
1986. In constant dollars, the depreciation deduction
dropped 1.6 percent for 1988 and continued to decline through 1992 (Figure E). Beginning with 1993,
the trend reversed, and constant dollar depreciation
9
Sole Proprietorship Returns, 1998
FigureB
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-1998
[Money amounts are in billions of dollars]
Total business receipts
Total business deductions
Constant dollars
Tax year
Current
2
1
Net income less deficit
Constant dollars
2
Constant dollars
2
Percentage
Current
Percentage
Current
dollars
Amount
increase
dollars
Amount
increase
dollars
Amount
Percentage
increase
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
1988..................................................................................................
672.0
780.5
6.2
545.7
633.8
4.2
126.3
146.7
15.5
1989..................................................................................................
692.8
772.4
-1.0
560.2
624.5
-1.5
132.7
147.9
0.8
1990..................................................................................................
730.6
780.6
1.1
589.2
629.5
0.8
141.4
151.1
2.2
1991..................................................................................................
712.6
732.4
-6.2
571.2
587.1
-6.7
141.5
145.4
-3.8
1992..................................................................................................
737.1
737.1
0.6
583.1
583.1
-0.7
154.0
154.0
5.9
1993..................................................................................................
757.2
738.0
0.1
600.8
585.6
0.4
156.5
152.5
-1.0
1994..................................................................................................
790.6
752.3
1.9
623.8
593.6
1.4
166.8
158.7
4.1
1995..................................................................................................
807.4
751.0
-0.2
638.1
593.6
(³)
169.3
157.5
-0.8
1996..................................................................................................
843.2
770.1
2.5
666.5
608.6
2.5
176.8
161.4
2.5
1997..................................................................................................
870.4
779.9
1.3
683.9
612.8
0.7
186.6
167.2
3.6
1998..................................................................................................
918.3
814.8
4.5
716.2
635.5
3.7
202.3
179.5
7.4
¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses
(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income
or deficit.
² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis in the Survey of Current Business , August 1999. The deflator represents the annual average of current-weighted prices, based on 1992 = 100.
³ Less than 0.05 percent.
NOTE: Percentage increases were calculated after rounding.
10
10
increased every year through 1998, except for 1995,
when it decreased 2.0 percent to $24.4 billion [6].
The 1998 depreciation deduction accounted for 4.1
percent of total business deductions. Depreciation
deductions as a percentage of total business deductions (4.1 percent) remained well below the 1985
(pre-TRA86) level of 5.7 percent.
Beginning with Tax Year 1992, certain smaller
businesses could elect not to itemize depreciation and
other business deductions by filing Schedule C-EZ,
Net Profit From Business, a simplified version of
Schedule C, Profit or Loss From Business. (Schedule C and Schedule C-EZ are the source of sole
proprietorship statistics.) Taxpayers could use
Schedule C-EZ if they: had business expenses of
$2,500 or less; used the cash accounting method; had
no inventories; did not report a deficit from the business; had only one business as a sole proprietor; had
no employees; were not required to file Form 4562,
Depreciation and Amortization, for the business;
claimed no deduction for home business expenses;
and had no prior-year disallowed passive activity
losses from the business. Since taxpayers using
Schedule C-EZ did not itemize business deductions,
the detailed deductions in Tables 2 and 4 are slightly
understated and will not add to the totals.
Figure F presents the numbers and percentages
of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial division. More than 2.4 million
taxpayers filed Schedule C-EZ for Tax Year 1998.
Of the Schedule C-EZ returns filed for 1998, taxpayers in the services industries filed almost 1.5 million
returns, or 61.1 percent. For 1998, business receipts
from Schedule C-EZ filers totaled $12.0 billion, or 1.3
percent of total business receipts reported. However, the business deductions reported on Schedule
C-EZ returns accounted for only 0.2 percent of total
business deductions for all industries. Even in the
services division with its higher concentration of
Schedule C-EZ filers, deductions reported on Schedule C-EZ accounted for only 0.4 percent of total
business deductions.
ProfitsandLosses
All of the principal industrial divisions reported
increased sole proprietorship profits (net income less
Sole Proprietorship Returns, 1998
FigureC
profits for 1998, increasing 25.0 percent to $30.3
billion. Within this division, profits for the finance
Components of Nonfarm Sole Proprietorship
group rose 77.9 percent, and profits for the real
Business Deductions, Tax Years 1997 and 1998
estate group increased 28.1 percent. The construc[Money amounts are in millions of dollars]
tion division reported the next largest percentage
change in profits of 10.0 percent. Profits for the
Business deductions
1997
1998
Percentage
services division, the largest of the industrial divisions,
increase
rose 5.3 percent to $111.4 billion.
(1)
(2)
(3)
In constant dollars, total profits increased 7.4
Business deductions, total ¹..........................................................................................................
683,872.4
716,157.4
4.7
percent for 1998 (Figure B), more than double the
Cost of sales and operations..........................................................................................................
319,557.4
341,132.8
6.8
Inventory, beginning of year..........................................................................................................
32,058.2
30,801.7
-3.9
3.6-percent increase from the previous year. For the
Cost of labor..........................................................................................................
24,940.8
27,447.8
10.1
first time since 1990, sole proprietorships had 3 conPurchases..........................................................................................................
224,259.0
231,405.0
3.2
secutive years of constant dollar growth in profits.
Materials and supplies..........................................................................................................
37,552.1
42,161.8
12.3
Prior to 1997, profits increased every other year
Other costs..........................................................................................................
33,970.0
42,198.1
24.2
starting with 1990. Figure E presents net income and
Inventory, end of year..........................................................................................................
33,222.7
32,881.5
-1.0
Business expenses, total..........................................................................................................
364,315.0
370,886.2
1.8
deficit separately between 1988 and 1998, in current
Advertising expenses..........................................................................................................
8,977.7
9,414.0
4.9
and constant dollars. For 1998, net income (in conBad debts from sales or services..........................................................................................................
1,100.7
925.9
-15.9
stant dollars) increased 6.4 percent, and deficit (in
Car and truck expenses..........................................................................................................
38,727.7
39,715.7
2.6
constant dollars) declined 0.5 percent, the first deCommissions..........................................................................................................
10,985.8
10,722.1
-2.4
Depletion..........................................................................................................
565.3
380.1
-32.8
cline since 1992.
Depreciation..........................................................................................................
28,625.3
29,135.6
1.8
IndustryTrends
Employee benefit programs..........................................................................................................
1,417.0
1,560.4
10.1
Insurance..........................................................................................................
13,299.5
12,938.4
-2.7
Using receipts as a measure of business size, Figures
A and H show that services continued to be the
Meals and entertainment deducted..........................................................................................................
3,570.5
3,796.4
6.3
largest sole proprietorship industrial division for 1998
Mortgage interest..........................................................................................................
4,533.7
4,882.2
7.7
Other interest paid on business
with 33.7 percent of all business receipts. Total
indebtedness..........................................................................................................
6,350.0
6,277.2
-1.1
receipts for this division, at $309.4 billion, were 3.5
Office expenses..........................................................................................................
9,209.7
9,611.6
4.4
percent more than the $299.0 billion reported for
Pension and profit-sharing plans..........................................................................................................
728.3
756.9
3.9
1997. Figures G and I show that services division
Rent on machinery and equipment..........................................................................................................
7,358.2
7,545.4
2.5
profits grew 5.3 percent to $111.4 billion, accounting
Rent on other business property..........................................................................................................
21,967.7
22,914.6
4.3
Repairs..........................................................................................................
10,897.4
11,349.8
4.2
for 55.1 percent of sole proprietorship profits for
Salaries and wages..........................................................................................................
57,746.2
58,864.8
1.9
1998. Medical services had the largest profits in the
Supplies..........................................................................................................
19,546.5
19,725.4
0.9
division, reporting almost 30 percent of total services
Taxes paid..........................................................................................................
13,774.1
13,730.7
-0.3
profits. Small declines in both receipts and deducTravel..........................................................................................................
7,452.6
7,624.3
2.3
Utilities..........................................................................................................
18,575.1
18,431.4
-0.8
tions for the service division group led to a 1.0Home office business deductions..........................................................................................................
3,817.5
4,138.4
8.4
percent increase in profits for 1998. Other major
Other business deductions..........................................................................................................
67,336.5
72,683.5
7.9
groups showed faster growth. The largest increases
¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for
in receipts and deductions (6.3 percent and 6.8
business deductions on Schedule C-EZ, the totals shown in the statistics exceed the sum
percent, respectively) were for the legal services
of the detailed deductions; the detailed deductions are, therefore, slightly understated.
group, producing a 5.7-percent increase in profits.
NOTE: Percentage increases were calculated after rounding.
The business and personal services group reported an
increase in receipts and a decline in deductions. The
net effect of these changes was increased profits
deficit) for 1998 [7]. Figure B presents total profits
(13.6 percent) to a level of $26.8 billion. Profits from
for all industries (in both current and constant dollars)
business and personal services sole proprietorships
since 1988, while Figure G presents profits by
comprised 24.1 percent of total profits for the serindustrial group for 1997 and 1998 [8]. Total profits
vices division.
increased 8.4 percent, from $186.6 billion for 1997 to
The second largest sole proprietorship industrial
$202.3 billion for 1998. The finance, insurance, and
division with 27.2 percent of total receipts was
real estate division reported the largest change in
Legal and professional services..........................................................................................................
6,551.6
6,669.0
1.8
11
Sole Proprietorship Returns, 1998
FigureD
Nonfarm Sole Proprietorship Total Business Expenses for Tax Year 1998 ¹
Type of business
expense
Commissions
2.9
Repairs
3.0
Insurance
3.5
Taxes paid
3.7
Utilities
4.9
Supplies
5.3
Depreciation
7.8
Rent on business property, machinery, and equipment
8.1
10.6
Car and truck expenses
15.7
Salaries and wages
Other business deductions ²
34.7
0
5
10
15
20
25
30
35
40
Percent of total
12
¹ Total business expenses equal all business deductions minus cost of sales and operations.
² Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional
services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office deductions. Other business
deductions also include all Schedule C-EZ deductions ($1.2 billion).
NOTE: Percents are based on an estimated total business expense of $375.0 billion.
FigureE
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-1998
[Money amounts are in billions of dollars]
Current dollars
Constant dollars
1
Percentage increase in constant dollars
1
Tax year
Net income
Deficit
(1)
(2)
Depreciation
Net income
Deficit
Depreciation
Net income
Deficit
Depreciation
(3)
(4)
(5)
(6)
(7)
(8)
(9)
1988.......................................................................................
145.5
19.2
1989.......................................................................................
152.4
19.7
26.1
24.5
169.0
169.9
22.3
21.9
30.3
27.3
13.4
0.5
1.4
-1.8
-1.6
-9.9
1990.......................................................................................
161.7
20.2
23.7
172.7
21.6
25.4
1.6
-1.4
-7.0
1991.......................................................................................
162.4
20.9
1992.......................................................................................
173.5
19.5
23.1
23.3
166.9
173.5
21.5
19.5
23.7
23.3
-3.4
4.0
-0.5
-9.3
-6.7
-1.7
1993.......................................................................................
177.0
20.5
1994.......................................................................................
187.8
21.0
25.0
26.2
172.5
178.7
20.0
20.0
24.3
24.9
-0.6
3.6
2.6
--
4.3
2.5
1995.......................................................................................
191.7
22.5
1996.......................................................................................
200.1
23.4
26.2
27.4
178.4
182.8
20.9
21.3
24.4
25.0
-0.2
2.5
4.5
1.9
-2.0
2.5
1997.......................................................................................
210.5
23.8
1998.......................................................................................
226.2
23.9
28.6
29.1
188.6
200.7
21.3
21.2
25.6
25.9
3.2
6.4
--0.5
2.4
1.2
¹ Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis in the Survey of Current Business, August 1999. The deflator represents the annual average of current-weighted prices, based on 1992 = 100.
12
NOTE: Percentage increases were calculated after rounding.
Sole Proprietorship Returns, 1998
FigureF
Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Industry, Tax Year 1998
[Money amounts are in millions of dollars]
Number of returns
Industrial division
Total
(1)
Total business receipts
With
Percentage
Schedule
of
C-EZ
total
(2)
(3)
Total
(4)
Total business deductions
On
Percentage
Schedule
of
C-EZ
total
(5)
(6)
On
Total
Percentage
Schedule
of
C-EZ
total
(7)
(8)
(9)
All nonfarm industries..................................................................................................
17,408,809
2,413,633
13.9
918,268.2
12,020.9
1.3
716,157.4
1,242.3
0.2
Construction..................................................................................................
2,228,593
300,278
13.5
1,632.1
1.1
116,613.8
142.7
0.1
142,416.5
Transportation and
48,978.6
440.5
0.9
41,705.0
65.1
0.2
Wholesale and retail trade..................................................................................................
2,975,385
221,187
7.4
249,758.6
public utilities..................................................................................................
890,856
97,898
11.0
911.2
0.4
232,009.1
133.5
0.1
0.1
Finance, insurance,
100,957.6
691.2
0.7
70,611.4
57.1
Services..................................................................................................
8,524,297
1,474,248
17.3
and real estate..................................................................................................
1,409,882
111,114
7.9
309,352.0
7,236.9
2.3
198,102.1
729.8
0.4
All other industries..................................................................................................
1,379,792
208,907
15.1
66,804.7
1,109.1
1.7
57,116.1
114.0
0.2
NOTE: Detail may not add to totals because of rounding.
wholesale and retail trade. A 1.9-percent decrease
in receipts for this division, accompanied by a slightly
larger 2.3-percent decrease in deductions, led to
Nonfarm Sole Proprietorship Profits, by Industry,
moderate growth in profits (3.5 percent increase).
Within this division, the wholesale trade group
Tax Years 1997 and 1998
[Money amounts are in billions of dollars]
showed a 2.1-percent increase in receipts and a 1.8percent increase in deductions, leading to a 4.4Net income less deficit
percent increase in profits. The other component of
Industrial group
Percentage
1997
1998
increase
this division, the retail trade group, reported declines
(1)
(2)
(3)
in both receipts and deductions (2.7 percent and 3.0
percent, respectively), and showed a 3.1-percent
All nonfarm industries.........................................................................................................
186.6
202.3
8.4
Construction.........................................................................................................
23.5
25.8
10.0
increase in profits. Sole proprietorships in the retail
Special trade contractors.........................................................................................................
19.9
20.6
3.6
trade group accounted for 83.9 percent of the reTransportation and public utilities.........................................................................................................
6.9
7.3
4.6
ceipts and 71.1 percent of the profits for the division.
Wholesale and retail trade.........................................................................................................
17.2
17.8
3.5
The third largest industrial division was construcWholesale trade.........................................................................................................
4.9
5.1
4.4
tion,
with receipts totaling $142.4 billion. This amount
Retail trade.........................................................................................................
12.3
12.7
3.1
Food stores.........................................................................................................
1.3
1.4
5.0
was 15.5 percent of all sole proprietorship receipts
Automotive dealers and
for 1998, representing an 8.9-percent increase from
service stations.........................................................................................................
1.6
1.6
-3.1
the 1997 amount. Deductions likewise increased by
Eating and drinking places.........................................................................................................
1.5
1.8
19.0
8.7 percent. Construction profits increased 10.0
Finance, insurance, and real estate.........................................................................................................
24.3
30.3
25.0
percent for 1998, totaling $25.8 billion. Special trade
Finance.........................................................................................................
2.1
3.8
77.9
contractors reported the largest portion (79.7 perInsurance.........................................................................................................
8.6
9.1
6.8
Real estate.........................................................................................................
13.6
17.4
28.1
cent) of these profits. As a group, they showed
Services.........................................................................................................
105.8
111.4
5.3
increases of 1.0 percent for receipts and 3.6 percent
Business and personal services.........................................................................................................
23.6
26.8
13.6
for profits.
Medical services.........................................................................................................
32.3
32.6
1.0
The fourth largest division was finance, insurLegal services.........................................................................................................
12.1
12.8
5.7
ance, and real estate, which accounted for 11.0
All other industries.........................................................................................................
9.0
9.7
7.8
NOTE: Detail may not add to totals because of rounding. Percentage increases
percent of sole proprietorship receipts for 1998.
were calculated before rounding.
Receipts increased 33.6 percent to $101.0 billion, and
deductions increased 37.6 percent to $70.6 billion,
FigureG
13
Sole Proprietorship Returns, 1998
FigureH
Nonfarm Sole Proprietorship Total Business Receipts, Tax Year 1998
All other industries
7.3%
Construction
15.5%
Transportation and
public utilities
5.3%
Services
33.7%
$918.3 billion
Wholesale and
retail trade
27.2%
Finance, insurance,
and real estate
11.0%
14
FigureI
Nonfarm Sole Proprietorship Total Business Profits, Tax Year 1998
All other industries
4.8%
Construction
12.8%
Transportation and
public utilities
3.6%
Wholesale and
retail trade
8.8%
$202.3 billion
Services
55.1%
14
Finance, insurance,
and real estate
15.0%
Sole Proprietorship Returns, 1998
yielding a 25.0-percent growth in profits. This
growth in profits was the largest percentage gain in
profits of all the principal industrial divisions. The
finance group showed substantial increases in both
receipts (72.2 percent) and deductions (71.6 percent). These increases were due, in part, to the large
growth of activity in the stock market for 1998. The
real estate group reported a 21.6-percent increase in
receipts and a 16.9-percent increase in deductions,
resulting in a 28.1-percent growth in profits.
IndustrialDivisionsUnderNAICS
Figure J shows the number of returns for the industrial sectors under both the NAICS and SIC
classification systems. The industries selected
represent the major industrial sectors under NAICS.
In seven of the major industrial sectors, there was no
difference in the number of returns between the
NAICS and SIC systems, due to identical breakdowns in each system. These seven sectors are:
mining; utilities; finance and insurance; educational
services; accomodation, food services, and drinking
places; religious, grantmaking, civic, and similar
organizations; and nature of business not allocable.
The largest of the sectors with the identical number
of returns under both systems is the finance and
insurance sector with almost 600,000 returns. The
number of returns for all industrial sectors under
NAICS are within 11.3 percent of the number of
returns under SIC except for agriculture, forestry,
hunting, and fishing (47.4 percent) and other services
(64.5 percent). The reason for the large difference
in the number of returns in the agriculture, forestry,
hunting, and fishing sector is due to veterinarian
services being included in the agriculture, forestry,
hunting, and fishing group under SIC but being
FigureJ
Nonfarm Sole Proprietorship Returns for Major Industries, by Classification System
Percentage
Number of returns
Industrial group
Standard
North American
Industrial
Industry Classification
between
Classification (SIC)
System (NAICS)
NAICS and SIC
(2)
(3)
(1)
All nonfarm industries.............................................................................................................................
17,408,809
difference
17,408,809
0.0
Agricultural, forestry, hunting, and fishing.............................................................................................................................
549,684
288,922
-47.4
Mining.............................................................................................................................119,376
119,376
Utilities............................................................................................................................. 7,147
7,147
0.0
Construction.............................................................................................................................
2,228,593
2,243,044
0.6
Manufacturing.............................................................................................................................
362,607
0.0
361,254
-0.4
2,726,116
-8.4
Transportation and warehousing.............................................................................................................................
890,856
790,262
-11.3
Information.............................................................................................................................n.a.
212,455
(X)
Finance and insurance.............................................................................................................................
598,959
598,959
0.0
Real estate and rental leasing.............................................................................................................................
810,923
871,614
Wholesale and retail trade.............................................................................................................................
2,975,385
Professional, scientific, and technical services.............................................................................................................................
n.a.
2,431,374
7.5
(X)
Administrative and support and waste management and
remediation services.............................................................................................................................
n.a.
Educational services.............................................................................................................................
292,813
1,251,237
(X)
292,813
0.0
Health care and social assistance.............................................................................................................................
1,430,512
1,506,387
5.3
Arts, entertainment, and recreation.............................................................................................................................
1,051,816
986,769
-6.2
Accommodation, food services, and drinking places.............................................................................................................................
302,777
302,777
Other services.............................................................................................................................
5,226,297
1,857,237
0.0
-64.5
Religious, grantmaking, civic professional, and similar organizations.............................................................................................................................
212,939
212,939
0.0
Nature of business not allocable.............................................................................................................................
348,125
348,125
0.0
( X ) Percentages not computed.
n.a.--not applicable.
NOTE: Detail may not add to totals because of rounding.
15
Sole Proprietorship Returns, 1998
classified with professional, scientific, and technical
services under NAICS. Under NAICS, professional,
scientific, and technical services as well as administrative and support and waste management and
remediation services are separate sectors, while
under SIC, they were classified with the other
services group. This explains the large difference in
the number of returns in other services between the
two classification systems. If, under NAICS, these
two sectors were combined with other services, there
would be 5.5 million returns, only 5.2 percent less
returns than under SIC.
Summary
16
Profits for nonfarm sole proprietorships for 1998
grew 8.4 percent to a level of $202.3 billion. Receipts and deductions increased 5.5 percent and 4.7
percent, respectively. All of the principal industrial
divisions showed increased profits for 1998. The
finance, insurance, and real estate division reported
the largest percentage growth in profits at 25.0
percent. The services division remained the largest
sole proprietorship industrial division, accounting for
33.7 percent of receipts and 55.1 percent of profits.
Services division receipts grew 3.5 percent to $309.4
billion, while profits grew 5.3 percent to $111.4
billion. In constant dollars, total nonfarm sole proprietorship profits increased 7.4 percent.
DataSourcesandLimitations
The 1998 sole proprietorship estimates are based on
a stratified probability sample of unaudited Individual
Income Tax Returns, Forms 1040 and 1040PC
(including electronically-filed returns), processed by
the Internal Revenue Service during Calendar Year
1999. Returns in the sample were stratified based
on: (1) the presence or absence of Schedule C,
Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net Profit From Business,
and Schedule F, Farm Income and Expenses; (2)
the larger of positive income or negative income (i.e.,
“adjusted gross income” before statutory adjustments); and (3) tax year. The returns were selected
at rates that ranged from 0.05 percent to 100 percent. The 1998 nonfarm sole proprietorship data are
based on a sample of 47,407 returns and a population
of 17,589,368 returns [9]. The corresponding sample
and population for the 1997 data were 38,883 and
17,181,683 returns, respectively.
Since the data presented in this article are estimates based on a sample of returns filed, they are
subject to sampling error. To properly use the statistical data estimates provided, the magnitude of the
potential sampling error must be known; coefficients
of variation (CV’s) are used to measure that magnitude. Figure K presents estimated coefficients of
variation for the number of returns and money
amounts for selected items and industrial divisions.
Generally, the smaller the coefficient of variation, the
more reliable the estimate is judged to be. The Appendix to this issue of the Bulletin discusses the
reliability of estimates based on samples, and the use
of coefficients of variation for evaluating the precision of estimates based on samples.
FigureK
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial Divisions,
Tax Year 1998
[Coefficients of variation are in percentages]
Coefficients of variation
Industrial division
Total business
receipts
¹
(1)
16
Total business
deductions
Depreciation
Net income
Deficit
(2)
(3)
(4)
(5)
0.78
0.69
All nonfarm industries.................................................................................................
1.14
2.28
1.53
Construction.................................................................................................
2.89
3.60
8.45
4.40
Transportation and public utilities.................................................................................................
4.18
3.71
5.57
10.21
5.86
Wholesale and retail trade.................................................................................................
1.96
2.03
3.55
4.61
3.63
Finance, insurance, and real estate.................................................................................................
2.89
2.86
4.22
7.41
5.13
Services.................................................................................................
1.37
1.70
3.98
2.48
¹ Positive only.
2.72
1.30
Sole Proprietorship Returns, 1998
NotesandReferences
[1] For 1998, the 17,408,809 nonfarm sole proprietorship returns accounted for 19,376,799
nonfarm businesses. Actually, more businesses
may have existed than those counted; processing for tax administration purposes allows only
three businesses (reported on separate Schedules C) per return, and combines any remaining
businesses on one (or more) of the three Schedules C. Statistics of Income--1981, Sole
Proprietorship Returns contains a more
detailed explanation of the relationship between
proprietors and proprietorships.
For purposes of the statistics, if a proprietor
owned more than one business, the statistics for
each business were combined with those of the
proprietor’s dominant business and included in
the industrial group for that business activity.
When this occurred, the sum of net incomes (for
businesses reporting a positive net income)
reduced by the sum of net deficits (for businesses reporting a deficit) yielded the profits for
a specific industrial group.
For 1998, data were classified by industry using
the new North American Industry Classification System (NAICS) and converted to the
equivalent Standard Industrial Classification
codes. Data for tax years prior to 1998 were
classified by industry using the Standard
Industrial Classification Manual, 1987,
issued by the U.S. Office of Management and
Budget. These classifications were applied on a
“per business” (rather than on a “per establishment”) basis for Statistics of Income by
combining various industry groups, although
businesses were further combined as described
above. While the wording of the industry titles
used for the sole proprietorship statistics diverge
somewhat from those appearing in NAICS and
the Standard Industrial Classification
Manual, the definitions are consistent.
[2] Statistics for “business receipts, total” in Tables
2 and 4 represent the total receipts of the
business, mainly gross receipts from sales and
operations. Business receipts also include
miscellaneous business receipts, such as incidental sales of scrap, shown separately in the
statistics as “other business income.” However,
business receipts exclude incidental investment
income received through the business. Examples of such incidental investment income are
interest, dividends, income or loss from rents or
royalties, and capital or ordinary gain or loss
from the sale of investment and business
property. Sole proprietors report incidental
investment income, in combination with nonbusiness-related investment income, as part of their
total income on their Individual Income Tax
Returns.
[3] Based on the overall implicit price deflator for
Gross Domestic Product (GDP). See U.S.
Department of Commerce, Bureau of Economic
Analysis, Survey of Current Business, August
1999. Indices used for this article were:
Year
Indices
1988 86.1
1989 89.7
1990 93.6
1991 97.3
1992 100.0
1993 102.6
Year
Indices
1994
1995
1996
1997
1998
105.1
107.5
109.5
111.6
112.7
[4] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from
business income or loss, which is reported on the
attached Schedule C, Profit or Loss From
Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid
to owners qualify as personal income, not as a
business expense, and are, therefore, part of the
owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made
through the business as personal expenses on
Schedule A, Itemized Deductions. However,
the owner of a sole proprietorship may choose
to deduct any foreign taxes paid as a business
expense, unless the owner elects to claim these
taxes as a credit against U.S. income tax.
[5] Business deductions include the home office
business deduction. After 1990, home office
expenses were calculated separately on Form
8829, Expenses for Business Use of Your
Home, and the deductible portion brought
forward to Schedule C. In some cases, these
17
Sole Proprietorship Returns, 1998
expenses were limited. Prior to 1990, these
expenses were not limited and were included
with other expenses, such as the depreciation
deduction, utilities, and “other” expenses on
Schedule C.
18
[6] The increase in the depreciation deduction for
1993 may be attributed, in part, to a provision of
the Omnibus Budget Reconciliation Act of 1993
(OBRA93). The cost of certain tangible
property (as described in Internal Revenue Code
section 179) may be treated as a current expense rather than a capital expenditure subject
to depreciation deductions. The provision of
OBRA93 (related to these expenses) increased
the maximum amount of investment certain
small businesses could immediately deduct on
property placed in service after 1992, from
$10,000 to $17,500. Following the enactment of
this provision, the deduction increased 32.4
percent to $13.5 billion for 1993. Again, a
change in law increased the depreciation
deduction amount to $18,000 for 1997, and
$18,500 for 1998. The total amount of this
deduction for 1998 for all individual taxpayers
(including sole proprietorships) was $19.0 billion,
a 0.8-percent decrease from 1997.
[7] The Tax Reform Act of 1986 (TRA86) may
have slightly influenced 1998 sole proprietorship
profits through its placement of restrictions on
“passive losses.” Beginning in 1987, these
restrictions were an effort to curb investment in
“tax shelters.” Losses generated by any “flowthrough” business activity (i.e., such as partner-
ships or S corporations for which profits and
certain other amounts pass through to the
owners for taxation), in which the taxpayer did
not “materially participate” (i.e., was not involved regularly and substantially in the operations of the activity) qualified as passive activity
losses. TRA86 gradually eliminated the use of
passive losses as a means to offset nonpassive
income, such as salaries and wages. TRA86
provided for a 5-year phase-in (ending in 1991)
of the limitations on passive losses for investments made prior to 1987; since Tax Year 1991,
the restrictions applied to all passive losses.
However, exemptions up to $25,000 were made
for certain rental real estate losses. Under prior
law, passive losses were fully deductible. These
restrictions had a limited effect on overall sole
proprietorship profits, amounting to $0.3 billion in
nondeductible losses reported for 1998.
[8] Net income minus deficit (loss) before Federal
income tax yields profits. Proprietors compute
their tax on total “taxable income,” which
includes their business profits, plus any other
income.
[9] The difference between the number of returns
in the population and the total number of returns
in Tables 1, 2, 3, and 4 is mainly due to returns in
which Schedule C income was moved to other
income or wages to avoid double counting of
taxpayers for Gross Domestic Product calculations. In addition, data from amended returns
and tentative returns are not reflected in these
statistics.
SOURCE: IRS, Statistics of Income Bulletin,
Summer 2000, Publication 1136 (Rev. 8-2000).
18
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(1)
(2)
Rent paid
on machinery
(3)
1
(4)
property
1,2
Net income
Payroll
1,3
less deficit
1
(5)
(6)
(7)
(8)
22,914,630
11,159,400
86,312,596
202,274,720
Agricultural services, forestry, and fishing..........................................................................................................................
549,684
27,992,915
2,187,103
341,631
270,696
All nonfarm industries..........................................................................................................................
17,408,809
918,268,196
29,780,715
7,545,390
585,823
3,949,830
3,823,486
193,511
213,494
353,808
3,078,067
2,590,944
Veterinary services, including pets..........................................................................................................................
20,635
3,687,968
124,487
12,002
87,133
74,701
771,279
901,135
Livestock breeding..........................................................................................................................
26,188
585,215
76,298
909
17,381
16,426
47,303
-120,961
Animal services, except livestock breeding,
and veterinary..........................................................................................................................
72,664
2,884,988
209,900
16,557
26,105
85,666
255,968
-48,636
Landscape and horticultural services..........................................................................................................................
241,480
8,877,233
784,839
137,235
69,534
136,942
1,390,227
1,609,440
Agricultural services..........................................................................................................................
403,128
18,654,590
1,320,176
40,072
613,291
249,967
Forestry, except logging..........................................................................................................................
55,733
7,119,584
629,842
Farm labor, management, and crop services..........................................................................................................................
42,161
2,619,186
124,653
26,809
13,341
143,735
22,397
143,484
737,152
651,553
Commercial fishing..........................................................................................................................
78,244
2,072,441
220,752
4,383
33,269
87,462
134,319
554,102
Hunting and trapping..........................................................................................................................
12,578
146,299
16,332
1
1,536
1,070
292
26,886
409,452
20,166
33,141
154,962
260,011
-146,439
Metal mining..........................................................................................................................
*2,024
*12,958
*2,232
*4,176
--
*324
*1,320
*-6,906
Coal mining..........................................................................................................................
*3
*40,064
*4,028
*880
*2
*925
*4,215
*1,471
Oil and gas extraction..........................................................................................................................
113,034
4,572,487
338,877
13,258
33,139
132,120
167,020
-188,075
Mining..........................................................................................................................
119,376
5,060,080
Quarrying and nonmetallic minerals, except fuels..........................................................................................................................
4,315
434,571
64,316
1,852
Construction..........................................................................................................................
2,228,593
142,416,515
4,444,265
--
21,593
87,456
47,071
1,114,955
746,812
1,244,122
21,744,779
25,806,901
General building contractors..........................................................................................................................
383,626
40,225,090
724,827
219,760
106,347
431,815
5,489,313
4,804,682
Heavy construction contractors..........................................................................................................................
55,243
4,639,916
450,074
184,687
38,407
115,614
697,208
422,026
Highway and street construction..........................................................................................................................
7,799
1,152,221
61,031
36,577
1,753
30,210
171,906
88,309
Heavy construction, except highway..........................................................................................................................
47,443
3,487,695
389,043
148,110
36,654
85,404
525,301
333,717
Special trade contractors..........................................................................................................................
1,789,725
97,551,509
3,269,363
602,058
696,693
15,558,258
20,580,193
Plumbing, heating, and air conditioning..........................................................................................................................
154,779
12,007,095
435,895
33,202
710,508
51,206
93,397
1,901,276
1,738,951
Painting and paperhanging..........................................................................................................................
214,214
7,239,054
178,389
58,217
41,988
39,361
992,720
2,471,309
Electrical work..........................................................................................................................
119,468
7,056,934
211,103
27,862
50,554
Masonry, stonework, tile setting, and plastering..........................................................................................................................
190,962
12,425,049
258,898
75,099
53,601
41,432
42,835
1,167,739
2,798,742
1,753,796
2,327,694
Carpentering and flooring..........................................................................................................................
478,025
21,044,922
557,422
141,858
111,638
2,657,245
5,852,703
Roofing, siding, and sheet metal work..........................................................................................................................
102,409
6,928,614
158,855
35,175
73,647
42,491
40,977
1,139,204
1,159,048
Concrete work..........................................................................................................................
44,023
4,592,879
190,337
36,572
62,282
1,023,989
443,766
183,788
264,770
3,877,344
4,832,927
247,909
880,636
339,451
4,328,104
3,941,664
2,183
68,314
19,791
269,558
116,432
376
22,687
945
17,987
95,809
Apparel and other textile products..........................................................................................................................
23,213
2,126,288
53,364
34,370
121,687
10,439
543,835
188,385
80,256
Miscellaneous special trade contractors..........................................................................................................................
485,845
26,256,962
1,278,464
327,051
Manufacturing..........................................................................................................................
362,607
27,693,221
1,035,742
Food and kindred products..........................................................................................................................
20,104
1,800,311
53,221
Textile mill products..........................................................................................................................
5,668
350,228
3,824
Lumber and wood products, except furniture
(including logging)..........................................................................................................................
38,416
2,447,708
121,816
11,939
36,817
40,657
429,627
251,176
Furniture and fixtures..........................................................................................................................
31,772
2,493,297
48,803
17,515
112,600
29,276
362,527
346,935
128,379
39,243
476,370
481,423
--
*280
*3,487
*26,189
*24,809
Stone, clay, and glass products..........................................................................................................................
21,672
617,637
24,025
3,442
19,940
15,363
83,574
51,204
Primary metal industries..........................................................................................................................
*4,005
*27,768
*433
*229
*4,633
*43
*1,614
*8,765
Fabricated metal products..........................................................................................................................
29,319
3,394,124
205,667
51,324
92,874
47,307
567,713
466,897
Machinery, except electrical ..........................................................................................................................
32,967
3,982,639
232,016
Printing, publishing, and allied industries..........................................................................................................................
36,786
3,353,939
85,621
53,067
Leather and leather products..........................................................................................................................
*3,619
*120,345
*8,047
25,302
84,153
51,234
795,590
767,424
Electrical and electronic equipment ..........................................................................................................................
20,873
1,328,604
44,700
26,618
27,561
11,754
157,406
346,598
Paper and allied products..........................................................................................................................
*1,476
*431,815
*6,692
*28
*20,381
*3,411
*31,731
*36,185
Other manufacturing industries..........................................................................................................................
92,717
5,218,517
147,513
21,516
140,329
66,501
564,383
759,621
Transportation and public utilities..........................................................................................................................
890,856
48,978,573
4,640,916
1,281,721
521,467
1,141,764
4,060,868
7,264,484
Local and interurban passenger transit..........................................................................................................................
129,558
3,529,128
150,272
307,252
77,324
87,350
119,354
838,347
259,569
71,532
69,892
18,981
614,050
Bus and limousine transportation..........................................................................................................................
9,777
413,243
39,370
17,520
208
12,641
26,048
87,994
5,584
4,816
74,326
136,303
868,770
251,703
958,605
3,429,249
5,484,987
trash collection without own dump..........................................................................................................................
419,433
34,253,929
4,052,123
819,463
209,246
937,553
3,144,091
4,708,920
Taxicabs..........................................................................................................................
98,145
2,397,819
76,257
Other highway passenger transportation..........................................................................................................................
21,637
718,067
34,644
30,162
Trucking and warehousing ..........................................................................................................................
605,388
37,918,929
4,136,308
Trucking, local and long distance, including
Footnotes at end of table.
19
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(1)
(2)
Rent paid
on machinery
(3)
1
property
(4)
1,2
Net income
Payroll
1,3
less deficit
1
(5)
(6)
(7)
(8)
Courier or package delivery service..........................................................................................................................
182,092
3,325,640
41,557
46,794
12,065
13,867
276,903
756,197
Public warehousing..........................................................................................................................
3,862
339,360
42,628
2,512
30,393
7,186
8,256
19,869
Water transportation..........................................................................................................................
4,700
465,396
45,084
1,102
23,013
6,928
17,860
58,179
Air transportation..........................................................................................................................
11,132
319,698
50,787
810
16,268
12,523
46,724
76,987
Transportation services..........................................................................................................................
99,295
5,500,459
222,172
62,927
119,547
60,481
355,254
490,852
Travel agents and tour operators..........................................................................................................................
44,067
3,467,570
25,310
20,978
Other transportation services..........................................................................................................................
55,228
2,032,889
196,862
41,949
67,031
52,516
15,531
44,950
158,906
196,348
253,847
237,004
28,417
11,187
71,318
248,310
Communication services..........................................................................................................................
33,637
1,078,964
27,878
33,475
Utilities, including dumps, snowplowing,
7,385
5,195
4,690
21,109
66,822
Wholesale and retail trade..........................................................................................................................
2,975,385
249,758,597
4,207,202
road cleaning, etc...........................................................................................................................
7,147
165,998
8,414
1,079,442
7,728,245
2,605,906
17,366,907
17,811,549
Wholesale trade..........................................................................................................................
376,578
40,197,984
566,609
130,020
425,136
243,541
1,306,578
5,147,048
89,740
269,478
152,616
815,437
3,280,318
Durable goods, including machinery,
wood, metals, etc...........................................................................................................................
212,735
23,402,506
277,843
Nondurable goods, including food, fiber,
chemicals, etc...........................................................................................................................
163,843
16,795,478
288,766
40,280
155,659
90,926
491,141
1,866,730
Retail trade..........................................................................................................................
2,598,807
209,560,613
3,640,594
949,423
7,303,109
2,362,364
16,060,328
12,664,501
Building materials, paint, hardware,
garden supply, and mobile home dealers..........................................................................................................................
45,661
8,308,058
232,325
47,238
98,782
186,260
722,263
619,490
Lumber and other building materials dealers..........................................................................................................................
16,066
2,670,840
83,312
17,992
55,112
22,625
172,645
407,136
Paint, glass, and wallpaper stores..........................................................................................................................
*1,682
*254,646
*5,044
*2,309
*5,729
*1,088
*50,619
*13,289
Hardware stores..........................................................................................................................
8,945
1,909,283
30,021
21,047
56,755
137,928
61,365
Retail nurseries and garden supply stores..........................................................................................................................
13,930
2,002,182
80,285
4,819
13,035
66,859
239,018
67,245
Mobile home dealers..........................................................................................................................
5,038
1,471,107
33,664
364
3,859
38,932
122,052
70,455
9,382
168,329
39,977
228,846
218,230
Variety stores..........................................................................................................................
27,061
3,112,627
71,774
8,994
Computer and software stores..........................................................................................................................
10,537
1,065,195
7,341
389
130,003
38,326
34,822
5,155
183,478
45,368
183,238
34,992
General merchandise stores..........................................................................................................................
37,598
4,177,822
79,115
20
21,754
Food stores..........................................................................................................................
107,841
27,790,075
284,255
94,733
672,293
191,557
1,827,160
1,365,387
Grocery stores..........................................................................................................................
65,192
20,918,448
183,604
61,064
396,770
134,961
1,185,841
881,893
Miscellaneous food stores..........................................................................................................................
42,649
6,871,628
100,651
33,669
275,523
56,596
641,319
483,495
Automotive dealers and service stations..........................................................................................................................
166,486
53,982,056
514,851
130,767
700,158
525,710
2,543,440
1,591,499
Motor vehicle dealers--new car
dealers (franchised)...........................................
14,361
2,584,293
17,405
1,940
16,576
27,299
92,001
59,018
Motor vehicle dealers--used cars only..................
56,845
15,782,609
95,758
12,814
153,058
167,918
537,933
369,525
Auto parts and accessories and
selected home supply stores..........................................................................................................................
33,627
5,143,932
85,001
26,753
81,457
50,659
388,538
421,290
81,181
421,056
209,737
1,348,869
494,875
234
15,911
26,511
34,818
11,977
Miscellaneous automotive dealers..........................................................................................................................
21,305
3,387,345
56,752
7,844
12,100
43,585
141,281
234,814
Apparel and accessory stores..........................................................................................................................
89,345
8,036,860
116,337
40,424
579,793
89,129
639,159
597,527
Men's and boys' clothing stores..........................................................................................................................
*2,417
*289,913
*1,387
*2,338
*34,449
*3,859
*10,348
*44,773
Women's ready-to-wear stores..........................................................................................................................
20,019
1,622,497
25,012
4,910
103,894
31,167
197,473
86,644
Family clothing stores..........................................................................................................................
19,325
1,712,142
28,377
6,727
127,107
25,918
135,990
61,504
Shoe stores..........................................................................................................................
5,875
1,203,652
7,084
1,655
70,895
5,616
77,433
118,321
24,795
243,448
22,570
217,915
286,284
Furniture and home furnishings stores..........................................................................................................................
101,131
10,636,844
207,657
55,653
437,671
121,403
998,762
1,045,630
33,886
207,155
31,202
272,441
163,830
564,050
Gasoline service stations..........................................................................................................................
37,767
25,944,927
245,704
Boat dealers..........................................................................................................................
2,581
1,138,950
14,232
Apparel and accessory stores, not
elsewhere classified..........................................................................................................................
41,709
3,208,657
54,477
Furniture stores..........................................................................................................................
20,622
3,661,058
48,284
Home furnishings and equipment
stores, except appliances..........................................................................................................................
49,272
3,636,432
55,856
8,328
82,799
50,162
358,314
Household appliance stores..........................................................................................................................
9,639
1,329,291
44,954
9,812
40,571
18,780
156,339
53,918
Television, audio, and electronic stores..........................................................................................................................
16,239
1,626,110
45,116
1,297
73,025
14,968
182,296
251,238
2,330
34,121
6,291
29,372
12,593
Eating and drinking places..........................................................................................................................
246,397
28,589,342
797,997
203,353
Music and record stores..........................................................................................................................
5,359
383,954
13,447
1,690,912
496,133
5,106,833
1,830,017
1,531,178
397,862
4,600,922
1,492,603
Eating places..........................................................................................................................
146,470
23,990,547
666,810
20
Footnotes at end of table.
158,883
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(1)
(2)
Rent paid
on machinery
(3)
1
property
1,2
Net income
Payroll
1,3
less deficit
1
(4)
(5)
(6)
(7)
Drinking places..........................................................................................................................
33,546
2,846,173
82,960
19,734
108,122
77,079
402,293
(8)
82,430
Catering services..........................................................................................................................
66,380
1,752,622
48,228
24,736
51,611
21,192
103,617
254,985
Miscellaneous retail stores..........................................................................................................................
1,804,347
68,039,557
1,408,056
367,875
5,396,720
2,955,170
712,194
3,993,866
Drug stores..........................................................................................................................
11,213
3,982,702
30,193
3,708
32,434
9,407
278,523
300,176
Liquor stores..........................................................................................................................
20,012
4,596,637
47,863
22,615
204,446
38,465
184,291
192,045
Used merchandise and antique stores..........................................................................................................................
103,373
3,633,579
107,171
33,155
Sporting goods and bicycle shops..........................................................................................................................
32,607
4,535,328
51,301
19,665
378,679
135,155
63,784
43,571
109,305
211,255
120,121
197,027
Book stores..........................................................................................................................
10,338
1,104,942
31,461
1,986
118,950
16,198
101,772
61,345
Stationery stores..........................................................................................................................
7,699
1,302,160
19,690
8,237
45,623
13,939
107,326
143,840
Jewelry stores..........................................................................................................................
32,444
3,733,299
31,235
15,017
220,947
20,873
380,333
373,443
107,268
9,035
63,617
31,722
Camera and photographic supply stores..........................................................................................................................
*3,197
*285,351
*6,326
--
*19,920
*8,462
*14,512
*32,945
Hobby, toy, and game shops..........................................................................................................................
25,936
1,384,533
13,559
848
Luggage and leather goods stores..........................................................................................................................
*1,428
*158,800
*331
*208
*21,442
*865
*11,190
*-28,715
Fabric and needlework stores..........................................................................................................................
42,023
1,003,231
21,714
9,028
62,426
6,470
97,680
172,825
Catalog or mail order..........................................................................................................................
45,355
1,233,725
21,770
5,808
28,253
9,426
55,499
-27,826
Vending machine selling..........................................................................................................................
45,797
1,935,435
185,928
5,361
30,728
36,349
84,841
214,010
Sales by door-to-door, telephone, etc...........................................................................................................................
922,517
15,089,357
345,605
109,401
285,277
139,432
442,046
1,932,611
Gift, novelty, and souvenir shops..........................................................................................................................
105,035
3,497,324
69,239
22,159
317,276
48,773
266,820
807
9,666
56,018
63,266
Fuel oil dealers..........................................................................................................................
3,573
1,445,202
14,017
3,662
5,324
Florists..........................................................................................................................
50,555
3,368,538
109,131
19,960
141,949
57,761
413,653
135,991
Other retail shops..........................................................................................................................
341,245
15,749,416
301,524
87,057
799,074
179,719
1,115,185
1,481,086
Finance, insurance, and real estate..........................................................................................................................
1,409,882
100,957,574
1,627,028
624,357
1,509,656
1,237,039
3,864,369
30,333,746
245,282
437,881
966,622
3,823,357
30,908
30,815
42,768
360,650
Security and commodity brokers and services..........................................................................................................................
32,145
12,037,003
34,427
12,814
66,239
56,637
450,945
928,620
24,129
11,171
421,346
455
704,699
24,967
Finance..........................................................................................................................
211,185
39,876,908
227,554
64,321
Credit agencies and mortgage bankers..........................................................................................................................
27,309
1,712,355
26,841
20,822
Security brokers and dealers..........................................................................................................................
20,838
7,280,390
24,953
1,296
Investment advisors and services..........................................................................................................................
2,246
1,753,355
2,060
6,052
32,410
5,971
Commodity contract brokers, exchanges
and services......................................................
9,060
3,003,258
7,413
5,466
27,858
21,338
29,143
198,954
30,684
148,135
350,428
472,909
2,534,087
Insurance agents and brokers..........................................................................................................................
294,680
19,017,013
327,002
190,191
604,815
175,432
1,864,211
8,074,483
Insurance services..........................................................................................................................
93,095
2,349,272
47,985
23,328
41,332
3,653
100,348
1,068,474
Real estate..........................................................................................................................
810,923
39,714,382
1,024,487
346,517
618,228
620,073
933,188
17,367,432
Real estate property managers..........................................................................................................................
93,776
4,251,361
141,721
34,450
73,211
72,658
242,696
1,693,377
Operators and lessors of buildings..........................................................................................................................
16,372
863,728
70,297
8,722
18,773
85,704
48,864
222,907
--
--
--
--
521,693
381,861
566,308
15,254,148
Other financial services..........................................................................................................................
151,731
26,127,550
166,287
Operators and lessors, other than buildings..........................................................................................................................
----Real estate agents and brokers..........................................................................................................................
686,323
33,073,252
754,840
300,081
Subdividers and developers..........................................................................................................................
14,451
1,526,041
57,630
3,263
4,551
79,850
75,320
197,000
2,780,173
11,124,997
3,799,659
30,490,153
111,356,622
Hotels and other lodging places..........................................................................................................................
56,380
4,699,593
498,638
15,147
127,514
662,075
572,155
187,562
Hotels, motels, and tourist courts..........................................................................................................................
30,411
3,513,849
359,518
12,771
73,294
473,979
451,063
200,661
Rooming and boarding houses..........................................................................................................................
11,862
557,146
73,720
1,393
31,103
63,071
70,350
8,038
Camps and camping parks..........................................................................................................................
14,107
628,598
65,400
983
23,117
125,025
50,742
-21,138
453,374
2,736,502
411,260
3,651,814
9,957,504
109,493
32,956
94,463
132,831
dry cleaning, garment, carpet, and upholstery..........................................................................................................................
68,121
4,101,769
216,038
71,304
430,055
718,215
Services..........................................................................................................................
8,524,300
309,352,287
11,075,057
Personal services..........................................................................................................................
1,423,570
35,132,071
1,343,785
Coin-operated laundries and dry cleaning..........................................................................................................................
15,920
867,361
97,245
389
Other cleaning services, including laundry,
Photographic portrait studios..........................................................................................................................
91,058
3,350,993
188,448
22,124
75,134
859,447
70,757
22,703
141,897
751,718
Beauty shops..........................................................................................................................
449,286
10,979,092
251,511
178,620
1,497,521
106,187
1,286,101
3,498,582
Barber shops..........................................................................................................................
94,308
2,896,646
58,469
41,901
211,152
27,656
353,398
1,109,966
Funeral service and crematories..........................................................................................................................
9,272
1,218,071
68,807
12,243
7,387
42,266
169,916
222,391
Miscellaneous personal services, including
valet parking..........................................................................................................................
695,606
11,718,139
463,266
126,792
410,137
104,359
746,592
3,523,802
Business services..........................................................................................................................
1,755,040
52,391,166
1,980,155
448,481
797,677
481,708
4,199,196
16,837,741
Advertising, except direct mail..........................................................................................................................
86,337
4,648,693
91,703
38,564
73,017
35,169
259,394
1,203,139
Footnotes at end of table.
21
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(1)
(2)
Rent paid
on machinery
(3)
1
property
(4)
1,2
Net income
Payroll
1,3
less deficit
1
(5)
(6)
Services-Continued
Janitorial and related services to buildings..........................................................................................................................
441,082
7,631,161
252,001
98,613
(7)
(8)
49,467
Computer and data processing services..........................................................................................................................
48,898
1,254,081
50,886
1,516
24,543
68,228
1,340,496
2,503,540
7,186
91,734
372,964
7,289
6,828
1,783
271,663
Mailing, reproduction, commercial art and
photography, and stenographic services..........................................................................................................................
49,724
594,597
34,358
2,201
Equipment rental and leasing, except computer
and automotive..........................................................................................................................
44,061
2,981,517
424,281
54,533
50,944
83,976
261,420
343,290
Other business services..........................................................................................................................
1,084,937
35,281,117
1,126,925
253,055
592,417
280,321
2,244,369
12,143,147
Automotive repair and services..........................................................................................................................
330,219
23,546,504
918,795
332,392
1,026,969
387,929
2,972,428
2,952,175
Automotive rentals or leasing, without drivers..........................................................................................................................
17,803
1,030,697
174,740
44,516
14,956
41,525
19,928
105,008
Automobile parking, except valet..........................................................................................................................
6,047
163,808
3,773
7,256
66,782
2,760
16,029
5,456
Automotive repair shops..........................................................................................................................
138,276
10,545,336
373,520
92,837
450,751
151,355
1,283,813
1,358,880
Automotive services, except repair..........................................................................................................................
168,094
11,806,663
366,762
187,782
494,481
192,289
1,652,658
1,482,831
Miscellaneous repair services..........................................................................................................................
307,105
11,317,028
314,932
100,609
141,969
118,602
753,267
2,517,257
Electrical repair, except TV and audio equipment..........................................................................................................................
43,663
1,721,129
35,040
23,068
29,488
20,167
110,135
278,151
Other miscellaneous repair..........................................................................................................................
263,441
9,595,899
279,891
77,541
112,481
98,434
643,132
2,239,106
63,602
168,487
19,455
175,394
471,722
Motion picture and video production..........................................................................................................................
54,643
1,538,340
147,758
53,837
44,307
11,081
77,459
481,352
--
--
--
--
--
9,765
124,181
8,374
97,935
-9,630
214,780
630,849
226,221
910,981
5,098,400
105,235
383,233
77,621
369,764
4,068,135
including promoters and managers..........................................................................................................................
104,807
3,263,054
191,990
50,072
31,127
Other amusement and recreation services..........................................................................................................................
166,457
4,731,769
359,996
59,474
216,488
14,187
134,413
91,644
449,573
639,145
391,121
Motion pictures..........................................................................................................................
65,047
2,395,905
242,445
Motion picture theaters..........................................................................................................................
---Video tape rentals..........................................................................................................................
10,403
857,565
94,686
Amusement and recreation services, except
motion pictures..........................................................................................................................
986,769
19,694,332
1,190,321
Entertainers, producers, agents, and
related services..........................................................................................................................
715,506
11,699,510
638,335
22
Professional sports and racing,
Medical and health services..........................................................................................................................
812,055
72,691,798
1,743,349
483,411
2,986,634
793,513
10,164,695
32,613,958
Offices of physicians..........................................................................................................................
192,236
27,169,659
446,556
194,509
903,547
154,482
2,911,196
15,076,965
Offices of dentists..........................................................................................................................
91,998
24,141,058
730,321
114,707
872,313
345,995
4,972,421
9,054,170
Offices of chiropractors..........................................................................................................................
31,285
3,787,762
109,667
47,695
301,625
67,703
491,334
1,350,688
Offices of optometrists..........................................................................................................................
12,810
2,336,121
81,148
15,397
135,058
25,962
359,195
597,864
Offices of podiatrists..........................................................................................................................
6,296
850,850
20,424
13,546
71,742
9,502
79,138
306,422
Registered and practical nurses..........................................................................................................................
114,516
2,780,033
61,122
16,028
72,874
8,041
78,841
1,435,118
390,013
Nursing and personal care facilities..........................................................................................................................
48,026
2,241,176
87,060
7,254
62,232
118,465
513,398
Medical and dental laboratories..........................................................................................................................
19,427
1,101,834
18,590
13,412
32,547
7,668
135,503
435,191
Other medical and health services..........................................................................................................................
295,462
8,283,306
188,463
60,863
534,699
55,696
623,670
3,967,527
Legal services..........................................................................................................................
318,005
27,308,646
496,360
209,082
1,206,530
190,633
3,058,045
12,782,203
Educational services..........................................................................................................................
292,813
3,661,699
111,420
57,573
225,186
32,975
210,618
1,309,829
Child day care..........................................................................................................................
618,457
6,746,486
314,329
21,110
103,100
72,148
425,467
2,635,981
Ministers and chaplains..........................................................................................................................
212,939
2,607,373
57,925
11,589
16,836
16,680
14,078
1,420,425
Engineering services..........................................................................................................................
86,090
4,245,061
327,260
27,447
79,324
16,968
396,063
1,863,453
Architectural services..........................................................................................................................
70,786
5,421,685
235,433
69,586
107,033
48,236
910,763
1,467,646
Surveying services..........................................................................................................................
15,598
717,123
27,556
9,275
14,539
4,413
93,457
265,014
Accounting, auditing, and bookkeeping services..........................................................................................................................
393,993
10,340,455
447,295
65,647
350,467
161,920
1,026,753
4,553,554
Management services..........................................................................................................................
111,893
2,217,840
66,546
1,701
31,565
19,238
289,525
1,214,051
Consulting services..........................................................................................................................
591,665
23,015,720
730,378
180,130
337,091
132,095
635,720
12,595,562
Counseling, except health practitioners..........................................................................................................................
75,876
1,201,802
28,135
15,238
36,728
3,594
29,732
612,585
Nature of business not allocable..........................................................................................................................
348,125
6,058,434
153,951
55,036
98,980
50,674
247,576
2,082,707
Footnotes at end of table.
22
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(9)
(10)
Rent paid
on machinery
(11)
1
(12)
property
1,2
Net income
Payroll
1,3
less deficit
1
(13)
(14)
(15)
(16)
18,692,728
7,561,262
74,379,384
226,189,570
Agricultural services, forestry, and fishing..........................................................................................................................
395,520
24,213,203
1,490,310
272,366
202,473
All nonfarm industries..........................................................................................................................
13,080,498
803,000,355
21,788,759
6,075,985
373,223
3,388,241
4,973,137
155,551
151,294
236,651
2,712,983
3,465,804
Veterinary services, including pets..........................................................................................................................
15,343
3,488,648
108,238
11,988
72,204
66,705
724,175
947,826
3,315
19,414
58,976
Agricultural services..........................................................................................................................
288,701
16,253,861
908,145
Livestock breeding..........................................................................................................................
6,675
290,406
18,372
802
518
Animal services, except livestock breeding,
and veterinary..........................................................................................................................
37,216
2,203,570
74,227
5,058
10,199
25,313
224,954
375,602
Landscape and horticultural services..........................................................................................................................
197,051
8,047,827
658,591
117,914
58,354
114,391
1,232,110
1,777,708
Farm labor, management, and crop services..........................................................................................................................
32,417
2,223,410
48,718
19,790
10,018
26,927
512,330
305,692
Forestry, except logging..........................................................................................................................
39,812
5,993,126
447,055
113,562
20,719
94,028
562,543
798,709
Commercial fishing..........................................................................................................................
60,519
1,844,722
133,119
3,253
30,460
41,732
112,715
648,701
Hunting and trapping..........................................................................................................................
6,488
121,494
1,990
--
--
*813
--
*59,922
213,349
10,798
15,391
46,481
206,402
757,433
Metal mining..........................................................................................................................
**
**
**
**
**
**
**
**
Coal mining..........................................................................................................................
**
**
**
**
**
**
**
**
Oil and gas extraction..........................................................................................................................
57,005
2,924,593
149,589
8,175
15,389
26,021
115,819
692,175
Quarrying and nonmetallic minerals, except fuels..........................................................................................................................
**2,576
**449,706
**63,760
**2,622
**2
Mining..........................................................................................................................
59,580
3,374,299
Construction..........................................................................................................................
1,922,494
129,866,438
3,711,584
**20,461
**90,583
**65,259
857,459
648,541
983,176
19,198,871
27,501,203
General building contractors..........................................................................................................................
325,292
35,954,948
632,973
148,294
92,310
314,080
4,865,236
5,326,487
Heavy construction contractors..........................................................................................................................
37,783
3,997,830
340,821
131,706
36,675
76,278
631,802
541,807
Highway and street construction..........................................................................................................................
6,600
991,464
48,848
8,742
737
22,621
162,120
92,489
Heavy construction, except highway..........................................................................................................................
31,183
3,006,365
291,973
122,964
35,938
53,657
469,682
449,318
Special trade contractors..........................................................................................................................
1,559,418
89,913,661
2,737,790
519,556
592,817
13,701,833
21,632,909
Plumbing, heating, and air conditioning..........................................................................................................................
125,408
10,682,872
372,351
28,011
577,459
44,604
81,791
1,612,218
1,878,523
Painting and paperhanging..........................................................................................................................
200,907
7,048,489
162,612
57,730
40,343
36,174
933,128
2,494,883
Electrical work..........................................................................................................................
95,617
6,535,570
194,779
27,171
43,969
Masonry, stonework, tile setting, and plastering..........................................................................................................................
171,525
11,883,143
214,321
60,914
49,024
34,110
39,963
1,039,052
2,593,973
1,848,176
2,402,340
Carpentering and flooring..........................................................................................................................
434,037
20,027,199
477,491
122,333
101,185
2,486,212
6,049,984
Roofing, siding, and sheet metal work..........................................................................................................................
89,290
6,402,670
142,104
34,521
51,338
42,491
37,921
1,045,771
1,191,543
Concrete work..........................................................................................................................
32,990
3,838,236
152,443
29,276
44,656
785,142
571,060
147,515
217,017
3,206,337
5,196,401
219,157
719,409
241,801
3,753,602
4,507,354
2,040
40,447
5,859
124,825
161,899
376
22,687
945
17,987
96,326
Apparel and other textile products..........................................................................................................................
14,175
1,777,825
37,382
23,418
94,909
9,483
507,702
218,534
68,749
Miscellaneous special trade contractors..........................................................................................................................
409,644
23,495,481
1,021,689
249,024
Manufacturing..........................................................................................................................
244,442
24,642,116
752,004
Food and kindred products..........................................................................................................................
9,075
1,353,203
18,930
Textile mill products..........................................................................................................................
5,321
350,228
3,824
Lumber and wood products, except furniture
(including logging)..........................................................................................................................
17,800
2,114,410
83,789
7,369
34,770
23,417
339,339
311,170
Furniture and fixtures..........................................................................................................................
18,342
2,336,145
41,179
14,000
96,856
17,961
321,247
393,306
110,100
27,830
438,353
516,754
--
*280
*3,487
*26,189
*24,809
Stone, clay, and glass products..........................................................................................................................
13,478
527,329
9,432
3,442
15,829
12,816
83,574
97,589
Primary metal industries..........................................................................................................................
*4,005
*27,768
*433
*229
*4,633
*43
*1,614
*8,765
Fabricated metal products..........................................................................................................................
22,125
2,887,528
140,116
47,076
75,818
34,906
499,659
550,643
Machinery, except electrical ..........................................................................................................................
27,992
3,714,012
185,566
Printing, publishing, and allied industries..........................................................................................................................
28,269
3,067,320
69,143
52,636
Leather and leather products..........................................................................................................................
3,619
120,345
8,047
25,224
64,550
46,561
729,896
827,388
Electrical and electronic equipment ..........................................................................................................................
14,668
1,219,314
42,924
26,617
18,022
10,811
145,411
357,575
Paper and allied products..........................................................................................................................
*1,473
*431,734
*6,656
*28
*20,381
*3,411
*31,731
*36,185
Other manufacturing industries..........................................................................................................................
64,099
4,714,954
104,583
16,700
120,127
44,271
486,076
906,411
Transportation and public utilities..........................................................................................................................
698,572
40,951,001
3,191,911
1,073,418
408,997
766,662
3,229,900
8,646,516
Local and interurban passenger transit..........................................................................................................................
117,738
3,232,777
100,544
305,122
71,986
40,982
88,550
909,268
257,558
66,350
26,462
4,688
674,067
Bus and limousine transportation..........................................................................................................................
9,623
400,562
35,919
17,520
207
12,641
23,022
90,375
5,428
1,878
60,840
144,826
681,294
206,956
675,976
2,757,705
6,439,073
trash collection without own dump..........................................................................................................................
334,056
28,112,705
2,823,254
644,535
164,621
662,292
2,510,637
5,534,217
Taxicabs..........................................................................................................................
87,422
2,146,251
38,878
Other highway passenger transportation..........................................................................................................................
20,693
685,964
25,747
30,044
Trucking and warehousing ..........................................................................................................................
474,460
31,269,699
2,872,155
Trucking, local and long distance, including
Footnotes at end of table.
23
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(9)
(10)
Rent paid
on machinery
(11)
1
property
(12)
1,2
Net income
1,3
less deficit
(15)
(16)
239,304
871,568
33,288
Payroll
1
(13)
(14)
Courier or package delivery service..........................................................................................................................
137,530
2,931,168
26,334
34,316
11,953
8,096
Public warehousing..........................................................................................................................
2,874
225,825
22,567
2,444
30,381
5,588
7,764
Water transportation..........................................................................................................................
4,629
344,991
38,078
916
22,390
5,187
15,554
66,780
Air transportation..........................................................................................................................
8,357
247,837
4,670
803
7,999
3,394
43,934
117,884
Transportation services..........................................................................................................................
68,794
4,697,853
148,633
44,879
83,008
29,962
254,512
727,862
Travel agents and tour operators..........................................................................................................................
28,974
2,951,153
13,854
13,699
Other transportation services..........................................................................................................................
39,820
1,746,700
134,779
31,180
43,881
39,127
8,120
21,842
94,532
159,980
326,656
401,205
11,464
6,471
48,535
315,558
Communication services..........................................................................................................................
21,469
993,595
19,830
33,019
Utilities, including dumps, snowplowing,
road cleaning, etc...........................................................................................................................
3,127
164,248
8,000
7,385
5,194
4,690
21,109
70,091
Wholesale and retail trade..........................................................................................................................
1,722,975
207,406,229
2,865,880
812,875
5,852,000
1,719,909
13,782,886
23,973,769
Wholesale trade..........................................................................................................................
273,503
34,937,772
438,242
105,052
359,138
183,706
1,045,022
5,672,370
78,056
231,122
112,595
636,155
3,615,535
Durable goods, including machinery,
wood, metals, etc...........................................................................................................................
158,433
20,068,742
207,243
Nondurable goods, including food, fiber,
chemicals, etc...........................................................................................................................
115,071
14,869,029
230,999
26,997
128,016
71,110
408,868
2,056,834
Retail trade..........................................................................................................................
1,449,472
172,468,457
2,427,638
707,822
5,492,862
1,536,203
12,737,864
18,301,400
garden supply, and mobile home dealers..........................................................................................................................
32,319
7,057,571
155,077
36,550
82,684
123,769
589,907
828,470
Lumber and other building materials dealers..........................................................................................................................
14,302
2,497,058
66,202
17,960
50,802
21,045
157,377
426,271
Paint, glass, and wallpaper stores..........................................................................................................................
*192
*229,206
*2,658
*503
*5,729
*1,088
*50,619
*16,968
Hardware stores..........................................................................................................................
6,054
1,487,909
23,438
15,778
30,096
98,763
147,936
Retail nurseries and garden supply stores..........................................................................................................................
8,247
1,454,837
32,134
3,807
6,829
39,194
163,839
141,525
Mobile home dealers..........................................................................................................................
3,525
1,388,561
30,644
322
3,546
32,346
119,309
95,770
General merchandise stores..........................................................................................................................
27,268
3,554,656
60,112
5,609
129,376
29,050
170,550
311,079
Variety stores..........................................................................................................................
19,635
2,749,260
57,673
5,224
Computer and software stores..........................................................................................................................
7,632
805,395
2,439
385
113,587
15,789
25,222
3,828
147,730
22,820
248,212
62,867
Building materials, paint, hardware,
24
13,958
Food stores..........................................................................................................................
86,509
24,387,505
216,667
88,672
557,593
154,679
1,487,461
1,548,620
Grocery stores..........................................................................................................................
57,107
18,604,473
150,433
58,232
367,338
110,963
1,015,766
972,274
Miscellaneous food stores..........................................................................................................................
29,402
5,783,032
66,234
30,440
190,255
43,716
471,696
576,347
Automotive dealers and service stations..........................................................................................................................
115,636
43,404,107
358,426
109,779
556,955
339,336
2,015,339
2,216,032
Motor vehicle dealers--new car
dealers (franchised)...........................................
8,993
2,226,728
10,572
478
16,115
15,657
66,523
110,053
Motor vehicle dealers--used cars only..................
38,432
12,843,975
59,264
11,880
115,701
104,547
451,129
650,119
Auto parts and accessories and
selected home supply stores..........................................................................................................................
25,856
4,552,310
56,503
21,313
66,390
32,425
249,563
483,180
Gasoline service stations..........................................................................................................................
26,747
20,259,927
181,590
73,144
345,866
140,781
1,119,334
637,476
171
4,898
10,357
17,765
35,234
Miscellaneous automotive dealers..........................................................................................................................
14,420
2,920,558
39,710
2,793
7,985
35,569
111,025
299,969
Apparel and accessory stores..........................................................................................................................
58,267
6,833,163
82,091
19,258
467,283
60,733
545,430
842,299
Men's and boys' clothing stores..........................................................................................................................
*2,320
*248,864
*1,118
*1,534
*31,889
*3,617
*4,751
*48,907
Women's ready-to-wear stores..........................................................................................................................
8,240
1,345,707
17,222
4,533
67,236
11,007
185,781
155,300
Family clothing stores..........................................................................................................................
15,822
1,546,032
25,346
3,977
100,171
21,446
115,339
131,959
Shoe stores..........................................................................................................................
5,287
1,101,197
6,424
1,655
59,546
4,908
66,782
124,187
7,560
208,442
19,755
172,777
381,946
341,346
102,168
853,085
1,207,750
31,543
160,496
28,767
190,178
235,728
601,501
Boat dealers..........................................................................................................................
1,189
600,607
10,788
Apparel and accessory stores, not
elsewhere classified..........................................................................................................................
26,599
2,591,364
31,981
Furniture and home furnishings stores..........................................................................................................................
78,620
9,352,390
180,554
44,307
Furniture stores..........................................................................................................................
16,349
2,980,500
39,318
Home furnishings and equipment
stores, except appliances..........................................................................................................................
38,150
3,463,758
52,842
8,296
65,669
44,935
343,413
Household appliance stores..........................................................................................................................
7,123
1,161,214
39,157
1,203
22,782
11,584
131,831
85,841
Television, audio, and electronic stores..........................................................................................................................
14,466
1,437,097
42,814
1,036
69,815
12,421
158,547
256,359
*2,228
*22,584
*4,460
*29,116
*28,322
Eating and drinking places..........................................................................................................................
159,373
23,127,529
569,663
147,632
Music and record stores..........................................................................................................................
*2,532
*309,821
*6,424
1,296,869
338,537
3,971,521
2,565,157
1,221,651
281,658
3,704,227
1,953,681
Eating places..........................................................................................................................
92,587
19,857,084
493,796
24
Footnotes at end of table.
119,961
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(9)
(10)
Rent paid
on machinery
(11)
1
property
1,2
Net income
Payroll
1,3
less deficit
1
(12)
(13)
(14)
(15)
(16)
Drinking places..........................................................................................................................
17,037
1,931,436
47,710
13,382
43,280
43,981
214,021
270,431
Catering services..........................................................................................................................
49,748
1,339,009
28,156
14,289
31,938
12,898
53,272
341,045
Miscellaneous retail stores..........................................................................................................................
891,480
54,751,537
805,048
256,016
2,060,755
387,930
3,104,570
8,781,993
Drug stores..........................................................................................................................
10,348
3,597,567
27,322
3,105
21,855
6,821
242,970
317,420
Liquor stores..........................................................................................................................
17,407
4,330,901
45,971
22,059
193,648
38,080
151,512
223,527
Used merchandise and antique stores..........................................................................................................................
45,176
2,839,947
47,727
23,549
Sporting goods and bicycle shops..........................................................................................................................
17,570
3,574,949
21,668
16,840
221,210
90,360
31,698
25,292
86,684
173,956
380,473
299,882
Book stores..........................................................................................................................
4,183
659,382
12,780
802
75,929
9,087
56,461
106,694
Stationery stores..........................................................................................................................
3,599
1,111,197
15,168
5,860
43,023
12,237
101,590
157,297
Jewelry stores..........................................................................................................................
25,875
3,531,966
28,678
9,767
214,472
18,611
299,318
391,587
Hobby, toy, and game shops..........................................................................................................................
11,976
876,112
4,470
763
50,956
1,622
29,411
86,314
Camera and photographic supply stores..........................................................................................................................
3,167
273,711
5,984
-*19,920
*4,226
*13,274
*39,049
Luggage and leather goods stores..........................................................................................................................
*1,042
*158,800
*233
*8
*12,447
*865
*9,919
*15,140
Fabric and needlework stores..........................................................................................................................
28,720
883,512
14,924
8,502
39,824
5,136
95,018
225,687
Catalog or mail order..........................................................................................................................
8,355
885,813
9,720
5,223
15,806
7,868
43,035
113,624
Vending machine selling..........................................................................................................................
17,056
1,745,873
82,632
3,376
29,991
13,679
83,112
320,935
Sales by door-to-door, telephone, etc...........................................................................................................................
453,402
11,717,896
177,718
71,891
200,934
64,278
385,237
3,341,242
Gift, novelty, and souvenir shops..........................................................................................................................
43,351
2,650,555
29,028
10,123
314,584
198,305
15,789
185,416
Fuel oil dealers..........................................................................................................................
3,393
1,259,037
11,760
3,352
3,318
3,867
30,250
64,376
Florists..........................................................................................................................
25,305
2,447,553
12,095
81,056
37,542
295,685
255,514
Finance, insurance, and real estate..........................................................................................................................
1,055,462
82,796,109
1,317,722
569,651
1,359,146
701,297
3,496,075
33,006,666
168,548
163,057
833,249
4,798,819
28,063
28,617
42,768
392,750
Security and commodity brokers and services..........................................................................................................................
20,223
6,844,039
26,807
11,884
16,248
14,606
334,000
1,191,625
Finance..........................................................................................................................
142,524
26,145,096
74,793
188,288
60,954
Credit agencies and mortgage bankers..........................................................................................................................
20,524
1,672,279
25,539
20,815
Security brokers and dealers..........................................................................................................................
13,961
4,691,643
22,267
1,037
9,856
6,052
322,490
805,819
Investment advisors and services..........................................................................................................................
1,098
432,690
264
5,429
Commodity contract brokers, exchanges
106
14
398
68,319
and services..........................................................................................................................
5,164
1,719,706
4,276
5,418
6,286
8,540
11,112
317,487
Other financial services..........................................................................................................................
101,776
17,628,777
135,942
28,254
124,237
119,834
456,481
3,214,444
Insurance agents and brokers..........................................................................................................................
226,369
17,580,685
288,169
166,633
574,873
158,994
1,791,358
8,463,575
Insurance services..........................................................................................................................
68,406
2,213,182
34,876
23,054
37,634
3,533
94,889
1,165,559
Real estate..........................................................................................................................
618,163
36,857,146
806,390
319,011
578,091
375,713
776,580
18,578,713
Real estate property managers..........................................................................................................................
80,727
3,969,357
125,741
33,077
65,839
56,370
209,446
1,818,768
Operators and lessors of buildings..........................................................................................................................
8,633
663,657
36,520
8,209
12,617
35,171
20,739
283,400
--
--
--
--
497,757
252,687
514,932
16,134,640
Operators and lessors, other than buildings..........................................................................................................................
----Real estate agents and brokers..........................................................................................................................
520,185
31,168,255
608,642
276,494
Subdividers and developers..........................................................................................................................
8,618
1,055,876
35,488
1,232
1,877
31,485
31,463
341,905
2,211,365
9,417,762
2,703,324
27,127,021
120,447,506
Hotels and other lodging places..........................................................................................................................
35,372
3,255,076
269,692
10,920
105,884
304,629
362,830
586,997
Hotels, motels, and tourist courts..........................................................................................................................
18,603
2,559,924
205,716
9,288
54,290
266,563
305,211
436,255
Rooming and boarding houses..........................................................................................................................
6,620
412,273
44,669
1,240
31,033
28,223
38,858
70,276
Camps and camping parks..........................................................................................................................
10,148
282,879
19,307
393
20,561
9,843
18,760
80,466
355,633
2,270,311
302,981
3,296,546
10,923,940
57,168
22,446
85,994
175,486
dry cleaning, garment, carpet, and upholstery..........................................................................................................................
56,982
3,817,225
198,781
62,992
373,022
772,060
Services..........................................................................................................................
6,694,492
284,703,745
8,137,211
Personal services..........................................................................................................................
1,139,043
31,489,011
993,151
Coin-operated laundries and dry cleaning..........................................................................................................................
12,385
656,347
66,055
211
Other cleaning services, including laundry,
Photographic portrait studios..........................................................................................................................
57,543
3,014,163
137,362
20,863
62,968
792,858
59,910
16,990
126,249
916,381
Beauty shops..........................................................................................................................
386,053
9,912,447
206,335
100,639
1,262,283
71,255
1,108,753
3,735,128
Barber shops..........................................................................................................................
85,346
2,820,469
54,539
39,098
203,742
26,729
346,037
1,124,200
Funeral service and crematories..........................................................................................................................
8,697
1,079,947
44,385
9,532
6,045
31,378
169,916
226,699
Miscellaneous personal services, including
valet parking..........................................................................................................................
532,036
10,188,414
285,694
122,297
308,142
71,215
666,739
3,973,986
Business services..........................................................................................................................
1,364,958
46,763,306
1,270,753
280,367
597,270
281,718
3,186,843
18,734,225
Advertising, except direct mail..........................................................................................................................
69,721
4,089,387
72,039
29,977
58,485
27,946
61,423
1,314,671
Janitorial and related services to buildings..........................................................................................................................
391,938
6,911,401
177,751
64,207
38,184
46,005
1,016,106
2,748,717
Footnotes at end of table.
25
Sole Proprietorship Returns, 1998
Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Groups Classified with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Industrial group
Number
Business
Depreciation
of returns
receipts
deduction
on other
Interest paid
and
business
deduction
1
equipment
(9)
(10)
Rent paid
on machinery
(11)
1
property
(12)
Net income
Payroll
1,3
less deficit
1
(13)
Services-Continued
Computer and data processing services..........................................................................................................................
37,511
1,217,813
42,606
1,217
1,2
(14)
(15)
(16)
24,439
6,896
91,734
402,076
7,289
3,508
1,783
280,233
12,355
170,428
29,342
439,530
36,090
161,274
129,257
1,886,539
542,438
13,446,090
Automotive repair and services..........................................................................................................................
258,145
21,080,528
682,310
268,094
883,792
296,098
2,567,145
3,507,587
Automotive rentals or leasing, without drivers..........................................................................................................................
14,288
867,130
82,236
34,329
9,841
28,594
15,120
162,460
Mailing, reproduction, commercial art and
photography, and stenographic services..........................................................................................................................
42,205
588,850
26,464
2,182
Equipment rental and leasing, except computer
and automotive..........................................................................................................................
21,789
1,828,085
188,293
Other business services..........................................................................................................................
801,794
32,127,771
763,600
Automobile parking, except valet..........................................................................................................................
*4,843
*109,447
*44
*1,103
*66,634
*19
*2,472
*11,887
Automotive repair shops..........................................................................................................................
106,545
9,914,182
304,156
72,252
407,559
128,974
1,189,353
1,549,463
Automotive services, except repair..........................................................................................................................
132,470
10,189,769
295,874
160,409
399,759
138,511
1,360,200
1,783,778
Miscellaneous repair services..........................................................................................................................
259,851
10,351,046
258,276
93,045
122,205
92,132
686,516
2,794,422
Electrical repair, except TV and audio equipment..........................................................................................................................
34,257
1,537,966
33,095
23,068
28,093
18,915
95,964
371,397
Other miscellaneous repair..........................................................................................................................
225,594
8,813,080
225,181
69,977
94,112
73,217
590,552
2,423,025
49,792
132,693
11,365
146,055
656,127
Motion picture and video production..........................................................................................................................
32,394
1,402,607
104,999
40,027
32,242
3,035
74,359
600,517
--
--
--
--
--
9,765
100,451
8,330
71,695
55,610
146,582
289,631
138,372
653,317
7,178,207
68,009
152,428
49,990
285,942
5,323,575
including promoters and managers..........................................................................................................................
53,545
2,507,484
52,146
37,107
22,359
9,182
75,575
1,086,209
Other amusement and recreation services..........................................................................................................................
111,723
3,486,243
221,946
41,466
114,844
Medical and health services..........................................................................................................................
696,785
70,603,104
1,621,586
466,604
2,813,351
79,200
723,446
291,800
9,740,743
768,423
33,300,319
Motion pictures..........................................................................................................................
38,548
2,105,785
188,085
Motion picture theaters..........................................................................................................................
---Video tape rentals..........................................................................................................................
6,154
703,178
83,085
Amusement and recreation services, except
motion pictures..........................................................................................................................
601,100
16,008,714
597,958
Entertainers, producers, agents, and
related services..........................................................................................................................
435,832
10,014,988
323,866
Professional sports and racing,
26
Offices of physicians..........................................................................................................................
168,422
26,524,630
423,281
187,069
858,730
133,198
2,863,148
15,276,963
Offices of dentists..........................................................................................................................
86,579
23,879,881
702,597
113,284
853,487
341,900
4,905,268
9,100,507
Offices of chiropractors..........................................................................................................................
26,259
3,710,679
100,489
46,481
268,179
56,779
480,837
1,445,745
Offices of optometrists..........................................................................................................................
12,503
2,274,677
79,971
14,145
130,201
25,122
347,806
602,693
Offices of podiatrists..........................................................................................................................
4,737
838,964
19,333
11,593
71,742
9,502
79,138
307,698
Registered and practical nurses..........................................................................................................................
103,483
2,736,409
58,666
15,189
68,287
8,021
78,756
1,480,856
449,429
Nursing and personal care facilities..........................................................................................................................
34,399
1,834,158
61,431
6,714
51,843
93,196
412,751
Medical and dental laboratories..........................................................................................................................
16,105
1,069,387
18,551
13,412
32,370
7,668
134,746
445,066
Other medical and health services..........................................................................................................................
244,298
7,734,320
157,267
58,717
478,512
48,061
438,293
4,191,363
Legal services..........................................................................................................................
262,643
26,585,837
453,276
186,653
1,126,002
168,530
2,931,645
13,011,473
Educational services..........................................................................................................................
232,401
3,201,748
72,902
37,258
171,082
13,952
120,250
1,531,840
Child day care..........................................................................................................................
534,746
6,096,094
222,726
17,955
88,563
55,320
383,975
2,780,429
Ministers and chaplains..........................................................................................................................
185,737
2,500,848
48,713
11,033
16,798
6,948
9,897
1,495,125
Engineering services..........................................................................................................................
63,489
3,973,020
306,031
25,752
73,773
15,930
330,312
1,936,175
Architectural services..........................................................................................................................
61,523
5,129,810
212,003
66,762
102,774
44,049
840,855
1,517,491
Surveying services..........................................................................................................................
15,558
717,065
27,548
9,275
14,539
4,413
93,457
265,023
Accounting, auditing, and bookkeeping services..........................................................................................................................
333,407
10,031,350
390,488
62,869
300,974
137,874
1,002,763
4,732,388
Management services..........................................................................................................................
98,191
2,034,809
52,945
1,427
28,063
3,614
203,413
1,305,563
Consulting services..........................................................................................................................
449,884
21,649,249
442,818
109,164
245,212
98,727
540,765
13,538,680
Counseling, except health practitioners..........................................................................................................................
63,110
1,127,345
25,951
12,181
34,844
3,225
29,695
651,495
Nature of business not allocable..........................................................................................................................
286,960
5,047,215
108,788
48,896
69,009
25,388
196,384
2,375,986
* Estimate should be used with caution because of the small number of sample returns on which it is based.
** Data combined to prevent disclosure of information for specific taxpayers.
¹ Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly
understated.
² Interest paid is the sum of mortgage interest and other interest paid on business indebtedness (see Table 2).
³ Payroll is the sum of net salaries and wages plus the cost of labor reported as part of cost of sales and operations (see Table 2).
26
NOTE: Detail may not add to totals because of rounding.
Sole Proprietorship Returns, 1998
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups Classified
with the Standard Industrial Codes
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Agricultural services, forestry, and fishing
Mining
Animal
All
Net income status, item
nonfarm
Total
industries
services,
Landscape
All other
Livestock
except
and
agricultural
breeding
livestock
horticultural
services,
breeding, and
services
forestry, and
veterinary
(1)
(2)
(3)
(4)
Total
Oil and
gas extraction
fishing
(5)
(6)
(7)
(8)
BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns ¹...................................................................................................
17,408,809
549,684
26,188
72,664
241,480
209,352
119,376
113,034
Business receipts, total ¹...................................................................................................
918,268,196
27,992,915
585,215
2,884,988
8,877,233
15,645,478
5,060,080
4,572,487
Income from sales and operations ¹...................................................................................................
905,137,974
27,717,440
539,752
4,350,565
2,803,136
8,814,670
15,559,882
4,803,457
45,463
81,852
62,563
85,596
256,623
221,922
Business deductions, total 1,2 ...................................................................................................
716,157,430
24,225,115
706,453
2,988,827
7,267,793
13,262,041
5,207,758
4,761,802
Cost of sales and operations...................................................................................................
341,132,831
8,625,096
118,759
1,393,759
2,525,984
4,586,594
1,350,053
1,205,880
Inventory, beginning of year...................................................................................................
30,801,698
384,274
21,578
112,258
32,991
217,447
46,388
45,283
Cost of labor...................................................................................................
27,447,822
1,309,217
*11,222
*146,803
739,430
411,762
117,592
*54,013
Purchases...................................................................................................
231,404,960
4,338,382
51,602
1,148,913
765,734
2,372,134
579,993
559,260
Materials and supplies...................................................................................................
42,161,782
1,267,016
*15,485
*29,472
670,060
552,000
141,809
110,408
Other business income...................................................................................................
13,130,222
275,475
Other costs...................................................................................................
42,198,086
1,740,277
39,535
72,339
354,171
1,274,232
511,571
482,517
Inventory, end of year...................................................................................................
32,881,518
414,071
*20,662
116,027
36,402
240,980
47,300
45,601
6,735
16,885
74,857
69,940
10,323
10,137
*1
*199
12,267
9,158
668
668
Car and truck expenses...................................................................................................
39,715,702
1,343,433
13,394
144,789
665,611
519,640
125,750
105,694
Commissions...................................................................................................
10,722,131
252,883
Advertising expenses...................................................................................................
9,413,989
168,417
Bad debts from sales or services...................................................................................................
925,866
21,625
1,687
6,289
44,195
200,712
31,835
31,770
5,660
*2
*1
*5,541
*116
321,842
308,526
Depreciation...................................................................................................
29,135,616
2,181,698
74,776
209,281
781,955
1,115,685
408,601
338,026
*36
5,105
16,601
40,100
4,421
3,993
9,197
37,765
243,315
369,814
55,539
44,553
Depletion...................................................................................................
380,149
Employee benefit programs...................................................................................................
1,560,404
61,842
Insurance...................................................................................................
12,938,411
660,091
Legal and professional services...................................................................................................
6,669,029
139,838
5,207
17,970
40,917
75,744
94,471
90,665
Meals and entertainment deducted...................................................................................................
3,796,350
54,814
2,250
8,542
18,745
25,277
16,115
15,409
Mortgage interest...................................................................................................
4,882,248
229,581
50,394
38,537
125,830
24,024
13,853
Other interest paid on business indebtedness...................................................................................................
6,277,153
356,242
1,607
35,272
14,820
98,406
220,958
130,938
118,266
Office expenses...................................................................................................
9,611,633
191,481
43,544
11,076
13,200
80,314
86,891
44,190
*1
*1,094
*1,407
14,280
1,468
1,406
Rent on machinery and equipment...................................................................................................
7,545,390
341,631
*909
16,557
137,235
186,930
20,166
13,258
Rent on other business property...................................................................................................
22,914,630
270,696
17,381
33,139
Repairs...................................................................................................
11,349,751
Pension and profit-sharing plans...................................................................................................
756,924
16,782
26,105
69,534
157,676
33,141
1,023,393
11,488
47,219
339,314
625,371
92,612
62,192
Salaries and wages...................................................................................................
58,864,773
2,640,612
36,081
109,165
650,796
1,844,570
142,419
113,007
Supplies...................................................................................................
19,725,440
1,038,405
41,297
175,782
421,707
399,618
59,382
55,424
Taxes paid...................................................................................................
13,730,731
501,223
6,070
24,665
155,517
314,972
135,965
122,927
Travel...................................................................................................
7,624,311
129,580
14,606
46,584
12,955
55,435
27,830
26,437
Utilities...................................................................................................
18,431,400
413,130
17,751
47,744
144,457
203,178
73,621
66,234
Home office business deductions...................................................................................................
4,138,364
49,534
*3,803
8,787
*2,894
30,517
12,321
8,789
Depreciation, Form 8829...................................................................................................
645,099
5,406
*1,522
*619
*2,883
*381
*851
*850
Other business deductions...................................................................................................
72,683,510
3,459,288
294,225
544,477
645,683
1,974,904
1,985,917
1,920,326
Net income less deficit 1,2...................................................................................................
202,274,720
3,823,486
-120,961
-48,636
1,609,440
2,383,643
-146,439
-188,075
Net income1,2 ...................................................................................................
226,189,570
4,973,137
58,976
375,602
1,777,708
2,760,850
757,433
692,175
Deficit ²...................................................................................................
23,914,850
179,937
424,239
168,268
377,207
903,872
880,249
1,149,651
Footnotes at end of table.
27
Sole Proprietorship Returns, 1998
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups Classified
with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Agricultural services, forestry, and fishing
Mining
Animal
All
Net income status, item
nonfarm
Total
industries
services,
Landscape
All other
Livestock
except
and
agricultural
breeding
livestock
horticultural
services,
breeding, and
services
forestry, and
veterinary
(1)
(2)
(3)
(4)
Total
Oil and
gas extraction
fishing
(5)
(6)
(7)
(8)
BUSINESSES WITH NET INCOME
Number of returns ¹...................................................................................................
13,080,498
395,520
6,675
37,216
197,051
154,579
59,580
57,005
290,406
2,203,570
8,047,827
13,671,400
3,374,299
2,924,593
Income from sales and operations ¹...................................................................................................
792,010,815
24,035,788
279,590
2,845,641
Business receipts, total ¹...................................................................................................
803,000,355
24,213,203
2,150,881
7,995,577
13,609,741
3,260,788
*10,817
52,689
52,251
61,659
113,511
78,952
Business deductions, total 1,2...................................................................................................
576,786,863
19,240,067
231,431
1,827,967
6,270,119
10,910,549
2,616,928
2,232,481
Cost of sales and operations...................................................................................................
277,448,248
7,321,581
*39,728
1,099,527
2,251,569
3,930,758
883,762
739,589
Inventory, beginning of year...................................................................................................
21,559,969
245,323
*12,155
43,935
31,220
158,012
31,729
30,624
*6,934
*145,643
649,751
314,915
*113,632
*50,054
Purchases...................................................................................................
185,594,663
3,530,652
*4,268
884,056
710,840
1,931,489
411,695
390,962
Materials and supplies...................................................................................................
37,295,715
1,179,713
*12,343
*1,530
627,333
538,507
129,867
98,466
Other costs...................................................................................................
32,845,820
1,507,704
*16,751
*62,687
264,481
1,163,784
229,501
200,447
Inventory, end of year...................................................................................................
23,117,111
259,053
*12,723
*38,325
32,056
175,949
32,663
30,964
4,532
7,385
58,627
54,964
9,114
8,928
--
*5
*5,055
8,905
*100
*100
Car and truck expenses...................................................................................................
31,967,828
1,092,974
*6,513
87,629
570,274
428,559
101,357
85,500
Commissions...................................................................................................
8,904,956
216,212
Other business income...................................................................................................
10,989,540
177,415
Cost of labor...................................................................................................
23,269,192
1,117,243
Advertising expenses...................................................................................................
7,592,786
125,508
Bad debts from sales or services...................................................................................................
547,491
13,965
*65
2,474
23,384
190,288
28,968
28,903
*4,678
--
--
*4,661
*18
138,467
132,262
Depreciation...................................................................................................
21,273,820
1,486,879
18,281
74,152
655,707
738,739
212,635
148,876
*11
*4,973
15,250
34,297
3,170
2,742
2,832
21,667
217,333
307,236
42,061
31,783
Depletion...................................................................................................
179,658
28
Employee benefit programs...................................................................................................
1,403,408
54,530
Insurance...................................................................................................
10,808,880
549,067
Legal and professional services...................................................................................................
5,328,528
109,224
2,713
7,790
37,368
61,353
27,938
25,569
Meals and entertainment deducted...................................................................................................
3,144,433
40,420
*1,707
5,477
14,062
19,174
11,308
11,239
Mortgage interest...................................................................................................
3,326,394
132,008
*8,790
29,496
91,162
13,233
3,062
Other interest paid on business indebtedness...................................................................................................
4,234,868
241,215
*756
16,522
84,895
139,043
33,249
22,959
Office expenses...................................................................................................
7,896,114
152,585
23,163
*2,559
*6,080
9,788
67,067
69,650
23,783
--
*1,060
*1,407
13,916
1,053
991
Rent on machinery and equipment...................................................................................................
6,075,985
272,366
*802
5,058
117,914
148,593
10,798
8,175
Rent on other business property...................................................................................................
18,692,728
202,473
*518
15,389
Repairs...................................................................................................
8,667,410
Pension and profit-sharing plans...................................................................................................
731,915
16,382
10,199
58,354
133,401
15,391
778,385
*977
15,460
301,829
460,120
70,272
40,839
Salaries and wages...................................................................................................
51,110,192
2,270,998
*12,480
79,312
582,359
1,596,847
92,770
65,766
Supplies...................................................................................................
15,696,123
808,673
10,568
109,129
361,690
327,287
50,865
48,680
Taxes paid...................................................................................................
11,386,227
406,791
*1,998
11,591
134,994
258,208
72,543
62,923
Travel...................................................................................................
5,903,957
81,933
*9,121
22,857
11,444
38,512
7,326
7,103
Utilities...................................................................................................
14,601,809
324,254
4,781
30,366
123,035
166,072
45,881
39,688
Home office business deductions...................................................................................................
3,271,341
43,303
*537
6,932
*681
30,134
11,951
6,934
Depreciation, Form 8829...................................................................................................
514,939
3,431
*91
*75
*2,883
*381
*715
*714
Other business deductions...................................................................................................
55,388,100
2,449,128
103,874
188,984
501,097
1,655,172
707,003
664,371
Net income 1,2 ...................................................................................................
226,189,570
4,973,137
Returns with Schedule C-EZ:
58,976
375,602
1,777,708
2,760,850
757,433
692,175
Number of returns...................................................................................................
2,413,633
65,857
*1,883
*8,799
26,079
29,097
8,929
8,929
Business receipts...................................................................................................
12,020,856
432,437
*3,295
*51,405
86,329
291,409
28,353
28,353
Business deductions...................................................................................................
1,242,298
48,141
*3,295
*7,092
11,427
26,327
7,678
7,678
Net income...................................................................................................
10,778,559
384,297
--
*44,313
74,902
265,082
20,675
20,675
Footnotes at end of table.
28
Sole Proprietorship Returns, 1998
Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Groups Classified
with the Standard Industrial Codes--Continued
[All figures are estimates based on samples--money amounts are i
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