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entitled 'Tax Administration: Information on Expenses Claimed by Small 
Business Sole Proprietorships' which was released on March 05, 2004.

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Report to Congressional Requesters: 

January 2004: 

TAX ADMINISTRATION: 

Information on Expenses Claimed by Small Business Sole Proprietorships: 

GAO-04-304: 

GAO Highlights: 

Highlights of GAO-04-304, a report to congressional requesters

Why GAO Did This Study: 

Meeting the requirements of tax rules can be especially burdensome to 
small business sole proprietorships that independently own their 
businesses. Internal Revenue Service (IRS) data show that, compared to 
other taxpayer groups, sole proprietorships have more problems 
complying with their tax obligations. Simplifying how sole 
proprietorships account for and report expenses may ease their burden 
and increase compliance.

Because of the requesters’ interest in alleviating any unnecessary 
burden that federal tax requirements impose on small businesses, we 
were asked to provide information on the expenses that sole 
proprietorships report on IRS’s Form 1040 Schedule C—Profit or Loss 
from Business and on Form 1040 Schedule F—Profit or Loss from Farming. 
By having information on the expenses reported by sole proprietorships, 
policymakers may be in a better position to develop alternatives for 
simplifying how these taxpayers account for and report their expenses. 

What GAO Found: 

In tax years 2000 and 2001, the 10 most commonly claimed categories of 
expenses of sole proprietors filing Schedule C included Other expenses, 
Car/truck, Supplies, Utilities, Office, and Professional/legal. The 
percentage of such taxpayers reporting expenses in these categories 
varied from 73 percent for Other expenses to 48 percent for 
Professional/legal. Because IRS does not separately compile information 
on each of the categories of expenses on Schedule F, we could not 
determine the most commonly claimed expenses for taxpayers who filed 
that schedule. However, the IRS data showed that more than 50 percent 
of the taxpayers who filed Schedule F claimed expenses for 
Depreciation, Repairs, Gasoline/oil, and Supplies.

The expenses that small businesses reported on schedules C and F varied 
widely across and within expense categories. There was wide variation 
in both median dollar amounts and ranges. Expenses also varied greatly 
within the categories of expenses. For example, the expenses for Wages 
taxpayers reported on Schedule C in tax year 2001 ranged from about 
$1,000 at the 10th percentile to $99,000 at the 90th percentile. 

In tax year 2001, there was wide variability in the expenses of sole 
proprietorships by business characteristics such as gross receipts, 
industry category, businesses with inventories, and businesses with 
home offices. Not surprisingly, businesses with higher gross receipts 
had higher expenses compared to businesses with smaller gross receipts. 
Further, the distribution of expenses across expense categories 
generally remained similar for all businesses. However, expenses across 
industry categories showed wide variability in the amounts and ranges 
of expenses. Sole proprietors in six industries whose businesses 
maintained inventories had significantly higher median expenses than 
those without inventory and sole proprietors with home office expenses 
generally had lower median expenses than those without home offices. 

www.gao.gov/cgi-bin/getrpt?GAO-04-304.

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Michael Brostek at (202) 
512-9110 or brostekm@gao.gov.

[End of section]

Contents: 

Letter: 

Results in Brief: 

Background: 

The Most Commonly Claimed Categories of Expenses of Sole 
Proprietorships: 

Wide Variation in Amounts of Expenses Within and Across Expense 
Categories: 

Wide Variation in Expenses by Business Characteristics: 

Agency Comments: 

Appendixes: 

Appendix I: Objectives, Scope, and Methodology: 

Appendix II: Information on the Percent of Taxpayers Who Claimed 
Expenses on Schedule C and Schedule F in Tax Years 2000 and 2001: 

Appendix III: Information on the Amounts and Ranges of Expenses 
Reported on Schedule C and Schedule F: 

Appendix IV: Information on the Expenses Reported on Schedule C by 
Selected Business Characteristics: 

Appendix V: Information on Cost of Goods Sold for Businesses With 
Inventories and Depreciation Expenses by Industry Categories: 

Appendix VI: Comments from the Internal Revenue Service: 

Appendix VII: GAO Contacts and Staff Acknowledgments: 

GAO Contacts: 

Acknowledgments: 

Glossary: 

Tables: 

Table 1: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule C, Tax Years 2000 and 2001: 

Table 2: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule F, Tax Years 2000 and 2001: 

Table 3: Information on Expense Categories on Schedule C by Amount and 
Range, Tax Year 2000: 

Table 4: Information on Expense Categories on Schedule C by Amount and 
Range, Tax Year 2001: 

Table 5: Information on Expense Categories on Schedule F Compiled by SOI 
by Amount and Range, Tax Year 2000: 

Table 6: Information on Expense Categories on Schedule F Compiled by SOI 
by Amount and Range, Tax Year 2001: 

Table 7: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule C by Size Based on Business Gross Receipts, Tax Year 2000: 

Table 8: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule C by Size Based on Business Gross Receipts, Tax Year 2001: 

Table 9: Information on Expense Categories on Schedule C by Size Based 
on Business Gross Receipts, Tax Years 2000 and 2001: 

Table 10: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2000: 

Table 11: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2000: 

Table 12: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2000: 

Table 13: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2001: 

Table 14: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2001: 

Table 15: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2001: 

Table 16: Information on Expense Categories on Schedule C by Total 
Business Gross Receipts, Tax Years 2000 and 2001: 

Table 17: Information by Industry Categories for Schedule C Expenses by 
Business Gross Receipts, Tax Years 2000 and 2001: 

Table 18: Information by Industry Categories for Schedule C Expenses, 
Tax Years 2000 and 2001: 

Table 19: Information by Industry Categories for Schedule C Expenses, 
Tax Years 2000 and 2001: 

Table 20: Information by Industry Categories for Schedule C Expenses by 
Businesses With Inventory, Tax Years 2000 and 2001: 

Table 21: Information by Industry Categories for Schedule C Expenses by 
Businesses With and Without Inventory, Tax Year 2000: 

Table 22: Information by Industry Categories for Schedule C Expenses by 
Businesses With and Without Inventory, Tax Year 2001: 

Table 23: Information on Expense Categories on Schedule C by Businesses 
With and Without Home Office Expense, Tax Year 2000: 

Table 24: Information on Expense Categories on Schedule C by Businesses 
With and Without Home Office Expense, Tax Year 2001: 

Table 25: Information by Industry Categories for Schedule C Expenses by 
Businesses With Home Office Expense, Tax Year 2000: 

Table 26: Information by Industry Categories for Schedule C Expenses by 
Businesses With Home Office Expense, Tax Year 2001: 

Table 27: Information by Industry Categories for Schedule C Expenses by 
Cost of Goods Sold for Businesses With and Without Inventory, Tax Year 
2000: 

Table 28: Information by Industry Categories for Schedule C Expenses by 
Cost of Goods Sold for Businesses With and Without Inventory, Tax Year 
2001: 

Table 29: Depreciation Expense Reported on Schedule C by Industry, Tax 
Year 2000: 

Table 30: Depreciation Expense Reported on Schedule C by Industry, Tax 
Year 2001: 

Figures: 

Figure 1: Ten Most Commonly Reported Expenses on Schedule C, Tax Years 
2000 and 2001: 

Figure 2: Reported Expenses Compiled by SOI from Schedule F, Tax Years 
2000 and 2001: 

Figure 3: Ranges of Expenses Reported on Schedule C, Tax Year 2001: 

Figure 4: Ranges of Expenses Reported on Schedule F Compiled by SOI, 
Tax Year 2001: 

Figure 5: Percentage Distribution of Taxpayers According to Their 
Aggregate Expenses Reported on Schedule C, Tax Year 2001: 

Figure 6: Comparison of Ranges of the 10 Most Commonly Claimed Expenses 
on Schedule C Based On Gross Receipts, Tax Year 2001: 

Figure 7: Aggregate Expenses Greater Than 5 Billion Claimed on Schedule 
C and Schedule F by Industry Categories, Tax Years 2000 and 2001: 

Figure 8: Schedule C Industry Categories With Median Expenses $5,000 or 
More, Tax Years 2000 and 2001: 

Figure 9: Businesses Maintaining Inventory by Industry Category, Tax 
Years 2000 and 2001 (Schedule C): 

Figure 10: Median Expenses of Businesses Without and With Inventory by 
Industry, Tax Year 2001 (Schedule C): 

Figure 11: Businesses Claiming Home Office Expenses by Industry, Tax 
Years 2000 and 2001 (Schedule C): 

Figure 12: Median Home Office Expenses Reported on Schedule C by 
Industry Category, Tax Year 2001: 

Figure 13: Median Business Expenses Claimed by Businesses With and 
Without Home Office Expense, Tax Year 2001 (Schedule C): 

Letter January 23, 2004: 

The Honorable Olympia J. Snowe: 
Chair: 
Committee on Small Business and Entrepreneurship: 
United States Senate: 

The Honorable Christopher S. Bond: 
United States Senate: 

Complying with tax rules can be especially burdensome to small business 
sole proprietorships who independently own their unincorporated 
businesses. Internal Revenue Service (IRS) data show that sole 
proprietorships have more problems meeting their tax obligations than 
other taxpayer groups. For example, IRS examiners proposed adjustments 
to sole proprietors' tax returns at three times the rate as it did for 
nonbusiness individual tax returns in fiscal year 2001. Simplifying how 
sole proprietorships account for and report their business expenses may 
ease their burden and increase compliance.

Sole proprietorships report their business-related expenses on IRS's 
Form 1040 Schedule C--Profit or Loss from Business, and farm-related 
expenses on IRS's Form 1040 Schedule F--Profit or Loss from 
Farming.[Footnote 1] Both forms are preprinted with a list of expense 
categories for taxpayers to itemize their expenses, including "Other 
expenses" for expenses not included in another category.

Because of your interest in alleviating any unnecessary burden that 
federal tax requirements impose on small businesses, you asked us for 
information on the expenses that small businesses operating as sole 
proprietorships report on their income tax returns. As agreed with your 
office, we are providing you with information on the expenses claimed 
by taxpayers on Schedule C and Schedule F. Specifically, we are 
providing information on: 

* the most commonly reported categories of expenses;

* the amount of variation within and across expense categories; and: 

* the expenses based on selected business characteristics such as size, 
industry category, businesses with inventories, and businesses with 
home offices.

You also asked us for information on the cost of goods sold for 
businesses with inventories and information on depreciation expenses by 
industry categories. Appendix V provides that information.

To address our objectives, we reviewed the Schedule C and Schedule F 
tax forms, their related instructions, and other IRS publications 
pertaining to small businesses. We obtained IRS's Statistics of Income 
(SOI) individual income tax databases for tax years 2000 and 2001, the 
most recent 2 years that data were available. The SOI databases 
included information on taxpayers who reported business expenses on 
Schedule C and Schedule F. We used these databases to develop the 
statistical information in this report. Given that the SOI data are a 
sample, the population estimates made from the data are subject to 
sampling errors. The numbers we report are estimated to the population 
with a 95 percent confidence interval. The sample error surrounding 
each estimate is disclosed for each data table contained in the 
appendixes. Also, we omitted population estimates from some tables when 
there were too few observations or too much sample variation to 
generate reliable estimates. This report only addresses one group of 
small business taxpayers, that is, sole proprietorships who reported 
business expenses on Schedule C or Schedule F.

We determined that the SOI databases were reliable for our purposes, 
although they have limitations for our purposes. Specifically, because 
IRS does not compile separate information on each of the expense 
categories listed on Schedule F, we could not provide complete 
information on the expenses of small businesses engaged in farming. 
Furthermore, the SOI data contain information as reported by taxpayers 
on their tax returns prior to verification by IRS through audits and 
other checks.

We conducted our work between April 2003 and October 2003 in accordance 
with generally accepted government auditing standards. Appendix I 
describes our objectives, scope, and methodology in greater detail.

Results in Brief: 

In tax years 2000 and 2001, the most commonly claimed categories of 
expenses for sole proprietors filing Schedule Cs included Other 
expenses, Car/truck, Supplies, Utilities, Office, and Professional/
legal. The percentage of taxpayers filing Schedule Cs that reported 
expenses in these categories varied from 73 percent for the Other 
expense category to 48 percent for the Professional/legal expense 
category. Because the SOI database did not separately compile 
information for each expense category on Schedule F, we were unable to 
determine the most commonly reported categories of expenses of 
taxpayers filing Schedule F. However, over 50 percent of the taxpayers 
filing Schedule F claimed expenses for Depreciation, Repairs, Gasoline/
oil, and Supplies.

The expenses that small businesses reported on Schedule C and Schedule 
F varied widely across and within expense categories. There was wide 
variation in both median dollar amounts and ranges. On Schedule C in 
tax year 2001, the 99th percentile[Footnote 2] ranged from about 
$10,000 for Meals/entertainment expenses to nearly $350,000 for Wages. 
Expenses also varied greatly within the categories of expenses. For 
example, the expenses for Wages that taxpayers reported on Schedule C 
in tax year 2001 ranged from about $1,000 at the 10TH percentile to 
about $99,000 at the 90TH percentile.

In tax year 2001, there was wide variability in the expenses of sole 
proprietorships based on business characteristics such as size 
(measured in gross receipts), industry category, businesses with 
inventories, and businesses with home offices.[Footnote 3] Not 
surprisingly, for the 10 most commonly claimed expenses on Schedule C, 
businesses with higher gross receipts had higher expenses in contrast 
to businesses with smaller gross receipts that had lower expenses. 
Further, the distribution of expenses across expense categories 
generally remained similar for all business sizes. However, in viewing 
the expenses across industry categories, the data showed wide 
variability in the amounts and ranges of expenses. For example, the 
total expenses that farming sole proprietorships claimed were about 75 
percent larger than the total expenses that taxpayers claimed for any 
other industry. In six industries, sole proprietors whose businesses 
maintained inventories had significantly higher median expenses than 
those that did not, and sole proprietors with home office expenses 
generally had lower median expenses than those without home offices.

Background: 

IRS defines small businesses to include all partnerships, corporations, 
and S corporations with assets under $10 million, and all self-employed 
individuals also known as sole proprietorships.[Footnote 4] Each form 
of business has distinctive legal characteristics that bring about 
different tax consequences. For example, corporations are taxed as 
separate entities distinct from their owners, with taxable dividends 
included in the shareholders' income; income earned by S corporations 
and partnerships is passed through to their owners and taxed at the 
owners' rates; and sole proprietorships are taxed as 
individuals.[Footnote 5]

According to IRS's data, a majority of small businesses are sole 
proprietorships. In calendar year 2003 about 20.4 million sole 
proprietors were expected to file tax returns. In addition, about 7 
million of the 8.2 million partnerships, corporations, and S 
corporations were expected to file tax returns had assets of less than 
$10 million.

Sole proprietors report their business income to IRS on Form 1040, the 
individual income tax return. They are also required to attach the 
appropriate schedules for reporting income and expenses related to 
their business operations such as Schedule C and Schedule F.[Footnote 
6] Schedule C is preprinted with 24 expense categories including a 
separate line for taxpayers to record expenses for business use of 
their homes. Similarly, Schedule F has 25 expense categories. One of 
the expense categories on both schedules is for taxpayers to report any 
other expenses that do not generally fit within one of the itemized 
categories. In tax year 2001, about 90 percent of the sole proprietors 
submitted Schedule Cs and about 10 percent submitted Schedule Fs.

The Most Commonly Claimed Categories of Expenses of Sole 
Proprietorships: 

Figure 1 shows the 10 most commonly claimed categories of expenses that 
sole proprietorships reported on Schedule C. As illustrated, the most 
commonly claimed categories of expenses on Schedule Cs included Other 
expenses, Car/truck, Supplies, Utilities, Office, and Professional/
legal. The percentage of taxpayers claiming these particular categories 
of expenses ranged from 73 percent for Other expenses to 48 percent for 
Professional/legal. While the information contained in IRS's SOI 
database precluded us from determining the most common expenses that 
taxpayers reported on Schedule Fs, figure 2 shows the percentage of 
taxpayers claiming Schedule F expenses that SOI does individually 
track. The available data showed that more than half of the sole 
proprietors claimed expenses in the categories for Depreciation, 
Repairs, Gasoline/oil, and Supplies. We could not determine the most 
commonly reported expenses of taxpayers who filed Schedule F because 
IRS does not compile detailed information on 13 of the 25 expense 
categories on Schedule F.[Footnote 7] Instead, the data on these 13 
expense categories are aggregated with and reported in the Other 
expense category. Consequently, the value of the Other expense category 
is overstated. The tables in appendix II provide additional information 
on the percentage of taxpayers who claimed certain expense categories 
on Schedule Cs and Schedule Fs in tax years 2000 and 2001.

Figure 1: Ten Most Commonly Reported Expenses on Schedule C, Tax Years 
2000 and 2001: 

[See PDF for image]

Note: Insurance expense excludes accident and health insurance for 
employees.

[End of figure]

Figure 2: Reported Expenses Compiled by SOI from Schedule F, Tax Years 
2000 and 2001: 

[See PDF for image]

Note: Excludes the Other expenses category because SOI aggregates the 
13 categories of expenses for which data are not individually compiled 
into the Other expenses category.

[End of figure]

Wide Variation in Amounts of Expenses Within and Across Expense 
Categories: 

The expenses reported by sole proprietorships on Schedule C and 
Schedule F varied widely across and within expense categories. The 
median dollar amounts for expenses varied extensively across expense 
categories as did the ranges of expenses reported on both schedules. 
For example, the 99th percentile of expenses on Schedule C ranged from 
about $10,000 for Meals/entertainment to about $350,000 for Wages. 
Within an expense category, the data also showed wide variation.

Figures 3 and 4 show the broad ranges of expenses that sole 
proprietorships reported on Schedule Cs and Schedule Fs in tax year 
2001. The solid bars represent the ranges of expenses at the 10TH and 
the 90TH percentiles and define the ranges where 80 percent of the 
expenses fell. For example, 80 percent of claims on Schedule C for Wage 
expenses fell between $895 at the 10TH percentile and $99,163 at the 
90TH percentile. The lines that extend out from the ends of the bar 
show the range of the expenses to the 1st and 99th percentiles. For 
example, Wage expenses on Schedule C ranged from approximately $100 at 
the 1st percentile to about $350,000 at the 99th percentile. Like 
schedule C, the ranges of expenses on Schedule F varied widely.

Figure 3: Ranges of Expenses Reported on Schedule C, Tax Year 2001: 

[See PDF for image]

Note: Insurance expense excludes accident and health insurance for 
employees.

[End of figure]

Figure 4: Ranges of Expenses Reported on Schedule F Compiled by SOI, 
Tax Year 2001: 

[See PDF for image]

Note: The Other expense category includes information on the Other 
expense category plus the 13 categories of expenses for which IRS does 
not compile separate data.

[End of figure]

Figure 5 shows the percentage distribution of taxpayers according to 
the aggregate amount of expenses they reported on Schedule C in tax 
year 2001. As illustrated, the median expenses claimed were $8,968. 
This means that half of the taxpayers claimed less than $8,968 in total 
expenses while half claimed more.

Figure 5: Percentage Distribution of Taxpayers According to Their 
Aggregate Expenses Reported on Schedule C, Tax Year 2001: 

[See PDF for image]

[End of figure]

Wide Variation in Expenses by Business Characteristics: 

There was a high degree of variability in the amounts and ranges of 
expenses based on business size, industry category, businesses with 
inventories, and businesses with home offices.[Footnote 8]

As Gross Receipts Increased, the Distribution of Expenses Remained 
Similar: 

To provide some perspective on how business expenses may differ between 
larger and smaller businesses, we used gross receipts as a measure of 
business size. Not surprisingly, sole proprietors with larger gross 
receipts generally claimed more expenses in the 10 most commonly 
claimed Schedule C categories than those with smaller gross receipts. 
While the amounts and ranges of expenses were larger as gross receipts 
increased, the distribution of expenses across expense categories 
generally remained similar. We analyzed information for three different 
size categories--(1) under $25,000 in gross receipts, which represented 
61 percent of the sole proprietors who filed Schedule Cs, (2) between 
$25,000 and $100,000 in gross receipts, which represented 25 percent of 
the sole proprietors who filed Schedule Cs, and (3) and over $100,000 
in gross receipts, which represented 14 percent of the sole proprietors 
who filed Schedule Cs. Figure 6 compares the ranges of expenses across 
these three business sizes. Comparable information on gross receipts 
was not available for us to analyze farming expenses in this manner.

Figure 6: Comparison of Ranges of the 10 Most Commonly Claimed Expenses 
on Schedule C Based On Gross Receipts, Tax Year 2001: 

[See PDF for image]

Note: Table shows 10 most common expenses claimed by sole proprietors 
on Schedule C. Insurance expense excludes accident and health insurance 
for employees.

[End of figure]

Expenses Vary by Industry Category: 

Figure 7 shows the total dollar amounts of expenses that sole 
proprietors reported on Schedule Cs and Schedule Fs by industry 
category in tax years 2000 and 2001. In filling out their Schedule Cs, 
taxpayers are to select an industry category that best describes their 
business from the list of codes included in the schedule's 
instructions. (See app. I for more information.) As illustrated by the 
figure, the total expenses that taxpayers claimed related to the 
farming industry on Schedule F were about 75 percent larger than the 
expenses for any other single industry category for Schedule C 
businesses. Figure 8 shows that variation exists in median expenses 
across industry categories.

Figure 7: Aggregate Expenses Greater Than 5 Billion Claimed on Schedule 
C and Schedule F by Industry Categories, Tax Years 2000 and 2001: 

[See PDF for image]

Note: Expenses for the farming industry category were reported on the 
Schedule F. Expenses for all other industry categories were reported on 
the Schedule C.

[End of figure]

Figure 8: Schedule C Industry Categories With Median Expenses $5,000 or 
More, Tax Years 2000 and 2001: 

[See PDF for image]

[End of figure]

In Six Industries, Sole Proprietorships With Inventory Had 
Significantly Higher Median Expenses Than Those Without Inventory: 

All industries had some small businesses that maintained inventories. 
In only four industries, however--Retail trade, Accommodation/food 
services, Wholesale trade, and Manufacturing--did more than 15 percent 
of businesses have inventories in tax years 2000 and 2001. (See fig. 
9.): 

Figure 9: Businesses Maintaining Inventory by Industry Category, Tax 
Years 2000 and 2001 (Schedule C): 

[See PDF for image]

[End of figure]

Figure 10 shows a comparison of median expenses of businesses by 
industry with and without inventory. The median expenses for businesses 
with inventory were significantly higher than those of businesses 
without an inventory for six industries--Accommodation/food services, 
Health care/social assistance, Mining, Transportation/warehousing, 
Construction, and Other services.

Figure 10: Median Expenses of Businesses Without and With Inventory by 
Industry, Tax Year 2001 (Schedule C): 

[See PDF for image]

Note: Two industries--Religious/civic and Utilities--are not included 
because reliable population estimates could not be developed.

[End of figure]

Sole Proprietorships Claiming Home Office Expense Generally Had Lower 
Median Expenses Than Those Without Home Offices: 

While all industries had some businesses with home offices, they were 
more prevalent in some industries. Health care/social assistance and 
Professional/technical had the highest percentage of Home office 
expenses claimed in tax years 2000 and 2001 (see fig. 11). Figure 12 
shows the variation in the median amounts of Home office expense by 
industry in tax year 2001. Those businesses without home offices 
generally reported higher median expenses than those with home offices, 
although Office and Other expenses were higher for those businesses 
with a home office (see fig. 13).

Figure 11: Businesses Claiming Home Office Expenses by Industry, Tax 
Years 2000 and 2001 (Schedule C): 

[See PDF for image]

Note: The Utilities industry was excluded from the analysis because it 
had less than 100 sample observations.

[End of figure]

Figure 12: Median Home Office Expenses Reported on Schedule C by 
Industry Category, Tax Year 2001: 

[See PDF for image]

Note: The Utilities industry was excluded from the analysis because it 
had less than 100 sample observations.

[End of figure]

Figure 13: Median Business Expenses Claimed by Businesses With and 
Without Home Office Expense, Tax Year 2001 (Schedule C): 

[See PDF for image]

[End of figure]

Appendix IV provides additional information on expenses of sole 
proprietors by the business characteristics described above.

Agency Comments: 

IRS's Director, Research, Analysis, and Statistics provided us written 
comments on a draft of this report in a January 13, 2004, letter, which 
is reprinted in appendix VI. The Director agreed that the tabulations 
in the report accurately reflect the SOI sample data for small business 
expenses claimed by taxpayers on Schedule Cs and Schedule Fs.

As agreed with your office, unless you announce the contents of this 
report earlier, we plan no further distribution of this report until 30 
days from the date of this letter. At that time, we will send copies of 
this report to the Ranking Minority Member of your Committee, the 
Chairman and Ranking Minority Member of the House Committee on Small 
Business, the Chairman and Ranking Minority Member of the Senate 
Committee on Finance, and the Chairman and Ranking Minority Member of 
the House Committee on Ways and Means. We will also send copies to the 
Secretary of the Treasury, the Commissioner of Internal Revenue, and 
the Director, Office of Management and Budget. Copies will be made 
available to others upon request. The report is also available on GAO's 
home page at [Hyperlink, http://www.gao.gov].

If you have any questions concerning this report, please contact me or 
Charlie Daniel at (202) 512-9110. Key contributors to this work are 
listed in appendix VI.

Signed by: 

Michael Brostek: 
Director, Tax Issues: 

[End of section]

Appendixes: 

Appendix I: Objectives, Scope, and Methodology: 

Our objective was to provide descriptive information on (1) the most 
commonly reported categories of expenses of small business taxpayers 
operating as sole proprietorships, (2) the amount of variation within 
and across expense categories, and (3) the expenses based on selected 
business characteristics such as size, industry, businesses with 
inventories, and businesses with home offices.

To address our objective, we obtained information from IRS's nonpublic 
use SOI databases of individual income tax returns that reported 
expenses for small business sole proprietorship on Schedules C and 
Schedule F for tax years 2000 and 2001. These years were the most 
recent that data were available. SOI's nonpublic use databases differs 
from its public use databases in that they contain more detailed data, 
some of which could be associated to specific taxpayers. According to 
IRS, the SOI databases were compiled from transaction file records 
created when IRS processed individual income tax returns. The 
statistics compiled by SOI are estimates from a stratified probability 
sample of unaudited individual income tax returns filed during calendar 
years 2001 (for tax year 2000) and 2002 (for tax year 2001). IRS 
excluded tentative and amended tax returns from the database. Tentative 
returns were excluded because the revised returns may have been sampled 
later and amended returns were excluded because the original returns 
had already been subjected to sampling. The sample was stratified on 
the basis of subpopulation groups called strata, and a sample was 
randomly selected independently from each stratum. For example, one 
stratum is for the presence of both Schedule F and Schedule C.

To assess the reliability of IRS's SOI individual income tax return 
databases, we followed our guidance for assessing the reliability of 
computerized databases.[Footnote 9] In particular, we (1) performed 
electronic testing for obvious errors in the accuracy and completeness 
of the data, (2) reviewed the SOI dataset documentation, and (3) 
interviewed IRS officials knowledgeable about the data to gain an 
understanding of the internal procedures that were in place to ensure 
data quality. According to SOI, the data derived from the tax returns 
were subjected to a number of validation and consistency checks, 
including systematic verifications of some work of each tax examiner 
involved in the SOI processes to compile the databases. Most of the 
data validation checks were computerized tests of records.

While we found the data reliable for the purpose of our engagement, we 
noted limitations of the database. In particular, SOI data contain 
information as reported by taxpayers on their income tax returns that 
may not have been subjected to much of IRS's internal accuracy checks 
such as the document matching of information returns. In addition, IRS 
does not separately transcribe all of the detailed expense information 
from Schedule F like it does for the Schedule C. Consequently, we could 
not provide the same level of detailed information on expenses relating 
to Schedule F as we could for Schedule C tax returns.

To determine the most commonly reported expenses of small business sole 
proprietorships, we estimated the percent of taxpayers who reported a 
nonzero value in each expense category listed on the Schedule Cs and 
Schedule Fs. We excluded taxpayers who filed Schedule C-E, because that 
form does not have itemized expenses. We also excluded taxpayers who 
filed Schedule Cs or Schedule Fs but did not list any itemized expenses 
on them. Because IRS does not compile information on all of the expense 
categories on Schedule F, we were unable to precisely determine what 
were the most commonly reported categories of expenses. Of the 25 
categories of expenses on Schedule F, IRS only compiles detailed 
information on 12 categories. The SOI databases combine information on 
the remaining 13 expenses and reports them as a single amount under the 
Other expenses category on Schedule F. As shown in table 2 in appendix 
II, the Other expenses category represented about 51 percent of the 
expenses reported by taxpayers on Schedule F in tax year 2001. However, 
we used IRS's available data to provide some perspective on the percent 
of taxpayers who filed Schedule Fs that reported nonzero values in the 
expense categories where data were available. This information was not 
sufficient for us to rank the categories and present reliable 
information on the most commonly claimed expenses.

To provide information on the amount of variation within and across 
expense categories, we summarized information on the dollar amounts of 
expenses from IRS's SOI individual databases that reported expenses of 
small business sole proprietorships and estimated the population mean 
and median values. We also estimated population percentile values of 
the business expense categories on Schedule Cs and Schedule Fs. We 
estimated values for the 1st, 10TH, 50TH, 90TH, and 99th percentiles. 
Our information on Schedule F taxpayers was limited to those expense 
categories for which IRS had data. To mitigate the possibility of 
presenting unusual outliers and to ensure that we do not disclose 
taxpayer information, we do not provide the minimum and maximum values. 
Rather we provide estimates of the 1sSTand 99tTHpercentiles.

To provide information on the selected business characteristics that 
you requested, we estimated population expense values based on business 
size, industry category, businesses maintaining inventory, and 
businesses with home offices. We also included information on 
businesses operating farms and agricultural enterprises. To perform our 
analysis of business expenses based on the size of businesses, we used 
different levels of gross receipts as the measure for size. To 
determine industry categories, we collected information from IRS's SOI 
databases by the principal business codes as reported by taxpayers. 
Taxpayers were to determine their principal business codes from the 
North American Industry Classification System information in the 
instructions for the tax forms.

To provide information on the cost of goods sold for businesses with 
inventories and information on depreciation expenses by industry 
categories, we estimated population values for different categories of 
industries.

Because the SOI data are a sample, the population estimates made from 
that data are subject to some imprecision owing to sampling 
variability. We express our confidence in the precision of the sample's 
results as a 95 percent confidence interval of plus or minus some 
percentage for sampling errors. The sampling errors associated with our 
population estimates are listed with each table in the appendixes. 
Further, for some entries in some tables there were too few 
observations or too much sample variation to generate reliable 
population estimates. In these cases the estimates are omitted.

We did our work at IRS headquarters in Washington, D.C. between April 
2003 and October 2003 in accordance with generally accepted government 
auditing standards.

[End of section]

Appendix II: Information on the Percent of Taxpayers Who Claimed 
Expenses on Schedule C and Schedule F in Tax Years 2000 and 2001: 

This appendix provides complete information on the percentage of 
taxpayers who claimed expenses in the categories of expenses listed on 
Schedule C and on Schedule F, to the extent that data on farming 
expenses were available. It also provides information that shows how 
each individual expense category compares as a percentage of the total 
expenses: 

Table 1: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule C, Tax Years 2000 and 2001: 

Expense category: Advertising; 
2000: Percentage of taxpayers who claimed expense: 35.3; 
2000: Expense as percentage of total expenses: 2.4; 
2001: Percentage of taxpayers who claimed expense: 35.1; 
2001: Expense as percentage of total expenses: 2.5.

Expense category: Bad debts; 
2000: Percentage of taxpayers who claimed expense: 2.6; 
2000: Expense as percentage of total expenses: 0.2[A]; 
2001: Percentage of taxpayers who claimed expense: 2.8; 
2001: Expense as percentage of total expenses: 0.3[B].

Expense category: Car/truck; 
2000: Percentage of taxpayers who claimed expense: 71.5; 
2000: Expense as percentage of total expenses: 10.9; 
2001: Percentage of taxpayers who claimed expense: 71.0; 
2001: Expense as percentage of total expenses: 10.9.

Expense category: Commissions; 
2000: Percentage of taxpayers who claimed expense: 7.9; 
2000: Expense as percentage of total expenses: 2.8; 
2001: Percentage of taxpayers who claimed expense: 7.8; 
2001: Expense as percentage of total expenses: 2.8.

Expense category: Depletion; 
2000: Percentage of taxpayers who claimed expense: 0.6; 
2000: Expense as percentage of total expenses: 0.2[A]; 
2001: Percentage of taxpayers who claimed expense: 0.6; 
2001: Expense as percentage of total expenses: 0.2[A].

Expense category: Depreciation; 
2000: Percentage of taxpayers who claimed expense: 44.5; 
2000: Expense as percentage of total expenses: 7.7; 
2001: Percentage of taxpayers who claimed expense: 43.1; 
2001: Expense as percentage of total expenses: 7.7.

Expense category: Employee benefit programs; 
2000: Percentage of taxpayers who claimed expense: 2.3; 
2000: Expense as percentage of total expenses: 0.4; 
2001: Percentage of taxpayers who claimed expense: 2.2; 
2001: Expense as percentage of total expenses: 0.5.

Expense category: Insurance; 
2000: Percentage of taxpayers who claimed expense: 37.9; 
2000: Expense as percentage of total expenses: 3.3; 
2001: Percentage of taxpayers who claimed expense: 37.1; 
2001: Expense as percentage of total expenses: 3.3.

Expense category: Interest on mortgage; 
2000: Percentage of taxpayers who claimed expense: 5.7; 
2000: Expense as percentage of total expenses: 1.3; 
2001: Percentage of taxpayers who claimed expense: 5.6; 
2001: Expense as percentage of total expenses: 1.3.

Expense category: Interest on other business debt; 
2000: Percentage of taxpayers who claimed expense: 13.6; 
2000: Expense as percentage of total expenses: 1.7; 
2001: Percentage of taxpayers who claimed expense: 13.2; 
2001: Expense as percentage of total expenses: 1.6.

Expense category: Legal/professional services; 
2000: Percentage of taxpayers who claimed expense: 48.0; 
2000: Expense as percentage of total expenses: 1.8; 
2001: Percentage of taxpayers who claimed expense: 47.9; 
2001: Expense as percentage of total expenses: 1.7.

Expense category: Office; 
2000: Percentage of taxpayers who claimed expense: 49.7; 
2000: Expense as percentage of total expenses: 2.5; 
2001: Percentage of taxpayers who claimed expense: 49.5; 
2001: Expense as percentage of total expenses: 2.4.

Expense category: Pension/profit sharing plans; 
2000: Percentage of taxpayers who claimed expense: 1.1; 
2000: Expense as percentage of total expenses: 0.2[A]; 
2001: Percentage of taxpayers who claimed expense: 1.1; 
2001: Expense as percentage of total expenses: 0.2[A].

Expense category: Rent on machinery/equipment; 
2000: Percentage of taxpayers who claimed expense: 15.2; 
2000: Expense as percentage of total expenses: 2.1; 
2001: Percentage of taxpayers who claimed expense: 15.1; 
2001: Expense as percentage of total expenses: 2.0.

Expense category: Rent on other business property; 
2000: Percentage of taxpayers who claimed expense: 20.4; 
2000: Expense as percentage of total expenses: 5.8; 
2001: Percentage of taxpayers who claimed expense: 19.7; 
2001: Expense as percentage of total expenses: 5.8.

Expense category: Repairs; 
2000: Percentage of taxpayers who claimed expense: 31.2; 
2000: Expense as percentage of total expenses: 2.9; 
2001: Percentage of taxpayers who claimed expense: 30.5; 
2001: Expense as percentage of total expenses: 2.8.

Expense category: Supplies; 
2000: Percentage of taxpayers who claimed expense: 56.1; 
2000: Expense as percentage of total expenses: 5.2; 
2001: Percentage of taxpayers who claimed expense: 56.4; 
2001: Expense as percentage of total expenses: 5.3.

Expense category: Taxes; 
2000: Percentage of taxpayers who claimed expense: 40.9; 
2000: Expense as percentage of total expenses: 3.3; 
2001: Percentage of taxpayers who claimed expense: 40.1; 
2001: Expense as percentage of total expenses: 3.3.

Expense category: Travel; 
2000: Percentage of taxpayers who claimed expense: 26.6; 
2000: Expense as percentage of total expenses: 2.0; 
2001: Percentage of taxpayers who claimed expense: 26.8; 
2001: Expense as percentage of total expenses: 2.0.

Expense category: Meals/entertainment; 
2000: Percentage of taxpayers who claimed expense: 35.8; 
2000: Expense as percentage of total expenses: 1.1; 
2001: Percentage of taxpayers who claimed expense: 36.2; 
2001: Expense as percentage of total expenses: 1.1.

Expense category: Utilities; 
2000: Percentage of taxpayers who claimed expense: 54.0; 
2000: Expense as percentage of total expenses: 4.6; 
2001: Percentage of taxpayers who claimed expense: 53.5; 
2001: Expense as percentage of total expenses: 4.7.

Expense category: Wages; 
2000: Percentage of taxpayers who claimed expense: 10.7; 
2000: Expense as percentage of total expenses: 15.2; 
2001: Percentage of taxpayers who claimed expense: 10.1; 
2001: Expense as percentage of total expenses: 14.7.

Expense category: Other; 
2000: Percentage of taxpayers who claimed expense: 72.8; 
2000: Expense as percentage of total expenses: 20.8; 
2001: Percentage of taxpayers who claimed expense: 72.3; 
2001: Expense as percentage of total expenses: 21.8.

Expense category: Home office; 
2000: Percentage of taxpayers who claimed expense: 15.6; 
2000: Expense as percentage of total expenses: 1.4; 
2001: Percentage of taxpayers who claimed expense: 16.4; 
2001: Expense as percentage of total expenses: 1.4.

Total[C]; 
2000: Percentage of taxpayers who claimed expense: 100%; 
2001: Percentage of taxpayers who claimed expense: 100%.

Source: GAO analysis of IRS data.

Notes: Estimates in the first and third columns have sampling errors of 
(+/-) 2 percentage points or less. Estimates in the second and fourth 
columns have sampling errors of (+/-) 10 percent or less of the value 
of the estimates unless otherwise noted.

[A] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Totals may not add to 100 percent due to rounding.

[End of table]

Table 2: 
Percentage of Taxpayers Who Claimed Expense Categories on Schedule F, 
Tax Years 2000 and 2001: 

Expense category: Car/truck; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Chemicals; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Conservation; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Custom hire; 
2000: Percentage of taxpayers who claimed expense: 30.9; 
2000: Expense as percentage of total expenses: 2.7; 
2001: Percentage of taxpayers who claimed expense: 31.2; 
2001: Expense as percentage of total expenses: 2.6.

Expense category: Depreciation; 
2000: Percentage of taxpayers who claimed expense: 78.3; 
2000: Expense as percentage of total expenses: 15.7; 
2001: Percentage of taxpayers who claimed expense: 78.7; 
2001: Expense as percentage of total expenses: 16.1.

Expense category: Employee benefit programs; 
2000: Percentage of taxpayers who claimed expense: 2.2; 
2000: Expense as percentage of total expenses: 0.3[C]; 
2001: Percentage of taxpayers who claimed expense: 2.5; 
2001: Expense as percentage of total expenses: 0.3[C].

Expense category: Feed purchased; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Fertilizers/lime; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Freight/trucking; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Gasoline/oil; 
2000: Percentage of taxpayers who claimed expense: 64.1; 
2000: Expense as percentage of total expenses: 3.8; 
2001: Percentage of taxpayers who claimed expense: 65.4; 
2001: Expense as percentage of total expenses: 3.7.

Expense category: Insurance; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Interest on mortgage; 
2000: Percentage of taxpayers who claimed expense: 24.1; 
2000: Expense as percentage of total expenses: 4.0; 
2001: Percentage of taxpayers who claimed expense: 25.5; 
2001: Expense as percentage of total expenses: 4.1.

Expense category: Interest on other business debt; 
2000: Percentage of taxpayers who claimed expense: 30.0; 
2000: Expense as percentage of total expenses: 4.3; 
2001: Percentage of taxpayers who claimed expense: 30.5; 
2001: Expense as percentage of total expenses: 4.1.

Expense category: Labor hired; 
2000: Percentage of taxpayers who claimed expense: 24.9; 
2000: Expense as percentage of total expenses: 4.9; 
2001: Percentage of taxpayers who claimed expense: 25.3; 
2001: Expense as percentage of total expenses: 4.9.

Expense category: Pension/profit sharing plans; 
2000: Percentage of taxpayers who claimed expense: 0.2; 
2000: Expense as percentage of total expenses: 0.0[D]; 
2001: Percentage of taxpayers who claimed expense: 0.2; 
2001: Expense as percentage of total expenses: 0.0.

Expense category: Rent on machinery/equipment; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Rent on other business property; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Repairs; 
2000: Percentage of taxpayers who claimed expense: 73.8; 
2000: Expense as percentage of total expenses: 6.5; 
2001: Percentage of taxpayers who claimed expense: 72.8; 
2001: Expense as percentage of total expenses: 6.5.

Expense category: Seeds/plants; 
2000: Percentage of taxpayers who claimed expense: 39.0; 
2000: Expense as percentage of total expenses: 3.8; 
2001: Percentage of taxpayers who claimed expense: 37.3; 
2001: Expense as percentage of total expenses: 3.8.

Expense category: Storage/warehousing; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Supplies; 
2000: Percentage of taxpayers who claimed expense: 63.5; 
2000: Expense as percentage of total expenses: 3.4; 
2001: Percentage of taxpayers who claimed expense: 62.9; 
2001: Expense as percentage of total expenses: 3.1.

Expense category: Taxes; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Utilities; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Veterinary/medicine; 
2000: Percentage of taxpayers who claimed expense: [A]; 
2000: Expense as percentage of total expenses: [Empty]; 
2001: Percentage of taxpayers who claimed expense: [A]; 
2001: Expense as percentage of total expenses: [Empty].

Expense category: Other expenses[B]; 
2000: Percentage of taxpayers who claimed expense: 97.3; 
2000: Expense as percentage of total expenses: 50.8; 
2001: Percentage of taxpayers who claimed expense: 97.1; 
2001: Expense as percentage of total expenses: 50.8.

Total[E]; 
2000: Expense as percentage of total expenses: 100%; 
2001: Expense as percentage of total expenses: 100%.

Source: GAO analysis of IRS data.

Note: Estimates in the first and third columns have sampling errors of 
(+/-) 3 percentage points or less. Estimates in the second and fourth 
columns have sampling errors of (+/-) 10 percent or less of the value 
of the estimates unless otherwise noted.

[A] Included with Other expenses.

[B] Includes: Car/truck, Chemicals, Conservation, Feed purchased, 
Fertilizers/lime, Freight/trucking, Insurance, Rent on machinery/
equipment, Rent on other business property, Storage/warehousing, Taxes, 
Utilities, and Veterinary/medicine as well as any expenses taxpayers 
included in the Other expenses category.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling errors exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Totals may not add to 100 percent due to rounding.

[End of table]

[End of section]

Appendix III: Information on the Amounts and Ranges of Expenses 
Reported on Schedule C and Schedule F: 

As we reported earlier, the amounts and ranges of expenses that sole 
proprietors reported on Schedule Cs and Schedule Fs varied widely. This 
appendix provides greater detail on these measures. In particular, the 
tables in the appendix provide information on the percentile ranges for 
the expenses. To mitigate the possibility of presenting unusual 
outliers and because of taxpayer disclosure concerns, we do not provide 
the minimum and maximum values. Rather we provide estimates of the 1st 
and 99th percentiles. Estimates of the mean and median expenses are 
also provided.

Table 3: Information on Expense Categories on Schedule C by Amount and 
Range, Tax Year 2000: 

Dollars in thousands.

Expense category: Advertising; 
2000: Total: $10,148,616; 
2000: Mean: $2.0; 
2000: 1st: $0.01; 
2000: 10th: $0.05; 
2000: Median: $0.46; 
2000: 90th: $4.44; 
2000: 99th[A]: $22.45.

Expense category: Bad debts; 
2000: Total: $983,868[B]; 
2000: Mean: $2.6[B]; 
2000: 1st: $0.01[D]; 
2000: 10th: $0.06[C]; 
2000: Median: $0.49[B]; 
2000: 90th: $4.50[C]; 
2000: 99th[A]: $30.55.

Expense category: Car/truck; 
2000: Total: $45,711,214; 
2000: Mean: $4.4; 
2000: 1st: $0.05; 
2000: 10th: $0.29; 
2000: Median: $2.36; 
2000: 90th: $9.75; 
2000: 99th[A]: $32.56.

Expense category: Commissions; 
2000: Total: $11,610,550; 
2000: Mean: $10.1; 
2000: 1st: $0.01[E]; 
2000: 10th: $0.08[C]; 
2000: Median: $1.09[B]; 
2000: 90th: $19.35[C]; 
2000: 99th[A]: $139.77.

Expense category: Depletion; 
2000: Total: $684,974[B]; 
2000: Mean: $8.1[C]; 
2000: 1st: $0.01[E]; 
2000: 10th: $0.07[D]; 
2000: Median: $1.05[D]; 
2000: 90th: $14.51[D]; 
2000: 99th[A]: $110.57.

Expense category: Depreciation; 
2000: Total: $32,196,152; 
2000: Mean: $5.0; 
2000: 1st: $0.02[E]; 
2000: 10th: $0.22; 
2000: Median: $1.83; 
2000: 90th: $11.74; 
2000: 99th[A]: $42.73.

Expense category: Employee benefit programs; 
2000: Total: $1,871,875; 
2000: Mean: $5.7; 
2000: 1st: $0.05[D]; 
2000: 10th: $0.41[C]; 
2000: Median: $2.85[B]; 
2000: 90th: $12.69[B]; 
2000: 99th[A]: $36.21.

Expense category: Insurance; 
2000: Total: $13,623,747; 
2000: Mean: $2.5; 
2000: 1st: $0.04; 
2000: 10th: $0.17; 
2000: Median: $0.95; 
2000: 90th: $5.66; 
2000: 99th[A]: $22.76.

Expense category: Interest on mortgage; 
2000: Total: $5,250,896; 
2000: Mean: $6.3; 
2000: 1st: $0.04[D]; 
2000: 10th: $0.43; 
2000: Median: $2.78; 
2000: 90th: $13.37[B]; 
2000: 99th[A]: $55.44.

Expense category: Interest on other business debt; 
2000: Total: $6,981,950; 
2000: Mean: $3.6; 
2000: 1st: $0.01[D]; 
2000: 10th: $0.11; 
2000: Median: $1.08; 
2000: 90th: $7.12; 
2000: 99th[A]: $31.72.

Expense category: Legal/professional services; 
2000: Total: $7,312,591; 
2000: Mean: $1.0; 
2000: 1st: $0.02; 
2000: 10th: $0.07; 
2000: Median: $0.25; 
2000: 90th: $1.93; 
2000: 99th[A]: $12.00.

Expense category: Office; 
2000: Total: $10,456,413; 
2000: Mean: $1.4; 
2000: 1st: $0.01; 
2000: 10th: $0.06; 
2000: Median: $0.45; 
2000: 90th: $3.41; 
2000: 99th[A]: $15.26.

Expense category: Pension/profit sharing plans; 
2000: Total: $892,873; 
2000: Mean: $5.8; 
2000: 1st: $0.01[E]; 
2000: 10th: $0.40[C]; 
2000: Median: $3.52[B]; 
2000: 90th: $12.86[B]; 
2000: 99th[A]: $40.03.

Expense category: Rent on machinery/equipment; 
2000: Total: $8,880,267; 
2000: Mean: $4.0; 
2000: 1st: $0.03; 
2000: 10th: $0.12; 
2000: Median: $1.47; 
2000: 90th: $9.07[B]; 
2000: 99th[A]: $35.18.

Expense category: Rent on other business property; 
2000: Total: $24,342,102; 
2000: Mean: $8.2; 
2000: 1st: $0.04; 
2000: 10th: $0.41; 
2000: Median: $4.02; 
2000: 90th: $18.98; 
2000: 99th[A]: $60.41.

Expense category: Repairs; 
2000: Total: $12,280,522; 
2000: Mean: $2.7; 
2000: 1st: $0.02; 
2000: 10th: $0.09; 
2000: Median: $0.82; 
2000: 90th: $6.30; 
2000: 99th[A]: $28.28.

Expense category: Supplies; 
2000: Total: $21,793,943; 
2000: Mean: $2.7; 
2000: 1st: $0.02; 
2000: 10th: $0.10; 
2000: Median: $0.80; 
2000: 90th: $5.39; 
2000: 99th[A]: $29.67.

Expense category: Taxes; 
2000: Total: $13,955,915; 
2000: Mean: $2.4; 
2000: 1st: $0.01; 
2000: 10th: $0.04; 
2000: Median: $0.34; 
2000: 90th: $5.69; 
2000: 99th[A]: $29.21.

Expense category: Travel; 
2000: Total: $8,457,309; 
2000: Mean: $2.2; 
2000: 1st: $0.02; 
2000: 10th: $0.12; 
2000: Median: $0.84; 
2000: 90th: $4.96; 
2000: 99th[A]: $19.87.

Expense category: Meals/entertainment; 
2000: Total: $4,664,691; 
2000: Mean: $0.9; 
2000: 1st: $0.01; 
2000: 10th: $0.04; 
2000: Median: $0.33; 
2000: 90th: $2.28; 
2000: 99th[A]: $7.29.

Expense category: Utilities; 
2000: Total: $19,381,870; 
2000: Mean: $2.5; 
2000: 1st: $0.02; 
2000: 10th: $0.18; 
2000: Median: $1.09; 
2000: 90th: $5.84; 
2000: 99th[A]: $19.19.

Expense category: Wages; 
2000: Total: $63,485,482; 
2000: Mean: $40.8; 
2000: 1st: $0.12; 
2000: 10th: $1.03[C]; 
2000: Median: $16.37; 
2000: 90th: $96.47; 
2000: 99th[A]: $330.87.

Expense category: Other; 
2000: Total: $87,025,927; 
2000: Mean: $8.2; 
2000: 1st: $0.02; 
2000: 10th: $0.17; 
2000: Median: $1.58; 
2000: 90th: $14.04; 
2000: 99th[A]: $96.40.

Expense category: Home office; 
2000: Total: $5,642,543; 
2000: Mean: $2.5; 
2000: 1st: $0.07; 
2000: 10th: $0.37; 
2000: Median: $1.54; 
2000: 90th: $5.59; 
2000: 99th[A]: $13.66.

Expense category: All categories; 
2000: Total: $417,636,291[F]; 
2000: Mean: $28.8; 
2000: 1st: $0.10; 
2000: 10th: $1.03; 
2000: Median: $8.80; 
2000: 90th: $62.23; 
2000: 99th[A]: $316.05.

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, fifth, and sixth columns have 
sampling errors of (+/-) 10 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the third column have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the fourth column have 
sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown.

[B] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling errors exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for 
estimates.

[F] Total may not add due to rounding.

[End of table]

Table 4: Information on Expense Categories on Schedule C by Amount and 
Range, Tax Year 2001: 

Dollars in thousands.

Expense category: Advertising; 
2001: Total: $10,774,079; 
2001: Mean: $2.1; 
2001: 1st: $0.01; 
2001: 10th: $0.05; 
2001: Median: $0.47; 
2001: 90th: $4.62; 
2001: 99th[A]: $22.71.

Expense category: Bad debts; 
2001: Total: $1,176,324[C]; 
2001: Mean: $2.8[C]; 
2001: 1st: $0.02[E]; 
2001: 10th: $0.05[C]; 
2001: Median: $0.50[C]; 
2001: 90th: $4.47[C]; 
2001: 99th[A]: $25.42.

Expense category: Car/truck; 
2001: Total: $47,351,940; 
2001: Mean: $4.5; 
2001: 1st: $0.04; 
2001: 10th: $0.31; 
2001: Median: $2.48; 
2001: 90th: $10.02; 
2001: 99th[A]: $32.31.

Expense category: Commissions; 
2001: Total: $12,130,077; 
2001: Mean: $10.5; 
2001: 1st: $0.02; 
2001: 10th: $0.10; 
2001: Median: $1.19[B]; 
2001: 90th: $17.14[C]; 
2001: 99th[A]: $164.89.

Expense category: Depletion; 
2001: Total: $693,669[B]; 
2001: Mean: $7.8[B]; 
2001: 1st: $0.00[E]; 
2001: 10th: $0.08[D]; 
2001: Median: $1.36[C]; 
2001: 90th: $11.91[D]; 
2001: 99th[A]: $111.06.

Expense category: Depreciation; 
2001: Total: $33,425,567; 
2001: Mean: $5.2; 
2001: 1st: $0.03; 
2001: 10th: $0.21; 
2001: Median: $1.83; 
2001: 90th: $12.02; 
2001: 99th[A]: $46.13.

Expense category: Employee benefit programs; 
2001: Total: $2,040,639; 
2001: Mean: $6.4; 
2001: 1st: $0.08; 
2001: 10th: $0.46[C]; 
2001: Median: $3.45[B]; 
2001: 90th: $13.53[B]; 
2001: 99th[A]: $37.16.

Expense category: Insurance; 
2001: Total: $14,367,018; 
2001: Mean: $2.6; 
2001: 1st: $0.03; 
2001: 10th: $0.19; 
2001: Median: $1.01; 
2001: 90th: $5.97; 
2001: 99th[A]: $24.08.

Expense category: Interest on mortgage; 
2001: Total: $5,456,226; 
2001: Mean: $6.6; 
2001: 1st: $0.02[D]; 
2001: 10th: $0.45; 
2001: Median: $2.86; 
2001: 90th: $14.31[B]; 
2001: 99th[A]: $55.44.

Expense category: Interest on other business debt; 
2001: Total: $7,053,321; 
2001: Mean: $3.6; 
2001: 1st: $0.01; 
2001: 10th: $0.11; 
2001: Median: $1.10; 
2001: 90th: $7.48; 
2001: 99th[A]: $31.88.

Expense category: Legal/professional services; 
2001: Total: $7,482,619; 
2001: Mean: $1.1; 
2001: 1st: $0.02; 
2001: 10th: $0.07; 
2001: Median: $0.25; 
2001: 90th: $1.87; 
2001: 99th[A]: $12.37.

Expense category: Office; 
2001: Total: $10,604,805; 
2001: Mean: $1.4; 
2001: 1st: $0.01; 
2001: 10th: $0.06; 
2001: Median: $0.45; 
2001: 90th: $3.27; 
2001: 99th[A]: $15.90.

Expense category: Pension/profit sharing plans; 
2001: Total: $991,892[B]; 
2001: Mean: $6.0; 
2001: 1st: $0.00[E]; 
2001: 10th: $0.34[D]; 
2001: Median: $3.15[B]; 
2001: 90th: $13.10[B]; 
2001: 99th[A]: $43.73.

Expense category: Rent on machinery/equipment; 
2001: Total: $8,522,008; 
2001: Mean: $3.8; 
2001: 1st: $0.02; 
2001: 10th: $0.13; 
2001: Median: $1.35[B]; 
2001: 90th: $8.31[B]; 
2001: 99th[A]: $37.53.

Expense category: Rent on other business property; 
2001: Total: $25,119,124; 
2001: Mean: $8.6; 
2001: 1st: $0.04; 
2001: 10th: $0.43; 
2001: Median: $4.16; 
2001: 90th: $20.05; 
2001: 99th[A]: $64.49.

Expense category: Repairs; 
2001: Total: $12,129,756; 
2001: Mean: $2.7; 
2001: 1st: $0.02; 
2001: 10th: $0.09; 
2001: Median: $0.77; 
2001: 90th: $6.28; 
2001: 99th[A]: $27.65.

Expense category: Supplies; 
2001: Total: $23,074,836; 
2001: Mean: $2.8; 
2001: 1st: $0.02[C]; 
2001: 10th: $0.11; 
2001: Median: $0.78; 
2001: 90th: $5.49; 
2001: 99th[A]: $32.11.

Expense category: Taxes; 
2001: Total: $14,214,082; 
2001: Mean: $2.4; 
2001: 1st: $0.01; 
2001: 10th: $0.04; 
2001: Median: $0.35; 
2001: 90th: $5.65; 
2001: 99th[A]: $29.96.

Expense category: Travel; 
2001: Total: $8,657,266; 
2001: Mean: $2.2; 
2001: 1st: $0.02; 
2001: 10th: $0.11; 
2001: Median: $0.83; 
2001: 90th: $4.98; 
2001: 99th[A]: $20.22.

Expense category: Meals/entertainment; 
2001: Total: $4,735,312; 
2001: Mean: $0.9; 
2001: 1st: $0.01; 
2001: 10th: $0.04; 
2001: Median: $0.34; 
2001: 90th: $2.19; 
2001: 99th[A]: $7.14.

Expense category: Utilities; 
2001: Total: $20,482,680; 
2001: Mean: $2.6; 
2001: 1st: $0.03; 
2001: 10th: $0.19; 
2001: Median: $1.15; 
2001: 90th: $5.97; 
2001: 99th[A]: $21.07.

Expense category: Wages; 
2001: Total: $63,826,020; 
2001: Mean: $42.5; 
2001: 1st: $0.10[D]; 
2001: 10th: $0.90[C]; 
2001: Median: $17.52; 
2001: 90th: $99.16; 
2001: 99th[A]: $349.47.

Expense category: Other; 
2001: Total: $94,612,276; 
2001: Mean: $8.8; 
2001: 1st: $0.02; 
2001: 10th: $0.19; 
2001: Median: $1.71; 
2001: 90th: $14.81; 
2001: 99th[A]: $105.22.

Expense category: Home office; 
2001: Total: $5,981,403; 
2001: Mean: $2.5; 
2001: 1st: $0.06; 
2001: 10th: $0.38; 
2001: Median: $1.54; 
2001: 90th: $5.55; 
2001: 99th[A]: $13.10.

Expense category: All categories; 
2001: Total: $434,902,937[F]; 
2001: Mean: $29.3; 
2001: 1st: $0.10[E]; 
2001: 10th: $1.04; 
2001: Median: $8.97; 
2001: 90th: $62.05; 
2001: 99th[A]: $318.88.

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, fifth, and sixth columns have 
sampling errors of (+/-) 10 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the third column have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the fourth column have 
sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown.

[B] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[F] Total may not add due to rounding.

[End of table]

Table 5: Information on Expense Categories on Schedule F Compiled by 
SOI by Amount and Range, Tax Year 2000: 

Dollars in thousands.

Expense category: Custom hire; 
2000: Total: $2,763,207; 
2000: Mean: $4.4; 
2000: 1st: $0.05; 
2000: 10th: $0.18; 
2000: Median: $1.21; 
2000: 90th: $10.30; 
2000: 99th[A]: $43.22.

Expense category: Depreciation; 
2000: Total: $16,074,177; 
2000: Mean: $10.1; 
2000: 1st: $0.05; 
2000: 10th: $0.37; 
2000: Median: $3.76; 
2000: 90th: $24.62; 
2000: 99th[A]: $79.77.

Expense category: Employee benefit programs; 
2000: Total: $296,282[C]; 
2000: Mean: $6.6[C]; 
2000: 1st: $0.20[F]; 
2000: 10th: $0.81[E]; 
2000: Median: $5.54[D]; 
2000: 90th: $12.21; 
2000: 99th[A]: $35.87.

Expense category: Gasoline/oil; 
2000: Total: $3,843,670; 
2000: Mean: $2.9; 
2000: 1st: $0.02; 
2000: 10th: $0.10; 
2000: Median: $1.00; 
2000: 90th: $7.22; 
2000: 99th[A]: $29.39.

Expense category: Interest on mortgage; 
2000: Total: $4,072,378; 
2000: Mean: $8.3; 
2000: 1st: $0.10[E]; 
2000: 10th: $0.62; 
2000: Median: $3.87; 
2000: 90th: $18.52; 
2000: 99th[A]: $70.24.

Expense category: Interest on other business debt; 
2000: Total: $4,381,129; 
2000: Mean: $7.2; 
2000: 1st: $0.03[E]; 
2000: 10th: $0.32; 
2000: Median: $2.22; 
2000: 90th: $16.70; 
2000: 99th[A]: $65.41.

Expense category: Labor hired; 
2000: Total: $4,977,414; 
2000: Mean: $9.8; 
2000: 1st: $0.03; 
2000: 10th: $0.11[E]; 
2000: Median: $1.50[D]; 
2000: 90th: $19.72[D]; 
2000: 99th[A]: $114.68.

Expense category: Pension/profit sharing plans; 
2000: Total: $30,525[F]; 
2000: Mean: $7.7[F]; 
2000: 1st: $0.16[F]; 
2000: 10th: $0.31[F]; 
2000: Median: $1.48[E]; 
2000: 90th: $15.94[E]; 
2000: 99th[A]: $66.76.

Expense category: Repairs; 
2000: Total: $6,651,168; 
2000: Mean: $4.4; 
2000: 1st: $0.02[E]; 
2000: 10th: $0.20; 
2000: Median: $1.47; 
2000: 90th: $10.70; 
2000: 99th[A]: $41.68.

Expense category: Seeds/plants; 
2000: Total: $3,848,517; 
2000: Mean: $4.9; 
2000: 1st: $0.01[E]; 
2000: 10th: $0.10; 
2000: Median: $1.09[D]; 
2000: 90th: $11.60; 
2000: 99th[A]: $53.24.

Expense category: Supplies; 
2000: Total: $3,425,979; 
2000: Mean: $2.7; 
2000: 1st: $0.01[E]; 
2000: 10th: $0.11; 
2000: Median: $0.81; 
2000: 90th: $5.89; 
2000: 99th[A]: $24.70.

Expense category: Other expenses[B]; 
2000: Total: $51,903,473; 
2000: Mean: $26.2; 
2000: 1st: $0.07[E]; 
2000: 10th: $0.73; 
2000: Median: $5.61; 
2000: 90th: $58.54; 
2000: 99th[A]: $290.44.

Expense category: All categories; 
2000: Total: $102,267,920; 
2000: Mean: $50.3; 
2000: 1st: $0.11[E]; 
2000: 10th: $1.66; 
2000: Median: $12.77; 
2000: 90th: $120.19; 
2000: 99th[A]: $535.15.

Source: GAO analysis of IRS data.

Note: Estimates in the first and second columns have sampling errors of 
(+/-) 10 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third and fourth columns have sampling errors 
of (+/-) 50 percent or less of the value of the estimates unless 
otherwise noted. Estimates in the fifth and sixth columns have sampling 
errors of (+/-) 20 percent or less of the value of the estimates unless 
otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown.

[B] Includes: Car/truck, Chemicals, Conservation, Feed purchased, 
Fertilizers/lime, Freight/trucking, Insurance, Rent on machinery/
equipment, Rent on other business property, Storage/warehousing, Taxes, 
Utilities, and Veterinary/medicine as well as any expenses taxpayers 
included in the Other expenses category.

[C] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[D] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[E] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[F] Reliable confidence intervals could not be computed for estimates.

[End of table]

Table 6: Information on Expense Categories on Schedule F Compiled by 
SOI by Amount and Range, Tax Year 2001: 

Dollars in thousands.

Expense category: Custom hire; 
2001: Total: $2,754,246; 
2001: Mean: $4.4; 
2001: 1st: $0.04; 
2001: 10th: $0.18; 
2001: Median: $1.35; 
2001: 90th: $10.02; 
2001: 99th[A]: $49.11.

Expense category: Depreciation; 
2001: Total: $17,173,495; 
2001: Mean: $11.0; 
2001: 1st: $0.06[F]; 
2001: 10th: $0.40; 
2001: Median: $4.28; 
2001: 90th: $29.44; 
2001: 99th[A]: $86.14.

Expense category: Employee benefit programs; 
2001: Total: $321,002[D]; 
2001: Mean: $6.5[C]; 
2001: 1st: $0.07[F]; 
2001: 10th: $0.63[E]; 
2001: Median: $4.96[D]; 
2001: 90th: $12.38[D]; 
2001: 99th[A]: $26.81.

Expense category: Gasoline/oil; 
2001: Total: $3,937,424; 
2001: Mean: $3.0; 
2001: 1st: $0.02; 
2001: 10th: $0.10; 
2001: Median: $0.97; 
2001: 90th: $7.73; 
2001: 99th[A]: $29.29.

Expense category: Interest on mortgage; 
2001: Total: $4,407,472; 
2001: Mean: $8.7; 
2001: 1st: $0.07[E]; 
2001: 10th: $0.52; 
2001: Median: $4.02; 
2001: 90th: $20.73; 
2001: 99th[A]: $68.43.

Expense category: Interest on other business debt; 
2001: Total: $4,420,903; 
2001: Mean: $7.3; 
2001: 1st: $0.04[E]; 
2001: 10th: $0.27; 
2001: Median: $2.21; 
2001: 90th: $17.72; 
2001: 99th[A]: $67.17.

Expense category: Labor hired; 
2001: Total: $5,235,195; 
2001: Mean: $10.4; 
2001: 1st: $0.02[F]; 
2001: 10th: $0.15; 
2001: Median: $1.41[D]; 
2001: 90th: $22.31[D]; 
2001: 99th[A]: $118.32.

Expense category: Pension/profit sharing plans; 
2001: Total: $11,593[D]; 
2001: Mean: $2.9[D]; 
2001: 1st: $0.11[F]; 
2001: 10th: $0.27[E]; 
2001: Median: $1.12[E]; 
2001: 90th: $5.78[E]; 
2001: 99th[A]: $32.29.

Expense category: Repairs; 
2001: Total: $6,893,101; 
2001: Mean: $4.8; 
2001: 1st: $0.03; 
2001: 10th: $0.22; 
2001: Median: $1.63; 
2001: 90th: $11.64; 
2001: 99th[A]: $43.88.

Expense category: Seeds/plants; 
2001: Total: $4,076,730; 
2001: Mean: $5.5; 
2001: 1st: $0.02[E]; 
2001: 10th: $0.10; 
2001: Median: $1.30[D]; 
2001: 90th: $13.25; 
2001: 99th[A]: $59.03.

Expense category: Supplies; 
2001: Total: $3,335,593; 
2001: Mean: $2.7; 
2001: 1st: $0.02[E]; 
2001: 10th: $0.12; 
2001: Median: $0.88; 
2001: 90th: $6.17; 
2001: 99th[A]: $26.63.

Expense category: Other expenses[B]; 
2001: Total: $54,241,466; 
2001: Mean: $28.0; 
2001: 1st: $0.10; 
2001: 10th: $0.84; 
2001: Median: $6.02; 
2001: 90th: $61.90; 
2001: 99th[A]: $307.07.

Expense category: All categories; 
2001: Total: $106,808,219; 
2001: Mean: $53.6; 
2001: 1st: $0.10[E]; 
2001: 10th: $1.70; 
2001: Median: $13.41; 
2001: 90th: $128.29; 
2001: 99th[A]: $561.95.

Source: GAO analysis of IRS data.

Note: Estimates in first and second columns have sampling errors of 
(+/-) 10 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third and fourth columns have sampling errors 
of (+/-) 50 percent or less of the value of the estimates unless 
otherwise noted. Estimates in the fifth and sixth columns have sampling 
errors of (+/-) 20 percent or less of the value of the estimates unless 
otherwise noted.

[A] For the estimates in the seventh column, we are more than 95 
percent confident that the actual percentile is at least 80 percent of 
the estimate shown.

[B] Includes: Car/truck, Chemicals, Conservation, Feed purchased, 
Fertilizers/lime, Freight/trucking, Insurance, Rent on machinery/
equipment, Rent on other business property, Storage/warehousing, Taxes, 
Utilities, and Veterinary/medicine as well as any expenses taxpayers 
included in the Other expenses category.

[C] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[D] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[E] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[F] Reliable confidence intervals could not be computed for estimates.

[End of table] 

[End of section]

Appendix IV: Information on the Expenses Reported on Schedule C by 
Selected Business Characteristics: 

As discussed previously, the data showed wide variability in the 
expenses of sole proprietorships based on business characteristics such 
as size (measured in gross receipts), industry category, businesses 
with inventories, and businesses with home offices. This appendix 
provides detailed information on Schedule C expenses by these business 
characteristics. Comparable data on Schedule F expenses were not 
available.

Table 7: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule C by Size Based on Business Gross Receipts, Tax Year 2000: 

Expense category: Advertising; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 24.3; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 1.9; 

Expense category: Advertising; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 44.7; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 2.5; 

Expense category: Advertising; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 66.4; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 2.5.

Expense category: Bad debts; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 1.7; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 0.4[C]; 

Expense category: Bad debts; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 3.0; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 0.2[B]; 

Expense category: Bad debts; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 6.3; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 0.2[A].

Expense category: Car/truck; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 65.1; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 21.7; 

Expense category: Car/truck; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 81.2; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 18.5; 

Expense category: Car/truck; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 81.6; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 5.7.

Expense category: Commissions; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 5.6; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 1.4[B]; 

Expense category: Commissions; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 9.8; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 1.9[A]; 

Expense category: Commissions; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 14.5; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 3.4.

Expense category: Depletion; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 0.7; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 0.2[C]; 

Expense category: Depletion; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 0.4; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 0.1[C]; 

Expense category: Depletion; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 0.6; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 0.2[B].

Expense category: Depreciation; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 33.8; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 9.3; 

Expense category: Depreciation; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 53.7; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 9.0; 

Expense category: Depreciation; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 74.2; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 6.9.

Expense category: Employee benefit programs; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 0.3; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 0.1[C]; 

Expense category: Employee benefit programs; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 1.3; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 0.1[B]; 

Expense category: Employee benefit programs; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 12.7; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 0.6.

Expense category: Insurance; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 21.3; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 2.3; 

Expense category: Insurance; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 54.4; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 3.2; 

Expense category: Insurance; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 80.0; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 3.5.

Expense category: Interest on mortgage; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 2.4; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 1.0[B]; 

Expense category: Interest on mortgage; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 7.1; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 1.1[A]; 

Expense category: Interest on mortgage; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 17.8; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 1.4.

Expense category: Interest on other business debt; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 5.7; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 1.7[B]; 

Expense category: Interest on other business debt; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 18.6; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 1.4[A]; 

Expense category: Interest on other business debt; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 38.9; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 1.8.

Expense category: Legal/professional services; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 35.8; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 2.1; 

Expense category: Legal/professional services; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 60.4; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 1.7; 

Expense category: Legal/professional services; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 78.7; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 1.7.

Expense category: Office; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 39.5; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 3.3; 

Expense category: Office; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 59.9; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 3.0; 

Expense category: Office; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 75.7; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 2.1.

Expense category: Pension/profit sharing plans; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 0.2; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 0.1[C]; 

Expense category: Pension/profit sharing plans; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 0.5; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 0.1[C]; 

Expense category: Pension/profit sharing plans; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 6.0; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 0.3.

Expense category: Rent on machinery/equipment; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 7.9; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 2.2[A]; 

Expense category: Rent on machinery/equipment; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 21.5; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 2.7[A]; 

Expense category: Rent on machinery/equipment; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 35.7; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 1.9.

Expense category: Rent on other business property; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 11.9; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 4.9; 

Expense category: Rent on other business property; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 26.5; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 6.4; 

Expense category: Rent on other business property; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 46.7; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 5.8.

Expense category: Repairs; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 19.4; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 2.5[A]; 

Expense category: Repairs; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 41.4; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 3.5; 

Expense category: Repairs; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 64.1; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 2.8.

Expense category: Supplies; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 52.4; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 8.6; 

Expense category: Supplies; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 60.8; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 6.6; 

Expense category: Supplies; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 63.3; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 4.0.

Expense category: Taxes; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 27.8; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 1.3; 

Expense category: Taxes; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 51.5; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 2.0; 

Expense category: Taxes; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 78.8; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 4.3.

Expense category: Travel; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 21.4; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 3.8; 

Expense category: Travel; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 31.2; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 2.7; 

Expense category: Travel; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 40.8; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 1.4.

Expense category: Meals/entertainment; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 27.8; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 2.0; 

Expense category: Meals/entertainment; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 44.7; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 1.7; 

Expense category: Meals/entertainment; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 54.4; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 0.7.

Expense category: Utilities; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 40.0; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 5.1; 

Expense category: Utilities; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 70.0; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 5.5; 

Expense category: Utilities; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 85.6; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 4.2.

Expense category: Wages; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 2.3; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 1.5[B]; 

Expense category: Wages; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 11.8; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 4.5[A]; 

Expense category: Wages; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 46.0; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 22.2.

Expense category: Other; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 63.2; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 19.0; 

Expense category: Other; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 84.3; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 19.1; 

Expense category: Other; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 93.5; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 21.9.

Expense category: Home office; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 13.2; 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 3.5; 

Expense category: Home office; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 21.3; 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 2.6; 

Expense category: Home office; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 15.5; 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 0.4[A].

Expense category: Total[D]; 
Business gross receipts: Under $25,000: 
Percentage of taxpayers who claimed expense: 
Business gross receipts: Under $25,000: 
Expense category as percentage: of total expenses: 100%; 

Expense category: Total[D]; 
Business gross receipts: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 
Business gross receipts: $25,000 to $100,000: 
Expense category as percentage: of total expenses: 100%; 

Expense category: Total[D]; 
Business gross receipts: Over $100,000: 
Percentage of taxpayers who claimed expense: 
Business gross receipts: Over $100,000: 
Expense category as percentage: of total expenses: 100%.

[End of table]

Source: GAO analysis of IRS data.

Note: Estimates in the first, third, and fifth columns have sampling 
errors of (+/-) 2 percentage points or less. Estimates in the second, 
fourth, and sixth columns have sampling errors of (+/-) 10 percent or 
less of the value of the estimates unless otherwise noted.

[A] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling errors exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Totals may not add to 100 percent due to rounding.

Table 8: Percentage of Taxpayers Who Claimed Expense Categories on 
Schedule C by Size Based on Business Gross Receipts, Tax Year 2001: 

Expense category: Advertising; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 25.1; 
Business gross receipts amount: Under $25,000: Expense as percentage of 
total expenses: 2.0; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 43.1; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 2.6; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 64.9; 
Business gross receipts amount: Over $100,000: Expense as percentage of 
total expenses: 2.5.

Expense category: Bad debts; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 2.0; 
Business gross receipts amount: Under $25,000: Expense as percentage of 
total expenses: 0.5[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 2.6; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 0.1[B]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 6.8; 
Business gross receipts amount: Over $100,000: Expense as percentage of 
total expenses: 0.3[B].

Expense category: Car/truck; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 64.7; 
Business gross receipts amount: Under $25,000: Expense as percentage of 
total expenses: 21.5; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 80.9; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 18.8; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 80.5; 
Business gross receipts amount: Over $100,000: Expense as percentage of 
total expenses: 5.6.

Expense category: Commissions; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 5.3; 
Business gross receipts amount: Under $25,000: Expense as percentage of 
total expenses: 1.2[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 10.1; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 2.0[A]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 14.6; 
Business gross receipts amount: Over $100,000: Expense as percentage of 
total expenses: 3.4.

Expense category: Depletion; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 0.6; 
Business gross receipts amount: Under $25,000: Expense as percentage of 
total expenses: 0.1[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 0.5; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 0.1[C]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 0.7; 
Business gross receipts amount: Over $100,000: Expense as percentage of 
total expenses: 0.2[A].

Expense category: Depreciation; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 32.7; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 9.5; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 51.6; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 8.5; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 73.9; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 7.0.

Expense category: Employee benefit programs; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 0.3; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 0.1[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 1.3; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 0.1[B]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 12.3; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 0.7.

Expense category: Insurance; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 20.6; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 2.3; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 54.1; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 3.2; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 79.2; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 3.6.

Expense category: Interest on mortgage; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 2.3; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 1.1[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 6.9; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 1.1[A]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 17.8; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 1.4.

Expense category: Interest on other business debt; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 5.7; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 1.4[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 17.7; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 1.3[A]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 38.1; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 1.8.

Expense category: Legal/professional services; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 36.2; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 2.1; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 59.5; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 1.6; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 78.8; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 1.7.

Expense category: Office; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 39.5; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 3.2; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 59.7; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 2.9; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 75.3; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 2.1.

Expense category: Pension/profit sharing plans; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 0.2; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 0.0[C]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 0.6; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 0.1[C]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 6.2; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 0.3.

Expense category: Rent on machinery/equipment; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 8.2; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 2.1[A]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 20.7; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 2.5[A]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 35.3; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 1.8.

Expense category: Rent on other business property; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 11.4; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 4.6; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 26.0; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 6.3; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 45.3; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 5.9.

Expense category: Repairs; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 19.7; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 2.6; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 39.5; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 3.3; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 62.5; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 2.6.

Expense category: Supplies; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 53.3; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 8.4; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 60.3; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 7.0; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 63.2; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 4.0.

Expense category: Taxes; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 27.4; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 1.4; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 50.7; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 1.9; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 76.9; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 4.2.

Expense category: Travel; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 21.9; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 3.9; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 31.1; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 2.7; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 41.1; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 1.3.

Expense category: Meals/entertainment; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 27.8; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 1.8; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 46.5; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 1.7; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 54.4; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 0.7.

Expense category: Utilities; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 40.2; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 5.3; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 68.4; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 5.6; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 85.7; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 4.3.

Expense category: Wages; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 2.3; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 1.5[B]; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 10.9; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 4.4[A]; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 43.8; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 21.5.

Expense category: Other; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 63.1; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 19.7; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 83.0; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 19.8; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 93.7; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 22.9.

Expense category: Home office; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 14.2; 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 3.6; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 21.2; 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 2.4; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 17.5; 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 0.5[A].

Expense category: Total[D]; 
Business gross receipts amount: Under $25,000: 
Percentage of taxpayers who claimed expense: 
Business gross receipts amount: Under $25,000: Expense as percentage 
of total expenses: 100%; 
Business gross receipts amount: $25,000 to $100,000: 
Percentage of taxpayers who claimed expense: 
Business gross receipts amount: $25,000 to $100,000: Expense as 
percentage of total expenses: 100%; 
Business gross receipts amount: Over $100,000: 
Percentage of taxpayers who claimed expense: 
Business gross receipts amount: Over $100,000: Expense as percentage 
of total expenses: 100%.

Source: GAO analysis of IRS data.

Note: Estimates in the first, third, and fifth columns have sampling 
errors of (+/-) 2 percentage points or less. Estimates in the second, 
fourth, and sixth columns have sampling errors of (+/-) 10 percent or 
less of the value of the estimates unless otherwise noted.

[A] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling errors exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Totals may not add to 100 percent due to rounding.

[End of table]

Table 9: Information on Expense Categories on Schedule C by Size Based 
on Business Gross Receipts, Tax Years 2000 and 2001: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts total: Under $25,000: 2000: $1,115,436; 
Business gross receipts total: Under $25,000: 2001: $1,267,229; 
Business gross receipts total: $25,000 to $100,000: 2000: $2,387,850; 
Business gross receipts total: $25,000 to $100,000: 2001: $2,591,984; 
Business gross receipts total: Over $100,000: 2000: $6,645,329; 
Business gross receipts total: Over $100,000: 2001: $6,914,866.

Expense category: Bad debts; 
Business gross receipts total: Under $25,000: 2000: 217,234[B]; 
Business gross receipts total: Under $25,000: 2001: 303,444[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 170,641[B]; 
Business gross receipts total: $25,000 to $100,000: 2001: 145,056[B]; 
Business gross receipts total: Over $100,000: 2000: 595,992[A]; 
Business gross receipts total: Over $100,000: 2001: 727,824[B].

Expense category: Car/truck; 
Business gross receipts total: Under $25,000: 2000: 12,662,766; 
Business gross receipts total: Under $25,000: 2001: 13,516,802; 
Business gross receipts total: $25,000 to $100,000: 2000: 18,047,208; 
Business gross receipts total: $25,000 to $100,000: 2001: 18,616,606; 
Business gross receipts total: Over $100,000: 2000: 15,001,240; 
Business gross receipts total: Over $100,000: 2001: 15,218,532.

Expense category: Commissions; 
Business gross receipts total: Under $25,000: 2000: 815,056[B]; 
Business gross receipts total: Under $25,000: 2001: 763,945[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 1,857,395[A]; 
Business gross receipts total: $25,000 to $100,000: 2001: 1,981,873[A]; 
Business gross receipts total: Over $100,000: 2000: 8,938,100; 
Business gross receipts total: Over $100,000: 2001: 9,384,259.

Expense category: Depletion; 
Business gross receipts total: Under $25,000: 2000: 88,207[B]; 
Business gross receipts total: Under $25,000: 2001: 78,953[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 95,628[B]; 
Business gross receipts total: $25,000 to $100,000: 2001: 116,199[B]; 
Business gross receipts total: Over $100,000: 2000: 501,139[A]; 
Business gross receipts total: Over $100,000: 2001: 498,517[A].

Expense category: Depreciation; 
Business gross receipts total: Under $25,000: 2000: 5,419,350; 
Business gross receipts total: Under $25,000: 2001: 6,001,607; 
Business gross receipts total: $25,000 to $100,000: 2000: 8,794,872; 
Business gross receipts total: $25,000 to $100,000: 2001: 8,451,676; 
Business gross receipts total: Over $100,000: 2000: 17,981,931; 
Business gross receipts total: Over $100,000: 2001: 18,972,284.

Expense category: Employee benefit programs; 
Business gross receipts total: Under $25,000: 2000: 74,362[C]; 
Business gross receipts total: Under $25,000: 2001: 57,738[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 138,365[B]; 
Business gross receipts total: $25,000 to $100,000: 2001: 131,358[B]; 
Business gross receipts total: Over $100,000: 2000: 1,659,148; 
Business gross receipts total: Over $100,000: 2001: 1,851,542.

Expense category: Insurance; 
Business gross receipts total: Under $25,000: 2000: 1,330,836; 
Business gross receipts total: Under $25,000: 2001: 1,449,294; 
Business gross receipts total: $25,000 to $100,000: 2000: 3,118,389; 
Business gross receipts total: $25,000 to $100,000: 2001: 3,190,042; 
Business gross receipts total: Over $100,000: 2000: 9,174,522; 
Business gross receipts total: Over $100,000: 2001: 9,727,682.

Expense category: Interest on mortgage; 
Business gross receipts total: Under $25,000: 2000: 566,888[A]; 
Business gross receipts total: Under $25,000: 2001: 689,164[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 1,060,497[A]; 
Business gross receipts total: $25,000 to $100,000: 2001: 1,073,733[A]; 
Business gross receipts total: Over $100,000: 2000: 3,623,511; 
Business gross receipts total: Over $100,000: 2001: 3,693,329.

Expense category: Interest on other business debt; 
Business gross receipts total: Under $25,000: 2000: 978,781[B]; 
Business gross receipts total: Under $25,000: 2001: 910,187[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 1,360,883[A]; 
Business gross receipts total: $25,000 to $100,000: 2001: 1,278,587[A]; 
Business gross receipts total: Over $100,000: 2000: 4,642,285; 
Business gross receipts total: Over $100,000: 2001: 4,864,547.

Expense category: Legal/professional services; 
Business gross receipts total: Under $25,000: 2000: 1,232,327; 
Business gross receipts total: Under $25,000: 2001: 1,316,971; 
Business gross receipts total: $25,000 to $100,000: 2000: 1,622,574; 
Business gross receipts total: $25,000 to $100,000: 2001: 1,559,789; 
Business gross receipts total: Over $100,000: 2000: 4,457,689; 
Business gross receipts total: Over $100,000: 2001: 4,605,859.

Expense category: Office; 
Business gross receipts total: Under $25,000: 2000: 1,933,877; 
Business gross receipts total: Under $25,000: 2001: 2,000,186; 
Business gross receipts total: $25,000 to $100,000: 2000: 2,900,183; 
Business gross receipts total: $25,000 to $100,000: 2001: 2,909,072; 
Business gross receipts total: Over $100,000: 2000: 5,622,354; 
Business gross receipts total: Over $100,000: 2001: 5,695,547.

Expense category: Pension/profit sharing plans; 
Business gross receipts total: Under $25,000: 2000: 38,274[C]; 
Business gross receipts total: Under $25,000: 2001: 27,496[C]; 
Business gross receipts total: $25,000 to $100,000: 2000: 50,457[C]; 
Business gross receipts total: $25,000 to $100,000: 2001: 70,066[C]; 
Business gross receipts total: Over $100,000: 2000: 804,142; 
Business gross receipts total: Over $100,000: 2001: 894,330.

Expense category: Rent on machinery/equipment; 
Business gross receipts total: Under $25,000: 2000: 1,290,642[A]; 
Business gross receipts total: Under $25,000: 2001: 1,307,168[A]; 
Business gross receipts total: $25,000 to $100,000: 2000: 2,612,902[A]; 
Business gross receipts total: $25,000 to $100,000: 2001: 2,431,023[A]; 
Business gross receipts total: Over $100,000: 2000: 4,976,723; 
Business gross receipts total: Over $100,000: 2001: 4,783,816.

Expense category: Rent on other business property; 
Business gross receipts total: Under $25,000: 2000: 2,832,479; 
Business gross receipts total: Under $25,000: 2001: 2,922,305; 
Business gross receipts total: $25,000 to $100,000: 2000: 6,188,327; 
Business gross receipts total: $25,000 to $100,000: 2001: 6,240,658; 
Business gross receipts total: Over $100,000: 2000: 15,321,295; 
Business gross receipts total: Over $100,000: 2001: 15,956,161.

Expense category: Repairs; 
Business gross receipts total: Under $25,000: 2000: 1,471,137[A]; 
Business gross receipts total: Under $25,000: 2001: 1,622,908; 
Business gross receipts total: $25,000 to $100,000: 2000: 3,401,489; 
Business gross receipts total: $25,000 to $100,000: 2001: 3,306,118; 
Business gross receipts total: Over $100,000: 2000: 7,407,896; 
Business gross receipts total: Over $100,000: 2001: 7,200,730.

Expense category: Supplies; 
Business gross receipts total: Under $25,000: 2000: 5,013,068; 
Business gross receipts total: Under $25,000: 2001: 5,323,414; 
Business gross receipts total: $25,000 to $100,000: 2000: 6,405,253; 
Business gross receipts total: $25,000 to $100,000: 2001: 6,945,572; 
Business gross receipts total: Over $100,000: 2000: 10,375,621; 
Business gross receipts total: Over $100,000: 2001: 10,805,850.

Expense category: Taxes; 
Business gross receipts total: Under $25,000: 2000: 778,489; 
Business gross receipts total: Under $25,000: 2001: 906,450; 
Business gross receipts total: $25,000 to $100,000: 2000: 1,950,810; 
Business gross receipts total: $25,000 to $100,000: 2001: 1,904,286; 
Business gross receipts total: Over $100,000: 2000: 11,226,616; 
Business gross receipts total: Over $100,000: 2001: 11,403,346.

Expense category: Travel; 
Business gross receipts total: Under $25,000: 2000: 2,238,733; 
Business gross receipts total: Under $25,000: 2001: 2,434,854; 
Business gross receipts total: $25,000 to $100,000: 2000: 2,658,219; 
Business gross receipts total: $25,000 to $100,000: 2001: 2,660,376; 
Business gross receipts total: Over $100,000: 2000: 3,560,357; 
Business gross receipts total: Over $100,000: 2001: 3,562,036.

Expense category: Meals/entertainment; 
Business gross receipts total: Under $25,000: 2000: 1,158,258; 
Business gross receipts total: Under $25,000: 2001: 1,134,275; 
Business gross receipts total: $25,000 to $100,000: 2000: 1,669,707; 
Business gross receipts total: $25,000 to $100,000: 2001: 1,725,173; 
Business gross receipts total: Over $100,000: 2000: 1,836,726; 
Business gross receipts total: Over $100,000: 2001: 1,875,864.

Expense category: Utilities; 
Business gross receipts total: Under $25,000: 2000: 2,976,362; 
Business gross receipts total: Under $25,000: 2001: 3,327,822; 
Business gross receipts total: $25,000 to $100,000: 2000: 5,334,535; 
Business gross receipts total: $25,000 to $100,000: 2001: 5,514,404; 
Business gross receipts total: Over $100,000: 2000: 11,070,973; 
Business gross receipts total: Over $100,000: 2001: 11,640,455.

Expense category: Wages; 
Business gross receipts total: Under $25,000: 2000: 871,086[B]; 
Business gross receipts total: Under $25,000: 2001: 918,960[B]; 
Business gross receipts total: $25,000 to $100,000: 2000: 4,425,092[A]; 
Business gross receipts total: $25,000 to $100,000: 2001: 4,340,403[A]; 
Business gross receipts total: Over $100,000: 2000: 58,189,304; 
Business gross receipts total: Over $100,000: 2001: 58,566,657.

Expense category: Other; 
Business gross receipts total: Under $25,000: 2000: 11,081,586; 
Business gross receipts total: Under $25,000: 2001: 12,432,885; 
Business gross receipts total: $25,000 to $100,000: 2000: 18,606,347; 
Business gross receipts total: $25,000 to $100,000: 2001: 19,608,587; 
Business gross receipts total: Over $100,000: 2000: 57,337,994; 
Business gross receipts total: Over $100,000: 2001: 62,570,804.

Expense category: Home office; 
Business gross receipts total: Under $25,000: 2000: 2,064,635; 
Business gross receipts total: Under $25,000: 2001: 2,294,004; 
Business gross receipts total: $25,000 to $100,000: 2000: 2,498,346; 
Business gross receipts total: $25,000 to $100,000: 2001: 2,396,990; 
Business gross receipts total: Over $100,000: 2000: 1,079,562[A]; 
Business gross receipts total: Over $100,000: 2001: 1,290,409[A].

Expense category: Total[D]; 
Business gross receipts total: Under $25,000: 2000: $58,249,869; 
Business gross receipts total: Under $25,000: 2001: $63,008,061; 
Business gross receipts total: $25,000 to $100,000: 2000: $97,355,972; 
Business gross receipts total: $25,000 to $100,000: 2001: $99,189,633; 
Business gross receipts total: Over $100,000: 2000: $262,030,451; 
Business gross receipts total: Over $100,000: 2001: $272,705,243.

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 10 percent 
or less of the value of the estimates unless otherwise noted.

[A] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Totals may not add due to rounding.

[End of table]

Table 10: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2000: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts under $25,000: Total: $1,115,436; 
Business gross receipts under $25,000: Mean: $0.52; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.04; 
Business gross receipts under $25,000: Median: $0.22; 
Business gross receipts under $25,000: 90th: $1.26; 
Business gross receipts under $25,000: 99th[A]: $4.79.

Expense category: Bad debts; 
Business gross receipts under $25,000: Total: $217,234[C]; 
Business gross receipts under $25,000: Mean: $1.48[C]; 
Business gross receipts under $25,000: 1st: $0.01[D]; 
Business gross receipts under $25,000: 10th: $0.04[D]; 
Business gross receipts under $25,000: Median: $0.24[D]; 
Business gross receipts under $25,000: 90th: $2.47[D]; 
Business gross receipts under $25,000: 99th[A]: $19.88[E].

Expense category: Car/truck; 
Business gross receipts under $25,000: Total: $12,662,766; 
Business gross receipts under $25,000: Mean: $2.22; 
Business gross receipts under $25,000: 1st: $0.03; 
Business gross receipts under $25,000: 10th: $0.18; 
Business gross receipts under $25,000: Median: $1.29; 
Business gross receipts under $25,000: 90th: $5.28; 
Business gross receipts under $25,000: 99th[A]: $13.26.

Expense category: Commissions; 
Business gross receipts under $25,000: Total: $815,056[C]; 
Business gross receipts under $25,000: Mean: $1.66[C]; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.04[D]; 
Business gross receipts under $25,000: Median: $0.42[C]; 
Business gross receipts under $25,000: 90th: $3.22[C]; 
Business gross receipts under $25,000: 99th[A]: $15.86.

Expense category: Depletion; 
Business gross receipts under $25,000: Total: $88,207[C]; 
Business gross receipts under $25,000: Mean: $1.55[C]; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.05[D]; 
Business gross receipts under $25,000: Median: $0.46[D]; 
Business gross receipts under $25,000: 90th: $2.99[D]; 
Business gross receipts under $25,000: 99th[A]: $20.30.

Expense category: Depreciation; 
Business gross receipts under $25,000: Total: $5,419,350; 
Business gross receipts under $25,000: Mean: $1.83; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.13; 
Business gross receipts under $25,000: Median: $0.93; 
Business gross receipts under $25,000: 90th: $4.19; 
Business gross receipts under $25,000: 99th[A]: $12.77.

Expense category: Employee benefit programs; 
Business gross receipts under $25,000: Total: $74,362[D]; 
Business gross receipts under $25,000: Mean: $2.70[C]; 
Business gross receipts under $25,000: 1st: [B]; 
Business gross receipts under $25,000: 10th: $0.16[E]; 
Business gross receipts under $25,000: Median: $1.37[D]; 
Business gross receipts under $25,000: 90th: $5.43[D]; 
Business gross receipts under $25,000: 99th[A]: $41.80.

Expense category: Insurance; 
Business gross receipts under $25,000: Total: $1,330,836; 
Business gross receipts under $25,000: Mean: $0.71; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.10; 
Business gross receipts under $25,000: Median: $0.43; 
Business gross receipts under $25,000: 90th: $1.56; 
Business gross receipts under $25,000: 99th[A]: $4.51.

Expense category: Interest on mortgage; 
Business gross receipts under $25,000: Total: $566,888; 
Business gross receipts under $25,000: Mean: $2.71; 
Business gross receipts under $25,000: 1st: $0.03[E]; 
Business gross receipts under $25,000: 10th: $0.15[D]; 
Business gross receipts under $25,000: Median: $1.51[C]; 
Business gross receipts under $25,000: 90th: $5.50[C]; 
Business gross receipts under $25,000: 99th[A]: $26.40.

Expense category: Interest on other business debt; 
Business gross receipts under $25,000: Total: $978,781[C]; 
Business gross receipts under $25,000: Mean: $1.97[C]; 
Business gross receipts under $25,000: 1st: $0.01[D]; 
Business gross receipts under $25,000: 10th: $0.07[C]; 
Business gross receipts under $25,000: Median: $0.54; 
Business gross receipts under $25,000: 90th: $2.55[C]; 
Business gross receipts under $25,000: 99th[A]: $12.01.

Expense category: Legal/professional services; 
Business gross receipts under $25,000: Total: $1,232,327; 
Business gross receipts under $25,000: Mean: $0.39; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.05; 
Business gross receipts under $25,000: Median: $0.15; 
Business gross receipts under $25,000: 90th: $0.70; 
Business gross receipts under $25,000: 99th[A]: $3.33.

Expense category: Office; 
Business gross receipts under $25,000: Total: $1,933,877; 
Business gross receipts under $25,000: Mean: $0.56; 
Business gross receipts under $25,000: 1st: $0.01[F]; 
Business gross receipts under $25,000: 10th: $0.04; 
Business gross receipts under $25,000: Median: $0.25; 
Business gross receipts under $25,000: 90th: $1.35; 
Business gross receipts under $25,000: 99th[A]: $4.29.

Expense category: Pension/profit sharing plans; 
Business gross receipts under $25,000: Total: $38,274[E]; 
Business gross receipts under $25,000: Mean: $2.81[D]; 
Business gross receipts under $25,000: 1st: [B]; 
Business gross receipts under $25,000: 10th: $0.04[D]; 
Business gross receipts under $25,000: Median: $0.42[D]; 
Business gross receipts under $25,000: 90th: $6.60[D]; 
Business gross receipts under $25,000: 99th[A]: $25.08[E].

Expense category: Rent on machinery/equipment; 
Business gross receipts under $25,000: Total: $1,290,642; 
Business gross receipts under $25,000: Mean: $1.87; 
Business gross receipts under $25,000: 1st: $0.02[D]; 
Business gross receipts under $25,000: 10th: $0.10[C]; 
Business gross receipts under $25,000: Median: $0.78[C]; 
Business gross receipts under $25,000: 90th: $4.78; 
Business gross receipts under $25,000: 99th[A]: $13.00.

Expense category: Rent on other business property; 
Business gross receipts under $25,000: Total: $2,832,479; 
Business gross receipts under $25,000: Mean: $2.72; 
Business gross receipts under $25,000: 1st: $0.03[D]; 
Business gross receipts under $25,000: 10th: $0.19[C]; 
Business gross receipts under $25,000: Median: $1.80; 
Business gross receipts under $25,000: 90th: $6.12; 
Business gross receipts under $25,000: 99th[A]: $15.11.

Expense category: Repairs; 
Business gross receipts under $25,000: Total: $1,471,137; 
Business gross receipts under $25,000: Mean: $0.86; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.06; 
Business gross receipts under $25,000: Median: $0.37; 
Business gross receipts under $25,000: 90th: $1.85; 
Business gross receipts under $25,000: 99th[A]: $6.67.

Expense category: Supplies; 
Business gross receipts under $25,000: Total: $5,013,068; 
Business gross receipts under $25,000: Mean: $1.09; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.07; 
Business gross receipts under $25,000: Median: $0.50; 
Business gross receipts under $25,000: 90th: $2.75; 
Business gross receipts under $25,000: 99th[A]: $7.97.

Expense category: Taxes; 
Business gross receipts under $25,000: Total: $778,489; 
Business gross receipts under $25,000: Mean: $0.32; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.02; 
Business gross receipts under $25,000: Median: $0.13; 
Business gross receipts under $25,000: 90th: $0.75; 
Business gross receipts under $25,000: 99th[A]: $2.50.

Expense category: Travel; 
Business gross receipts under $25,000: Total: $2,238,733; 
Business gross receipts under $25,000: Mean: $1.19; 
Business gross receipts under $25,000: 1st: $0.01[D]; 
Business gross receipts under $25,000: 10th: $0.10; 
Business gross receipts under $25,000: Median: $0.55; 
Business gross receipts under $25,000: 90th: $2.67; 
Business gross receipts under $25,000: 99th[A]: $8.42.

Expense category: Meals/entertainment; 
Business gross receipts under $25,000: Total: $1,158,258; 
Business gross receipts under $25,000: Mean: $0.47; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.03; 
Business gross receipts under $25,000: Median: $0.19; 
Business gross receipts under $25,000: 90th: $1.12; 
Business gross receipts under $25,000: 99th[A]: $4.27.

Expense category: Utilities; 
Business gross receipts under $25,000: Total: $2,976,362; 
Business gross receipts under $25,000: Mean: $0.85; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.10; 
Business gross receipts under $25,000: Median: $0.53; 
Business gross receipts under $25,000: 90th: $1.93; 
Business gross receipts under $25,000: 99th[A]: $4.87.

Expense category: Wages; 
Business gross receipts under $25,000: Total: $871,086[C]; 
Business gross receipts under $25,000: Mean: $4.39[C]; 
Business gross receipts under $25,000: 1st: $0.03[D]; 
Business gross receipts under $25,000: 10th: $0.20[D]; 
Business gross receipts under $25,000: Median: $1.42[C]; 
Business gross receipts under $25,000: 90th: $7.61[C]; 
Business gross receipts under $25,000: 99th[A]: $36.23.

Expense category: Other; 
Business gross receipts under $25,000: Total: $11,081,586; 
Business gross receipts under $25,000: Mean: $2.00; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.10; 
Business gross receipts under $25,000: Median: $0.78; 
Business gross receipts under $25,000: 90th: $4.22; 
Business gross receipts under $25,000: 99th[A]: $14.74.

Expense category: Home office; 
Business gross receipts under $25,000: Total: $2,064,635; 
Business gross receipts under $25,000: Mean: $1.78; 
Business gross receipts under $25,000: 1st: $0.04[D]; 
Business gross receipts under $25,000: 10th: $0.28; 
Business gross receipts under $25,000: Median: $1.17; 
Business gross receipts under $25,000: 90th: $3.92; 
Business gross receipts under $25,000: 99th[A]: $9.60.

Expense category: All categories; 
Business gross receipts under $25,000: Total: $58,249,869[F]; 
Business gross receipts under $25,000: Mean: $6.64; 
Business gross receipts under $25,000: 1st: $0.06; 
Business gross receipts under $25,000: 10th: $0.60; 
Business gross receipts under $25,000: Median: $4.20; 
Business gross receipts under $25,000: 90th: $14.52; 
Business gross receipts under $25,000: 99th[A]: $32.42.

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, and fourth through sixth columns 
have sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the third column have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown, unless 
otherwise noted.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[F] Total may not add due to rounding.

[End of table]

Table 11: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2000: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts $25,000 to $100,000: Total: $2,387,850; 
Business gross receipts $25,000 to $100,000: Mean: $1.43; 
Business gross receipts $25,000 to $100,000: 1st: $0.02[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.08; 
Business gross receipts $25,000 to $100,000: Median: $0.58; 
Business gross receipts $25,000 to $100,000: 90th: $3.72; 
Business gross receipts $25,000 to $100,000: 99th[A]: $10.97.

Expense category: Bad debts; 
Business gross receipts $25,000 to $100,000: Total: $170,641[D]; 
Business gross receipts $25,000 to $100,000: Mean: $1.53[D]; 
Business gross receipts $25,000 to $100,000: 1st: $0.01[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.05[E]; 
Business gross receipts $25,000 to $100,000: Median: $0.40[E]; 
Business gross receipts $25,000 to $100,000: 90th: $3.00[E]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $11.24[F].

Expense category: Car/truck; 
Business gross receipts $25,000 to $100,000: Total: $18,047,208; 
Business gross receipts $25,000 to $100,000: Mean: $5.92; 
Business gross receipts $25,000 to $100,000: 1st: $0.13; 
Business gross receipts $25,000 to $100,000: 10th: $0.86; 
Business gross receipts $25,000 to $100,000: Median: $4.11; 
Business gross receipts $25,000 to $100,000: 90th: $12.76; 
Business gross receipts $25,000 to $100,000: 99th[A]: $30.94.

Expense category: Commissions; 
Business gross receipts $25,000 to $100,000: Total: $1,857,395[C]; 
Business gross receipts $25,000 to $100,000: Mean: $5.06[C]; 
Business gross receipts $25,000 to $100,000: 1st: $0.02[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.17[E]; 
Business gross receipts $25,000 to $100,000: Median: $1.66[D]; 
Business gross receipts $25,000 to $100,000: 90th: $15.18[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $36.45.

Expense category: Depletion; 
Business gross receipts $25,000 to $100,000: Total: $95,628[D]; 
Business gross receipts $25,000 to $100,000: Mean: $6.03[D]; 
Business gross receipts $25,000 to $100,000: 1st: $0.06[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.16[E]; 
Business gross receipts $25,000 to $100,000: Median: $4.67[D]; 
Business gross receipts $25,000 to $100,000: 90th: $14.52[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $31.01.

Expense category: Depreciation; 
Business gross receipts $25,000 to $100,000: Total: $8,794,872; 
Business gross receipts $25,000 to $100,000: Mean: $4.37; 
Business gross receipts $25,000 to $100,000: 1st: $0.04; 
Business gross receipts $25,000 to $100,000: 10th: $0.32; 
Business gross receipts $25,000 to $100,000: Median: $2.42; 
Business gross receipts $25,000 to $100,000: 90th: $10.70; 
Business gross receipts $25,000 to $100,000: 99th[A]: $27.28.

Expense category: Employee benefit programs; 
Business gross receipts $25,000 to $100,000: Total: $138,365[D]; 
Business gross receipts $25,000 to $100,000: Mean: $2.79[D]; 
Business gross receipts $25,000 to $100,000: 1st: $0.10[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.43[E]; 
Business gross receipts $25,000 to $100,000: Median: $1.96[D]; 
Business gross receipts $25,000 to $100,000: 90th: $5.68[E]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $12.28[F].

Expense category: Insurance; 
Business gross receipts $25,000 to $100,000: Total: $3,118,389; 
Business gross receipts $25,000 to $100,000: Mean: $1.53; 
Business gross receipts $25,000 to $100,000: 1st: $0.05; 
Business gross receipts $25,000 to $100,000: 10th: $0.21; 
Business gross receipts $25,000 to $100,000: Median: $0.91; 
Business gross receipts $25,000 to $100,000: 90th: $3.64; 
Business gross receipts $25,000 to $100,000: 99th[A]: $7.96.

Expense category: Interest on mortgage; 
Business gross receipts $25,000 to $100,000: Total: $1,060,497[C]; 
Business gross receipts $25,000 to $100,000: Mean: $3.99[C]; 
Business gross receipts $25,000 to $100,000: 1st: $0.04[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.43[D]; 
Business gross receipts $25,000 to $100,000: Median: $2.27[D]; 
Business gross receipts $25,000 to $100,000: 90th: $9.28[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $27.65.

Expense category: Interest on other business debt; 
Business gross receipts $25,000 to $100,000: Total: $1,360,883[C]; 
Business gross receipts $25,000 to $100,000: Mean: $1.95[C]; 
Business gross receipts $25,000 to $100,000: 1st: $0.01[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.13[D]; 
Business gross receipts $25,000 to $100,000: Median: $0.92; 
Business gross receipts $25,000 to $100,000: 90th: $4.41; 
Business gross receipts $25,000 to $100,000: 99th[A]: $13.75.

Expense category: Legal/professional services; 
Business gross receipts $25,000 to $100,000: Total: $1,622,574; 
Business gross receipts $25,000 to $100,000: Mean: $0.72; 
Business gross receipts $25,000 to $100,000: 1st: $0.04; 
Business gross receipts $25,000 to $100,000: 10th: $0.09; 
Business gross receipts $25,000 to $100,000: Median: $0.26; 
Business gross receipts $25,000 to $100,000: 90th: $1.32; 
Business gross receipts $25,000 to $100,000: 99th[A]: $8.04.

Expense category: Office; 
Business gross receipts $25,000 to $100,000: Total: $2,900,183; 
Business gross receipts $25,000 to $100,000: Mean: $1.29; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.09; 
Business gross receipts $25,000 to $100,000: Median: $0.58; 
Business gross receipts $25,000 to $100,000: 90th: $3.19; 
Business gross receipts $25,000 to $100,000: 99th[A]: $9.86.

Expense category: Pension/profit sharing plans; 
Business gross receipts $25,000 to $100,000: Total: $50,457[E]; 
Business gross receipts $25,000 to $100,000: Mean: $2.48[D]; 
Business gross receipts $25,000 to $100,000: 1st: [B]; 
Business gross receipts $25,000 to $100,000: 10th: $0.32[F]; 
Business gross receipts $25,000 to $100,000: Median: $1.47[E]; 
Business gross receipts $25,000 to $100,000: 90th: $6.00[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $9.08[F].

Expense category: Rent on machinery/equipment; 
Business gross receipts $25,000 to $100,000: Total: $2,612,902[C]; 
Business gross receipts $25,000 to $100,000: Mean: $3.23; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.12[D]; 
Business gross receipts $25,000 to $100,000: Median: $1.40; 
Business gross receipts $25,000 to $100,000: 90th: $8.17[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $21.82.

Expense category: Rent on other business property; 
Business gross receipts $25,000 to $100,000: Total: $6,188,327; 
Business gross receipts $25,000 to $100,000: Mean: $6.22; 
Business gross receipts $25,000 to $100,000: 1st: $0.07; 
Business gross receipts $25,000 to $100,000: 10th: $0.53[D]; 
Business gross receipts $25,000 to $100,000: Median: $4.75; 
Business gross receipts $25,000 to $100,000: 90th: $14.00; 
Business gross receipts $25,000 to $100,000: 99th[A]: $25.40.

Expense category: Repairs; 
Business gross receipts $25,000 to $100,000: Total: $3,401,489; 
Business gross receipts $25,000 to $100,000: Mean: $2.19; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.12; 
Business gross receipts $25,000 to $100,000: Median: $0.99; 
Business gross receipts $25,000 to $100,000: 90th: $5.73; 
Business gross receipts $25,000 to $100,000: 99th[A]: $16.13.

Expense category: Supplies; 
Business gross receipts $25,000 to $100,000: Total: $6,405,253; 
Business gross receipts $25,000 to $100,000: Mean: $2.81; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.18; 
Business gross receipts $25,000 to $100,000: Median: $1.21; 
Business gross receipts $25,000 to $100,000: 90th: $6.73; 
Business gross receipts $25,000 to $100,000: 99th[A]: $22.83.

Expense category: Taxes; 
Business gross receipts $25,000 to $100,000: Total: $1,950,810; 
Business gross receipts $25,000 to $100,000: Mean: $1.01; 
Business gross receipts $25,000 to $100,000: 1st: $0.01; 
Business gross receipts $25,000 to $100,000: 10th: $0.05; 
Business gross receipts $25,000 to $100,000: Median: $0.42; 
Business gross receipts $25,000 to $100,000: 90th: $2.60; 
Business gross receipts $25,000 to $100,000: 99th[A]: $7.38.

Expense category: Travel; 
Business gross receipts $25,000 to $100,000: Total: $2,658,219; 
Business gross receipts $25,000 to $100,000: Mean: $2.27; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.13; 
Business gross receipts $25,000 to $100,000: Median: $1.03; 
Business gross receipts $25,000 to $100,000: 90th: $5.52; 
Business gross receipts $25,000 to $100,000: 99th[A]: $16.42.

Expense category: Meals/entertainment; 
Business gross receipts $25,000 to $100,000: Total: $1,669,707; 
Business gross receipts $25,000 to $100,000: Mean: $1.00; 
Business gross receipts $25,000 to $100,000: 1st: $0.01[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.07; 
Business gross receipts $25,000 to $100,000: Median: $0.44; 
Business gross receipts $25,000 to $100,000: 90th: $2.54; 
Business gross receipts $25,000 to $100,000: 99th[A]: $6.62.

Expense category: Utilities; 
Business gross receipts $25,000 to $100,000: Total: $5,334,535; 
Business gross receipts $25,000 to $100,000: Mean: $2.03; 
Business gross receipts $25,000 to $100,000: 1st: $0.06; 
Business gross receipts $25,000 to $100,000: 10th: $0.33; 
Business gross receipts $25,000 to $100,000: Median: $1.40; 
Business gross receipts $25,000 to $100,000: 90th: $4.34; 
Business gross receipts $25,000 to $100,000: 99th[A]: $10.60.

Expense category: Wages; 
Business gross receipts $25,000 to $100,000: Total: $4,425,092[C]; 
Business gross receipts $25,000 to $100,000: Mean: $9.96; 
Business gross receipts $25,000 to $100,000: 1st: $0.15[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.77[E]; 
Business gross receipts $25,000 to $100,000: Median: $6.36[D]; 
Business gross receipts $25,000 to $100,000: 90th: $23.68; 
Business gross receipts $25,000 to $100,000: 99th[A]: $48.29.

Expense category: Other; 
Business gross receipts $25,000 to $100,000: Total: $18,606,347; 
Business gross receipts $25,000 to $100,000: Mean: $5.89; 
Business gross receipts $25,000 to $100,000: 1st: $0.05; 
Business gross receipts $25,000 to $100,000: 10th: $0.39; 
Business gross receipts $25,000 to $100,000: Median: $2.62; 
Business gross receipts $25,000 to $100,000: 90th: $14.38; 
Business gross receipts $25,000 to $100,000: 99th[A]: $48.09.

Expense category: Home office; 
Business gross receipts $25,000 to $100,000: Total: $2,498,346; 
Business gross receipts $25,000 to $100,000: Mean: $3.13; 
Business gross receipts $25,000 to $100,000: 1st: $0.12[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.56; 
Business gross receipts $25,000 to $100,000: Median: $2.00; 
Business gross receipts $25,000 to $100,000: 90th: $6.95; 
Business gross receipts $25,000 to $100,000: 99th[A]: $15.16.

Expense category: All categories; 
Business gross receipts $25,000 to $100,000: Total: $97,355,972[G]; 
Business gross receipts $25,000 to $100,000: Mean: $25.95; 
Business gross receipts $25,000 to $100,000: 1st: $1.40; 
Business gross receipts $25,000 to $100,000: 10th: $7.03; 
Business gross receipts $25,000 to $100,000: Median: $21.13; 
Business gross receipts $25,000 to $100,000: 90th: $50.09; 
Business gross receipts $25,000 to $100,000: 99th[A]: $90.35.

Source: GAO analysis of IRS data.

Note: Estimates in first and second columns have sampling errors of 
(+/-) 10 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third column have sampling errors of (+/-) 50 
percent or less of the value of the estimates unless otherwise noted. 
Estimates in the fourth, fifth, and sixth columns have sampling errors 
of (+/-) 20 percent or less of the value of the estimates unless 
otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown, unless 
otherwise noted.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[D] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[E] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[F] Reliable confidence intervals could not be computed for estimates.

[G] Total may not add due to rounding.

[End of table]

Table 12: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2000: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts over $100,000: Total: $6,645,329; 
Business gross receipts over $100,000: Mean: $5.04; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.19; 
Business gross receipts over $100,000: Median: $1.72; 
Business gross receipts over $100,000: 90th: $11.41; 
Business gross receipts over $100,000: 99th[A]: $47.45.

Expense category: Bad debts; 
Business gross receipts over $100,000: Total: $595,992[B]; 
Business gross receipts over $100,000: Mean: $4.76[B]; 
Business gross receipts over $100,000: 1st: $0.01[E]; 
Business gross receipts over $100,000: 10th: $0.10[D]; 
Business gross receipts over $100,000: Median: $1.07[C]; 
Business gross receipts over $100,000: 90th: $6.35[C]; 
Business gross receipts over $100,000: 99th[A]: $67.16.

Expense category: Car/truck; 
Business gross receipts over $100,000: Total: $15,001,240; 
Business gross receipts over $100,000: Mean: $9.26; 
Business gross receipts over $100,000: 1st: $0.16; 
Business gross receipts over $100,000: 10th: $1.16; 
Business gross receipts over $100,000: Median: $5.14; 
Business gross receipts over $100,000: 90th: $17.88; 
Business gross receipts over $100,000: 99th[A]: $63.58.

Expense category: Commissions; 
Business gross receipts over $100,000: Total: $8,938,100; 
Business gross receipts over $100,000: Mean: $31.03; 
Business gross receipts over $100,000: 1st: $0.02[E]; 
Business gross receipts over $100,000: 10th: $0.21[C]; 
Business gross receipts over $100,000: Median: $5.70[C]; 
Business gross receipts over $100,000: 90th: $67.27[C]; 
Business gross receipts over $100,000: 99th[A]: $382.23.

Expense category: Depletion; 
Business gross receipts over $100,000: Total: $501,139[B]; 
Business gross receipts over $100,000: Mean: $41.69[C]; 
Business gross receipts over $100,000: 1st: $0.03[D]; 
Business gross receipts over $100,000: 10th: $0.45[D]; 
Business gross receipts over $100,000: Median: $13.47[D]; 
Business gross receipts over $100,000: 90th: $84.54[C]; 
Business gross receipts over $100,000: 99th[A]: $408.86.

Expense category: Depreciation; 
Business gross receipts over $100,000: Total: $17,981,931; 
Business gross receipts over $100,000: Mean: $12.21; 
Business gross receipts over $100,000: 1st: $0.10[E]; 
Business gross receipts over $100,000: 10th: $0.85; 
Business gross receipts over $100,000: Median: $5.46; 
Business gross receipts over $100,000: 90th: $27.40; 
Business gross receipts over $100,000: 99th[A]: $90.85.

Expense category: Employee benefit programs; 
Business gross receipts over $100,000: Total: $1,659,148; 
Business gross receipts over $100,000: Mean: $6.57; 
Business gross receipts over $100,000: 1st: $0.05[D]; 
Business gross receipts over $100,000: 10th: $0.50[C]; 
Business gross receipts over $100,000: Median: $3.70[B]; 
Business gross receipts over $100,000: 90th: $13.65; 
Business gross receipts over $100,000: 99th[A]: $40.12.

Expense category: Insurance; 
Business gross receipts over $100,000: Total: $9,174,522; 
Business gross receipts over $100,000: Mean: $5.77; 
Business gross receipts over $100,000: 1st: $0.13; 
Business gross receipts over $100,000: 10th: $0.65; 
Business gross receipts over $100,000: Median: $3.17; 
Business gross receipts over $100,000: 90th: $12.76; 
Business gross receipts over $100,000: 99th[A]: $40.82.

Expense category: Interest on mortgage; 
Business gross receipts over $100,000: Total: $3,623,511; 
Business gross receipts over $100,000: Mean: $10.26; 
Business gross receipts over $100,000: 1st: $0.10[D]; 
Business gross receipts over $100,000: 10th: $0.80[C]; 
Business gross receipts over $100,000: Median: $4.80[B]; 
Business gross receipts over $100,000: 90th: $21.93; 
Business gross receipts over $100,000: 99th[A]: $86.74.

Expense category: Interest on other business debt; 
Business gross receipts over $100,000: Total: $4,642,285; 
Business gross receipts over $100,000: Mean: $6.01; 
Business gross receipts over $100,000: 1st: $0.01[D]; 
Business gross receipts over $100,000: 10th: $0.22[C]; 
Business gross receipts over $100,000: Median: $2.17[B]; 
Business gross receipts over $100,000: 90th: $12.03; 
Business gross receipts over $100,000: 99th[A]: $51.52.

Expense category: Legal/professional services; 
Business gross receipts over $100,000: Total: $4,457,689; 
Business gross receipts over $100,000: Mean: $2.85; 
Business gross receipts over $100,000: 1st: $0.06; 
Business gross receipts over $100,000: 10th: $0.18; 
Business gross receipts over $100,000: Median: $0.92; 
Business gross receipts over $100,000: 90th: $5.37; 
Business gross receipts over $100,000: 99th[A]: $27.03.

Expense category: Office; 
Business gross receipts over $100,000: Total: $5,622,354; 
Business gross receipts over $100,000: Mean: $3.74; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.21; 
Business gross receipts over $100,000: Median: $1.63; 
Business gross receipts over $100,000: 90th: $8.88; 
Business gross receipts over $100,000: 99th[A]: $29.80.

Expense category: Pension/profit sharing plans; 
Business gross receipts over $100,000: Total: $804,142; 
Business gross receipts over $100,000: Mean: $6.76; 
Business gross receipts over $100,000: 1st: $0.05[E]; 
Business gross receipts over $100,000: 10th: $0.69[C]; 
Business gross receipts over $100,000: Median: $4.25[B]; 
Business gross receipts over $100,000: 90th: $14.32; 
Business gross receipts over $100,000: 99th[A]: $43.01.

Expense category: Rent on machinery/equipment; 
Business gross receipts over $100,000: Total: $4,976,723; 
Business gross receipts over $100,000: Mean: $7.02; 
Business gross receipts over $100,000: 1st: $0.04; 
Business gross receipts over $100,000: 10th: $0.23; 
Business gross receipts over $100,000: Median: $2.75[B]; 
Business gross receipts over $100,000: 90th: $15.44; 
Business gross receipts over $100,000: 99th[A]: $64.97.

Expense category: Rent on other business property; 
Business gross receipts over $100,000: Total: $15,321,295; 
Business gross receipts over $100,000: Mean: $16.53; 
Business gross receipts over $100,000: 1st: $0.10[D]; 
Business gross receipts over $100,000: 10th: $1.38[C]; 
Business gross receipts over $100,000: Median: $10.20; 
Business gross receipts over $100,000: 90th: $35.20; 
Business gross receipts over $100,000: 99th[A]: $99.43.

Expense category: Repairs; 
Business gross receipts over $100,000: Total: $7,407,896; 
Business gross receipts over $100,000: Mean: $5.82; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.21; 
Business gross receipts over $100,000: Median: $2.14; 
Business gross receipts over $100,000: 90th: $14.12; 
Business gross receipts over $100,000: 99th[A]: $53.38.

Expense category: Supplies; 
Business gross receipts over $100,000: Total: $10,375,621; 
Business gross receipts over $100,000: Mean: $8.26; 
Business gross receipts over $100,000: 1st: $0.04; 
Business gross receipts over $100,000: 10th: $0.35; 
Business gross receipts over $100,000: Median: $2.49; 
Business gross receipts over $100,000: 90th: $18.03; 
Business gross receipts over $100,000: 99th[A]: $99.32.

Expense category: Taxes; 
Business gross receipts over $100,000: Total: $11,226,616; 
Business gross receipts over $100,000: Mean: $7.18; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.24; 
Business gross receipts over $100,000: Median: $3.30; 
Business gross receipts over $100,000: 90th: $16.54; 
Business gross receipts over $100,000: 99th[A]: $55.62.

Expense category: Travel; 
Business gross receipts over $100,000: Total: $3,560,357; 
Business gross receipts over $100,000: Mean: $4.39; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.20; 
Business gross receipts over $100,000: Median: $1.69; 
Business gross receipts over $100,000: 90th: $10.02; 
Business gross receipts over $100,000: 99th[A]: $40.85.

Expense category: Meals/entertainment; 
Business gross receipts over $100,000: Total: $1,836,726; 
Business gross receipts over $100,000: Mean: $1.70; 
Business gross receipts over $100,000: 1st: $0.01; 
Business gross receipts over $100,000: 10th: $0.09; 
Business gross receipts over $100,000: Median: $0.74[B]; 
Business gross receipts over $100,000: 90th: $4.50; 
Business gross receipts over $100,000: 99th[A]: $11.45.

Expense category: Utilities; 
Business gross receipts over $100,000: Total: $11,070,973; 
Business gross receipts over $100,000: Mean: $6.52; 
Business gross receipts over $100,000: 1st: $0.20; 
Business gross receipts over $100,000: 10th: $1.00; 
Business gross receipts over $100,000: Median: $4.40; 
Business gross receipts over $100,000: 90th: $13.38; 
Business gross receipts over $100,000: 99th[A]: $36.51.

Expense category: Wages; 
Business gross receipts over $100,000: Total: $58,189,304; 
Business gross receipts over $100,000: Mean: $63.77; 
Business gross receipts over $100,000: 1st: $0.61[D]; 
Business gross receipts over $100,000: 10th: $5.55[C]; 
Business gross receipts over $100,000: Median: $35.68; 
Business gross receipts over $100,000: 90th: $132.72; 
Business gross receipts over $100,000: 99th[A]: $427.62.

Expense category: Other; 
Business gross receipts over $100,000: Total: $57,337,994; 
Business gross receipts over $100,000: Mean: $30.89; 
Business gross receipts over $100,000: 1st: $0.12; 
Business gross receipts over $100,000: 10th: $1.01; 
Business gross receipts over $100,000: Median: $8.56; 
Business gross receipts over $100,000: 90th: $58.00; 
Business gross receipts over $100,000: 99th[A]: $311.15.

Expense category: Home office; 
Business gross receipts over $100,000: Total: $1,079,562[B]; 
Business gross receipts over $100,000: Mean: $3.51; 
Business gross receipts over $100,000: 1st: $0.14[E]; 
Business gross receipts over $100,000: 10th: $0.68; 
Business gross receipts over $100,000: Median: $2.42[B]; 
Business gross receipts over $100,000: 90th: $7.44; 
Business gross receipts over $100,000: 99th[A]: $19.26.

Expense category: All categories; 
Business gross receipts over $100,000: Total: $262,030,451[F]; 
Business gross receipts over $100,000: Mean: $131.94; 
Business gross receipts over $100,000: 1st: $5.20; 
Business gross receipts over $100,000: 10th: $22.56; 
Business gross receipts over $100,000: Median: $81.16; 
Business gross receipts over $100,000: 90th: $259.67; 
Business gross receipts over $100,000: 99th[A]: $838.39.

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, and fifth columns have sampling 
errors of (+/-) 10 percent or less of the value of the estimates unless 
otherwise noted. Estimates in the third column have sampling errors of 
(+/-) 50 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the fourth and sixth columns have sampling errors 
of (+/-) 20 percent or less of the value of the estimates unless 
otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown.

[B] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[F] Total may not add due to rounding.

[End of table]

Table 13: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2001: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts under $25,000: Total: $1,267,229; 
Business gross receipts under $25,000: Mean: $0.6; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.04; 
Business gross receipts under $25,000: Median: $0.22; 
Business gross receipts under $25,000: 90th: $1.20; 
Business gross receipts under $25,000: 99th[A]: $5.29.

Expense category: Bad debts; 
Business gross receipts under $25,000: Total: $303,444[C]; 
Business gross receipts under $25,000: Mean: $1.7[C]; 
Business gross receipts under $25,000: 1st: $0.01[E]; 
Business gross receipts under $25,000: 10th: $0.05[C]; 
Business gross receipts under $25,000: Median: $0.30[C]; 
Business gross receipts under $25,000: 90th: $2.02[D]; 
Business gross receipts under $25,000: 99th[A]: $18.48[E].

Expense category: Car/truck; 
Business gross receipts under $25,000: Total: $13,516,802; 
Business gross receipts under $25,000: Mean: $2.3; 
Business gross receipts under $25,000: 1st: $0.03; 
Business gross receipts under $25,000: 10th: $0.19; 
Business gross receipts under $25,000: Median: $1.42; 
Business gross receipts under $25,000: 90th: $5.48; 
Business gross receipts under $25,000: 99th[A]: $12.53.

Expense category: Commissions; 
Business gross receipts under $25,000: Total: $763,945[C]; 
Business gross receipts under $25,000: Mean: $1.6[B]; 
Business gross receipts under $25,000: 1st: $0.01[D]; 
Business gross receipts under $25,000: 10th: $0.06[C]; 
Business gross receipts under $25,000: Median: $0.44; 
Business gross receipts under $25,000: 90th: $3.28[C]; 
Business gross receipts under $25,000: 99th[A]: $14.06.

Expense category: Depletion; 
Business gross receipts under $25,000: Total: $78,953[C]; 
Business gross receipts under $25,000: Mean: $1.4[C]; 
Business gross receipts under $25,000: 1st: $0.00[D]; 
Business gross receipts under $25,000: 10th: $0.07[D]; 
Business gross receipts under $25,000: Median: $0.77[D]; 
Business gross receipts under $25,000: 90th: $2.85[D]; 
Business gross receipts under $25,000: 99th[A]: $6.06.

Expense category: Depreciation; 
Business gross receipts under $25,000: Total: $6,001,607; 
Business gross receipts under $25,000: Mean: $2.0; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.13; 
Business gross receipts under $25,000: Median: $0.95; 
Business gross receipts under $25,000: 90th: $4.56; 
Business gross receipts under $25,000: 99th[A]: $17.15.

Expense category: Employee benefit programs; 
Business gross receipts under $25,000: Total: $57,738[C]; 
Business gross receipts under $25,000: Mean: $2.3[C]; 
Business gross receipts under $25,000: 1st: $0.18[E]; 
Business gross receipts under $25,000: 10th: $0.31[D]; 
Business gross receipts under $25,000: Median: $1.54[D]; 
Business gross receipts under $25,000: 90th: $4.46[C]; 
Business gross receipts under $25,000: 99th[A]: $7.30[E].

Expense category: Insurance; 
Business gross receipts under $25,000: Total: $1,449,294; 
Business gross receipts under $25,000: Mean: $0.8; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.10; 
Business gross receipts under $25,000: Median: $0.46; 
Business gross receipts under $25,000: 90th: $1.78; 
Business gross receipts under $25,000: 99th[A]: $4.83.

Expense category: Interest on mortgage; 
Business gross receipts under $25,000: Total: $689,164[C]; 
Business gross receipts under $25,000: Mean: $3.4[B]; 
Business gross receipts under $25,000: 1st: $0.01[E]; 
Business gross receipts under $25,000: 10th: $0.32[D]; 
Business gross receipts under $25,000: Median: $1.84[C]; 
Business gross receipts under $25,000: 90th: $7.21[C]; 
Business gross receipts under $25,000: 99th[A]: $25.96[E].

Expense category: Interest on other business debt; 
Business gross receipts under $25,000: Total: $910,187[C]; 
Business gross receipts under $25,000: Mean: $1.8[C]; 
Business gross receipts under $25,000: 1st: $0.01[D]; 
Business gross receipts under $25,000: 10th: $0.07[C]; 
Business gross receipts under $25,000: Median: $0.48; 
Business gross receipts under $25,000: 90th: $2.83[C]; 
Business gross receipts under $25,000: 99th[A]: $11.77.

Expense category: Legal/professional services; 
Business gross receipts under $25,000: Total: $1,316,971; 
Business gross receipts under $25,000: Mean: $0.4; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.05; 
Business gross receipts under $25,000: Median: $0.16; 
Business gross receipts under $25,000: 90th: $0.68; 
Business gross receipts under $25,000: 99th[A]: $3.79.

Expense category: Office; 
Business gross receipts under $25,000: Total: $2,000,186; 
Business gross receipts under $25,000: Mean: $0.6; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.04; 
Business gross receipts under $25,000: Median: $0.25; 
Business gross receipts under $25,000: 90th: $1.36; 
Business gross receipts under $25,000: 99th[A]: $4.51.

Expense category: Pension/profit sharing plans; 
Business gross receipts under $25,000: Total: $27,496[D]; 
Business gross receipts under $25,000: Mean: $1.5[C]; 
Business gross receipts under $25,000: 1st: $0.00[E]; 
Business gross receipts under $25,000: 10th: $0.01[D]; 
Business gross receipts under $25,000: Median: $0.80[D]; 
Business gross receipts under $25,000: 90th: $3.48[E]; 
Business gross receipts under $25,000: 99th[A]: $6.95[E].

Expense category: Rent on machinery/equipment; 
Business gross receipts under $25,000: Total: $1,307,168[B]; 
Business gross receipts under $25,000: Mean: $1.8; 
Business gross receipts under $25,000: 1st: $0.01[D]; 
Business gross receipts under $25,000: 10th: $0.10; 
Business gross receipts under $25,000: Median: $0.75[C]; 
Business gross receipts under $25,000: 90th: $4.81; 
Business gross receipts under $25,000: 99th[A]: $9.12.

Expense category: Rent on other business property; 
Business gross receipts under $25,000: Total: $2,922,305; 
Business gross receipts under $25,000: Mean: $2.8; 
Business gross receipts under $25,000: 1st: $0.03[D]; 
Business gross receipts under $25,000: 10th: $0.20[C]; 
Business gross receipts under $25,000: Median: $1.99; 
Business gross receipts under $25,000: 90th: $6.17; 
Business gross receipts under $25,000: 99th[A]: $13.97.

Expense category: Repairs; 
Business gross receipts under $25,000: Total: $1,622,908; 
Business gross receipts under $25,000: Mean: $0.9; 
Business gross receipts under $25,000: 1st: $0.01[E]; 
Business gross receipts under $25,000: 10th: $0.06; 
Business gross receipts under $25,000: Median: $0.37; 
Business gross receipts under $25,000: 90th: $2.33; 
Business gross receipts under $25,000: 99th[A]: $7.11.

Expense category: Supplies; 
Business gross receipts under $25,000: Total: $5,323,414; 
Business gross receipts under $25,000: Mean: $1.1; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.07; 
Business gross receipts under $25,000: Median: $0.50; 
Business gross receipts under $25,000: 90th: $2.71; 
Business gross receipts under $25,000: 99th[A]: $8.41.

Expense category: Taxes; 
Business gross receipts under $25,000: Total: $906,450; 
Business gross receipts under $25,000: Mean: $0.4; 
Business gross receipts under $25,000: 1st: $0.01[E]; 
Business gross receipts under $25,000: 10th: $0.03; 
Business gross receipts under $25,000: Median: $0.14; 
Business gross receipts under $25,000: 90th: $0.86; 
Business gross receipts under $25,000: 99th[A]: $2.96.

Expense category: Travel; 
Business gross receipts under $25,000: Total: $2,434,854; 
Business gross receipts under $25,000: Mean: $1.2; 
Business gross receipts under $25,000: 1st: $0.02; 
Business gross receipts under $25,000: 10th: $0.08; 
Business gross receipts under $25,000: Median: $0.56; 
Business gross receipts under $25,000: 90th: $2.80; 
Business gross receipts under $25,000: 99th[A]: $8.52.

Expense category: Meals/entertainment; 
Business gross receipts under $25,000: Total: $1,134,275; 
Business gross receipts under $25,000: Mean: $0.5; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.03; 
Business gross receipts under $25,000: Median: $0.20; 
Business gross receipts under $25,000: 90th: $1.14; 
Business gross receipts under $25,000: 99th[A]: $3.56.

Expense category: Utilities; 
Business gross receipts under $25,000: Total: $3,327,822; 
Business gross receipts under $25,000: Mean: $0.9; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.11; 
Business gross receipts under $25,000: Median: $0.58; 
Business gross receipts under $25,000: 90th: $2.03; 
Business gross receipts under $25,000: 99th[A]: $5.37.

Expense category: Wages; 
Business gross receipts under $25,000: Total: $918,960[C]; 
Business gross receipts under $25,000: Mean: $4.5[C]; 
Business gross receipts under $25,000: 1st: $0.03[E]; 
Business gross receipts under $25,000: 10th: $0.19[D]; 
Business gross receipts under $25,000: Median: $1.19[C]; 
Business gross receipts under $25,000: 90th: $8.00[C]; 
Business gross receipts under $25,000: 99th[A]: $29.94.

Expense category: Other; 
Business gross receipts under $25,000: Total: $12,432,885; 
Business gross receipts under $25,000: Mean: $2.2; 
Business gross receipts under $25,000: 1st: $0.01; 
Business gross receipts under $25,000: 10th: $0.11; 
Business gross receipts under $25,000: Median: $0.86; 
Business gross receipts under $25,000: 90th: $4.48; 
Business gross receipts under $25,000: 99th[A]: $16.32.

Expense category: Home office; 
Business gross receipts under $25,000: Total: $2,294,004; 
Business gross receipts under $25,000: Mean: $1.8; 
Business gross receipts under $25,000: 1st: $0.04[D]; 
Business gross receipts under $25,000: 10th: $0.28; 
Business gross receipts under $25,000: Median: $1.12; 
Business gross receipts under $25,000: 90th: $3.90; 
Business gross receipts under $25,000: 99th[A]: $10.13.

Expense category: All categories; 
Business gross receipts under $25,000: Total: $63,008,061[F]; 
Business gross receipts under $25,000: Mean: $7.0; 
Business gross receipts under $25,000: 1st: $0.06; 
Business gross receipts under $25,000: 10th: $0.59; 
Business gross receipts under $25,000: Median: $4.40; 
Business gross receipts under $25,000: 90th: $14.97; 
Business gross receipts under $25,000: 99th[A]: $36.26.

Source: GAO analysis of IRS data.

Note: Estimates in the first and second columns have sampling errors of 
(+/-) 10 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third column have sampling errors of (+/-) 50 
percent or less of the value of the estimates unless otherwise noted. 
Estimates in the fourth, fifth, and six columns have sampling errors of 
(+/-) 20 percent or less of the value of the estimates unless otherwise 
noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown, unless 
otherwise noted.

[B] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[F] Total may not add due to rounding.

[End of table]

Table 14: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2001: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts $25,000 to $100,000: Total: $2,591,984; 
Business gross receipts $25,000 to $100,000: Mean: $1.6; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.08; 
Business gross receipts $25,000 to $100,000: Median: $0.68; 
Business gross receipts $25,000 to $100,000: 90th: $4.29; 
Business gross receipts $25,000 to $100,000: 99th[A]: $10.92.

Expense category: Bad debts; 
Business gross receipts $25,000 to $100,000: Total: $145,056[D]; 
Business gross receipts $25,000 to $100,000: Mean: $1.5[D]; 
Business gross receipts $25,000 to $100,000: 1st: $0.02[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.07[D]; 
Business gross receipts $25,000 to $100,000: Median: $0.58[E]; 
Business gross receipts $25,000 to $100,000: 90th: $2.68[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $15.53[F].

Expense category: Car/truck; 
Business gross receipts $25,000 to $100,000: Total: $18,616,606; 
Business gross receipts $25,000 to $100,000: Mean: $6.1; 
Business gross receipts $25,000 to $100,000: 1st: $0.10; 
Business gross receipts $25,000 to $100,000: 10th: $0.88; 
Business gross receipts $25,000 to $100,000: Median: $4.20; 
Business gross receipts $25,000 to $100,000: 90th: $12.99; 
Business gross receipts $25,000 to $100,000: 99th[A]: $30.91.

Expense category: Commissions; 
Business gross receipts $25,000 to $100,000: Total: $1,981,873[C]; 
Business gross receipts $25,000 to $100,000: Mean: $5.2[C]; 
Business gross receipts $25,000 to $100,000: 1st: $0.02[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.14[D]; 
Business gross receipts $25,000 to $100,000: Median: $1.67[D]; 
Business gross receipts $25,000 to $100,000: 90th: $13.91[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $51.33.

Expense category: Depletion; 
Business gross receipts $25,000 to $100,000: Total: $116,199[D]; 
Business gross receipts $25,000 to $100,000: Mean: $6.0[D]; 
Business gross receipts $25,000 to $100,000: 1st: $0.04[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.28[E]; 
Business gross receipts $25,000 to $100,000: Median: $4.96[D]; 
Business gross receipts $25,000 to $100,000: 90th: $13.78[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $24.49[F].

Expense category: Depreciation; 
Business gross receipts $25,000 to $100,000: Total: $8,451,676; 
Business gross receipts $25,000 to $100,000: Mean: $4.3; 
Business gross receipts $25,000 to $100,000: 1st: $0.05; 
Business gross receipts $25,000 to $100,000: 10th: $0.33; 
Business gross receipts $25,000 to $100,000: Median: $2.40; 
Business gross receipts $25,000 to $100,000: 90th: $9.90; 
Business gross receipts $25,000 to $100,000: 99th[A]: $27.87.

Expense category: Employee benefit programs; 
Business gross receipts $25,000 to $100,000: Total: $131,358[D]; 
Business gross receipts $25,000 to $100,000: Mean: $2.7[D]; 
Business gross receipts $25,000 to $100,000: 1st: $0.09[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.16[E]; 
Business gross receipts $25,000 to $100,000: Median: $1.83[E]; 
Business gross receipts $25,000 to $100,000: 90th: $6.89[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $10.50[F].

Expense category: Insurance; 
Business gross receipts $25,000 to $100,000: Total: $3,190,042; 
Business gross receipts $25,000 to $100,000: Mean: $1.6; 
Business gross receipts $25,000 to $100,000: 1st: $0.06; 
Business gross receipts $25,000 to $100,000: 10th: $0.25; 
Business gross receipts $25,000 to $100,000: Median: $0.99; 
Business gross receipts $25,000 to $100,000: 90th: $3.61; 
Business gross receipts $25,000 to $100,000: 99th[A]: $8.06.

Expense category: Interest on mortgage; 
Business gross receipts $25,000 to $100,000: Total: $1,073,733[C]; 
Business gross receipts $25,000 to $100,000: Mean: $4.1[C]; 
Business gross receipts $25,000 to $100,000: 1st: $0.03[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.41[D]; 
Business gross receipts $25,000 to $100,000: Median: $2.19[D]; 
Business gross receipts $25,000 to $100,000: 90th: $9.02[D]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $32.40.

Expense category: Interest on other business debt; 
Business gross receipts $25,000 to $100,000: Total: $1,278,587[C]; 
Business gross receipts $25,000 to $100,000: Mean: $1.9; 
Business gross receipts $25,000 to $100,000: 1st: $0.01[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.14[D]; 
Business gross receipts $25,000 to $100,000: Median: $0.97; 
Business gross receipts $25,000 to $100,000: 90th: $4.75; 
Business gross receipts $25,000 to $100,000: 99th[A]: $11.91.

Expense category: Legal/professional services; 
Business gross receipts $25,000 to $100,000: Total: $1,559,789; 
Business gross receipts $25,000 to $100,000: Mean: $0.7; 
Business gross receipts $25,000 to $100,000: 1st: $0.04; 
Business gross receipts $25,000 to $100,000: 10th: $0.09; 
Business gross receipts $25,000 to $100,000: Median: $0.25; 
Business gross receipts $25,000 to $100,000: 90th: $1.29; 
Business gross receipts $25,000 to $100,000: 99th[A]: $7.82.

Expense category: Office; 
Business gross receipts $25,000 to $100,000: Total: $2,909,072; 
Business gross receipts $25,000 to $100,000: Mean: $1.3; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.10; 
Business gross receipts $25,000 to $100,000: Median: $0.58; 
Business gross receipts $25,000 to $100,000: 90th: $3.02; 
Business gross receipts $25,000 to $100,000: 99th[A]: $10.15.

Expense category: Pension/profit sharing plans; 
Business gross receipts $25,000 to $100,000: Total: $70,066[E]; 
Business gross receipts $25,000 to $100,000: Mean: $3.1[E]; 
Business gross receipts $25,000 to $100,000: 1st: [B]; 
Business gross receipts $25,000 to $100,000: 10th: $0.10[F]; 
Business gross receipts $25,000 to $100,000: Median: $1.17[E]; 
Business gross receipts $25,000 to $100,000: 90th: $9.02[E]; 
Business gross receipts $25,000 to $100,000: 99th[A]: $10.44[F].

Expense category: Rent on machinery/equipment; 
Business gross receipts $25,000 to $100,000: Total: $2,431,023[C]; 
Business gross receipts $25,000 to $100,000: Mean: $3.1[C]; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.13; 
Business gross receipts $25,000 to $100,000: Median: $1.26[D]; 
Business gross receipts $25,000 to $100,000: 90th: $7.60; 
Business gross receipts $25,000 to $100,000: 99th[A]: $21.95.

Expense category: Rent on other business property; 
Business gross receipts $25,000 to $100,000: Total: $6,240,658; 
Business gross receipts $25,000 to $100,000: Mean: $6.4; 
Business gross receipts $25,000 to $100,000: 1st: $0.04[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.60; 
Business gross receipts $25,000 to $100,000: Median: $4.79; 
Business gross receipts $25,000 to $100,000: 90th: $14.40; 
Business gross receipts $25,000 to $100,000: 99th[A]: $26.61.

Expense category: Repairs; 
Business gross receipts $25,000 to $100,000: Total: $3,306,118; 
Business gross receipts $25,000 to $100,000: Mean: $2.2; 
Business gross receipts $25,000 to $100,000: 1st: $0.03; 
Business gross receipts $25,000 to $100,000: 10th: $0.11; 
Business gross receipts $25,000 to $100,000: Median: $0.90; 
Business gross receipts $25,000 to $100,000: 90th: $5.70; 
Business gross receipts $25,000 to $100,000: 99th[A]: $18.25.

Expense category: Supplies; 
Business gross receipts $25,000 to $100,000: Total: $6,945,572; 
Business gross receipts $25,000 to $100,000: Mean: $3.0; 
Business gross receipts $25,000 to $100,000: 1st: $0.03; 
Business gross receipts $25,000 to $100,000: 10th: $0.18; 
Business gross receipts $25,000 to $100,000: Median: $1.25; 
Business gross receipts $25,000 to $100,000: 90th: $7.11; 
Business gross receipts $25,000 to $100,000: 99th[A]: $26.84.

Expense category: Taxes; 
Business gross receipts $25,000 to $100,000: Total: $1,904,286; 
Business gross receipts $25,000 to $100,000: Mean: $1.0; 
Business gross receipts $25,000 to $100,000: 1st: $0.01[F]; 
Business gross receipts $25,000 to $100,000: 10th: $0.05; 
Business gross receipts $25,000 to $100,000: Median: $0.40; 
Business gross receipts $25,000 to $100,000: 90th: $2.54; 
Business gross receipts $25,000 to $100,000: 99th[A]: $7.52.

Expense category: Travel; 
Business gross receipts $25,000 to $100,000: Total: $2,660,376; 
Business gross receipts $25,000 to $100,000: Mean: $2.3; 
Business gross receipts $25,000 to $100,000: 1st: $0.03; 
Business gross receipts $25,000 to $100,000: 10th: $0.14; 
Business gross receipts $25,000 to $100,000: Median: $1.07; 
Business gross receipts $25,000 to $100,000: 90th: $5.49; 
Business gross receipts $25,000 to $100,000: 99th[A]: $17.93.

Expense category: Meals/entertainment; 
Business gross receipts $25,000 to $100,000: Total: $1,725,173; 
Business gross receipts $25,000 to $100,000: Mean: $1.0; 
Business gross receipts $25,000 to $100,000: 1st: $0.02; 
Business gross receipts $25,000 to $100,000: 10th: $0.07; 
Business gross receipts $25,000 to $100,000: Median: $0.50; 
Business gross receipts $25,000 to $100,000: 90th: $2.44; 
Business gross receipts $25,000 to $100,000: 99th[A]: $6.07.

Expense category: Utilities; 
Business gross receipts $25,000 to $100,000: Total: $5,514,404; 
Business gross receipts $25,000 to $100,000: Mean: $2.1; 
Business gross receipts $25,000 to $100,000: 1st: $0.06; 
Business gross receipts $25,000 to $100,000: 10th: $0.37; 
Business gross receipts $25,000 to $100,000: Median: $1.50; 
Business gross receipts $25,000 to $100,000: 90th: $4.40; 
Business gross receipts $25,000 to $100,000: 99th[A]: $11.69.

Expense category: Wages; 
Business gross receipts $25,000 to $100,000: Total: $4,340,403[C]; 
Business gross receipts $25,000 to $100,000: Mean: $10.5; 
Business gross receipts $25,000 to $100,000: 1st: $0.10[E]; 
Business gross receipts $25,000 to $100,000: 10th: $0.75[D]; 
Business gross receipts $25,000 to $100,000: Median: $6.64[D]; 
Business gross receipts $25,000 to $100,000: 90th: $26.16; 
Business gross receipts $25,000 to $100,000: 99th[A]: $48.09.

Expense category: Other; 
Business gross receipts $25,000 to $100,000: Total: $19,608,587; 
Business gross receipts $25,000 to $100,000: Mean: $6.2; 
Business gross receipts $25,000 to $100,000: 1st: $0.04; 
Business gross receipts $25,000 to $100,000: 10th: $0.41; 
Business gross receipts $25,000 to $100,000: Median: $2.88; 
Business gross receipts $25,000 to $100,000: 90th: $15.11; 
Business gross receipts $25,000 to $100,000: 99th[A]: $45.53.

Expense category: Home office; 
Business gross receipts $25,000 to $100,000: Total: $2,396,990; 
Business gross receipts $25,000 to $100,000: Mean: $3.0; 
Business gross receipts $25,000 to $100,000: 1st: $0.11; 
Business gross receipts $25,000 to $100,000: 10th: $0.55; 
Business gross receipts $25,000 to $100,000: Median: $2.06; 
Business gross receipts $25,000 to $100,000: 90th: $6.91; 
Business gross receipts $25,000 to $100,000: 99th[A]: $12.96.

Expense category: All categories; 
Business gross receipts $25,000 to $100,000: Total: $99,189,633[G]; 
Business gross receipts $25,000 to $100,000: Mean: $26.2; 
Business gross receipts $25,000 to $100,000: 1st: $1.56; 
Business gross receipts $25,000 to $100,000: 10th: $7.24; 
Business gross receipts $25,000 to $100,000: Median: $21.42; 
Business gross receipts $25,000 to $100,000: 90th: $51.14; 
Business gross receipts $25,000 to $100,000: 99th[A]: $90.10.

Source: GAO analysis of IRS data.

Note: Estimates in the first and second columns have sampling errors of 
(+/-) 10 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third column have sampling errors of (+/-) 50 
percent or less of the value of the estimates unless otherwise noted. 
Estimates in the fourth, fifth, and sixth columns have sampling errors 
of (+/-) 20 percent or less of the value of the estimates unless 
otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown, unless 
otherwise noted.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[D] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[E] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[F] Reliable confidence intervals could not be computed for estimates.

[G] Total may not add due to rounding.

[End of table]

Table 15: Range Information on Expense Categories on Schedule C by Size 
Based on Businesses Gross Receipts, Tax Year 2001: 

Dollars in thousands.

Expense category: Advertising; 
Business gross receipts over $100,000: Total: $6,914,866; 
Business gross receipts over $100,000: Mean: $5.3; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.14[C]; 
Business gross receipts over $100,000: Median: $1.69; 
Business gross receipts over $100,000: 90th: $11.92; 
Business gross receipts over $100,000: 99th[A]: $51.66.

Expense category: Bad debts; 
Business gross receipts over $100,000: Total: $727,824[C]; 
Business gross receipts over $100,000: Mean: $5.3[C]; 
Business gross receipts over $100,000: 1st: $0.02[D]; 
Business gross receipts over $100,000: 10th: $0.08[D]; 
Business gross receipts over $100,000: Median: $1.08[C]; 
Business gross receipts over $100,000: 90th: $8.20[C]; 
Business gross receipts over $100,000: 99th[A]: $46.24.

Expense category: Car/truck; 
Business gross receipts over $100,000: Total: $15,218,532; 
Business gross receipts over $100,000: Mean: $9.4; 
Business gross receipts over $100,000: 1st: $0.11; 
Business gross receipts over $100,000: 10th: $1.15; 
Business gross receipts over $100,000: Median: $5.33; 
Business gross receipts over $100,000: 90th: $18.90; 
Business gross receipts over $100,000: 99th[A]: $67.81.

Expense category: Commissions; 
Business gross receipts over $100,000: Total: $9,384,259; 
Business gross receipts over $100,000: Mean: $31.8; 
Business gross receipts over $100,000: 1st: $0.04; 
Business gross receipts over $100,000: 10th: $0.30[C]; 
Business gross receipts over $100,000: Median: $4.81[C]; 
Business gross receipts over $100,000: 90th: $71.93[C]; 
Business gross receipts over $100,000: 99th[A]: $396.84.

Expense category: Depletion; 
Business gross receipts over $100,000: Total: $498,517[B]; 
Business gross receipts over $100,000: Mean: $34.7[C]; 
Business gross receipts over $100,000: 1st: $0.03[E]; 
Business gross receipts over $100,000: 10th: $0.45[D]; 
Business gross receipts over $100,000: Median: $7.68[D]; 
Business gross receipts over $100,000: 90th: $74.56[C]; 
Business gross receipts over $100,000: 99th[A]: $377.74.

Expense category: Depreciation; 
Business gross receipts over $100,000: Total: $18,972,284; 
Business gross receipts over $100,000: Mean: $12.7; 
Business gross receipts over $100,000: 1st: $0.09; 
Business gross receipts over $100,000: 10th: $0.75; 
Business gross receipts over $100,000: Median: $5.76; 
Business gross receipts over $100,000: 90th: $28.88; 
Business gross receipts over $100,000: 99th[A]: $90.13.

Expense category: Employee benefit programs; 
Business gross receipts over $100,000: Total: $1,851,542; 
Business gross receipts over $100,000: Mean: $7.5; 
Business gross receipts over $100,000: 1st: $0.08; 
Business gross receipts over $100,000: 10th: $0.51[C]; 
Business gross receipts over $100,000: Median: $4.40; 
Business gross receipts over $100,000: 90th: $15.69; 
Business gross receipts over $100,000: 99th[A]: $42.76.

Expense category: Insurance; 
Business gross receipts over $100,000: Total: $9,727,682; 
Business gross receipts over $100,000: Mean: $6.1; 
Business gross receipts over $100,000: 1st: $0.13; 
Business gross receipts over $100,000: 10th: $0.63; 
Business gross receipts over $100,000: Median: $3.22; 
Business gross receipts over $100,000: 90th: $13.32; 
Business gross receipts over $100,000: 99th[A]: $44.65.

Expense category: Interest on mortgage; 
Business gross receipts over $100,000: Total: $3,693,329; 
Business gross receipts over $100,000: Mean: $10.3; 
Business gross receipts over $100,000: 1st: $0.02[D]; 
Business gross receipts over $100,000: 10th: $0.67[C]; 
Business gross receipts over $100,000: Median: $4.41; 
Business gross receipts over $100,000: 90th: $22.01; 
Business gross receipts over $100,000: 99th[A]: $91.50.

Expense category: Interest on other business debt; 
Business gross receipts over $100,000: Total: $4,864,547; 
Business gross receipts over $100,000: Mean: $6.3; 
Business gross receipts over $100,000: 1st: $0.01[D]; 
Business gross receipts over $100,000: 10th: $0.21[C]; 
Business gross receipts over $100,000: Median: $2.45; 
Business gross receipts over $100,000: 90th: $12.70; 
Business gross receipts over $100,000: 99th[A]: $53.25.

Expense category: Legal/professional services; 
Business gross receipts over $100,000: Total: $4,605,859; 
Business gross receipts over $100,000: Mean: $2.9; 
Business gross receipts over $100,000: 1st: $0.06; 
Business gross receipts over $100,000: 10th: $0.17; 
Business gross receipts over $100,000: Median: $0.90; 
Business gross receipts over $100,000: 90th: $5.31; 
Business gross receipts over $100,000: 99th[A]: $31.46.

Expense category: Office; 
Business gross receipts over $100,000: Total: $5,695,547; 
Business gross receipts over $100,000: Mean: $3.7; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.19; 
Business gross receipts over $100,000: Median: $1.57; 
Business gross receipts over $100,000: 90th: $8.87; 
Business gross receipts over $100,000: 99th[A]: $31.64.

Expense category: Pension/profit sharing plans; 
Business gross receipts over $100,000: Total: $894,330; 
Business gross receipts over $100,000: Mean: $7.2; 
Business gross receipts over $100,000: 1st: $0.06[E]; 
Business gross receipts over $100,000: 10th: $0.66[C]; 
Business gross receipts over $100,000: Median: $3.94; 
Business gross receipts over $100,000: 90th: $15.24; 
Business gross receipts over $100,000: 99th[A]: $52.70.

Expense category: Rent on machinery/equipment; 
Business gross receipts over $100,000: Total: $4,783,816; 
Business gross receipts over $100,000: Mean: $6.7; 
Business gross receipts over $100,000: 1st: $0.04; 
Business gross receipts over $100,000: 10th: $0.22; 
Business gross receipts over $100,000: Median: $2.51; 
Business gross receipts over $100,000: 90th: $14.96; 
Business gross receipts over $100,000: 99th[A]: $61.39.

Expense category: Rent on other business property; 
Business gross receipts over $100,000: Total: $15,956,161; 
Business gross receipts over $100,000: Mean: $17.5; 
Business gross receipts over $100,000: 1st: $0.10[D]; 
Business gross receipts over $100,000: 10th: $1.35; 
Business gross receipts over $100,000: Median: $10.98; 
Business gross receipts over $100,000: 90th: $36.49; 
Business gross receipts over $100,000: 99th[A]: $114.58.

Expense category: Repairs; 
Business gross receipts over $100,000: Total: $7,200,730; 
Business gross receipts over $100,000: Mean: $5.7; 
Business gross receipts over $100,000: 1st: $0.04; 
Business gross receipts over $100,000: 10th: $0.22; 
Business gross receipts over $100,000: Median: $2.14; 
Business gross receipts over $100,000: 90th: $13.73; 
Business gross receipts over $100,000: 99th[A]: $51.01.

Expense category: Supplies; 
Business gross receipts over $100,000: Total: $10,805,850; 
Business gross receipts over $100,000: Mean: $8.5; 
Business gross receipts over $100,000: 1st: $0.04; 
Business gross receipts over $100,000: 10th: $0.32; 
Business gross receipts over $100,000: Median: $2.56; 
Business gross receipts over $100,000: 90th: $17.80; 
Business gross receipts over $100,000: 99th[A]: $96.02.

Expense category: Taxes; 
Business gross receipts over $100,000: Total: $11,403,346; 
Business gross receipts over $100,000: Mean: $7.4; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.20; 
Business gross receipts over $100,000: Median: $3.29; 
Business gross receipts over $100,000: 90th: $16.97; 
Business gross receipts over $100,000: 99th[A]: $60.74.

Expense category: Travel; 
Business gross receipts over $100,000: Total: $3,562,036; 
Business gross receipts over $100,000: Mean: $4.3; 
Business gross receipts over $100,000: 1st: $0.03; 
Business gross receipts over $100,000: 10th: $0.21; 
Business gross receipts over $100,000: Median: $1.64; 
Business gross receipts over $100,000: 90th: $9.56; 
Business gross receipts over $100,000: 99th[A]: $40.90.

Expense category: Meals/entertainment; 
Business gross receipts over $100,000: Total: $1,875,864; 
Business gross receipts over $100,000: Mean: $1.7; 
Business gross receipts over $100,000: 1st: $0.01; 
Business gross receipts over $100,000: 10th: $0.09; 
Business gross receipts over $100,000: Median: $0.80; 
Business gross receipts over $100,000: 90th: $4.45; 
Business gross receipts over $100,000: 99th[A]: $11.81.

Expense category: Utilities; 
Business gross receipts over $100,000: Total: $11,640,455; 
Business gross receipts over $100,000: Mean: $6.7; 
Business gross receipts over $100,000: 1st: $0.24; 
Business gross receipts over $100,000: 10th: $1.04; 
Business gross receipts over $100,000: Median: $4.25; 
Business gross receipts over $100,000: 90th: $13.69; 
Business gross receipts over $100,000: 99th[A]: $39.82.

Expense category: Wages; 
Business gross receipts over $100,000: Total: $58,566,657; 
Business gross receipts over $100,000: Mean: $66.3; 
Business gross receipts over $100,000: 1st: $0.58[D]; 
Business gross receipts over $100,000: 10th: $6.56; 
Business gross receipts over $100,000: Median: $37.44; 
Business gross receipts over $100,000: 90th: $136.71; 
Business gross receipts over $100,000: 99th[A]: $453.02.

Expense category: Other; 
Business gross receipts over $100,000: Total: $62,570,804; 
Business gross receipts over $100,000: Mean: $33.1; 
Business gross receipts over $100,000: 1st: $0.14; 
Business gross receipts over $100,000: 10th: $1.05; 
Business gross receipts over $100,000: Median: $8.78; 
Business gross receipts over $100,000: 90th: $62.93; 
Business gross receipts over $100,000: 99th[A]: $330.17.

Expense category: Home office; 
Business gross receipts over $100,000: Total: $1,290,409[B]; 
Business gross receipts over $100,000: Mean: $3.7; 
Business gross receipts over $100,000: 1st: $0.16; 
Business gross receipts over $100,000: 10th: $0.66; 
Business gross receipts over $100,000: Median: $2.46; 
Business gross receipts over $100,000: 90th: $7.93; 
Business gross receipts over $100,000: 99th[A]: $16.96.

Expense category: All categories; 
Business gross receipts over $100,000: Total: $272,705,243[F]; 
Business gross receipts over $100,000: Mean: $135.2; 
Business gross receipts over $100,000: 1st: $5.38; 
Business gross receipts over $100,000: 10th: $23.13; 
Business gross receipts over $100,000: Median: $82.28; 
Business gross receipts over $100,000: 90th: $267.14; 
Business gross receipts over $100,000: 99th[A]: $876.72.

Source: GAO analysis of IRS data.

Note: Estimates in the first and second columns have sampling errors of 
(+/-) 10 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third column have sampling errors of (+/-) 50 
percent or less of the value of the estimates unless otherwise noted. 
Estimates in the fourth, fifth, and sixth columns have sampling errors 
of (+/-) 20 percent or less of the value of the estimates unless 
otherwise noted.

[A] For these estimates we are more than 95 percent confident that the 
actual percentile is at least 80 percent of the estimate shown.

[B] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[F] Total may not add due to rounding.

[End of table]

Table 16: Information on Expense Categories on Schedule C by Total 
Business Gross Receipts, Tax Years 2000 and 2001: 

Dollars in thousands.

Expense category: Advertising; 
Expenses as a percentage of business gross receipts: 2000: 1.7; 
Expenses as a percentage of business gross receipts: 2001: 1.8.

Expense category: Bad debts; 
Expenses as a percentage of business gross receipts: 2000: 1.2[A]; 
Expenses as a percentage of business gross receipts: 2001: 1.4[B].

Expense category: Car/truck; 
Expenses as a percentage of business gross receipts: 2000: 6.1; 
Expenses as a percentage of business gross receipts: 2001: 6.4.

Expense category: Commissions; 
Expenses as a percentage of business gross receipts: 2000: 7.8[A]; 
Expenses as a percentage of business gross receipts: 2001: 8.5.

Expense category: Depletion; 
Expenses as a percentage of business gross receipts: 2000: 7.8[B]; 
Expenses as a percentage of business gross receipts: 2001: 7.6[A].

Expense category: Depreciation; 
Expenses as a percentage of business gross receipts: 2000: 4.7; 
Expenses as a percentage of business gross receipts: 2001: 4.9.

Expense category: Employee benefit programs; 
Expenses as a percentage of business gross receipts: 2000: 1.3; 
Expenses as a percentage of business gross receipts: 2001: 1.4.

Expense category: Insurance; 
Expenses as a percentage of business gross receipts: 2000: 1.9; 
Expenses as a percentage of business gross receipts: 2001: 2.0.

Expense category: Interest on mortgage; 
Expenses as a percentage of business gross receipts: 2000: 3.2; 
Expenses as a percentage of business gross receipts: 2001: 3.3.

Expense category: Interest on other business debt; 
Expenses as a percentage of business gross receipts: 2000: 1.8; 
Expenses as a percentage of business gross receipts: 2001: 1.9.

Expense category: Legal/professional services; 
Expenses as a percentage of business gross receipts: 2000: 1.0; 
Expenses as a percentage of business gross receipts: 2001: 1.0.

Expense category: Office; 
Expenses as a percentage of business gross receipts: 2000: 1.5; 
Expenses as a percentage of business gross receipts: 2001: 1.5.

Expense category: Pension/profit sharing plans; 
Expenses as a percentage of business gross receipts: 2000: 1.3; 
Expenses as a percentage of business gross receipts: 2001: 1.3.

Expense category: Rent on machinery/equipment; 
Expenses as a percentage of business gross receipts: 2000: 2.7; 
Expenses as a percentage of business gross receipts: 2001: 2.6.

Expense category: Rent on other business property; 
Expenses as a percentage of business gross receipts: 2000: 5.6; 
Expenses as a percentage of business gross receipts: 2001: 5.9.

Expense category: Repairs; 
Expenses as a percentage of business gross receipts: 2000: 2.1; 
Expenses as a percentage of business gross receipts: 2001: 2.1.

Expense category: Supplies; 
Expenses as a percentage of business gross receipts: 2000: 3.6; 
Expenses as a percentage of business gross receipts: 2001: 3.8.

Expense category: Taxes; 
Expenses as a percentage of business gross receipts: 2000: 2.0; 
Expenses as a percentage of business gross receipts: 2001: 2.0.

Expense category: Travel; 
Expenses as a percentage of business gross receipts: 2000: 2.1; 
Expenses as a percentage of business gross receipts: 2001: 2.2.

Expense category: Meals/entertainment; 
Expenses as a percentage of business gross receipts: 2000: 0.9; 
Expenses as a percentage of business gross receipts: 2001: 0.9.

Expense category: Utilities; 
Expenses as a percentage of business gross receipts: 2000: 2.5; 
Expenses as a percentage of business gross receipts: 2001: 2.6.

Expense category: Wages; 
Expenses as a percentage of business gross receipts: 2000: 15.1; 
Expenses as a percentage of business gross receipts: 2001: 15.2.

Expense category: Other; 
Expenses as a percentage of business gross receipts: 2000: 9.8; 
Expenses as a percentage of business gross receipts: 2001: 10.7.

Expense category: Home office; 
Expenses as a percentage of business gross receipts: 2000: 4.1; 
Expenses as a percentage of business gross receipts: 2001: 4.3.

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 10 percent 
or less of the value of the estimates unless otherwise noted.

[A] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[End of table]

Table 17: Information by Industry Categories for Schedule C Expenses by 
Business Gross Receipts, Tax Years 2000 and 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: Business gross receipts Total[A]: $36,068,000; 
2000: Expenses as a percentage of business gross receipts: 55.3; 
2001: Business gross receipts Total[A]: $35,827,892; 
2001: Expenses as a percentage of business gross receipts: 57.8.

Industry category: Administrative/waste management; 
2000: Business gross receipts Total[A]: $36,977,755; 
2000: Expenses as a percentage of business gross receipts: 54.0; 
2001: Business gross receipts Total[A]: $36,552,989; 
2001: Expenses as a percentage of business gross receipts: 54.8.

Industry category: Agriculture/forestry; 
2000: Business gross receipts Total[A]: $15,965,777; 
2000: Expenses as a percentage of business gross receipts: 62.5; 
2001: Business gross receipts Total[A]: $15,496,089; 
2001: Expenses as a percentage of business gross receipts: 60.0.

Industry category: Arts/recreation; 
2000: Business gross receipts Total[A]: $19,544,201; 
2000: Expenses as a percentage of business gross receipts: 67.8; 
2001: Business gross receipts Total[A]: $19,818,497; 
2001: Expenses as a percentage of business gross receipts: 72.1.

Industry category: Construction; 
2000: Business gross receipts Total[A]: $154,732,186; 
2000: Expenses as a percentage of business gross receipts: 37.4; 
2001: Business gross receipts Total[A]: $159,253,760; 
2001: Expenses as a percentage of business gross receipts: 38.3.

Industry category: Education services; 
2000: Business gross receipts Total[A]: $4,085,152[B]; 
2000: Expenses as a percentage of business gross receipts: 63.9; 
2001: Business gross receipts Total[A]: $4,357,558; 
2001: Expenses as a percentage of business gross receipts: 63.5.

Industry category: Finance/insurance; 
2000: Business gross receipts Total[A]: $99,457,478; 
2000: Expenses as a percentage of business gross receipts: 26.3; 
2001: Business gross receipts Total[A]: $77,723,180; 
2001: Expenses as a percentage of business gross receipts: 34.8[B].

Industry category: Health care/social assistance; 
2000: Business gross receipts Total[A]: $83,758,190; 
2000: Expenses as a percentage of business gross receipts: 53.9; 
2001: Business gross receipts Total[A]: $89,449,901; 
2001: Expenses as a percentage of business gross receipts: 54.0.

Industry category: Information; 
2000: Business gross receipts Total[A]: $6,509,562; 
2000: Expenses as a percentage of business gross receipts: 60.4; 
2001: Business gross receipts Total[A]: $7,053,158; 
2001: Expenses as a percentage of business gross receipts: 58.5.

Industry category: Manufacturing; 
2000: Business gross receipts Total[A]: $27,580,129; 
2000: Expenses as a percentage of business gross receipts: 40.8; 
2001: Business gross receipts Total[A]: $23,976,663; 
2001: Expenses as a percentage of business gross receipts: 43.2.

Industry category: Mining; 
2000: Business gross receipts Total[A]: $5,344,455; 
2000: Expenses as a percentage of business gross receipts: 79.6; 
2001: Business gross receipts Total[A]: $6,200,506; 
2001: Expenses as a percentage of business gross receipts: 79.7.

Industry category: Other services; 
2000: Business gross receipts Total[A]: $62,924,792; 
2000: Expenses as a percentage of business gross receipts: 50.0; 
2001: Business gross receipts Total[A]: $66,224,392; 
2001: Expenses as a percentage of business gross receipts: 50.6.

Industry category: Professional/technical; 
2000: Business gross receipts Total[A]: $108,778,286; 
2000: Expenses as a percentage of business gross receipts: 46.4; 
2001: Business gross receipts Total[A]: $112,906,070; 
2001: Expenses as a percentage of business gross receipts: 48.3.

Industry category: Real estate/leasing; 
2000: Business gross receipts Total[A]: $47,217,865; 
2000: Expenses as a percentage of business gross receipts: 48.7; 
2001: Business gross receipts Total[A]: $47,164,765; 
2001: Expenses as a percentage of business gross receipts: 51.8.

Industry category: Religious/civic; 
2000: Business gross receipts Total[A]: $2,639,655[B]; 
2000: Expenses as a percentage of business gross receipts: 48.4; 
2001: Business gross receipts Total[A]: $2,396,712[B]; 
2001: Expenses as a percentage of business gross receipts: 53.9.

Industry category: Retail trade; 
2000: Business gross receipts Total[A]: $174,136,958; 
2000: Expenses as a percentage of business gross receipts: 26.5; 
2001: Business gross receipts Total[A]: $179,437,743; 
2001: Expenses as a percentage of business gross receipts: 26.8.

Industry category: Transportation/warehousing; 
2000: Business gross receipts Total[A]: $50,852,835; 
2000: Expenses as a percentage of business gross receipts: 76.5; 
2001: Business gross receipts Total[A]: $50,676,326; 
2001: Expenses as a percentage of business gross receipts: 76.3.

Expense category: Utilities; 
2000: Business gross receipts Total[A]: $256,908[C]; 
2000: Expenses as a percentage of business gross receipts: 71.0[B]; 
2001: Business gross receipts Total[A]: $250,610[C]; 
2001: Expenses as a percentage of business gross receipts: 66.0[B].

Industry category: Wholesale trade; 
2000: Business gross receipts Total[A]: $41,078,866; 
2000: Expenses as a percentage of business gross receipts: 20.8; 
2001: Business gross receipts Total[A]: $38,099,169; 
2001: Expenses as a percentage of business gross receipts: 22.4.

Industry category: Unclassified; 
2000: Business gross receipts Total[A]: $2,390,234[B]; 
2000: Expenses as a percentage of business gross receipts: 57.0; 
2001: Business gross receipts Total[A]: $1,612,332[B]; 
2001: Expenses as a percentage of business gross receipts: 50.0[B].

[End of table]

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 20 percent 
or less of the value of the estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

Table 18: Information by Industry Categories for Schedule C Expenses, 
Tax Years 2000 and 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: Expense Total[A]: $19,951,050; 
2000: Expense as percentage of total expenses: 4.8; 
2001: Expense Total[A]: $20,690,429; 
2001: Expense as percentage of total expenses: 4.8.

Industry category: Administrative/waste management; 
2000: Expense Total[A]: $19,928,104; 
2000: Expense as percentage of total expenses: 4.8; 
2001: Expense Total[A]: $19,914,615; 
2001: Expense as percentage of total expenses: 4.6.

Industry category: Agriculture/forestry; 
2000: Expense Total[A]: $9,973,723; 
2000: Expense as percentage of total expenses: 2.4; 
2001: Expense Total[A]: $9,288,614; 
2001: Expense as percentage of total expenses: 2.2.

Industry category: Arts/recreation; 
2000: Expense Total[A]: $13,221,156; 
2000: Expense as percentage of total expenses: 3.2; 
2001: Expense Total[A]: $14,266,382; 
2001: Expense as percentage of total expenses: 3.3.

Industry category: Construction; 
2000: Expense Total[A]: $57,618,909; 
2000: Expense as percentage of total expenses: 13.9; 
2001: Expense Total[A]: $60,783,362; 
2001: Expense as percentage of total expenses: 14.1.

Industry category: Education services; 
2000: Expense Total[A]: $2,570,439[B]; 
2000: Expense as percentage of total expenses: 0.6[B]; 
2001: Expense Total[A]: $2,734,030; 
2001: Expense as percentage of total expenses: 0.6.

Industry category: Finance/insurance; 
2000: Expense Total[A]: $25,687,067; 
2000: Expense as percentage of total expenses: 6.2; 
2001: Expense Total[A]: $26,388,126; 
2001: Expense as percentage of total expenses: 6.1.

Industry category: Health care/social assistance; 
2000: Expense Total[A]: $45,096,357; 
2000: Expense as percentage of total expenses: 10.9; 
2001: Expense Total[A]: $48,249,135; 
2001: Expense as percentage of total expenses: 11.2.

Industry category: Information; 
2000: Expense Total[A]: $3,920,292; 
2000: Expense as percentage of total expenses: 0.9; 
2001: Expense Total[A]: $4,120,542; 
2001: Expense as percentage of total expenses: 1.0.

Industry category: Manufacturing; 
2000: Expense Total[A]: $11,254,726; 
2000: Expense as percentage of total expenses: 2.7; 
2001: Expense Total[A]: $10,345,963; 
2001: Expense as percentage of total expenses: 2.4.

Industry category: Mining; 
2000: Expense Total[A]: $4,247,335; 
2000: Expense as percentage of total expenses: 1.0; 
2001: Expense Total[A]: $4,941,103; 
2001: Expense as percentage of total expenses: 1.1.

Industry category: Other services; 
2000: Expense Total[A]: $31,434,173; 
2000: Expense as percentage of total expenses: 7.6; 
2001: Expense Total[A]: $33,479,849; 
2001: Expense as percentage of total expenses: 7.8.

Industry category: Professional/technical; 
2000: Expense Total[A]: $50,302,594; 
2000: Expense as percentage of total expenses: 12.1; 
2001: Expense Total[A]: $54,340,816; 
2001: Expense as percentage of total expenses: 12.6.

Industry category: Real estate/leasing; 
2000: Expense Total[A]: $22,904,868; 
2000: Expense as percentage of total expenses: 5.5; 
2001: Expense Total[A]: $24,233,205; 
2001: Expense as percentage of total expenses: 5.6.

Industry category: Religious/civic; 
2000: Expense Total[A]: $1,250,739[B]; 
2000: Expense as percentage of total expenses: 0.3[B]; 
2001: Expense Total[A]: $1,264,084[B]; 
2001: Expense as percentage of total expenses: 0.3[B].

Industry category: Retail trade; 
2000: Expense Total[A]: $46,102,269; 
2000: Expense as percentage of total expenses: 11.1; 
2001: Expense Total[A]: $48,013,853; 
2001: Expense as percentage of total expenses: 11.1.

Industry category: Transportation/warehousing; 
2000: Expense Total[A]: $38,885,750; 
2000: Expense as percentage of total expenses: 9.4; 
2001: Expense Total[A]: $38,648,317; 
2001: Expense as percentage of total expenses: 9.0.

Industry category: Utilities; 
2000: Expense Total[A]: $181,741[C]; 
2000: Expense as percentage of total expenses: 0.0[C]; 
2001: Expense Total[A]: $165,375[C]; 
2001: Expense as percentage of total expenses: 0.0[C].

Industry category: Wholesale trade; 
2000: Expense Total[A]: $8,528,371; 
2000: Expense as percentage of total expenses: 2.1; 
2001: Expense Total[A]: $8,510,788; 
2001: Expense as percentage of total expenses: 2.0.

Industry category: Unclassified; 
2000: Expense Total[A]: $1,327,310[B]; 
2000: Expense as percentage of total expenses: 0.3[B]; 
2001: Expense Total[A]: $786,364[B]; 
2001: Expense as percentage of total expenses: 0.2[B].

Industry category: Total[D]; 
2000: Expense as percentage of total expenses: 100%; 
2001: Expense as percentage of total expenses: 100%.

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 20 percent 
or less of the value of the estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall into a different industry category; only those 
amounts that could be associated with a specific industry category are 
included in the table.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the 
value of the estimate.

[D] Totals may not add to 100 percent due to rounding.

[End of table]

Table 19: Information by Industry Categories for Schedule C Expenses, 
Tax Years 2000 and 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: Total[A]: $19,951,050; 
2000: Mean: $65.8; 
2000: Median: $22.8[B]; 
2001: Total[A]: $20,690,429; 
2001: Mean: $63.2; 
2001: Median: $21.2[B].

Industry category: Administrative/waste management; 
2000: Total[A]: $19,928,104; 
2000: Mean: $17.6; 
2000: Median: $5.1; 
2001: Total[A]: $19,914,615; 
2001: Mean: $17.1; 
2001: Median: $5.0.

Industry category: Agriculture/forestry; 
2000: Total[A]: $9,973,723; 
2000: Mean: $37.0; 
2000: Median: $7.9[B]; 
2001: Total[A]: $9,288,614; 
2001: Mean: $34.8; 
2001: Median: $10.2[B].

Industry category: Arts/recreation; 
2000: Total[A]: $13,221,156; 
2000: Mean: $13.0; 
2000: Median: $4.3; 
2001: Total[A]: $14,266,382; 
2001: Mean: $14.5; 
2001: Median: $5.0.

Industry category: Construction; 
2000: Total[A]: $57,618,909; 
2000: Mean: $30.6; 
2000: Median: $12.1; 
2001: Total[A]: $60,783,362; 
2001: Mean: $29.7; 
2001: Median: $11.4.

Industry category: Education services; 
2000: Total[A]: $2,570,439[B]; 
2000: Mean: $10.0; 
2000: Median: $3.8[B]; 
2001: Total[A]: $2,734,030; 
2001: Mean: $9.4; 
2001: Median: $3.7[B].

Industry category: Finance/insurance; 
2000: Total[A]: $25,687,067; 
2000: Mean: $47.5; 
2000: Median: $12.4; 
2001: Total[A]: $26,388,126; 
2001: Mean: $48.7; 
2001: Median: $12.8[B].

Industry category: Health care/social assistance; 
2000: Total[A]: $45,096,357; 
2000: Mean: $36.2; 
2000: Median: $8.8; 
2001: Total[A]: $48,249,135; 
2001: Mean: $37.2; 
2001: Median: $8.7.

Industry category: Information; 
2000: Total[A]: $3,920,292; 
2000: Mean: $15.6; 
2000: Median: $4.6[B]; 
2001: Total[A]: $4,120,542; 
2001: Mean: $16.6; 
2001: Median: $4.5[B].

Industry category: Manufacturing; 
2000: Total[A]: $11,254,726; 
2000: Mean: $34.5; 
2000: Median: $8.7[B]; 
2001: Total[A]: $10,345,963; 
2001: Mean: $35.1; 
2001: Median: $10.0[B].

Industry category: Mining; 
2000: Total[A]: $4,247,335; 
2000: Mean: $36.7; 
2000: Median: $2.7[C]; 
2001: Total[A]: $4,941,103; 
2001: Mean: $43.7; 
2001: Median: $5.8[C].

Industry category: Other services; 
2000: Total[A]: $31,434,173; 
2000: Mean: $21.1; 
2000: Median: $8.4; 
2001: Total[A]: $33,479,849; 
2001: Mean: $21.5; 
2001: Median: $8.6.

Industry category: Professional/technical; 
2000: Total[A]: $50,302,594; 
2000: Mean: $23.1; 
2000: Median: $6.8; 
2001: Total[A]: $54,340,816; 
2001: Mean: $23.6; 
2001: Median: $6.9.

Industry category: Real estate/leasing; 
2000: Total[A]: $22,904,868; 
2000: Mean: $24.6; 
2000: Median: $11.6; 
2001: Total[A]: $24,233,205; 
2001: Mean: $25.2; 
2001: Median: $12.2.

Industry category: Religious/civic; 
2000: Total[A]: $1,250,739[B]; 
2000: Mean: $7.0; 
2000: Median: $3.1[B]; 
2001: Total[A]: $1,264,084[B]; 
2001: Mean: $7.1; 
2001: Median: $4.2[B].

Industry category: Retail trade; 
2000: Total[A]: $46,102,269; 
2000: Mean: $20.6; 
2000: Median: $4.6; 
2001: Total[A]: $48,013,853; 
2001: Mean: $21.7; 
2001: Median: $5.1.

Industry category: Transportation/warehousing; 
2000: Total[A]: $38,885,750; 
2000: Mean: $48.6; 
2000: Median: $22.8; 
2001: Total[A]: $38,648,317; 
2001: Mean: $45.8; 
2001: Median: $20.1.

Industry category: Utilities; 
2000: Total[A]: $181,741[C]; 
2000: Mean: $13.9[C]; 
2000: Median: $6.9[C]; 
2001: Total[A]: $165,375[C]; 
2001: Mean: $20.4[C]; 
2001: Median: $9.5[C].

Industry category: Wholesale trade; 
2000: Total[A]: $8,528,371; 
2000: Mean: $24.0; 
2000: Median: $9.1[B]; 
2001: Total[A]: $8,510,788; 
2001: Mean: $26.1; 
2001: Median: $9.4.

Industry category: Unclassified; 
2000: Total[A]: $1,327,310[B]; 
2000: Mean: $10.7[B]; 
2000: Median: $4.1[C]; 
2001: Total[A]: $786,364[B]; 
2001: Mean: $8.1[B]; 
2001: Median: $3.6[C].

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 20 percent 
or less of the value of the estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the 
value of the estimate.

[End of table]

Table 20: Information by Industry Categories for Schedule C Expenses by 
Businesses With Inventory, Tax Years 2000 and 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: Total[A]: $120; 
2000: Percentage with inventory: 37.8; 
2001: Total[A]: $115; 
2001: Percentage with inventory: 33.8.

Industry category: Administrative/waste management; 
2000: Total[A]: $25; 
2000: Percentage with inventory: 2.0[B]; 
2001: Total[A]: $33; 
2001: Percentage with inventory: 2.6.

Industry category: Agriculture/forestry; 
2000: Total[A]: $13[B]; 
2000: Percentage with inventory: 4.7[B]; 
2001: Total[A]: $17[B]; 
2001: Percentage with inventory: 6.1[B].

Industry category: Arts/recreation; 
2000: Total[A]: $60; 
2000: Percentage with inventory: 5.7; 
2001: Total[A]: $63; 
2001: Percentage with inventory: 6.2.

Industry category: Construction; 
2000: Total[A]: $91; 
2000: Percentage with inventory: 4.6; 
2001: Total[A]: $85; 
2001: Percentage with inventory: 3.9.

Industry category: Education services; 
2000: Total[A]: $5[B]; 
2000: Percentage with inventory: 1.7[B]; 
2001: Total[A]: $7[B]; 
2001: Percentage with inventory: 2.1[B].

Industry category: Finance/insurance; 
2000: Total[A]: $8[B]; 
2000: Percentage with inventory: 1.4[B]; 
2001: Total[A]: $6[B]; 
2001: Percentage with inventory: 1.0[B].

Industry category: Health care/social assistance; 
2000: Total[A]: $21; 
2000: Percentage with inventory: 1.5; 
2001: Total[A]: $15; 
2001: Percentage with inventory: 1.1[B].

Industry category: Information; 
2000: Total[A]: $18; 
2000: Percentage with inventory: 6.7[B]; 
2001: Total[A]: $21; 
2001: Percentage with inventory: 7.7[B].

Industry category: Manufacturing; 
2000: Total[A]: $95; 
2000: Percentage with inventory: 28.0; 
2001: Total[A]: $79; 
2001: Percentage with inventory: 25.1.

Industry category: Mining; 
2000: Total[A]: $1[C]; 
2000: Percentage with inventory: 0.5[B]; 
2001: Total[A]: $0[B]; 
2001: Percentage with inventory: 0.2[B].

Industry category: Other services; 
2000: Total[A]: $228; 
2000: Percentage with inventory: 14.4; 
2001: Total[A]: $242; 
2001: Percentage with inventory: 14.5.

Industry category: Professional/technical; 
2000: Total[A]: $87; 
2000: Percentage with inventory: 3.8; 
2001: Total[A]: $87; 
2001: Percentage with inventory: 3.6.

Industry category: Real estate/leasing; 
2000: Total[A]: $12; 
2000: Percentage with inventory: 1.3; 
2001: Total[A]: $18; 
2001: Percentage with inventory: 1.8[B].

Industry category: Religious/civic; 
2000: Total[A]: $0[C]; 
2000: Percentage with inventory: 0.0[B]; 
2001: Total[A]: $0[C]; 
2001: Percentage with inventory: 0.0[B].

Industry category: Retail trade; 
2000: Total[A]: $1,080; 
2000: Percentage with inventory: 45.7; 
2001: Total[A]: $1,069; 
2001: Percentage with inventory: 46.0.

Industry category: Transportation/warehousing; 
2000: Total[A]: $4[B]; 
2000: Percentage with inventory: 0.4[B]; 
2001: Total[A]: $5[B]; 
2001: Percentage with inventory: 0.6[B].

Industry category: Utilities; 
2000: Total[A]: $1[C]; 
2000: Percentage with inventory: 7.1[C]; 
2001: Total[A]: $1[C]; 
2001: Percentage with inventory: 10.3[C].

Industry category: Wholesale trade; 
2000: Total[A]: $114; 
2000: Percentage with inventory: 30.4; 
2001: Total[A]: $89; 
2001: Percentage with inventory: 26.5.

Industry category: Unclassified; 
2000: Total[A]: $7[B]; 
2000: Percentage with inventory: 4.4[B]; 
2001: Total[A]: $6[C]; 
2001: Percentage with inventory: 4.2[B].

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 50 percent 
or less of the value of the estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[C] Reliable confidence intervals could not be computed for estimates.

[End of table]

Table 21: Information by Industry Categories for Schedule C Expenses by 
Businesses With and Without Inventory, Tax Year 2000: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: With inventory: Total[A]: $12,242,127; 
2000: With inventory: Mean: $102.1; 
2000: With inventory: Median: $44.7; 
2000: Without inventory: Total[A]: $7,708,923; 
2000: Without inventory: Mean: $42.0; 
2000: Without inventory: Median: $11.4[C]; 
2000: Total: Mean: $65.8; 
2000: Total: Median: $22.8[C].

Industry category: Administrative/waste management; 
2000: With inventory: Total[A]: $1,437,708[C]; 
2000: With inventory: Mean: $56.8[C]; 
2000: With inventory: Median: $15.1[D]; 
2000: Without inventory: Total[A]: $18,490,397; 
2000: Without inventory: Mean: $16.4; 
2000: Without inventory: Median: $4.9; 
2000: Total: Mean: $17.3; 
2000: Total: Median: $5.0.

Industry category: Agriculture/forestry; 
2000: With inventory: Total[A]: $762,692[C]; 
2000: With inventory: Mean: $58.8[D]; 
2000: With inventory: Median: $9.7[D]; 
2000: Without inventory: Total[A]: $9,211,031; 
2000: Without inventory: Mean: $35.9; 
2000: Without inventory: Median: $7.8[C]; 
2000: Total: Mean: $37.0; 
2000: Total: Median: $7.9[C].

Industry category: Arts/recreation; 
2000: With inventory: Total[A]: $1,440,280[C]; 
2000: With inventory: Mean: $25.1[C]; 
2000: With inventory: Median: $5.7[D]; 
2000: Without inventory: Total[A]: $11,780,876; 
2000: Without inventory: Mean: $12.1; 
2000: Without inventory: Median: $4.1; 
2000: Total: Mean: $12.9; 
2000: Total: Median: $4.2.

Industry category: Construction; 
2000: With inventory: Total[A]: $5,251,889; 
2000: With inventory: Mean: $57.9; 
2000: With inventory: Median: $27.2; 
2000: Without inventory: Total[A]: $52,367,020; 
2000: Without inventory: Mean: $29.1; 
2000: Without inventory: Median: $11.4; 
2000: Total: Mean: $30.4; 
2000: Total: Median: $12.0.

Industry category: Education services; 
2000: With inventory: Total[A]: $97,709[D]; 
2000: With inventory: Mean: $20.0[D]; 
2000: With inventory: Median: $4.5[D]; 
2000: Without inventory: Total[A]: $2,472,730[C]; 
2000: Without inventory: Mean: $9.7; 
2000: Without inventory: Median: $3.6[C]; 
2000: Total: Mean: $9.9; 
2000: Total: Median: $3.7[C].

Industry category: Finance/insurance; 
2000: With inventory: Total[A]: $203,872[D]; 
2000: With inventory: Mean: $26.2[D]; 
2000: With inventory: Median: $10.5[D]; 
2000: Without inventory: Total[A]: $25,483,195; 
2000: Without inventory: Mean: $47.2; 
2000: Without inventory: Median: $12.0; 
2000: Total: Mean: $46.9; 
2000: Total: Median: $12.0.

Industry category: Health care/social assistance; 
2000: With inventory: Total[A]: $1,718,444[C]; 
2000: With inventory: Mean: $82.7[C]; 
2000: With inventory: Median: $42.1[D]; 
2000: Without inventory: Total[A]: $43,377,913; 
2000: Without inventory: Mean: $35.1; 
2000: Without inventory: Median: $8.5; 
2000: Total: Mean: $35.9; 
2000: Total: Median: $8.7.

Industry category: Information; 
2000: With inventory: Total[A]: $420,743[D]; 
2000: With inventory: Mean: $24.8[C]; 
2000: With inventory: Median: $8.5[D]; 
2000: Without inventory: Total[A]: $3,499,548; 
2000: Without inventory: Mean: $14.8; 
2000: Without inventory: Median: $4.5[C]; 
2000: Total: Mean: $15.5; 
2000: Total: Median: $4.5[C].

Industry category: Manufacturing; 
2000: With inventory: Total[A]: $4,478,146; 
2000: With inventory: Mean: $50.6[C]; 
2000: With inventory: Median: $10.1[D]; 
2000: Without inventory: Total[A]: $6,776,580; 
2000: Without inventory: Mean: $28.3; 
2000: Without inventory: Median: $8.5[C]; 
2000: Total: Mean: $34.3; 
2000: Total: Median: $8.7[C].

Industry category: Mining; 
2000: With inventory: Total[A]: $121,517[D]; 
2000: With inventory: Mean: $197.0[D]; 
2000: With inventory: Median: $44.6[E]; 
2000: Without inventory: Total[A]: $4,125,818; 
2000: Without inventory: Mean: $34.9; 
2000: Without inventory: Median: $2.4[D]; 
2000: Total: Mean: $35.7; 
2000: Total: Median: $2.5[D].

Industry category: Other services; 
2000: With inventory: Total[A]: $9,037,826; 
2000: With inventory: Mean: $40.0; 
2000: With inventory: Median: $16.1; 
2000: Without inventory: Total[A]: $22,396,347; 
2000: Without inventory: Mean: $17.5; 
2000: Without inventory: Median: $7.5; 
2000: Total: Mean: $20.9; 
2000: Total: Median: $8.3.

Industry category: Professional/technical; 
2000: With inventory: Total[A]: $1,970,841[C]; 
2000: With inventory: Mean: $22.9[C]; 
2000: With inventory: Median: $6.0; 
2000: Without inventory: Total[A]: $48,331,754; 
2000: Without inventory: Mean: $22.9; 
2000: Without inventory: Median: $6.8; 
2000: Total: Mean: $22.9; 
2000: Total: Median: $6.8.

Industry category: Real estate/leasing; 
2000: With inventory: Total[A]: $933,538[C]; 
2000: With inventory: Mean: $75.7[C]; 
2000: With inventory: Median: $20.2[D]; 
2000: Without inventory: Total[A]: $21,971,330; 
2000: Without inventory: Mean: $23.8; 
2000: Without inventory: Median: $11.3; 
2000: Total: Mean: $24.4; 
2000: Total: Median: $11.4.

Industry category: Religious/civic; 
2000: With inventory: Total[A]: $34,025[E]; 
2000: With inventory: Mean: $843.2; 
2000: With inventory: Median: [B]; 
2000: Without inventory: Total[A]: $1,216,714[C]; 
2000: Without inventory: Mean: $6.6; 
2000: Without inventory: Median: $2.9[C]; 
2000: Total: Mean: $6.8; 
2000: Total: Median: $2.9[C].

Industry category: Retail trade; 
2000: With inventory: Total[A]: $32,881,146; 
2000: With inventory: Mean: $31.4; 
2000: With inventory: Median: $7.1; 
2000: Without inventory: Total[A]: $13,221,123; 
2000: Without inventory: Mean: $10.8; 
2000: Without inventory: Median: $3.3; 
2000: Total: Mean: $20.3; 
2000: Total: Median: $4.5.

Industry category: Transportation/warehousing; 
2000: With inventory: Total[A]: $465,983[C]; 
2000: With inventory: Mean: $133.1[D]; 
2000: With inventory: Median: $34.5[D]; 
2000: Without inventory: Total[A]: $38,419,768; 
2000: Without inventory: Mean: $48.2; 
2000: Without inventory: Median: $22.7; 
2000: Total: Mean: $48.5; 
2000: Total: Median: $22.7.

Industry category: Utilities; 
2000: With inventory: Total[A]: $32,090[E]; 
2000: With inventory: Mean: $34.4; 
2000: With inventory: Median: [B]; 
2000: Without inventory: Total[A]: $149,652[D]; 
2000: Without inventory: Mean: $12.3[D]; 
2000: Without inventory: Median: $6.5[D]; 
2000: Total: Mean: $13.9[D]; 
2000: Total: Median: $6.9[D].

Industry category: Wholesale trade; 
2000: With inventory: Total[A]: $3,614,394; 
2000: With inventory: Mean: $32.4; 
2000: With inventory: Median: $9.3; 
2000: Without inventory: Total[A]: $4,913,977; 
2000: Without inventory: Mean: $20.0; 
2000: Without inventory: Median: $8.8[C]; 
2000: Total: Mean: $23.9; 
2000: Total: Median: $9.1[C].

Industry category: Unclassified; 
2000: With inventory: Total[A]: $201,270[D]; 
2000: With inventory: Mean: $30.3[D]; 
2000: With inventory: Median: $12.5[D]; 
2000: Without inventory: Total[A]: $1,126,040[C]; 
2000: Without inventory: Mean: $9.1[C]; 
2000: Without inventory: Median: $3.7[C]; 
2000: Total: Mean: $10.2[C]; 
2000: Total: Median: $3.7[D].

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, and fourth through eighth columns 
have sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the third column have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the 
value of the estimate.

[E] Reliable confidence intervals could not be computed for estimates.
[End of table]

Table 22: Information by Industry Categories for Schedule C Expenses by 
Businesses With and Without Inventory, Tax Year 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2001: With inventory: Total[A]: $11,456,070; 
2001: With inventory: Mean: $99.4; 
2001: With inventory: Median: $44.0; 
2001: Without inventory: Total[A]: $9,234,359; 
2001: Without inventory: Mean: $43.1; 
2001: Without inventory: Median: $13.1; 
2001: Total: Mean: $62.8; 
2001: Total: Median: $20.7.

Industry category: Administrative/waste management; 
2001: With inventory: Total[A]: $1,108,773[C]; 
2001: With inventory: Mean: $34.3[C]; 
2001: With inventory: Median: $8.8[D]; 
2001: Without inventory: Total[A]: $18,805,841; 
2001: Without inventory: Mean: $16.3; 
2001: Without inventory: Median: $4.9; 
2001: Total: Mean: $16.8; 
2001: Total: Median: $4.9.

Industry category: Agriculture/forestry; 
2001: With inventory: Total[A]: $843,814[C]; 
2001: With inventory: Mean: $49.5[C]; 
2001: With inventory: Median: $11.6[D]; 
2001: Without inventory: Total[A]: $8,444,800; 
2001: Without inventory: Mean: $33.5; 
2001: Without inventory: Median: $9.4[C]; 
2001: Total: Mean: $34.5; 
2001: Total: Median: $9.8[C].

Industry category: Arts/recreation; 
2001: With inventory: Total[A]: $1,473,398[C]; 
2001: With inventory: Mean: $24.1[C]; 
2001: With inventory: Median: $5.4[D]; 
2001: Without inventory: Total[A]: $12,792,984; 
2001: Without inventory: Mean: $13.7; 
2001: Without inventory: Median: $4.9; 
2001: Total: Mean: $14.3; 
2001: Total: Median: $4.9.

Industry category: Construction; 
2001: With inventory: Total[A]: $5,235,774; 
2001: With inventory: Mean: $62.0; 
2001: With inventory: Median: $26.2; 
2001: Without inventory: Total[A]: $55,547,588; 
2001: Without inventory: Mean: $28.1; 
2001: Without inventory: Median: $11.0; 
2001: Total: Mean: $29.5; 
2001: Total: Median: $11.2.

Industry category: Education services; 
2001: With inventory: Total[A]: $72,049[E]; 
2001: With inventory: Mean: $10.6[D]; 
2001: With inventory: Median: $2.6[D]; 
2001: Without inventory: Total[A]: $2,661,981; 
2001: Without inventory: Mean: $9.2; 
2001: Without inventory: Median: $3.7[C]; 
2001: Total: Mean: $9.2; 
2001: Total: Median: $3.7.

Industry category: Finance/insurance; 
2001: With inventory: Total[A]: $174,454[D]; 
2001: With inventory: Mean: $30.3[D]; 
2001: With inventory: Median: $6.5[D]; 
2001: Without inventory: Total[A]: $26,213,673; 
2001: Without inventory: Mean: $48.4; 
2001: Without inventory: Median: $12.4[C]; 
2001: Total: Mean: $48.2; 
2001: Total: Median: $12.3.

Industry category: Health care/social assistance; 
2001: With inventory: Total[A]: $1,664,222[C]; 
2001: With inventory: Mean: $108.8[C]; 
2001: With inventory: Median: $71.6 [D]; 
2001: Without inventory: Total[A]: $46,584,913; 
2001: Without inventory: Mean: $35.8; 
2001: Without inventory: Median: $8.3; 
2001: Total: Mean: $36.6; 
2001: Total: Median: $8.5.

Industry category: Information; 
2001: With inventory: Total[A]: $548,821; 
2001: With inventory: Mean: $27.7[C]; 
2001: With inventory: Median: $11.8[D]; 
2001: Without inventory: Total[A]: $3,571,722; 
2001: Without inventory: Mean: $15.6; 
2001: Without inventory: Median: $4.3[C]; 
2001: Total: Mean: $16.6; 
2001: Total: Median: $4.5[C].

Industry category: Manufacturing; 
2001: With inventory: Total[A]: $3,838,574; 
2001: With inventory: Mean: $51.9[C]; 
2001: With inventory: Median: $10.2[D]; 
2001: Without inventory: Total[A]: $6,507,389; 
2001: Without inventory: Mean: $29.0; 
2001: Without inventory: Median: $9.6[C]; 
2001: Total: Mean: $34.7; 
2001: Total: Median: $9.8[C].

Industry category: Mining; 
2001: With inventory: Total[A]: $152,257[D]; 
2001: With inventory: Mean: $573.1[D]; 
2001: With inventory: Median: $220.8[D]; 
2001: Without inventory: Total[A]: $4,788,846; 
2001: Without inventory: Mean: $42.2; 
2001: Without inventory: Median: $5.8[D]; 
2001: Total: Mean: $43.4; 
2001: Total: Median: $5.8[D].

Industry category: Other services; 
2001: With inventory: Total[A]: $9,647,905; 
2001: With inventory: Mean: $41.4; 
2001: With inventory: Median: $16.5; 
2001: Without inventory: Total[A]: $23,831,944; 
2001: Without inventory: Mean: $17.9; 
2001: Without inventory: Median: $7.8; 
2001: Total: Mean: $21.4; 
2001: Total: Median: $8.6.

Industry category: Professional/technical; 
2001: With inventory: Total[A]: $2,530,210[C]; 
2001: With inventory: Mean: $29.2[C]; 
2001: With inventory: Median: $5.6[D]; 
2001: Without inventory: Total[A]: $51,810,606; 
2001: Without inventory: Mean: $23.2; 
2001: Without inventory: Median: $6.9; 
2001: Total: Mean: $23.4; 
2001: Total: Median: $6.9.

Industry category: Real estate/leasing; 
2001: With inventory: Total[A]: $1,023,394[C]; 
2001: With inventory: Mean: $57.4[C]; 
2001: With inventory: Median: $14.3[D]; 
2001: Without inventory: Total[A]: $23,209,811; 
2001: Without inventory: Mean: $24.5; 
2001: Without inventory: Median: $12.2; 
2001: Total: Mean: $25.1; 
2001: Total: Median: $12.2.

Industry category: Religious/civic; 
2001: With inventory: Total[A]: $38,832[E]; 
2001: With inventory: Mean: $927.0; 
2001: With inventory: Median: [B]; 
2001: Without inventory: Total[A]: $1,225,252[C]; 
2001: Without inventory: Mean: $6.7; 
2001: Without inventory: Median: $4.1[C]; 
2001: Total: Mean: $6.9; 
2001: Total: Median: $4.1[C].

Industry category: Retail trade; 
2001: With inventory: Total[A]: $34,382,362; 
2001: With inventory: Mean: $33.0; 
2001: With inventory: Median: $7.3; 
2001: Without inventory: Total[A]: $13,631,491; 
2001: Without inventory: Mean: $11.5; 
2001: Without inventory: Median: $3.8; 
2001: Total: Mean: $21.5; 
2001: Total: Median: $5.0.

Industry category: Transportation/warehousing; 
2001: With inventory: Total[A]: $578,040 [D]; 
2001: With inventory: Mean: $117.6[D]; 
2001: With inventory: Median: $40.9[D]; 
2001: Without inventory: Total[A]: $38,070,277; 
2001: Without inventory: Mean: $45.2; 
2001: Without inventory: Median: $20.0; 
2001: Total: Mean: $45.6; 
2001: Total: Median: $20.1.

Industry category: Utilities; 
2001: With inventory: Total[A]: $18,836[D]; 
2001: With inventory: Mean: $20.1; 
2001: With inventory: Median: [B]; 
2001: Without inventory: Total[A]: $146,539[D]; 
2001: Without inventory: Mean: $20.4[D]; 
2001: Without inventory: Median: $9.3[D]; 
2001: Total: Mean: $20.4[D]; 
2001: Total: Median: $9.5[D].

Industry category: Wholesale trade; 
2001: With inventory: Total[A]: $4,126,679; 
2001: With inventory: Mean: $46.5; 
2001: With inventory: Median: $13.2[D]; 
2001: Without inventory: Total[A]: $4,384,109; 
2001: Without inventory: Mean: $18.2; 
2001: Without inventory: Median: $8.4; 
2001: Total: Mean: $25.8; 
2001: Total: Median: $9.3.

Industry category: Unclassified; 
2001: With inventory: Total[A]: $38,198[E]; 
2001: With inventory: Mean: $6.8[D]; 
2001: With inventory: Median: $1.1[E]; 
2001: Without inventory: Total[A]: $748,166[C]; 
2001: Without inventory: Mean: $7.7[C]; 
2001: Without inventory: Median: $3.3[D]; 
2001: Total: Mean: $7.6[C]; 
2001: Total: Median: $3.3[D].

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, and fourth through eighth columns 
have sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the third column have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the 
value of the estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[End of table]

Table 23: Information on Expense Categories on Schedule C by Businesses 
With and Without Home Office Expense, Tax Year 2000: 

Dollars in thousands.

Expense category: Advertising; 
2000: With home office: Total[A]: $1,371,577; 
2000: With home office: Mean: $1.5; 
2000: With home office: Median: $0.4; 
2000: Without home office: Total[A]: $8,777,039; 
2000: Without home office: Mean: $2.1; 
2000: Without home office: Median: $0.5.

Expense category: Bad debts; 
2000: With home office: Total[A]: $101,880[C]; 
2000: With home office: Mean: $1.6[C]; 
2000: With home office: Median: $0.5[D]; 
2000: Without home office: Total[A]: $881,988[B]; 
2000: Without home office: Mean: $2.7[B]; 
2000: Without home office: Median: $0.5.

Expense category: Car/truck; 
2000: With home office: Total[A]: $8,094,216; 
2000: With home office: Mean: $4.4; 
2000: With home office: Median: $2.6; 
2000: Without home office: Total[A]: $37,616,997; 
2000: Without home office: Mean: $4.4; 
2000: Without home office: Median: $2.3.

Expense category: Commissions; 
2000: With home office: Total[A]: $1,803,729; 
2000: With home office: Mean: $9.3; 
2000: With home office: Median: $1.3[C]; 
2000: Without home office: Total[A]: $9,806,822; 
2000: Without home office: Mean: $10.3; 
2000: Without home office: Median: $1.0.

Expense category: Depletion; 
2000: With home office: Total[A]: $7,190[D]; 
2000: With home office: Mean: $1.9[D]; 
2000: With home office: Median: $0.5[E]; 
2000: Without home office: Total[A]: $677,783[B]; 
2000: Without home office: Mean: $8.4[C]; 
2000: Without home office: Median: $1.1[D].

Expense category: Depreciation; 
2000: With home office: Total[A]: $5,119,981; 
2000: With home office: Mean: $3.8; 
2000: With home office: Median: $1.7; 
2000: Without home office: Total[A]: $27,076,170; 
2000: Without home office: Mean: $5.3; 
2000: Without home office: Median: $1.9.

Expense category: Employee benefit programs; 
2000: With home office: Total[A]: $209,585[C]; 
2000: With home office: Mean: $4.1; 
2000: With home office: Median: $2.6[C]; 
2000: Without home office: Total[A]: $1,662,290; 
2000: Without home office: Mean: $6.0; 
2000: Without home office: Median: $2.9.

Expense category: Insurance; 
2000: With home office: Total[A]: $1,488,311; 
2000: With home office: Mean: $1.9; 
2000: With home office: Median: $0.7; 
2000: Without home office: Total[A]: $12,135,436; 
2000: Without home office: Mean: $2.6; 
2000: Without home office: Median: $1.0.

Expense category: Interest on mortgage; 
2000: With home office: Total[A]: $345,804[C]; 
2000: With home office: Mean: $4.0; 
2000: With home office: Median: $1.7[C]; 
2000: Without home office: Total[A]: $4,905,092; 
2000: Without home office: Mean: $6.6; 
2000: Without home office: Median: $3.0.

Expense category: Interest on other business debt; 
2000: With home office: Total[A]: $755,801; 
2000: With home office: Mean: $2.1; 
2000: With home office: Median: $0.9; 
2000: Without home office: Total[A]: $6,226,148; 
2000: Without home office: Mean: $3.9; 
2000: Without home office: Median: $1.2.

Expense category: Legal/professional services; 
2000: With home office: Total[A]: $1,009,482; 
2000: With home office: Mean: $0.8; 
2000: With home office: Median: $0.2; 
2000: Without home office: Total[A]: $6,303,109; 
2000: Without home office: Mean: $1.1; 
2000: Without home office: Median: $0.3.

Expense category: Office; 
2000: With home office: Total[A]: $1,715,990; 
2000: With home office: Mean: $1.2; 
2000: With home office: Median: $0.5; 
2000: Without home office: Total[A]: $8,740,424; 
2000: Without home office: Mean: $1.5; 
2000: Without home office: Median: $0.4.

Expense category: Pension/profit sharing plans; 
2000: With home office: Total[A]: $73,288[C]; 
2000: With home office: Mean: $4.1[C]; 
2000: With home office: Median: $3.3[C]; 
2000: Without home office: Total[A]: $819,586; 
2000: Without home office: Mean: $6.1; 
2000: Without home office: Median: $3.5.

Expense category: Rent on machinery/equipment; 
2000: With home office: Total[A]: $1,111,101; 
2000: With home office: Mean: $3.3; 
2000: With home office: Median: $1.1[C]; 
2000: Without home office: Total[A]: $7,769,166; 
2000: Without home office: Mean: $4.2; 
2000: Without home office: Median: $1.5.

Expense category: Rent on other business property; 
2000: With home office: Total[A]: $1,185,139; 
2000: With home office: Mean: $4.2; 
2000: With home office: Median: $1.6[C]; 
2000: Without home office: Total[A]: $23,156,963; 
2000: Without home office: Mean: $8.6; 
2000: Without home office: Median: $4.4.

Expense category: Repairs; 
2000: With home office: Total[A]: $1,231,555; 
2000: With home office: Mean: $1.8; 
2000: With home office: Median: $0.5; 
2000: Without home office: Total[A]: $11,048,967; 
2000: Without home office: Mean: $2.9; 
2000: Without home office: Median: $0.9.

Expense category: Supplies; 
2000: With home office: Total[A]: $3,482,106; 
2000: With home office: Mean: $2.3; 
2000: With home office: Median: $0.8; 
2000: Without home office: Total[A]: $18,311,837; 
2000: Without home office: Mean: $2.8; 
2000: Without home office: Median: $0.8.

Expense category: Taxes; 
2000: With home office: Total[A]: $1,237,442; 
2000: With home office: Mean: $1.4; 
2000: With home office: Median: $0.2; 
2000: Without home office: Total[A]: $12,718,473; 
2000: Without home office: Mean: $2.5; 
2000: Without home office: Median: $0.4.

Expense category: Travel; 
2000: With home office: Total[A]: $1,685,788; 
2000: With home office: Mean: $2.3; 
2000: With home office: Median: $0.9; 
2000: Without home office: Total[A]: $6,771,521; 
2000: Without home office: Mean: $2.2; 
2000: Without home office: Median: $0.8.

Expense category: Meals/entertainment; 
2000: With home office: Total[A]: $881,931; 
2000: With home office: Mean: $0.8; 
2000: With home office: Median: $0.3; 
2000: Without home office: Total[A]: $3,782,760; 
2000: Without home office: Mean: $0.9; 
2000: Without home office: Median: $0.3.

Expense category: Utilities; 
2000: With home office: Total[A]: $2,154,350; 
2000: With home office: Mean: $1.7; 
2000: With home office: Median: $1.0; 
2000: Without home office: Total[A]: $17,227,520; 
2000: Without home office: Mean: $2.6; 
2000: Without home office: Median: $1.1.

Expense category: Wages; 
2000: With home office: Total[A]: $5,265,814; 
2000: With home office: Mean: $25.1; 
2000: With home office: Median: $7.4[C]; 
2000: Without home office: Total[A]: $58,219,668; 
2000: Without home office: Mean: $43.3; 
2000: Without home office: Median: $18.4.

Expense category: Other; 
2000: With home office: Total[A]: $12,381,187; 
2000: With home office: Mean: $6.7; 
2000: With home office: Median: $1.8; 
2000: Without home office: Total[A]: $74,644,740; 
2000: Without home office: Mean: $8.6; 
2000: Without home office: Median: $1.5.

Expense category: Home office; 
2000: With home office: Total[A]: $5,642,543; 
2000: With home office: Mean: $2.5; 
2000: With home office: Median: $1.5; 
2000: Without home office: Total[A]: N/A; 
2000: Without home office: Mean: N/A; 
2000: Without home office: Median: N/A. 

Total[F]; 
2000: With home office: Total[A]: $58,355,790; 
2000: Without home office: Total[A]: $359,280,501; 

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, third, and sixth columns have 
sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the fourth and fifth 
columns have sampling errors of (+/-) 10 percent or less of the value 
of the estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the 
value of the estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[F] Total may not add due to rounding.

[End of table]

Table 24: Information on Expense Categories on Schedule C by Businesses 
With and Without Home Office Expense, Tax Year 2001: 

Dollars in thousands.

Expense category: Advertising; 
2001: With home office: Total: $1,714,740; 
2001: With home office: Mean: $1.7; 
2001: With home office: Median: $0.4; 
2001: Without home office: Total: $9,059,338; 
2001: Without home office: Mean: $2.1; 
2001: Without home office: Median: $0.5.

Expense category: Bad debts; 
2001: With home office: Total: $231,807[D]; 
2001: With home office: Mean: $3.1[D]; 
2001: With home office: Median: $0.4[B]; 
2001: Without home office: Total: $944,517[A]; 
2001: Without home office: Mean: $2.8[A]; 
2001: Without home office: Median: $0.5[B].

Expense category: Car/truck; 
2001: With home office: Total: $9,164,442; 
2001: With home office: Mean: $4.7; 
2001: With home office: Median: $2.7; 
2001: Without home office: Total: $38,187,497; 
2001: Without home office: Mean: $4.4; 
2001: Without home office: Median: $2.4.

Expense category: Commissions; 
2001: With home office: Total: $2,107,584; 
2001: With home office: Mean: $9.0; 
2001: With home office: Median: $1.2[B]; 
2001: Without home office: Total: $10,022,493; 
2001: Without home office: Mean: $10.9; 
2001: Without home office: Median: $1.2.

Expense category: Depletion; 
2001: With home office: Total: $22,478[C]; 
2001: With home office: Mean: $2.8[C]; 
2001: With home office: Median: $1.2[C]; 
2001: Without home office: Total: $671,191[A]; 
2001: Without home office: Mean: $8.3[A]; 
2001: Without home office: Median: $1.4[C].

Expense category: Depreciation; 
2001: With home office: Total: $5,521,567; 
2001: With home office: Mean: $4.0; 
2001: With home office: Median: $1.6; 
2001: Without home office: Total: $27,904,000; 
2001: Without home office: Mean: $5.6; 
2001: Without home office: Median: $1.9.

Expense category: Employee benefit programs; 
2001: With home office: Total: $232,760[B]; 
2001: With home office: Mean: $4.7[B]; 
2001: With home office: Median: $3.0[B]; 
2001: Without home office: Total: $1,807,879; 
2001: Without home office: Mean: $6.7; 
2001: Without home office: Median: $3.5.

Expense category: Insurance; 
2001: With home office: Total: $1,714,384; 
2001: With home office: Mean: $1.9; 
2001: With home office: Median: $0.8; 
2001: Without home office: Total: $12,652,634; 
2001: Without home office: Mean: $2.7; 
2001: Without home office: Median: $1.1.

Expense category: Interest on mortgage; 
2001: With home office: Total: $344,775[B]; 
2001: With home office: Mean: $3.4; 
2001: With home office: Median: $1.7[B]; 
2001: Without home office: Total: $5,111,451; 
2001: Without home office: Mean: $7.1; 
2001: Without home office: Median: $3.1.

Expense category: Interest on other business debt; 
2001: With home office: Total: $775,430; 
2001: With home office: Mean: $2.0; 
2001: With home office: Median: $0.9; 
2001: Without home office: Total: $6,277,891; 
2001: Without home office: Mean: $4.0; 
2001: Without home office: Median: $1.2.

Expense category: Legal/professional services; 
2001: With home office: Total: $1,152,437; 
2001: With home office: Mean: $0.9; 
2001: With home office: Median: $0.2; 
2001: Without home office: Total: $6,330,182; 
2001: Without home office: Mean: $1.1; 
2001: Without home office: Median: $0.3.

Expense category: Office; 
2001: With home office: Total: $1,878,875; 
2001: With home office: Mean: $1.3; 
2001: With home office: Median: $0.5; 
2001: Without home office: Total: $8,725,930; 
2001: Without home office: Mean: $1.5; 
2001: Without home office: Median: $0.4.

Expense category: Pension/profit sharing plans; 
2001: With home office: Total: $47,866[B]; 
2001: With home office: Mean: $3.2[B]; 
2001: With home office: Median: $1.1[C]; 
2001: Without home office: Total: $944,026[A]; 
2001: Without home office: Mean: $6.2[A]; 
2001: Without home office: Median: $3.4.

Expense category: Rent on machinery/equipment; 
2001: With home office: Total: $1,185,234; 
2001: With home office: Mean: $3.0; 
2001: With home office: Median: $0.8[B]; 
2001: Without home office: Total: $7,336,773; 
2001: Without home office: Mean: $4.0; 
2001: Without home office: Median: $1.4.

Expense category: Rent on other business property; 
2001: With home office: Total: $1,329,368; 
2001: With home office: Mean: $4.8; 
2001: With home office: Median: $1.6[C]; 
2001: Without home office: Total: $23,789,756; 
2001: Without home office: Mean: $9.0; 
2001: Without home office: Median: $4.4.

Expense category: Repairs; 
2001: With home office: Total: $1,347,778; 
2001: With home office: Mean: $1.9; 
2001: With home office: Median: $0.4; 
2001: Without home office: Total: $10,781,978; 
2001: Without home office: Mean: $2.8; 
2001: Without home office: Median: $0.8.

Expense category: Supplies; 
2001: With home office: Total: $4,046,055; 
2001: With home office: Mean: $2.5; 
2001: With home office: Median: $0.8; 
2001: Without home office: Total: $19,028,780; 
2001: Without home office: Mean: $2.8; 
2001: Without home office: Median: $0.8.

Expense category: Taxes; 
2001: With home office: Total: $1,321,350; 
2001: With home office: Mean: $1.3; 
2001: With home office: Median: $0.2; 
2001: Without home office: Total: $12,892,731; 
2001: Without home office: Mean: $2.6; 
2001: Without home office: Median: $0.4.

Expense category: Travel; 
2001: With home office: Total: $1,882,599; 
2001: With home office: Mean: $2.3; 
2001: With home office: Median: $0.8; 
2001: Without home office: Total: $6,774,668; 
2001: Without home office: Mean: $2.1; 
2001: Without home office: Median: $0.8.

Expense category: Meals/entertainment; 
2001: With home office: Total: $972,722; 
2001: With home office: Mean: $0.8; 
2001: With home office: Median: $0.3; 
2001: Without home office: Total: $3,762,591; 
2001: Without home office: Mean: $0.9; 
2001: Without home office: Median: $0.3.

Expense category: Utilities; 
2001: With home office: Total: $2,465,395; 
2001: With home office: Mean: $1.8; 
2001: With home office: Median: $1.0; 
2001: Without home office: Total: $18,017,285; 
2001: Without home office: Mean: $2.8; 
2001: Without home office: Median: $1.2.

Expense category: Wages; 
2001: With home office: Total: $5,653,834; 
2001: With home office: Mean: $26.1; 
2001: With home office: Median: $9.3[B]; 
2001: Without home office: Total: $58,172,186; 
2001: Without home office: Mean: $45.3; 
2001: Without home office: Median: $19.5.

Expense category: Other; 
2001: With home office: Total: $13,304,153; 
2001: With home office: Mean: $6.9; 
2001: With home office: Median: $1.9; 
2001: Without home office: Total: $81,308,123; 
2001: Without home office: Mean: $9.2; 
2001: Without home office: Median: $1.7.

Expense category: Home office; 
2001: With home office: Total: $5,981,403; 
2001: With home office: Mean: $2.5; 
2001: With home office: Median: $1.5; 
2001: Without home office: Total: N/A; 
2001: Without home office: Mean: N/A; 
2001: Without home office: Median: N/A. 

Total[E]; 
2001: With home office: Total: $64,399,036; 
2001: Without home office: Total: $370,503,901; 

Source: GAO analysis of IRS data.

Note: Estimates in the first, second, third and sixth columns have 
sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the fourth and fifth 
columns have sampling errors of (+/-) 10 percent or less of the value 
of the estimates unless otherwise noted.

[A] Sampling error is between (+/-) 10 and (+/-) 20 percent of the 
value of the estimate.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Reliable confidence intervals could not be computed for estimates.

[E] Total may not add due to rounding.

[End of table]

Table 25: Information by Industry Categories for Schedule C Expenses by 
Businesses With Home Office Expense, Tax Year 2000: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: Percentage of businesses claiming home office expenses: 5.7; 
2000: Total of home office expenses claimed: $45,238[C]; 
2000: Mean: $2.6[B]; 
2000: Median: $1.4[C].

Industry category: Administrative/waste management; 
2000: Percentage of businesses claiming home office expenses: 14.0; 
2000: Total of home office expenses claimed: $280,282[B]; 
2000: Mean: $1.7; 
2000: Median: $1.3.

Industry category: Agriculture/forestry; 
2000: Percentage of businesses claiming home office expenses: 6.2; 
2000: Total of home office expenses claimed: $21,741[C]; 
2000: Mean: $1.3[B]; 
2000: Median: $0.8[C].

Industry category: Arts/recreation; 
2000: Percentage of businesses claiming home office expenses: 12.9; 
2000: Total of home office expenses claimed: $332,943[B]; 
2000: Mean: $2.5; 
2000: Median: $1.8[B].

Industry category: Construction; 
2000: Percentage of businesses claiming home office expenses: 14.4; 
2000: Total of home office expenses claimed: $591,500; 
2000: Mean: $2.2; 
2000: Median: $1.5.

Industry category: Education services; 
2000: Percentage of businesses claiming home office expenses: 16.9; 
2000: Total of home office expenses claimed: $93,139[B]; 
2000: Mean: $2.1[B]; 
2000: Median: $1.4[B].

Industry category: Finance/insurance; 
2000: Percentage of businesses claiming home office expenses: 16.3; 
2000: Total of home office expenses claimed: $204,671[B]; 
2000: Mean: $2.3; 
2000: Median: $1.6[B].

Industry category: Health care/social assistance; 
2000: Percentage of businesses claiming home office expenses: 27.1; 
2000: Total of home office expenses claimed: $1,239,955; 
2000: Mean: $3.6; 
2000: Median: $2.4.

Industry category: Information; 
2000: Percentage of businesses claiming home office expenses: 16.8; 
2000: Total of home office expenses claimed: $101,637[B]; 
2000: Mean: $2.4[B]; 
2000: Median: $1.4[B].

Industry category: Manufacturing; 
2000: Percentage of businesses claiming home office expenses: 15.4; 
2000: Total of home office expenses claimed: $148,105[B]; 
2000: Mean: $2.9[B]; 
2000: Median: $1.6[C].

Industry category: Mining; 
2000: Percentage of businesses claiming home office expenses: 2.0; 
2000: Total of home office expenses claimed: $7,888[D]; 
2000: Mean: $3.3[C]; 
2000: Median: $3.5[D].

Industry category: Other services; 
2000: Percentage of businesses claiming home office expenses: 9.0; 
2000: Total of home office expenses claimed: $265,521[B]; 
2000: Mean: $2.0; 
2000: Median: $1.2[B].

Industry category: Professional/technical; 
2000: Percentage of businesses claiming home office expenses: 21.1; 
2000: Total of home office expenses claimed: $1,264,367; 
2000: Mean: $2.7; 
2000: Median: $1.7.

Industry category: Real estate/leasing; 
2000: Percentage of businesses claiming home office expenses: 11.8; 
2000: Total of home office expenses claimed: $272,712[B]; 
2000: Mean: $2.5; 
2000: Median: $1.6[B].

Industry category: Religious/civic; 
2000: Percentage of businesses claiming home office expenses: 5.2; 
2000: Total of home office expenses claimed: $15,724[D]; 
2000: Mean: $1.6[D]; 
2000: Median: $0.4[D].

Industry category: Retail trade; 
2000: Percentage of businesses claiming home office expenses: 11.6; 
2000: Total of home office expenses claimed: $478,860[B]; 
2000: Mean: $1.8; 
2000: Median: $1.1.

Industry category: Transportation/warehousing; 
2000: Percentage of businesses claiming home office expenses: 6.5; 
2000: Total of home office expenses claimed: $73,700[B]; 
2000: Mean: $1.4[B]; 
2000: Median: $1.0[B].

Industry category: Utilities; 
2000: Percentage of businesses claiming home office expenses: 7.1[D]; 
2000: Total of home office expenses claimed: $1,761[D]; 
2000: Mean: $1.9[D]; 
2000: Median: [A].

Industry category: Wholesale trade; 
2000: Percentage of businesses claiming home office expenses: 18.8; 
2000: Total of home office expenses claimed: $157,851[B]; 
2000: Mean: $2.4[B]; 
2000: Median: $1.8[B].

Industry category: Unclassified; 
2000: Percentage of businesses claiming home office expenses: 7.1; 
2000: Total of home office expenses claimed: $27,598[C]; 
2000: Mean: $2.9[C]; 
2000: Median: $1.1[C].

Source: GAO analysis of IRS data.

Note: Estimates in the first column have sampling errors of (+/-) 10 
percent or less of the value of the estimates. Estimates in the second, 
third, and fourth columns have sampling errors of (+/-) 20 percent or 
less of the value of the estimates unless otherwise noted.

[A] Population estimates could not be developed.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Reliable confidence intervals could not be computed for estimates.

[End of table]

Table 26: Information by Industry Categories for Schedule C Expenses by 
Businesses With Home Office Expense, Tax Year 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2001: Percentage of businesses claiming home office expenses: 6.6; 
2001: Total of: home office expenses claimed: $44,575; 
2001: Mean: $2.0[B]; 
2001: Median: $1.8[C].

Industry category: Administrative/waste management; 
2001: Percentage of businesses claiming home office expenses: 15.7; 
2001: Total of: home office expenses claimed: $345,992; 
2001: Mean: $1.9; 
2001: Median: $1.1.

Industry category: Agriculture/forestry; 
2001: Percentage of businesses claiming home office expenses: 8.3; 
2001: Total of: home office expenses claimed: $30,240[C]; 
2001: Mean: $1.4[B]; 
2001: Median: $0.9[C].

Industry category: Arts/recreation; 
2001: Percentage of businesses claiming home office expenses: 13.2; 
2001: Total of: home office expenses claimed: $352,842; 
2001: Mean: $2.7; 
2001: Median: $1.9.

Industry category: Construction; 
2001: Percentage of businesses claiming home office expenses: 14.2; 
2001: Total of: home office expenses claimed: $636,034; 
2001: Mean: $2.2; 
2001: Median: $1.4.

Industry category: Education services; 
2001: Percentage of businesses claiming home office expenses: 18.0; 
2001: Total of: home office expenses claimed: $100,108; 
2001: Mean: $1.9[B]; 
2001: Median: $1.4.

Industry category: Finance/insurance; 
2001: Percentage of businesses claiming home office expenses: 13.7; 
2001: Total of: home office expenses claimed: $204,760; 
2001: Mean: $2.7; 
2001: Median: $1.8.

Industry category: Health care/social assistance; 
2001: Percentage of businesses claiming home office expenses: 27.2; 
2001: Total of: home office expenses claimed: $1,259,834; 
2001: Mean: $3.5; 
2001: Median: $2.5.

Industry category: Information; 
2001: Percentage of businesses claiming home office expenses: 19.1; 
2001: Total of: home office expenses claimed: $110,585; 
2001: Mean: $2.3[B]; 
2001: Median: $1.7[C].

Industry category: Manufacturing; 
2001: Percentage of businesses claiming home office expenses: 18.0; 
2001: Total of: home office expenses claimed: $119,709; 
2001: Mean: $2.2[B]; 
2001: Median: $1.4[C].

Industry category: Mining; 
2001: Percentage of businesses claiming home office expenses: 3.6; 
2001: Total of: home office expenses claimed: $9,644[D]; 
2001: Mean: $2.4[C]; 
2001: Median: $0.7[D].

Industry category: Other services; 
2001: Percentage of businesses claiming home office expenses: 10.8; 
2001: Total of: home office expenses claimed: $363,851; 
2001: Mean: $2.1; 
2001: Median: $1.6.

Industry category: Professional/technical; 
2001: Percentage of businesses claiming home office expenses: 21.7; 
2001: Total of: home office expenses claimed: $1,347,227; 
2001: Mean: $2.7; 
2001: Median: $1.7.

Industry category: Real estate/leasing; 
2001: Percentage of businesses claiming home office expenses: 14.3; 
2001: Total of: home office expenses claimed: $302,482; 
2001: Mean: $2.2; 
2001: Median: $1.2.

Industry category: Religious/civic; 
2001: Percentage of businesses claiming home office expenses: 6.3; 
2001: Total of: home office expenses claimed: $18,703[C]; 
2001: Mean: $1.6[B]; 
2001: Median: $1.6[C].

Industry category: Retail trade; 
2001: Percentage of businesses claiming home office expenses: 12.4; 
2001: Total of: home office expenses claimed: $460,247; 
2001: Mean: $1.7; 
2001: Median: $0.8.

Industry category: Transportation/warehousing; 
2001: Percentage of businesses claiming home office expenses: 6.5; 
2001: Total of: home office expenses claimed: $83,564; 
2001: Mean: $1.5[B]; 
2001: Median: $1.1.

Industry category: Utilities; 
2001: Percentage of businesses claiming home office expenses: 35.3[B]; 
2001: Total of: home office expenses claimed: $3,085[D]; 
2001: Mean: $1.1[B]; 
2001: Median: [A].

Industry category: Wholesale trade; 
2001: Percentage of businesses claiming home office expenses: 18.6; 
2001: Total of: home office expenses claimed: $160,637; 
2001: Mean: $2.6; 
2001: Median: $2.0.

Industry category: Unclassified; 
2001: Percentage of businesses claiming home office expenses: 3.9; 
2001: Total of: home office expenses claimed: $6,942[D]; 
2001: Mean: $1.7[C]; 
2001: Median: $0.8[D].

Source: GAO analysis of IRS data.

Note: Estimates in the first column have sampling errors of (+/-) 10 
percent or less of the value of the estimates unless otherwise noted. 
Estimates in the second and fourth columns have sampling errors of 
(+/-) 50 percent or less of the value of the estimates unless otherwise 
noted. Estimates in the third column have sampling errors of (+/-) 20 
percent or less of the value of the estimates unless otherwise noted.

[A] Population estimates could not be developed.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Reliable confidence intervals could not be computed for estimates.

[End of table]

[End of section]

Appendix V: Information on Cost of Goods Sold for Businesses With 
Inventories and Depreciation Expenses by Industry Categories: 

This appendix provides detailed information on the cost of goods sold 
for businesses with inventories.[Footnote 10] It also provides 
information on the depreciation expense category by industry categories 
for the Schedule C.

Table 27: Information by Industry Categories for Schedule C Expenses by 
Cost of Goods Sold for Businesses With and Without Inventory, Tax Year 
2000: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: With inventory: Total[A]: $10,372,483; 
2000: With inventory: Mean: $86.8; 
2000: With inventory: Median: $42.5; 
2000: Without inventory: Total[A]: $4,046,147; 
2000: Without inventory: Mean: $46.0; 
2000: Without inventory: Median: $15.9[D]; 
2000: Total: Mean: $69.5; 
2000: Total: Median: $31.7.

Industry category: Administrative/waste management; 
2000: With inventory: Total[A]: $1,743,378; 
2000: With inventory: Mean: $71.5[D]; 
2000: With inventory: Median: $4.2[D]; 
2000: Without inventory: Total[A]: $6,514,970; 
2000: Without inventory: Mean: $21.2; 
2000: Without inventory: Median: $1.0[D]; 
2000: Total: Mean: $24.9[C]; 
2000: Total: Median: $1.1[D].

Industry category: Agriculture/forestry; 
2000: With inventory: Total[A]: $1,772,783[D]; 
2000: With inventory: Mean: $167.8[D]; 
2000: With inventory: Median: $12.6[D]; 
2000: Without inventory: Total[A]: $3,255,437; 
2000: Without inventory: Mean: $46.1; 
2000: Without inventory: Median: $1.9[E]; 
2000: Total: Mean: $61.9[C]; 
2000: Total: Median: $3.5[D].

Industry category: Arts/recreation; 
2000: With inventory: Total[A]: $769,798[D]; 
2000: With inventory: Mean: $14.9[D]; 
2000: With inventory: Median: $1.3[D]; 
2000: Without inventory: Total[A]: $1,302,265; 
2000: Without inventory: Mean: $6.7; 
2000: Without inventory: Median: $0.4[E]; 
2000: Total: Mean: $8.4[C]; 
2000: Total: Median: $0.7[D].

Industry category: Construction; 
2000: With inventory: Total[A]: $12,147,827; 
2000: With inventory: Mean: $139.0; 
2000: With inventory: Median: $38.6; 
2000: Without inventory: Total[A]: $62,171,916; 
2000: Without inventory: Mean: $63.9; 
2000: Without inventory: Median: $16.9; 
2000: Total: Mean: $70.0; 
2000: Total: Median: $18.0.

Industry category: Education services; 
2000: With inventory: Total[A]: $27,931[E]; 
2000: With inventory: Mean: $5.7[E]; 
2000: With inventory: Median: $0.5[E]; 
2000: Without inventory: Total[A]: $344,899[D]; 
2000: Without inventory: Mean: $7.0[D]; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $6.9[D]; 
2000: Total: Median: [B].

Industry category: Finance/insurance; 
2000: With inventory: Total[A]: $6,385,437; 
2000: With inventory: Mean: $825.8[D]; 
2000: With inventory: Median: $4.4[D]; 
2000: Without inventory: Total[A]: $55,154,549; 
2000: Without inventory: Mean: $694.8; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $706.5[C]; 
2000: Total: Median: [B].

Industry category: Health care/social assistance; 
2000: With inventory: Total[A]: $659,024; 
2000: With inventory: Mean: $33.5; 
2000: With inventory: Median: $11.2[D]; 
2000: Without inventory: Total[A]: $3,727,951; 
2000: Without inventory: Mean: $16.2; 
2000: Without inventory: Median: $0.3[E]; 
2000: Total: Mean: $17.6; 
2000: Total: Median: $0.6[D].

Industry category: Information; 
2000: With inventory: Total[A]: $383,863[D]; 
2000: With inventory: Mean: $22.6[D]; 
2000: With inventory: Median: $2.5[D]; 
2000: Without inventory: Total[A]: $843,672[D]; 
2000: Without inventory: Mean: $13.8[D]; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $15.7[C]; 
2000: Total: Median: $0.3[E].

Industry category: Manufacturing; 
2000: With inventory: Total[A]: $7,464,505; 
2000: With inventory: Mean: $88.2; 
2000: With inventory: Median: $10.3[D]; 
2000: Without inventory: Total[A]: $4,933,207; 
2000: Without inventory: Mean: $42.3; 
2000: Without inventory: Median: $7.8; 
2000: Total: Mean: $61.6; 
2000: Total: Median: $9.2.

Industry category: Mining; 
2000: With inventory: Total[A]: $164,599[E]; 
2000: With inventory: Mean: $266.9[D]; 
2000: With inventory: Median: $89.8[E]; 
2000: Without inventory: Total[A]: $678,420; 
2000: Without inventory: Mean: $17.0; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $20.8[C]; 
2000: Total: Median: [B].

Industry category: Other services; 
2000: With inventory: Total[A]: $9,508,833; 
2000: With inventory: Mean: $42.8; 
2000: With inventory: Median: $9.5; 
2000: Without inventory: Total[A]: $9,765,939; 
2000: Without inventory: Mean: $21.4; 
2000: Without inventory: Median: $4.4; 
2000: Total: Mean: $28.4; 
2000: Total: Median: $5.5.

Industry category: Professional/technical; 
2000: With inventory: Total[A]: $2,457,226; 
2000: With inventory: Mean: $31.3; 
2000: With inventory: Median: $4.2[D]; 
2000: Without inventory: Total[A]: $12,205,477; 
2000: Without inventory: Mean: $29.6; 
2000: Without inventory: Median: $1.9[D]; 
2000: Total: Mean: $29.8; 
2000: Total: Median: $2.5.

Industry category: Real estate/leasing; 
2000: With inventory: Total[A]: $1,496,405; 
2000: With inventory: Mean: $128.6; 
2000: With inventory: Median: $31.3[D]; 
2000: Without inventory: Total[A]: $3,518,578; 
2000: Without inventory: Mean: $26.1; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $34.2[C]; 
2000: Total: Median: [B].

Industry category: Religious/civic; 
2000: With inventory: Total[A]: $185,249[E]; 
2000: With inventory: Mean: $4,591.0; 
2000: With inventory: Median: [B]; 
2000: Without inventory: Total[A]: $52,902[D]; 
2000: Without inventory: Mean: $1.5[D]; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $6.8[E]; 
2000: Total: Median: [B].

Industry category: Retail trade; 
2000: With inventory: Total[A]: $105,808,928; 
2000: With inventory: Mean: $102.8; 
2000: With inventory: Median: $7.5; 
2000: Without inventory: Total[A]: $16,187,306; 
2000: Without inventory: Mean: $26.6; 
2000: Without inventory: Median: $2.7; 
2000: Total: Mean: $74.5; 
2000: Total: Median: $5.0.

Industry category: Transportation/warehousing; 
2000: With inventory: Total[A]: $459,085[D]; 
2000: With inventory: Mean: $131.2[D]; 
2000: With inventory: Median: $47.4[D]; 
2000: Without inventory: Total[A]: $5,363,752; 
2000: Without inventory: Mean: $51.3; 
2000: Without inventory: Median: $5.1[D]; 
2000: Total: Mean: $53.9[C]; 
2000: Total: Median: $8.8[D].

Industry category: Utilities; 
2000: With inventory: Total[A]: $31,343[E]; 
2000: With inventory: Mean: $33.6; 
2000: With inventory: Median: [B]; 
2000: Without inventory: Total[A]: $9[E]; 
2000: Without inventory: Mean: $0.0[E]; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $16.0[E]; 
2000: Total: Median: [B].

Industry category: Wholesale trade; 
2000: With inventory: Total[A]: $17,236,104; 
2000: With inventory: Mean: $164.5; 
2000: With inventory: Median: $12.6[D]; 
2000: Without inventory: Total[A]: $10,850,304; 
2000: Without inventory: Mean: $104.9; 
2000: Without inventory: Median: $10.7[D]; 
2000: Total: Mean: $134.9; 
2000: Total: Median: $11.1[D].

Industry category: Unclassified; 
2000: With inventory: Total[A]: $320,376[D]; 
2000: With inventory: Mean: $48.2[D]; 
2000: With inventory: Median: $4.0[D]; 
2000: Without inventory: Total[A]: $131,019[D]; 
2000: Without inventory: Mean: $3.4[D]; 
2000: Without inventory: Median: [B]; 
2000: Total: Mean: $10.0[D]; 
2000: Total: Median: $0.5[E].

Source: GAO analysis of IRS data.

Note: Estimates in the first through sixth and eighth columns have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the seventh column have 
sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[End of table]

Table 28: Information by Industry Categories for Schedule C Expenses by 
Cost of Goods Sold for Businesses With and Without Inventory, Tax Year 
2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2001: With inventory: Total[A]: $9,522,474; 
2001: With inventory: Mean: $82.8; 
2001: With inventory: Median: $37.9; 
2001: Without inventory: Total[A]: $4,735,444; 
2001: Without inventory: Mean: $46.5; 
2001: Without inventory: Median: $14.2[D]; 
2001: Total: Mean: $65.7; 
2001: Total: Median: $24.4.

Industry category: Administrative/waste management; 
2001: With inventory: Total[A]: $1,273,743; 
2001: With inventory: Mean: $42.2[D]; 
2001: With inventory: Median: $5.1[D]; 
2001: Without inventory: Total[A]: $6,347,815; 
2001: Without inventory: Mean: $21.0; 
2001: Without inventory: Median: $0.9[D]; 
2001: Total: Mean: $22.9[C]; 
2001: Total: Median: $1.1.

Industry category: Agriculture/forestry; 
2001: With inventory: Total[A]: $1,835,940; 
2001: With inventory: Mean: $113.7[D]; 
2001: With inventory: Median: $9.1[D]; 
2001: Without inventory: Total[A]: $3,729,339; 
2001: Without inventory: Mean: $51.3; 
2001: Without inventory: Median: $3.6[D]; 
2001: Total: Mean: $62.6[C]; 
2001: Total: Median: $5.3[D].

Industry category: Arts/recreation; 
2001: With inventory: Total[A]: $668,514; 
2001: With inventory: Mean: $12.4[D]; 
2001: With inventory: Median: $1.1[D]; 
2001: Without inventory: Total[A]: $1,004,029; 
2001: Without inventory: Mean: $5.3; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $6.8[C]; 
2001: Total: Median: $0.4[D].

Industry category: Construction; 
2001: With inventory: Total[A]: $11,233,582; 
2001: With inventory: Mean: $137.3; 
2001: With inventory: Median: $32.0[D]; 
2001: Without inventory: Total[A]: $62,303,236; 
2001: Without inventory: Mean: $63.3; 
2001: Without inventory: Median: $16.6; 
2001: Total: Mean: $69.0; 
2001: Total: Median: $17.6.

Industry category: Education services; 
2001: With inventory: Total[A]: $71,740[E]; 
2001: With inventory: Mean: $10.5[E]; 
2001: With inventory: Median: $2.8[D]; 
2001: Without inventory: Total[A]: $267,392[D]; 
2001: Without inventory: Mean: $4.2[D]; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $4.9[D]; 
2001: Total: Median: [B].

Industry category: Finance/insurance; 
2001: With inventory: Total[A]: $5,344,847; 
2001: With inventory: Mean: $927.9[D]; 
2001: With inventory: Median: $4.8[E]; 
2001: Without inventory: Total[A]: $34,664,644; 
2001: Without inventory: Mean: $498.3; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $531.2[C]; 
2001: Total: Median: [B].

Industry category: Health care/social assistance; 
2001: With inventory: Total[A]: $720,115; 
2001: With inventory: Mean: $47.2; 
2001: With inventory: Median: $17.6[D]; 
2001: Without inventory: Total[A]: $3,822,110; 
2001: Without inventory: Mean: $16.6; 
2001: Without inventory: Median: $0.2[E]; 
2001: Total: Mean: $18.5; 
2001: Total: Median: $0.4[E].

Industry category: Information; 
2001: With inventory: Total[A]: $375,140[D]; 
2001: With inventory: Mean: $19.1; 
2001: With inventory: Median: $3.8[D]; 
2001: Without inventory: Total[A]: $1,435,823[D]; 
2001: Without inventory: Mean: $26.4[D]; 
2001: Without inventory: Median: $0.1[E]; 
2001: Total: Mean: $24.5[C]; 
2001: Total: Median: $1.3[D].

Industry category: Manufacturing; 
2001: With inventory: Total[A]: $6,257,623; 
2001: With inventory: Mean: $88.1; 
2001: With inventory: Median: $8.8[D]; 
2001: Without inventory: Total[A]: $4,460,457; 
2001: Without inventory: Mean: $41.6; 
2001: Without inventory: Median: $7.7[D]; 
2001: Total: Mean: $60.1; 
2001: Total: Median: $7.9[D].

Industry category: Mining; 
2001: With inventory: Total[A]: $290,406[E]; 
2001: With inventory: Mean: $1,097.2[D]; 
2001: With inventory: Median: $426.0[D]; 
2001: Without inventory: Total[A]: $677,036; 
2001: Without inventory: Mean: $20.5; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $29.1[C]; 
2001: Total: Median: [B].

Industry category: Other services; 
2001: With inventory: Total[A]: $9,986,625; 
2001: With inventory: Mean: $43.6; 
2001: With inventory: Median: $7.8; 
2001: Without inventory: Total[A]: $10,253,868; 
2001: Without inventory: Mean: $22.7; 
2001: Without inventory: Median: $4.3; 
2001: Total: Mean: $29.7; 
2001: Total: Median: $5.4.

Industry category: Professional/technical; 
2001: With inventory: Total[A]: $2,201,470; 
2001: With inventory: Mean: $26.4; 
2001: With inventory: Median: $2.6[D]; 
2001: Without inventory: Total[A]: $12,104,715; 
2001: Without inventory: Mean: $29.9; 
2001: Without inventory: Median: $1.8[D]; 
2001: Total: Mean: $29.3; 
2001: Total: Median: $2.0.

Industry category: Real estate/leasing; 
2001: With inventory: Total[A]: $1,487,003; 
2001: With inventory: Mean: $106.7[D]; 
2001: With inventory: Median: $12.2[D]; 
2001: Without inventory: Total[A]: $2,441,076; 
2001: Without inventory: Mean: $21.4; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $30.7[C]; 
2001: Total: Median: [B].

Industry category: Religious/civic; 
2001: With inventory: Total[A]: $52,547[E]; 
2001: With inventory: Mean: $1,254.4; 
2001: With inventory: Median: [B]; 
2001: Without inventory: Total[A]: $85,370[D]; 
2001: Without inventory: Mean: $2.5[D]; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $4.1[D]; 
2001: Total: Median: [B].

Industry category: Retail trade; 
2001: With inventory: Total[A]: $108,304,195; 
2001: With inventory: Mean: $105.7; 
2001: With inventory: Median: $8.0; 
2001: Without inventory: Total[A]: $16,809,689; 
2001: Without inventory: Mean: $28.3; 
2001: Without inventory: Median: $2.4; 
2001: Total: Mean: $77.2; 
2001: Total: Median: $4.8.

Industry category: Transportation/warehousing; 
2001: With inventory: Total[A]: $452,784[D]; 
2001: With inventory: Mean: $99.3[D]; 
2001: With inventory: Median: $29.1[D]; 
2001: Without inventory: Total[A]: $5,011,826; 
2001: Without inventory: Mean: $47.8; 
2001: Without inventory: Median: $5.2[D]; 
2001: Total: Mean: $50.0[C]; 
2001: Total: Median: $5.9[D].

Industry category: Utilities; 
2001: With inventory: Total[A]: $21,858[E]; 
2001: With inventory: Mean: $23.3; 
2001: With inventory: Median: [B]; 
2001: Without inventory: Total[A]: $1,658[E]; 
2001: Without inventory: Mean: $47.5[E]; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $24.2; 
2001: Total: Median: $11.4[E].

Industry category: Wholesale trade; 
2001: With inventory: Total[A]: $17,331,067; 
2001: With inventory: Mean: $207.5; 
2001: With inventory: Median: $20.5[D]; 
2001: Without inventory: Total[A]: $8,807,787; 
2001: Without inventory: Mean: $76.3; 
2001: Without inventory: Median: $8.9[D]; 
2001: Total: Mean: $131.4; 
2001: Total: Median: $11.9[D].

Industry category: Unclassified; 
2001: With inventory: Total[A]: $16,282[E]; 
2001: With inventory: Mean: $5.4[E]; 
2001: With inventory: Median: [B]; 
2001: Without inventory: Total[A]: $222,783[E]; 
2001: Without inventory: Mean: $10.9[E]; 
2001: Without inventory: Median: [B]; 
2001: Total: Mean: $10.2[E]; 
2001: Total: Median: [B].

Source: GAO analysis of IRS data.

Note: Estimates in the first through sixth and eighth columns have 
sampling errors of (+/-) 50 percent or less of the value of the 
estimates unless otherwise noted. Estimates in the seventh column have 
sampling errors of (+/-) 20 percent or less of the value of the 
estimates unless otherwise noted.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall in different industry categories; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Population estimates could not be developed.

[C] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[D] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[E] Reliable confidence intervals could not be computed for estimates.

[End of table]

Table 29: Depreciation Expense Reported on Schedule C by Industry, Tax 
Year 2000: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2000: Total[A]: $1,362,847; 
2000: Mean: $6.8; 
2000: Median: $2.8[B]; 
2000: Percentage of total: 4.3.

Industry category: Administrative/waste management; 
2000: Total[A]: $1,773,549; 
2000: Mean: $3.9; 
2000: Median: $1.6; 
2000: Percentage of total: 5.6.

Industry category: Agriculture/forestry; 
2000: Total[A]: $1,551,461; 
2000: Mean: $8.6; 
2000: Median: $3.1[B]; 
2000: Percentage of total: 4.9.

Industry category: Arts/recreation; 
2000: Total[A]: $1,332,323; 
2000: Mean: $3.2; 
2000: Median: $1.3; 
2000: Percentage of total: 4.2.

Industry category: Construction; 
2000: Total[A]: $5,567,136; 
2000: Mean: $6.1; 
2000: Median: $2.6; 
2000: Percentage of total: 17.4.

Industry category: Education services; 
2000: Total[A]: $161,559[B]; 
2000: Mean: $1.7[B]; 
2000: Median: $0.9[C]; 
2000: Percentage of total: 0.5[B].

Industry category: Finance/insurance; 
2000: Total[A]: $737,642; 
2000: Mean: $3.5; 
2000: Median: $1.8[B]; 
2000: Percentage of total: 2.3.

Industry category: Health care/social assistance; 
2000: Total[A]: $1,995,423; 
2000: Mean: $4.3; 
2000: Median: $1.4[B]; 
2000: Percentage of total: 6.2.

Industry category: Information; 
2000: Total[A]: $312,506[B]; 
2000: Mean: $3.3[B]; 
2000: Median: $1.8[B]; 
2000: Percentage of total: 1.0[B].

Industry category: Manufacturing; 
2000: Total[A]: $954,184; 
2000: Mean: $5.5; 
2000: Median: $1.8[B]; 
2000: Percentage of total: 3.0.

Industry category: Mining; 
2000: Total[A]: $385,456[B]; 
2000: Mean: $9.5[B]; 
2000: Median: $1.5[C]; 
2000: Percentage of total: 1.2[B].

Industry category: Other services; 
2000: Total[A]: $2,324,806; 
2000: Mean: $3.8; 
2000: Median: $1.6; 
2000: Percentage of total: 7.3.

Industry category: Professional/technical; 
2000: Total[A]: $2,942,314; 
2000: Mean: $2.9; 
2000: Median: $1.5; 
2000: Percentage of total: 9.2.

Industry category: Real estate/leasing; 
2000: Total[A]: $2,070,830; 
2000: Mean: $5.2; 
2000: Median: $2.0; 
2000: Percentage of total: 6.5.

Industry category: Religious/civic; 
2000: Total[A]: $79,147[C]; 
2000: Mean: $2.2[C]; 
2000: Median: $0.6[C]; 
2000: Percentage of total: 0.2[C].

Industry category: Retail trade; 
2000: Total[A]: $2,613,567; 
2000: Mean: $3.2; 
2000: Median: $1.1; 
2000: Percentage of total: 8.2.

Industry category: Transportation/warehousing; 
2000: Total[A]: $5,141,384; 
2000: Mean: $13.8; 
2000: Median: $7.3; 
2000: Percentage of total: 16.1.

Industry category: Utilities; 
2000: Total[A]: $9,805[D]; 
2000: Mean: $3.2[C]; 
2000: Median: $2.3[C]; 
2000: Percentage of total: 0.0[C].

Industry category: Wholesale trade; 
2000: Total[A]: $561,459; 
2000: Mean: $4.1; 
2000: Median: $1.8[B]; 
2000: Percentage of total: 1.8[B].

Industry category: Unclassified; 
2000: Total[A]: $53,225[C]; 
2000: Mean: $2.1[C]; 
2000: Median: $0.5[C]; 
2000: Percentage of total: 0.2[C].

Total[E]; 
Percentage of total: 100%.

Source: GAO analysis of IRS's data.

Note: Estimates in all columns have sampling errors of (+/-) 20 percent 
or less of the value of the estimates unless otherwise noted.

Note: This table shows the total depreciation expenses claimed by sole 
proprietors in tax year 2000 for all property depreciation 
classifications. Depreciation classification depends on the type of 
property being depreciated. For example IRS classifies automobiles, 
light trucks, copiers, and computers as 5-year property; office 
furniture, railroad track, and property not otherwise classified as 7-
year property; and vessels, barges, and fruit-bearing trees as 10-year 
property.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall into a different industry category; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Reliable confidence intervals could not be computed for estimates.

[E] Totals may not add to 100 percent due to rounding.

[End of table]

Table 30: Depreciation Expense Reported on Schedule C by Industry, Tax 
Year 2001: 

Dollars in thousands.

Industry category: Accommodation/food services; 
2001: Total[A]: $1,381,432; 
2001: Mean: $7.1; 
2001: Median: $2.9; 
2001: Percentage of total: 4.2.

Industry category: Administrative/waste management; 
2001: Total[A]: $1,804,973; 
2001: Mean: $4.0; 
2001: Median: $1.5; 
2001: Percentage of total: 5.4.

Industry category: Agriculture/forestry; 
2001: Total[A]: $1,498,533; 
2001: Mean: $9.0; 
2001: Median: $2.8[B]; 
2001: Percentage of total: 4.5.

Industry category: Arts/recreation; 
2001: Total[A]: $1,461,440; 
2001: Mean: $3.7; 
2001: Median: $1.4; 
2001: Percentage of total: 4.4.

Industry category: Construction; 
2001: Total[A]: $5,693,640; 
2001: Mean: $6.3; 
2001: Median: $2.7; 
2001: Percentage of total: 17.2.

Industry category: Education services; 
2001: Total[A]: $148,570[B]; 
2001: Mean: $1.6[B]; 
2001: Median: $1.0[B]; 
2001: Percentage of total: 0.4[B].

Industry category: Finance/insurance; 
2001: Total[A]: $734,191; 
2001: Mean: $3.7; 
2001: Median: $2.0[B]; 
2001: Percentage of total: 2.2.

Industry category: Health care/social assistance; 
2001: Total[A]: $2,122,563; 
2001: Mean: $4.5; 
2001: Median: $1.7; 
2001: Percentage of total: 6.4.

Industry category: Information; 
2001: Total[A]: $403,100[B]; 
2001: Mean: $3.4[B]; 
2001: Median: $1.1[C]; 
2001: Percentage of total: 1.2[B].

Industry category: Manufacturing; 
2001: Total[A]: $862,046; 
2001: Mean: $6.0; 
2001: Median: $1.8[B]; 
2001: Percentage of total: 2.6.

Industry category: Mining; 
2001: Total[A]: $434,656[B]; 
2001: Mean: $9.0[B]; 
2001: Median: $1.8[B]; 
2001: Percentage of total: 1.3[B].

Industry category: Other services; 
2001: Total[A]: $2,574,589; 
2001: Mean: $3.9; 
2001: Median: $1.7; 
2001: Percentage of total: 7.8.

Industry category: Professional/technical; 
2001: Total[A]: $3,120,335; 
2001: Mean: $3.1; 
2001: Median: $1.5; 
2001: Percentage of total: 9.4.

Industry category: Real estate/leasing; 
2001: Total[A]: $2,312,717; 
2001: Mean: $5.7; 
2001: Median: $2.0; 
2001: Percentage of total: 7.0.

Industry category: Religious/civic; 
2001: Total[A]: $83,271[C]; 
2001: Mean: $2.2[C]; 
2001: Median: $0.9[C]; 
2001: Percentage of total: 0.3[C].

Industry category: Retail trade; 
2001: Total[A]: $2,900,314; 
2001: Mean: $3.7; 
2001: Median: $1.3; 
2001: Percentage of total: 8.8.

Industry category: Transportation/warehousing; 
2001: Total[A]: $4,967,507; 
2001: Mean: $13.4; 
2001: Median: $7.0; 
2001: Percentage of total: 15.0.

Industry category: Utilities; 
2001: Total[A]: $21,231[C]; 
2001: Mean: $5.3[C]; 
2001: Median: $2.9[B]; 
2001: Percentage of total: 0.1[C].

Industry category: Wholesale trade; 
2001: Total[A]: $568,985; 
2001: Mean: $4.1; 
2001: Median: $1.6[B]; 
2001: Percentage of total: 1.7[B].

Industry category: Unclassified; 
2001: Total[A]: $32,931[C]; 
2001: Mean: $3.1[C]; 
2001: Median: $1.2[C]; 
2001: Percentage of total: 0.1[C].

Total[D]; 
2001: Percentage of total: 100%.

Source: GAO analysis of IRS data.

Note: Estimates in all columns have sampling errors of (+/-) 20 percent 
or less of the value of the estimates unless otherwise noted.

Note: This table shows the total depreciation expenses claimed by sole 
proprietors in tax year 2001 for all property depreciation 
classifications. Depreciation classification depends on the type of 
property being depreciated. For example IRS classifies automobiles, 
light trucks, copiers, and computers as 5-year property; office 
furniture, railroad track, and property not otherwise classified as 7-
year property; and vessels, barges, and fruit-bearing trees as 10-year 
property.

[A] Some sole proprietors may claim expenses for multiple businesses, 
each of which may fall into a different industry category; only those 
amounts that could clearly be associated with a specific industry 
category are included in the table.

[B] Sampling error is between (+/-) 20 and (+/-) 50 percent of the 
value of the estimate.

[C] Sampling error exceeds (+/-) 50 percent of the value of the 
estimate.

[D] Totals may not add to 100 percent due to rounding.

[End of table]

[End of section]

Appendix VI: Comments from the Internal Revenue Service: 

DEPARTMENT OF THE TREASURY 
INTERNAL REVENUE SERVICE 
WASHINGTON, D.C. 20224:

January 13, 2004:

Michael Brostek:

Director, Strategic Issues 
General Accounting Office 
441 G Street NW - Rm. 1T47 
Washington, DC 20548:

Dear Mr. Brostek,

My office reviewed your draft report, TAX ADMINISTRATION: INFORMATION 
ON EXPENSES CLAIMED BY SMALL BUSINESS SOLE PROPRIETORSHIPS, GAO-04-304 
(Job code: 450207) submitted for official IRS review and comments. We 
reviewed the data contained in the draft report. The tabulations by the 
General Accounting Office in the report accurately reflect the 
Statistics of Income sample data on which the tables are based for 
small business expenses claimed by taxpayers on Form 1040 Schedules C 
and F.

Please call me at (202) 874-0100 if you have any further data requests 
in connection with this report.

Sincerely,

Signed by: 

Mark J. Mazur:

Director, Research, Analysis, and Statistics: 

[End of section]

Appendix VII: GAO Contacts and Staff Acknowledgments: 

GAO Contacts: 

Michael Brostek (202) 512-9110 Charlie W. Daniel (202) 512-9110: 

Acknowledgments: 

In addition to those named above, Jennifer Gravelle, Samuel Scrutchins, 
Wendy Turenne, and Elwood D. White made key contributions to this 
report.

[End of section]

Glossary: 

Information in this glossary was derived from various IRS publications, 
tax forms, and instructions.

Accommodation/food services (Industry category) - includes 
accommodation, food services, and drinking places.

Administrative/waste management (Industry category) - includes 
administrative services, support services, and waste management and 
remediation services.

Agriculture/forestry (Industry category) - includes animal production, 
forestry, logging, hunting, trapping, fishing, and support activities 
for agriculture and forestry.

Arts/recreation (Industry category) - includes amusement, gambling and 
recreation industries; museums, historical sites, and similar 
institutions; and performing arts, spectator sports, and related 
industries.

Bad debts (Schedule C expense) - accounts receivable that the business 
cannot collect.

Car/truck (Schedule C and Schedule F expense) - costs of operating and 
maintaining a vehicle used in a business.

Construction (Industry category) - includes land development, 
construction of residential and nonresidential buildings, heavy 
construction, and specialty trade contractors.

Custom hire (Schedule F expense) - includes machine work where the 
machine operator furnished the equipment.

Depletion (Schedule C expense) - allows an owner or operator to account 
for the reduction of a natural resource's reserves used up by mining, 
quarrying, drilling, or felling.

Depreciation (Schedule C and Schedule F expense) - property acquired by 
a business that has a useful life of more than 1 year must have its 
cost capitalized and deducted over more than 1 year.

Education services (Industry category) - educational activities 
including schools, colleges, and universities.

Employee benefit programs (Schedule C and Schedule F expense) - 
compensation to employees in the form of a benefit such as accident and 
health plans, dependent care assistance, educational assistance, and 
group life insurance coverage.

Farming (Industry category) - includes crop production, animal 
production, and forestry and logging.

Finance/insurance (Industry category) - includes credit intermediation 
and related activities; insurance agents, brokers, and related 
activities; and securities, commodity contracts, and other financial 
investments, and related activities.

Health care/social assistance (Industry category) - includes ambulatory 
health care services, hospitals, nursing and residential care 
facilities, and social assistance.

Home office (Schedule C expense) - expenses related to the part of home 
used exclusively for business.

Information (Industry category) - includes publishing industries, 
broadcasting, telecommunications, data processing and information 
services, and motion picture and sound recording.

Insurance (Schedule C expense) - premiums paid for insurance plans 
related to the business providing coverage for such things as fire, 
theft, flood, liability, malpractice, car, worker's compensation, group 
hospitalization and medical for employees.

Legal/professional (Schedule C expense) - fees paid to accountants or 
lawyers directly related to operating the business.

Manufacturing (Industry category) - includes general manufacturing, 
chemical manufacturing, food manufacturing, leather and allied product 
manufacturing, and nonmetallic mineral product manufacturing.

Meals/entertainment (Schedule C expense) - business-related 
entertainment expenses for entertaining a client, customer, or 
employee.

Mining (Industry category) - includes coal mining, metal ore mining, 
oil and gas extraction, and support activities for mining.

Other (Schedule C and Schedule F expense) - any ordinary and necessary 
business expenses not deducted elsewhere on the schedules.

Other services (Industry category) - includes personal and laundry 
services, and repair and maintenance.

Pension/profit sharing plans (Schedule C and Schedule F expense) - 
contributions made to retirement plans.

Professional/technical (Industry category) - includes legal services, 
accountants, tax preparation services, architectural, engineering, 
computer systems design, specialized design services, and other 
professional, scientific, and technical services.

Real estate/leasing (Industry category) - includes real estate and 
rental and leasing services.

Religious/civic (Industry category) - includes religious, grant making, 
civic, professional, and similar organizations.

Retail trade (Industry category) - includes building material, garden 
equipment and supplies dealers; clothing and accessories stores; 
electronic and appliance stores; food and beverage stores; furniture 
and home furnishing stores; gasoline stations; general merchandise 
stores; health and personal care stores; motor vehicle and parts 
dealers; sporting goods, hobby, book, and music stores; miscellaneous 
store retailers; and nonstore retailers.

Supplies (Schedule C and Schedule F expense) - cost of materials and 
supplies actually used and consumed during the tax year.

Transportation/warehousing (Industry category) - includes air 
transportation, bus transportation, freight trucking, pipeline 
transportation, rail transportation, taxi and limousine service, urban 
transit systems, water transportation, support activities for 
transportation, couriers and messengers, and warehousing and storage 
facilities.

Travel (Schedule C expense) - expenses of traveling away from home for 
business reasons.

Wholesale trade (Industry category) - includes wholesalers in durable 
and nondurable goods.

(450207): 

FOOTNOTES

[1] Elsewhere in this report, we refer to these forms simply as 
Schedule C and Schedule F.

[2] We are not providing information on ranges of expense categories 
for the absolute minimum and maximum amounts to remove extreme outliers 
and to ensure that we do not disclose taxpayer information.

[3] Businesses with home office expenses only relate to sole 
proprietors filing Schedule Cs.

[4] Sole proprietors may employ individuals other than themselves to 
work in their business.

[5] A limited liability company (LLC) may be classified for federal 
income tax purposes as a sole proprietorship, partnership, or a 
corporation. If the LLC has only one owner, it will automatically be 
considered to be a sole proprietorship, unless an election is made to 
be treated as a corporation.

[6] Sole proprietors with a single business that had $2,500 or less in 
expenses and used the cash method for accounting purposes and had no 
inventory at any time during the year can use Schedule C-EZ provided 
they had no operating loss and met certain other criteria.

[7] SOI officials stated that they do not compile information on each 
category of expenses on Schedule Fs because currently there is no 
requirement to do so.

[8] Comparable data on business characteristics were not available for 
sole proprietorships that filed Schedule F.

[9] U.S. General Accounting Office, Assessing the Reliability of 
Computer-Processed Data (External version1), GAO-03-273G (Washington, 
D.C.: October 2002).

[10] Generally, businesses in which the production, purchase, or sale 
of merchandise was income producing must account for inventories at the 
beginning and end of the tax year. Cost of goods sold is the difference 
between the inventory at the end of the year and the inventory at the 
beginning of the year after adding the cost of merchandise bought for 
sale and/or the cost of raw materials, labor, materials, and supplies 
used to fabricate a saleable product.

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