# SoleProprietorshipReturns,1998

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ae9700c3e0f007c31

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

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...........................................................................................

[Text truncated at 120,000 characters. The full text is on the page linked above.]

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ae9700c3e0f007c31. Public record. Not legal advice.