For Tax Year 2007, there were about 23.1 million individual income tax returns that reported nonfarm sole proprietorship activity, a 4.7-percent increase since Tax Year 2006. Reported profits for these sole proprietorships were $280.6 billion in 2007, representing a decrease of 1.8 percent (in constant dollars) since 2006. Profits also decreased 0.4 percent (in constant dollars) between Tax Years 2005 and 2006.
For Tax Year 2006, 24.7 million individual income taxpayers who itemized deductions reported $52.6 billion in deductions for noncash charitable contributions. Of these taxpayers, 6.2 million reported $46.8 billion in deductions for charitable contributions in excess of $500, as shown on Form 8283, Noncash Charitable Contributions.
The number of S corporations increased 5.1 percent to 3.9 million for Tax Year 2006, representing nearly two-thirds of all U.S. corporations. The number of shareholders in S corporations also increased by 5.1 percent, to 6.7 million in 2006. Total net income (less deficit) increased 7.0 percent to $386.2 billion. The largest component of total net income (less deficit)—net income (less deficit) from a trade or business—increased $13.0 billion to $295.9 billion, representing 76.6 percent of total net income (less deficit).
The number of U.S. income tax returns filed by foreign-controlled domestic corporations (FCDCs) increased by 3.4 percent for 2006, to 63,951. FCDCs accounted for only 1.1 percent of all corporation income tax returns filed for the tax year. FCDC assets totaled $9.7 trillion, a 5.7-percent increase from the previous year. By comparison, all corporations reported a total of $73.1 trillion in assets for 2006, a 10.0-percent increase since the previous year. FCDCs accounted for 13.3 percent of total corporate assets for 2006, down from 13.9 percent for the previous year.
For Tax Year 2005, 5,837 U.S. corporations claimed more than $84 billion in foreign tax credits, reducing their U.S. tax on worldwide income by 30.3 percent, from $278.2 billion to $194 billion. They reported a total of about $402 billion in foreign-source taxable income, slightly more than 50 percent of total worldwide income. Due in part to the one-time repatriation tax holiday, foreign-source taxable income for corporations that claimed a foreign tax credit (in constant 2005 dollars) rose 61 percent since 2004, while the foreign tax credit increased 43.9 percent.
Between Tax Years 1999 and 2003, taxpayers in the Sales of Capital Assets (SOCA) panel study realized the highest net capital gains in Tax Year 2000; net gains less losses peaked at $574.1 billion, with capital gains of $929.8 billion and losses of $355.7 billion. The lowest amount of net capital gains less losses reported for the 5 years examined was $131.9 billion, reported in Tax Year 2002. The estimates in this article were based on a sample of individual income tax returns filed for Tax Year 1999. These returns were followed between Tax Years 1999 and 2003.