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Use Schedule C (Form 1040) to report income or loss from a business you operated or a

2002 profession you practiced as a sole proprietor. Also, use Schedule C to report wages and
expenses you had as a statutory employee. An activity qualifies as a business if your
Instructions for primary purpose for engaging in the activity is for income or profit and you are involved
in the activity with continuity and regularity. For example, a sporadic activity or a hobby
does not qualify as a business. To report income from a nonbusiness activity, see the
Schedule C, instructions for Form 1040, line 21.
Small businesses and statutory employees with expenses of $2,500 or less may be able
Profit or Loss to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for details.
You may be subject to state and local taxes and other requirements such as business
From Business licenses and fees. Check with your state and local governments for more information.
Section references are to the Internal Revenue Code.

Husband-Wife Business. If you and your ness Division, 1111 Constitution Ave.,
spouse jointly own and operate a business N.W., Washington, DC 20224. If a transac-
General Instructions and share in the profits and losses, you are tion becomes a reportable transaction after
partners in a partnership, whether or not you you file your return, you must attach the
Changes To Note have a formal partnership agreement. Do not statement to the following year’s return
Revised Activity Codes. Some of the prin- use Schedule C or C- EZ. Instead, file Form (whether or not your tax liability is affected
cipal business or professional activity codes 1065. See Pub. 541 for more details. for that year). You are considered to have
beginning on page C-7 have been revised Single-Member Limited Liability Com- indirectly participated if you know or have
and new codes have been added. Be sure to pany (LLC). Generally, a single-member reason to know that the tax benefits claimed
check the list before you enter your code on domestic LLC is not treated as a separate were derived from a reportable transaction.
line B. entity for Federal income tax purposes. If Disclosure is required for a reportable
Tax Shelter Disclosure Statement. You you are the sole member of a domestic LLC, transaction that is a listed transaction. A
must file a disclosure statement for each file Schedule C or C-EZ (or Schedule E or transaction is a listed transaction if it is the
reportable tax shelter transaction in which F, if applicable). However, you may elect to same as or substantially similar to a trans-
you participated, directly or indirectly, if treat a domestic LLC as a corporation. See action that the IRS has determined to be a
your Federal income tax liability was affect- Form 8832 for details on the election and tax avoidance transaction and identified as
ed by the transaction. See Tax Shelter Dis- the tax treatment of a foreign LLC. a listed transaction in a notice, regulation,
closure Statement on this page for more or other published guidance. See Notice
Heavy Highway Vehicle Use Tax. If you 2001-51, 2001-34 I.R.B. 190, for transac-
details. use certain highway trucks, truck-trailers, tions identified by the IRS as listed transac-
tractor-trailers, or buses in your trade or
Other Schedules and Forms business, you may have to pay a Federal
tions. You can find Notice 2001-51 on page
You May Have To File 190 of Internal Revenue Bulletin 2001-34 at
highway motor vehicle use tax. See the In- The
Schedule A to deduct interest, taxes, and structions for Form 2290 to find out if you listed transactions in this notice will be up-
casualty losses not related to your business. owe this tax. dated in future published guidance.
Schedule E to report rental real estate and Information Returns. You may have to file See Temporary Regulations section
royalty income or (loss) that is not subject information returns for wages paid to em- 1.6011-4T for more details, including:
to self-employment tax. ployees, certain payments of fees and other
nonemployee compensation, interest, rents, ● Definitions of reportable transaction,
Schedule F to report profit or (loss) from royalties, real estate transactions, annuities, listed transaction, and substantially similar.
farming. and pensions. You may also have to file an ● Form and content of the disclosure
Schedule SE to pay self-employment tax on information return if you sold $5,000 or statement.
income from any trade or business. more of consumer products to a person on ● Filing requirements for the disclosure
a buy-sell, deposit-commission, or other statement.
Form 4562 to claim depreciation on assets similar basis for resale. For details, see the
placed in service in 2002, to claim amorti-
zation that began in 2002, or to report in-
2002 General Instructions for Forms Additional Information
1099, 1098, 5498, and W-2G.
formation on listed property. See Pub. 334 for more information for small
If you received cash of more than $10,000 businesses.
Form 4684 to report a casualty or theft gain in one or more related transactions in your
or loss involving property used in your trade trade or business, you may have to file Form
or business or income-producing property.
Form 4797 to report sales, exchanges, and
8300. For details, see Pub. 1544.
Specific Instructions
involuntary conversions (not from a casualty Tax Shelter Disclosure
or theft) of trade or business property. Statement Filers of Form 1041. Do not complete the
block labeled “Social security number.” In-
Form 8271 if you are claiming or reporting For each reportable tax shelter transaction stead, enter your employer identification
on Schedule C or C-EZ any income, deduc- in which you participated, directly or indi- number (EIN) on line D.
tion, loss, credit, or other tax benefit from rectly, you must attach a disclosure state-
a tax shelter. ment to your return for each year that your
Federal income tax liability is affected by Line A
Form 8594 to report certain purchases or your participation in the transaction. In ad-
sales of groups of assets that constitute a dition, for the first tax year a disclosure Describe the business or professional activ-
trade or business. statement is attached to your tax return, you ity that provided your principal source of
Form 8824 to report like-kind exchanges. must send a copy of the statement income reported on line 1. If you owned
to the Internal Revenue Service, more than one business, you must complete
Form 8829 to claim expenses for business a separate Schedule C for each business.
use of your home. LM:PFTG:OTSA, Large & Mid-Size Busi-
Cat. No. 24329W
Give the general field or activity and the duplicated or omitted. This is called a sec- 2. Preparing or compiling summaries or
type of product or service. If your general tion 481(a) adjustment. analyses of the finances or operations of the
field or activity is wholesale or retail trade, Example. You change to the cash method activity for your own use, and
or services connected with production serv- of accounting and choose to account for in- 3. Monitoring the finances or operations
ices (mining, construction, or manufactur- ventoriable items in the same manner as of the activity in a nonmanagerial capacity.
ing), also give the type of customer or client. materials and supplies that are not inciden-
For example, “wholesale sale of hardware Participation by your spouse during the
tal. You accrued sales in 2001 for which you tax year in an activity you own can be count-
to retailers” or “appraisal of real estate for received payment in 2002. You must report
lending institutions.” ed as your participation in the activity. This
those sales in both years as a result of chang- applies even if your spouse did not own an
ing your accounting method and must make interest in the activity and whether or not
a section 481(a) adjustment to prevent du-
Line D plication of income.
you and your spouse file a joint return.
You need an EIN only if you had a qualified For purposes of the passive activity rules,
A net negative section 481(a) adjustment you materially participated in the operation
retirement plan or were required to file an is taken into account entirely in the year of
employment, excise, estate, trust, or alcohol, of this trade or business activity during 2002
the change. A net positive section 481(a) if you met any of the following seven tests.
tobacco, and firearms tax return. If you need adjustment is generally taken into account
an EIN, file Form SS-4. If you do not have over a period of 4 years. Include any net 1. You participated in the activity for
an EIN, leave line D blank. Do not enter positive section 481(a) adjustments on line more than 500 hours during the tax year.
your SSN. 6. If the net section 481(a) adjustment is 2. Your participation in the activity for
negative, report it in Part V. the tax year was substantially all of the par-
ticipation in the activity of all individuals
Line E For details on figuring section 481(a) ad-
(including individuals who did not own any
justments, see Rev. Proc. 2002-9, Rev. Proc.
Enter your business address. Show a street 2002-19, and Rev. Proc. 2002-54. You can interest in the activity) for the tax year.
address instead of a box number. Include the find Rev. Proc. 2002-9 on page 327 of 3. You participated in the activity for
suite or room number, if any. If you con- Internal Revenue Bulletin 2002-3 more than 100 hours during the tax year,
ducted the business from your home located at, and you participated at least as much as any
at the address shown on Form 1040, page Rev. Proc. 2002-19 on page 696 of other person for the tax year. This includes
1, you do not have to complete this line. Internal Revenue Bulletin 2002-13 individuals who did not own any interest in
at, the activity.
and Rev. Proc. 2002-54 on page 432 of In-
Line F ternal Revenue Bulletin 2002-35 at
4. The activity is a significant participa-
tion activity for the tax year, and you par-
Generally, you can use the cash method, ticipated in all significant participation
accrual method, or any other method per- activities for more than 500 hours during the
mitted by the Internal Revenue Code. In all year. An activity is a “significant participa-
cases, the method used must clearly reflect Line G tion activity” if it involves the conduct of a
income. Unless you are a qualifying taxpay- If your business activity was not a rental trade or business, you participated in the
er or a qualifying small business taxpayer, activity and you met any of the material activity for more than 100 hours during the
you must use the accrual method for sales participation tests below or the exception tax year, and you did not materially partic-
and purchases of inventory items. See the for oil and gas applies (explained on page ipate under any of the material participation
Part III instructions on page C-6 for the C-3), check the “Yes” box. Otherwise, check tests (other than this test 4).
definition of a qualifying taxpayer and a the “No” box. If you check the “No” box,
qualifying small business taxpayer. Special 5. You materially participated in the ac-
this business is a passive activity. If you tivity for any 5 of the prior 10 tax years.
rules apply to long-term contracts. See sec- have a loss from this business, see Limit on
tion 460 for details. Losses on page C-3. If you have a profit 6. The activity is a personal service ac-
If you use the cash method, show all from this business activity but have current tivity in which you materially participated
items of taxable income actually or con- year losses from other passive activities or for any 3 prior tax years. A personal service
structively received during the year (in cash, you have prior year unallowed passive ac- activity is an activity that involves perform-
property, or services). Income is construc- tivity losses, see the Instructions for Form ing personal services in the fields of health,
tively received when it is credited to your 8582. law, engineering, architecture, accounting,
account or set aside for you to use. Also, actuarial science, performing arts, consult-
Material Participation. Participation, for ing, or any other trade or business in which
show amounts actually paid during the year
purposes of the seven material participation capital is not a material income-producing
for deductible expenses. However, if the
tests listed below, generally includes any factor.
payment of an expenditure creates an asset
work you did in connection with an activity
having a useful life that extends substantial- 7. Based on all the facts and circum-
if you owned an interest in the activity at
ly beyond the close of the year, it may not stances, you participated in the activity on
the time you did the work. The capacity in
be deductible or may be deductible only in a regular, continuous, and substantial basis
which you did the work does not matter.
part for the year of the payment. See Pub. during the tax year. But you do not meet
However, work is not treated as participa-
535. this test if you participated in the activity
tion if it is work that an owner would not
If you use the accrual method, report customarily do in the same type of activity for 100 hours or less during the tax year.
income when you earn it and deduct ex- and one of your main reasons for doing the Your participation in managing the activity
penses when you incur them even if you do work was to avoid the disallowance of losses does not count in determining if you meet
not pay them during the tax year. Accrual- or credits from the activity under the passive this test if any person (except you) (a) re-
basis taxpayers are put on a cash basis for activity rules. ceived compensation for performing man-
deducting business expenses owed to a re- agement services in connection with the
Work you did as an investor in an activity activity or (b) spent more hours during the
lated cash-basis taxpayer. Other rules deter-
is not treated as participation unless you tax year than you spent performing manage-
mine the timing of deductions based on
were directly involved in the day-to-day ment services in connection with the activity
economic performance. See Pub. 538.
management or operations of the activity. (regardless of whether the person was com-
To change your accounting method, you Work done as an investor includes: pensated for the services).
generally must file Form 3115. You may
1. Studying and reviewing financial state- Rental of Personal Property. A rental ac-
also have to make an adjustment to prevent
ments or reports on the activity, tivity (such as long-term equipment leasing)
amounts of income or expense from being
is a passive activity even if you materially If you had both self-employment income tax years exceed $10 million. Also, you
participated in the activity. However, if you and statutory employee income, you must must capitalize part of the indirect costs that
met any of the five exceptions listed under file two Schedules C. You cannot use benefit real or tangible personal property
Rental Activities in the Instructions for Schedule C-EZ or combine these amounts constructed for use in a trade or business,
Form 8582, the rental of the property is not on a single Schedule C. or noninventory property produced for sale
treated as a rental activity and the material Installment Sales. Generally, the install- to customers. Reduce the amounts on lines
participation rules above apply. ment method may not be used to report 8–26 and Part V by amounts capitalized. For
Exception for Oil and Gas. If you are filing income from the sale of (a) personal prop- details, see Pub. 538.
Schedule C to report income and deductions erty regularly sold under the installment Exception for Certain Producers. Produc-
from an oil or gas well in which you own method or (b) real property held for resale ers who account for inventoriable items in
a working interest directly or through an to customers. But the installment method the same manner as materials and supplies
entity that does not limit your liability, may be used to report income from sales of that are not incidental may currently deduct
check the “Yes” box. The activity of owning certain residential lots and timeshares if you expenditures for direct labor and all indirect
the working interest is not a passive activity elect to pay interest on the tax due on that costs that would otherwise be included in
regardless of your participation. income after the year of sale. See section inventory costs. See Cost of Goods Sold on
Limit on Losses. If you checked the “No” 453(l)(2)(B) for details. If you make this page C-6 for more details.
box and you have a loss from this business, election, include the interest on Form 1040, Exception for Creative Property. If you
you may have to use Form 8582 to figure line 61. Also, enter “453(l)(3)” and the are an artist, author, or photographer, you
your allowable loss, if any, to enter on amount of the interest on the dotted line to may be exempt from the capitalization rules.
Schedule C, line 31. Generally, you can the left of line 61. However, your personal efforts must have
deduct losses from passive activities only to If you use the installment method, attach created (or reasonably be expected to create)
the extent of income from passive activities. a schedule to your return. Show separately the property. This exception does not apply
For details, see Pub. 925. for 2002 and the 3 preceding years: gross to any expense related to printing, photo-
sales, cost of goods sold, gross profit, per- graphic plates, motion picture films, video
centage of gross profit to gross sales, tapes, or similar items. These expenses are
Line H amounts collected, and gross profit on
amounts collected.
subject to the capitalization rules. For de-
tails, see Pub. 538.
If you started or acquired this business in
2002, check the box on line H. Also check
the box if you are reopening or restarting Line 6 Line 9
this business after temporarily closing it, and
you did not file a 2001 Schedule C or C-EZ Report on line 6 amounts from finance re- Include debts and partial debts from sales or
for this business. serve income, scrap sales, bad debts you services that were included in income and
recovered, interest (such as on notes and are definitely known to be worthless. If you
accounts receivable), state gasoline or fuel later collect a debt that you deducted as a
tax refunds you got in 2002, credit for Fed- bad debt, include it as income in the year
Part I. Income eral tax paid on gasoline or other fuels collected. For details, see Pub. 535.
Except as otherwise provided in the Internal claimed on your 2001 Form 1040, prizes and
Revenue Code, gross income includes all awards related to your trade or business, and
income from whatever source derived. other kinds of miscellaneous business Line 10
Gross income, however, does not include income. Include amounts you received in You can deduct the actual expenses of run-
extraterritorial income that is qualifying for- your trade or business as shown on Form ning your car or truck or take the standard
eign trade income. Use Form 8873 to figure 1099-PATR. Also, include any recapture of mileage rate. You must use actual expenses
the extraterritorial income exclusion. Report the deduction for clean-fuel vehicles used in if you used your vehicle for hire (such as a
it on Schedule C as explained in the Instruc- your business and clean-fuel vehicle refuel- taxicab) or you used more than one vehicle
tions for Form 8873. ing property. For details, see Pub. 535. simultaneously in your business (such as in
If the business use percentage of any fleet operations). You cannot use actual ex-
listed property (defined in the instructions penses for a leased vehicle if you previously
Line 1 for line 13 on page C-4) decreased to 50% used the standard mileage rate for that ve-
Enter gross receipts from your trade or busi- or less in 2002, report on this line any re- hicle.
ness. Include amounts you received in your capture of excess depreciation, including You can take the standard mileage rate
trade or business that were properly shown any section 179 expense deduction. Use for 2002 only if:
on Forms 1099-MISC. If the total amounts Form 4797 to figure the recapture. Also, if
that were reported in box 7 of Forms the business use percentage drops to 50% or ● You owned the vehicle and use the
1099-MISC are more than the total you are less on leased listed property (other than a standard mileage rate for the first year you
reporting on line 1, attach a statement ex- vehicle), include on this line any inclusion placed the vehicle in service or
plaining the difference. amount. See Pub. 946 to figure the amount. ● You leased the vehicle and are using
the standard mileage rate for the entire lease
Statutory Employees. If you received a
period (except the period, if any, before
Form W-2 and the “Statutory employee”
box in box 13 of that form was checked, Part II. Expenses 1998).
report your income and expenses related to Capitalizing Costs of Property. If you pro- If you deduct actual expenses:
that income on Schedule C or C-EZ. Enter duced real or tangible personal property or ● Include on line 10 the business portion
your statutory employee income from box acquired property for resale, certain ex- of expenses for gasoline, oil, repairs, insur-
1 of Form W-2 on line 1 of Schedule C or penses attributable to the property generally ance, tires, license plates, etc., and
C-EZ and check the box on that line. Social must be included in inventory costs or cap- ● Show depreciation on line 13 and rent
security and Medicare tax should have been italized. In addition to direct costs, produc- or lease payments on line 20a.
withheld from your earnings; therefore, you ers of inventory property generally must also
do not owe self-employment tax on these include part of certain indirect costs in their If you take the standard mileage rate, mul-
earnings. Statutory employees include full- inventory. Purchasers of personal property tiply the number of business miles by 36.5
time life insurance agents, certain agent or acquired for resale must include part of cer- cents. Add to this amount your parking fees
commission drivers and traveling salesper- tain indirect costs in inventory only if the and tolls, and enter the total on line 10. Do
sons, and certain homeworkers. average annual gross receipts for the 3 prior
not deduct depreciation, rent or lease pay- itself to personal use, such as motorcycles, affect how much interest you are allowed to
ments, or your actual operating expenses. pickup trucks, etc.; deduct on Schedule C or C-EZ.
For details, see Pub. 463. ● Any property used for entertainment or Generally, you allocate interest expense
Information on Your Vehicle. If you claim recreational purposes (such as photographic, by tracing how the proceeds of the loan were
any car and truck expenses, you must pro- phonographic, communication, and video used. See Pub. 535 for details.
vide certain information on the use of your recording equipment); Do not deduct interest you paid or accrued
vehicle by completing one of the following. ● Cellular telephones or other similar tel- on debts allocable to investment property.
● Part IV of Schedule C or Part III of ecommunications equipment; and This interest is generally deducted on
Schedule C-EZ if: (a) you are claiming the ● Computers or peripheral equipment. Schedule A. For details, see Pub. 550.
standard mileage rate, you lease your vehi- Exceptions. Listed property does not in- If you paid interest on a debt secured by
cle, or your vehicle is fully depreciated and clude photographic, phonographic, commu- your main home and any of the proceeds
(b) you are not required to file Form 4562 nication, or video equipment used from that debt were used in connection with
for any other reason. If you used more than exclusively in your trade or business or at your trade or business, see Pub. 535 to figure
one vehicle during the year, attach your own your regular business establishment. It also the amount that is deductible on Schedule
schedule with the information requested in does not include any computer or peripheral C or C-EZ.
Part IV of Schedule C, or Part III of Sched- equipment used exclusively at a regular If you have a mortgage on real property
ule C-EZ, for each additional vehicle. business establishment and owned or leased used in your business (other than your main
● Part V of Form 4562 if you are claim- by the person operating the establishment. home), enter on line 16a the interest you
ing depreciation on your vehicle or you are For purposes of these exceptions, a portion paid for 2002 to banks or other financial
required to file Form 4562 for any other of your home is treated as a regular business institutions for which you received a Form
reason (see the instructions for line 13). establishment only if that portion meets the 1098 (or similar statement). If you did not
requirements under section 280A(c)(1) for receive a Form 1098, enter the interest on
deducting expenses for the business use of line 16b.
Line 12 your home. If you paid more mortgage interest than
Enter your deduction for depletion on this See the instructions for line 6 on page C-3 is shown on Form 1098, see Pub. 535 to
line. If you have timber depletion, attach if the business use percentage of any listed find out if you can deduct the additional
Form T. See Pub. 535 for details. property decreased to 50% or less in 2002. interest. If you can, include the amount on
line 16a. Attach a statement to your return
explaining the difference and enter “See at-
Line 13 Line 14 tached” in the margin next to line 16a.
Depreciation and Section 179 Expense Deduct contributions to employee benefit If you and at least one other person (other
Deduction. Depreciation is the annual de- programs that are not an incidental part of than your spouse if you file a joint return)
duction allowed to recover the cost or other a pension or profit-sharing plan included on were liable for and paid interest on the mort-
basis of business or investment property line 19. Examples are accident and health gage and the other person received the Form
having a useful life substantially beyond the plans, group-term life insurance, and depen- 1098, include your share of the interest on
tax year. You can also depreciate improve- dent care assistance programs. line 16b. Attach a statement to your return
ments made to leased business property. Do not include on line 14 any contribu- showing the name and address of the person
However, stock in trade, inventories, and tions you made on your behalf as a self- who received the Form 1098. In the margin
land are not depreciable. Depreciation starts employed person to an accident and health next to line 16b, enter “See attached.”
when you first use the property in your busi- plan or for group-term life insurance. You If you paid interest in 2002 that applies
ness or for the production of income. It ends may be able to deduct on Form 1040, line to future years, deduct only the part that
when you take the property out of service, 30, part of the amount you paid for health applies to 2002.
deduct all your depreciable cost or other insurance on behalf of yourself, your spouse,
basis, or no longer use the property in your and dependents, even if you do not itemize
business or for the production of income. your deductions. See the instructions for Line 17
You may also elect under section 179 to Form 1040, line 30, for details.
expense part of the cost of certain property Include on this line fees for tax advice re-
you bought in 2002 for use in your business. lated to your business and for preparation of
the tax forms related to your business.
See the Instructions for Form 4562 to figure Line 15
the amount to enter on line 13.
Deduct premiums paid for business insur-
When To Attach Form 4562. You must ance on line 15. Deduct on line 14 amounts Line 19
complete and attach Form 4562 only if: paid for employee accident and health in- Enter your deduction for contributions to a
● You are claiming depreciation on prop- surance. Do not deduct amounts credited to pension, profit-sharing, or annuity plan, or
erty placed in service during 2002; a reserve for self-insurance or premiums plans for the benefit of your employees. If
● You are claiming depreciation on listed paid for a policy that pays for your lost the plan includes you as a self-employed
property (defined below), regardless of the earnings due to sickness or disability. For person, enter contributions made as an em-
date it was placed in service; or details, see Pub. 535. ployer on your behalf on Form 1040, line
31, not on Schedule C.
● You are claiming a section 179 expense
deduction. Lines 16a and 16b Generally, you must file the applicable
form listed below if you maintain a pension,
If you acquired depreciable property for Interest Allocation Rules. The tax treat- profit-sharing, or other funded-deferred
the first time in 2002, see Pub. 946. ment of interest expense differs depending compensation plan. The filing requirement
Listed property generally includes, but on its type. For example, home mortgage is not affected by whether or not the plan
is not limited to: interest and investment interest are treated qualified under the Internal Revenue Code,
● Passenger automobiles weighing 6,000 differently. “Interest allocation” rules re- or whether or not you claim a deduction for
pounds or less; quire you to allocate (classify) your interest the current tax year. There is a penalty for
expense so it is deducted (or capitalized) on failure to timely file these forms.
● Any other property used for transpor- the correct line of your return and receives
tation if the nature of the property lends the right tax treatment. These rules could Form 5500. File this form for a plan that
is not a one-participant plan (see page C-5).

Form 5500-EZ. File this form for a one- ● Licenses and regulatory fees for your
participant plan. A one-participant plan is trade or business paid each year to state or
a plan that only covers you (or you and your local governments. But some licenses, such Lines 24b and 24c
spouse). as liquor licenses, may have to be amortized. On line 24b, enter your total business meal
For details, see Pub. 560. See Pub. 535 for details. and entertainment expenses. Include meals
● Social security and Medicare taxes paid while traveling away from home for busi-
to match required withholding from your ness. Instead of the actual cost of your meals
Lines 20a and 20b employees’ wages. Also, Federal unemploy- while traveling away from home, you may
ment tax paid. Reduce your deduction by use the standard meal allowance. The stan-
If you rented or leased vehicles, machinery, dard meal allowance is the Federal M&IE
or equipment, enter on line 20a the business the amount of the current year credit shown
on line 4 of Form 8846. rate. You can find these rates on the Internet
portion of your rental cost. But if you leased at Click on
a vehicle for a term of 30 days or more, you ● Federal highway use tax. 2002 Domestic Per Diem Rates for the
may have to reduce your deduction by an Do not deduct the following on this line. period January 1, 2002–September 30, 2002
amount called the inclusion amount.
● Federal income taxes, including your and on 2003 Domestic Per Diem Rates for
self-employment tax. However, you may the period October 1, 2002–December 31,
You may have to do this if— deduct one-half of your self-employment tax 2002. For locations outside the continental
on Form 1040, line 29. United States, the applicable rates are pub-
And the vehicle’s lished monthly. You can find these
The lease fair market value on ● Estate and gift taxes. rates on the Internet at
term began the first day of the ● Taxes assessed to pay for improve-
during . . . lease exceeded . . . ments, such as paving and sewers. See Pub. 463 for details on how to figure
1999 or later $15,500 ● Taxes on your home or personal use your deduction using the standard meal al-
property. lowance, including special rules for partial
1997 or 1998 15,800
● State and local sales taxes on property days of travel.
1995 or 1996 15,500 purchased for use in your business. Instead, Business meal expenses are deductible
If the lease term began before 1995, see Pub. treat these taxes as part of the cost of the only if they are (a) directly related to or
463 to find out if you have an inclusion property. associated with the active conduct of your
amount. ● State and local sales taxes imposed on trade or business, (b) not lavish or extrava-
the buyer that you were required to collect gant, and (c) incurred while you or your
See Pub. 463 to figure your inclusion and pay over to state or local governments. employee is present at the meal.
amount. These taxes are not included in gross re- You cannot deduct any expense paid or
Enter on line 20b amounts paid to rent or ceipts or sales nor are they a deductible ex- incurred for a facility (such as a yacht or
lease other property, such as office space in pense. However, if the state or local hunting lodge) used for any activity usually
a building. government allowed you to retain any part considered entertainment, amusement, or
of the sales tax you collected, you must recreation.
include that amount as income on line 6. Also, you cannot deduct membership
Line 21 ● Other taxes and license fees not related dues for any club organized for business,
Deduct the cost of repairs and maintenance. to your business. pleasure, recreation, or other social purpose.
Include labor, supplies, and other items that This includes country clubs, golf and athlet-
do not add to the value or increase the life ic clubs, airline and hotel clubs, and clubs
of the property. Do not deduct the value of Line 24a operated to provide meals under conditions
your own labor. Do not deduct amounts Enter your expenses for lodging and trans- favorable to business discussion. But it does
spent to restore or replace property; they portation connected with overnight travel not include civic or public service organi-
must be capitalized. for business while away from your tax zations, professional organizations (such as
home. Generally, your tax home is your bar and medical associations), business
main place of business regardless of where leagues, trade associations, chambers of
Line 22 you maintain your family home. You cannot commerce, boards of trade, and real estate
deduct expenses paid or incurred in connec- boards, unless a principal purpose of the
Generally, you can deduct the cost of sup-
tion with employment away from home if organization is to entertain, or provide en-
plies only to the extent you actually con-
that period of employment exceeds 1 year. tertainment facilities for, members or their
sumed and used them in your business
Also, you cannot deduct travel expenses for guests.
during the tax year (unless you deducted
them in a prior tax year). However, if you your spouse, your dependent, or any other There are exceptions to these rules as well
had incidental supplies on hand for which individual unless that person is your em- as other rules that apply to sky-box rentals
you kept no inventories or records of use, ployee, the travel is for a bona fide business and tickets to entertainment events. See Pub.
you may deduct the cost of supplies you purpose, and the expenses would otherwise 463.
actually purchased during the tax year, pro- be deductible by that person. Generally, you may deduct only 50% of
vided that method clearly reflects income. Do not include expenses for meals and your business meal and entertainment ex-
entertainment on this line. Instead, see the penses, including meals incurred while away
instructions for lines 24b and 24c on this from home on business. For individuals sub-
Line 23 page. ject to the Department of Transportation
You can deduct the following taxes and li- You cannot deduct expenses for attending (DOT) hours of service limits, that percent-
censes on this line. a foreign convention unless it is directly age is increased to 65% for business meals
● State and local sales taxes imposed on related to your trade or business and it is as consumed during, or incident to, any period
you as the seller of goods or services. If you reasonable for the meeting to be held outside of duty for which those limits are in effect.
collected this tax from the buyer, you must the North American area as within it. These Individuals subject to the DOT hours of ser-
also include the amount collected in gross rules apply to both employers and employ- vice limits include the following persons:
receipts or sales on line 1. ees. Other rules apply to luxury water travel. ● Certain air transportation workers
● Real estate and personal property taxes For details, see Pub. 463. (such as pilots, crew, dispatchers, mechan-
on business assets. ics, and control tower operators) who are

under Federal Aviation Administration reg- loss. But if you answered “No” to Question
ulations. G, your loss may be further limited. See the
● Interstate truck operators who are under
Line 31 Instructions for Form 8582. If your at-risk
DOT regulations. If you have a loss, the amount of loss you amount is zero or less, enter zero on line 31.
can deduct this year may be limited. Go to Be sure to attach Form 6198 to your return.
● Certain merchant mariners who are line 32 before entering your loss on line 31. If you checked box 32b and you do not
under Coast Guard regulations. If you answered “No” to Question G on attach Form 6198, the processing of your
However, you may fully deduct meals and Schedule C, also see the Instructions for tax return may be delayed.
entertainment furnished or reimbursed to an Form 8582. Enter the net profit or deduct- Any loss from this business not allowed
employee if you properly treat the expense ible loss here. Combine this amount with for 2002 because of the at-risk rules is treat-
as wages subject to withholding. You may any profit or loss from other businesses, and ed as a deduction allocable to the business
also fully deduct meals and entertainment enter the total on Form 1040, line 12, and in 2003. For details, see the Instructions for
provided to a nonemployee to the extent the Schedule SE, line 2. Estates and trusts Form 6198 and Pub. 925.
expenses are includible in the gross income should enter the total on Form 1041, line 3.
of that person and reported on Form If you have a net profit on line 31, this
1099-MISC. See Pub. 535 for details and
other exceptions.
amount is earned income and may qualify
you for the earned income credit. See the
Part III. Cost of
Figure how much of the amount on line
24b is not deductible and enter that amount
instructions for Form 1040, line 64, for de- Goods Sold
on line 24c. Generally, if you engaged in a trade or busi-
Statutory Employees. Include your net ness in which the production, purchase, or
profit or deductible loss from line 31 with sale of merchandise was an income-
Line 25 other Schedule C amounts on Form 1040,
line 12. However, do not report this amount
producing factor, you must take inventories
into account at the beginning and end of
Deduct only utility expenses for your trade on Schedule SE, line 2. If you are required your tax year.
or business. to file Schedule SE because of other self- However, if you are a qualifying taxpayer
Local Telephone Service. If you used your employment income, see the Instructions for or a qualifying small business taxpayer, you
home phone for business, do not deduct the Schedule SE. may account for inventoriable items in the
base rate (including taxes) of the first phone same manner as materials and supplies that
line into your residence. But you can deduct are not incidental. To change your account-
expenses for any additional costs you in- Line 32 ing method, see the instructions for line F
curred for business that are more than the At-Risk Rules. Generally, if you have (a) on page C-2.
cost of the base rate for the first phone line. a business loss and (b) amounts in the busi- A qualifying taxpayer is a taxpayer (a)
For example, if you had a second line, you ness for which you are not at risk, you will whose average annual gross receipts for the
can deduct the business percentage of the have to complete Form 6198 to figure your 3 prior tax years are $1 million or less and
charges for that line, including the base rate allowable loss. The at-risk rules generally (b) whose business is not a tax shelter (as
charges. limit the amount of loss (including loss on defined in section 448(d)(3)).
the disposition of assets) you can claim to
the amount you could actually lose in the A qualifying small business taxpayer is
Line 26 business. a taxpayer (a) whose average annual gross
receipts for the 3 prior tax years are more
Enter the total salaries and wages for the tax Check box 32b if you have amounts for than $1 million but not more than $10 mil-
year. Do not include salaries and wages de- which you are not at risk in this business, lion, (b) whose business is not a tax shelter
ducted elsewhere on your return or amounts such as the following. (as defined in section 448(d)(3)), and (c)
paid to yourself. Reduce your deduction by ● Nonrecourse loans used to finance the whose principal business activity is not an
the current year credits claimed on: business, to acquire property used in the ineligible activity as explained in Rev. Proc.
● Form 5884, Work Opportunity Credit, business, or to acquire the business that are 2002-28, 2002-18 I.R.B. 815. You can find
● Form 8844, Empowerment Zone and not secured by your own property (other Rev. Proc. 2002-28 on page 815 of Internal
Renewal Community Employment Credit, than property used in the business). How- Revenue Bulletin 2002-18 at
ever, there is an exception for certain non-
● Form 8845, Indian Employment recourse financing borrowed by you in
Credit, Under this accounting method, inventory
connection with holding real property. costs for raw materials purchased for use in
● Form 8861, Welfare-to-Work Credit, ● Cash, property, or borrowed amounts producing finished goods and merchandise
and used in the business (or contributed to the purchased for resale are deductible in the
● Form 8884, New York Liberty Zone business, or used to acquire the business) year the finished goods or merchandise are
Business Employee Credit. that are protected against loss by a guaran- sold (but not before the year you paid for
tee, stop-loss agreement, or other similar ar- the raw materials or merchandise, if you are
rangement (excluding casualty insurance also using the cash method). Enter amounts
If you provided taxable fringe and insurance against tort liability). paid for all raw materials and merchandise
benefits to your employees, such
as personal use of a car, do not ● Amounts borrowed for use in the busi- during 2002 on line 36. The amount you can
ness from a person who has an interest in deduct for 2002 is figured on line 42.
deduct as wages the amount ap-
plicable to depreciation and other expenses the business, other than as a creditor, or who Additional information. For additional
claimed elsewhere. is related under section 465(b)(3) to a person guidance on this method of accounting for
(other than you) having such an interest. inventoriable items, see Rev. Proc. 2001-10,
If all amounts are at risk in this business, 2001-2 I.R.B. 272 if you are a qualifying
Line 30 check box 32a and enter your loss on line taxpayer or Rev. Proc. 2002-28 if you are a
31. But if you answered “No” to Question qualifying small business taxpayer. You can
Business Use of Your Home. You may be find Rev. Proc. 2001-10 on page 272 of
able to deduct certain expenses for business G, you may need to complete Form 8582
to figure your deductible loss. See the In- Internal Revenue Bulletin 2001-2 at
use of your home, subject to limitations., and
You must attach Form 8829 if you claim structions for Form 8582 for details.
Rev. Proc. 2002-28 on page 815 of Internal
this deduction. For details, see the Instruc- If you checked box 32b, see Form 6198
tions for Form 8829 and Pub. 587. to determine the amount of your deductible
Revenue Bulletin 2002-18 at taxes. Special rules apply for allocating in- terest to real or personal property produced
Part V. Other in your trade or business.
Note. Certain direct and indirect expenses
may have to be capitalized or included in Expenses At-Risk Loss Deduction. Any loss from
this activity that was not allowed as a de-
inventory. See the instructions for Part II Include all ordinary and necessary business duction last year because of the at-risk rules
beginning on page C-3. expenses not deducted elsewhere on Sched- is treated as a deduction allocable to this
ule C. List the type and amount of each activity in 2002.
expense separately in the space provided.
Line 33 Enter the total on lines 48 and 27. Do not Capital Construction Fund. Do not claim
include the cost of business equipment or on Schedule C or C-EZ the deduction for
Your inventories can be valued at cost; cost amounts contributed to a capital construc-
or market value, whichever is lower; or any furniture, replacements or permanent im-
provements to property, or personal, living, tion fund set up under the Merchant Marine
other method approved by the IRS. Howev- Act of 1936. Instead, reduce the amount you
er, you are required to use cost if you are and family expenses. Do not include chari-
table contributions. Also, you may not would otherwise enter on Form 1040, line
using the cash method of accounting. 41, by the amount of the deduction. Next to
deduct fines or penalties paid to a govern-
ment for violating any law. For details on line 41, enter “CCF” and the amount of the
deduction. For details, see Pub. 595.
Line 35 business expenses, see Pub. 535.
Amortization. Include amortization in this Deduction for Clean-Fuel Vehicles and
If you are changing your method of account- Clean-Fuel Vehicle Refueling Property.
ing beginning with 2002, refigure last year’s part. For amortization that begins in 2002,
you must complete and attach Form 4562. You may deduct part of the cost of qualified
closing inventory using your new method of clean-fuel vehicle property used in your
accounting and enter the result on line 35. You may amortize: business and qualified clean-fuel vehicle re-
If there is a difference between last year’s
closing inventory and the refigured amount, ● The cost of pollution-control facilities. fueling property. See Pub. 535 for details.
attach an explanation and take it into ac- ● Amounts paid for research and experi- Disabled Access Credit and the Deduction
count when figuring your section 481(a) ad- mentation. for Removing Barriers to Individuals
justment. See the example on page C-2 for ● Certain business startup costs. With Disabilities and the Elderly. You
details. may be able to claim a tax credit of up to
● Qualified forestation and reforestation $5,000 for eligible expenditures paid or in-
costs. See Pub. 535 for limitations. curred in 2002 to provide access to your
Line 41 ● Qualified revitalization expenditures. business for individuals with disabilities.
If you account for inventoriable items in the ● Amounts paid to acquire, protect, See Form 8826 for details. You can also
same manner as materials and supplies that expand, register, or defend trademarks or deduct up to $15,000 of costs paid or in-
are not incidental, enter on line 41 the por- trade names. curred in 2002 to remove architectural or
transportation barriers to individuals with
tion of your raw materials and merchandise ● Goodwill and certain other intangibles. disabilities and the elderly. However, you
purchased for resale that are included on line
40 and were not sold during the year. In general, you may not amortize real cannot take both the credit and the deduction
property construction period interest and on the same expenditures.
Principal Business or Professional Activity Codes
These codes for the Principal Business or Profes- Select the category that best describes your pri- 531210, the code for offices of real estate agents
sional Activity classify sole proprietorships by the mary business activity (for example, Real Estate). and brokers) and enter it on line B of Schedule
type of activity they are engaged in to facilitate the Then select the activity that best identifies the C or C-EZ.
administration of the Internal Revenue Code. These principal source of your sales or receipts (for Note. If your principal source of income is from
six-digit codes are based on the North American example, real estate agent). Now find the six-digit farming activities, you should file Schedule F,
Industry Classification System (NAICS). code assigned to this activity (for example, Profit or Loss From Farming.

Accommodation, Food 561740 Carpet & upholstery 561790 Other services to buildings 115110 Support activities for crop
Services, & Drinking Places cleaning services & dwellings production (including cotton
561440 Collection agencies 561900 Other support services ginning, soil preparation,
Accommodation (including packaging & planting, & cultivating)
561450 Credit bureaus
721310 Rooming & boarding houses labeling services, & 115310 Support activities for
561410 Document preparation
721210 RV (recreational vehicle) services convention & trade show forestry
parks & recreational camps organizers)
561300 Employment services
721100 Travel accommodation Arts, Entertainment, &
561710 Exterminating & pest control Waste Management &
(including hotels, motels, &
bed & breakfast inns)
services Remediation Services Recreation
561210 Facilities support 562000 Waste management &
Food Services & Drinking (management) services Amusement, Gambling, &
remediation services
Places 561600 Investigation & security Recreation Industries
722410 Drinking places (alcoholic services 713100 Amusement parks & arcades
beverages) 561720 Janitorial services
Agriculture, Forestry, 713200 Gambling industries
722110 Full-service restaurants 561730 Landscaping services Hunting, & Fishing 713900 Other amusement &
722210 Limited-service eating places 561110 Office administrative 112900 Animal production recreation services (including
722300 Special food services services (including breeding of cats golf courses, skiing
(including food service 561420 Telephone call centers and dogs) facilities, marinas, fitness
contractors & caterers) (including telephone 114110 Fishing centers, bowling centers,
answering services & 113000 Forestry & logging skating rinks, miniature golf
Administrative & Support telemarketing bureaus) (including forest nurseries & courses)
and Waste Management & 561500 Travel arrangement & timber tracts) Museums, Historical Sites, &
Remediation Services reservation services 114210 Hunting & trapping Similar Institutions
561490 Other business support Support Activities for 712100 Museums, historical sites, &
Administrative & Support services (including similar institutions
Services repossession services, court
Agriculture & Forestry
561430 Business service centers reporting, & stenotype 115210 Support activities for animal
(including private mail services) production (including
centers & copy shops) farriers)

Principal Business or Professional Activity Codes (continued)
Performing Arts, Spectator Insurance Agents, Brokers, & Internet Publishing & 311300 Sugar & confectionery
Sports, & Related Industries Related Activities Broadcasting product mfg.
711410 Agents & managers for 524210 Insurance agencies & 516110 Internet publishing & 311900 Other food mfg. (including
artists, athletes, entertainers, brokerages broadcasting coffee, tea, flavorings, &
& other public figures seasonings)
524290 Other insurance related Internet Service Providers,
711510 Independent artists, writers, activities Leather & Allied Product
Web Search Portals, & Data
& performers Manufacturing
Securities, Commodity Processing Services
711100 Performing arts companies 316210 Footwear mfg. (including
Contracts, & Other Financial 518210 Data processing, hosting, &
711300 Promoters of performing leather, rubber, & plastics)
arts, sports, & similar events Investments & Related related services
Activities 518111 Internet service providers 316110 Leather & hide tanning &
711210 Spectator sports (including finishing
professional sports clubs & 523140 Commodity contracts 518112 Web search portals
brokers 316990 Other leather & allied
racetrack operations) 519100 Other information services product mfg.
523130 Commodity contracts dealers (including news syndicates
Construction of Buildings 523110 Investment bankers & and libraries) Nonmetallic Mineral Product
236200 Nonresidential building securities dealers Motion Picture & Sound Manufacturing
construction 523210 Securities & commodity Recording 327300 Cement & concrete product
236100 Residential building exchanges mfg.
512100 Motion picture & video
construction 523120 Securities brokers 327100 Clay product & refractory
industries (except video
523900 Other financial investment rental) mfg.
Heavy and Civil Engineering
activities (including 327210 Glass & glass product mfg.
Construction 512200 Sound recording industries
investment advice) 327400 Lime & gypsum product
237310 Highway, street, & bridge mfg.
construction Manufacturing
Health Care & Social 327900 Other nonmetallic mineral
237210 Land subdivision 315000 Apparel mfg. product mfg.
237100 Utility system construction Assistance 312000 Beverage & tobacco product
237990 Other heavy & civil Ambulatory Health Care mfg. Mining
engineering construction Services 334000 Computer & electronic
212110 Coal mining
Specialty Trade Contractors 621610 Home health care services product mfg.
212200 Metal ore mining
621510 Medical & diagnostic 335000 Electrical equipment,
238310 Drywall & insulation appliance, & component 212300 Nonmetallic mineral mining
contractors laboratories & quarrying
621310 Offices of chiropractors mfg.
238210 Electrical contractors 332000 Fabricated metal product 211110 Oil & gas extraction
238350 Finish carpentry contractors 621210 Offices of dentists 213110 Support activities for mining
238330 Flooring contractors 621330 Offices of mental health
practitioners (except 337000 Furniture & related product
238130 Framing carpentry mfg. Other Services
contractors physicians)
621320 Offices of optometrists 333000 Machinery mfg. Personal & Laundry Services
238150 Glass & glazing contractors 339110 Medical equipment &
238140 Masonry contractors 621340 Offices of physical, 812111 Barber shops
occupational & speech supplies mfg.
238320 Painting & wall covering 812112 Beauty salons
therapists, & audiologists 322000 Paper mfg.
contractors 812220 Cemeteries & crematories
621111 Offices of physicians (except 324100 Petroleum & coal products
238220 Plumbing, heating & air- mfg. 812310 Coin-operated laundries &
conditioning contractors mental health specialists) drycleaners
621112 Offices of physicians, mental 326000 Plastics & rubber products
238110 Poured concrete foundation mfg. 812320 Drycleaning & laundry
& structure contractors health specialists services (except
621391 Offices of podiatrists 331000 Primary metal mfg.
238160 Roofing contractors coin-operated) (including
621399 Offices of all other 323100 Printing & related support laundry & drycleaning
238170 Siding contractors activities
miscellaneous health dropoff & pickup sites)
238910 Site preparation contractors practitioners 313000 Textile mills 812210 Funeral homes & funeral
238120 Structural steel & precast 621400 Outpatient care centers 314000 Textile product mills services
concrete construction 336000 Transportation equipment
contractors 621900 Other ambulatory health care 812330 Linen & uniform supply
services (including mfg. 812113 Nail salons
238340 Tile & terrazzo contractors ambulance services, blood, 321000 Wood product mfg.
238290 Other building equipment 812930 Parking lots & garages
& organ banks) 339900 Other miscellaneous mfg. 812910 Pet care (except veterinary)
238390 Other building finishing Hospitals Chemical Manufacturing services
contractors 622000 Hospitals 325100 Basic chemical mfg. 812920 Photofinishing
238190 Other foundation, structure, 325500 Paint, coating, & adhesive 812190 Other personal care services
Nursing & Residential Care (including diet & weight
& building exterior Facilities mfg.
contractors 325300 Pesticide, fertilizer, & other reducing centers)
238990 All other specialty trade 623000 Nursing & residential care agricultural chemical mfg. 812990 All other personal services
contractors facilities
325410 Pharmaceutical & medicine Repair & Maintenance
Social Assistance mfg. 811120 Automotive body, paint,
Educational Services 624410 Child day care services 325200 Resin, synthetic rubber, & interior, & glass repair
611000 Educational services 624200 Community food & housing, artificial & synthetic fibers 811110 Automotive mechanical &
(including schools, colleges, & emergency & other relief & filaments mfg. electrical repair &
& universities) services 325600 Soap, cleaning compound, maintenance
624100 Individual & family services & toilet preparation mfg. 811190 Other automotive repair &
Finance & Insurance 624310 Vocational rehabilitation 325900 Other chemical product & maintenance (including oil
Credit Intermediation & services preparation mfg. change & lubrication shops
Related Activities Food Manufacturing & car washes)
522100 Depository credit Information 311110 Animal food mfg. 811310 Commercial & industrial
intermediation (including machinery & equipment
511000 Publishing industries (except 311800 Bakeries & tortilla mfg. (except automotive &
commercial banking, savings
Internet) 311500 Dairy product mfg. electronic) repair &
institutions, & credit unions)
Broadcasting (except Internet) 311400 Fruit & vegetable preserving maintenance
522200 Nondepository credit
& speciality food mfg. 811210 Electronic & precision
intermediation (including & Telecommunications
sales financing & consumer 311200 Grain & oilseed milling equipment repair &
515000 Broadcasting (except
lending) 311610 Animal slaughtering & maintenance
522300 Activities related to credit processing 811430 Footwear & leather goods
517000 Telecommunications
intermediation (including 311710 Seafood product preparation repair
loan brokers) & packaging

Principal Business or Professional Activity Codes (continued)
811410 Home & garden equipment 532210 Consumer electronics & 441110 New car dealers Warehousing & Storage
& appliance repair & appliances rental 441210 Recreational vehicle dealers Facilities
maintenance 532220 Formal wear & costume (including motor home & 493100 Warehousing & storage
811420 Reupholstery & furniture rental travel trailer dealers) (except leases of
repair 532310 General rental centers 441120 Used car dealers miniwarehouses &
811490 Other personal & household 532230 Video tape & disc rental 441229 All other motor vehicle self-storage units)
goods repair & maintenance 532290 Other consumer goods rental dealers
Sporting Goods, Hobby, Book, Utilities
Professional, Scientific, & Religious, Grantmaking, & Music Stores 221000 Utilities
Technical Services Civic, Professional, & 451211 Book stores
541100 Legal services Similar Organizations 451120 Hobby, toy, & game stores Wholesale Trade
541211 Offices of certified public 451140 Musical instrument &
accountants 813000 Religious, grantmaking, Merchant Wholesalers,
civic, professional, & similar supplies stores
541214 Payroll services Durable Goods
organizations 451212 News dealers & newsstands
541213 Tax preparation services 423600 Electrical & electronic goods
451220 Prerecorded tape, compact
541219 Other accounting services disc, & record stores 423200 Furniture & home furnishing
Retail Trade 423700 Hardware, & plumbing &
Architectural, Engineering, & 451130 Sewing, needlework, &
Building Material & Garden piece goods stores heating equipment &
Related Services Equipment & Supplies Dealers supplies
451110 Sporting goods stores
541310 Architectural services 423940 Jewelry, watch, precious
444130 Hardware stores
541350 Building inspection services Miscellaneous Store Retailers stone, & precious metals
444110 Home centers
541340 Drafting services 453920 Art dealers 423300 Lumber & other construction
444200 Lawn & garden equipment
541330 Engineering services 453110 Florists materials
& supplies stores
541360 Geophysical surveying & 453220 Gift, novelty, & souvenir 423800 Machinery, equipment, &
444120 Paint & wallpaper stores
mapping services stores supplies
444190 Other building materials
541320 Landscape architecture 453930 Manufactured (mobile) home 423500 Metal & mineral (except
services dealers petroleum)
541370 Surveying & mapping Clothing & Accessories Stores 453210 Office supplies & stationery 423100 Motor vehicle & motor
(except geophysical) services 448130 Children’s & infants’ stores vehicle parts & supplies
541380 Testing laboratories clothing stores 453910 Pet & pet supplies stores 423400 Professional & commercial
448150 Clothing accessories stores 453310 Used merchandise stores equipment & supplies
Computer Systems Design &
448140 Family clothing stores 453990 All other miscellaneous store 423930 Recyclable materials
Related Services
448310 Jewelry stores retailers (including tobacco, 423910 Sporting & recreational
541510 Computer systems design & candle, & trophy shops) goods & supplies
448320 Luggage & leather goods
related services 423920 Toy & hobby goods &
stores Nonstore Retailers
Specialized Design Services 448110 Men’s clothing stores supplies
454112 Electronic auctions 423990 Other miscellaneous durable
541400 Specialized design services 448210 Shoe stores
(including interior, 454111 Electronic shopping goods
448120 Women’s clothing stores
industrial, graphic, & 454310 Fuel dealers
448190 Other clothing stores
454113 Mail-order houses
Merchant Wholesalers,
fashion design)
Electronic & Appliance Stores 454210 Vending machine operators
Nondurable Goods
Other Professional, Scientific, 424300 Apparel, piece goods, &
443130 Camera & photographic 454390 Other direct selling
& Technical Services supplies stores establishments (including notions
541800 Advertising & related 443120 Computer & software stores door-to-door retailing, frozen 424800 Beer, wine, & distilled
services food plan providers, party alcoholic beverage
443111 Household appliance stores
541600 Management, scientific, & plan merchandisers, & 424920 Books, periodicals, &
443112 Radio, television, & other
technical consulting services coffee-break service newspapers
electronics stores
541910 Market research & public providers) 424600 Chemical & allied products
opinion polling Food & Beverage Stores 424210 Drugs & druggists’ sundries
541920 Photographic services 445310 Beer, wine, & liquor stores Transportation & 424500 Farm product raw materials
541700 Scientific research & 445220 Fish & seafood markets Warehousing 424910 Farm supplies
development services 445230 Fruit & vegetable markets 424930 Flower, nursery stock, &
541930 Translation & interpretation 481000 Air transportation
445100 Grocery stores (including florists’ supplies
services supermarkets & convenience 485510 Charter bus industry
424400 Grocery & related products
541940 Veterinary services stores without gas) 484110 General freight trucking,
424950 Paint, varnish, & supplies
541990 All other professional, 445210 Meat markets local
424100 Paper & paper products
scientific, & technical 445290 Other specialty food stores 484120 General freight trucking,
long distance 424700 Petroleum & petroleum
services products
Furniture & Home Furnishing 485210 Interurban & rural bus
Stores transportation 424940 Tobacco & tobacco products
Real Estate & Rental & 424990 Other miscellaneous
442110 Furniture stores 486000 Pipeline transportation
Leasing 442200 Home furnishings stores 482110 Rail transportation
nondurable goods
Real Estate Gasoline Stations 487000 Scenic & sightseeing
transportation Wholesale Electronic Markets
531100 Lessors of real estate 447100 Gasoline stations (including
485410 School & employee bus and Agents & Brokers
(including miniwarehouses convenience stores with gas)
& self-storage units) transportation 425110 Business to business
531210 Offices of real estate agents General Merchandise Stores 484200 Specialized freight trucking electronic markets
(including household moving 425120 Wholesale trade agents &
& brokers 452000 General merchandise stores
531320 Offices of real estate vans) brokers
Health & Personal Care Stores 485300 Taxi & limousine service
446120 Cosmetics, beauty supplies, 485110 Urban transit systems 999999 Unclassified
531310 Real estate property
& perfume stores establishments (unable
managers 483000 Water transportation
446130 Optical goods stores to classify)
531390 Other activities related to 485990 Other transit & ground
real estate 446110 Pharmacies & drug stores passenger transportation
446190 Other health & personal care 488000 Support activities for
Rental & Leasing Services stores transportation (including
532100 Automotive equipment rental motor vehicle towing)
& leasing
Motor Vehicle & Parts Dealers
Commercial & industrial 441300 Automotive parts, Couriers & Messengers
machinery & equipment accessories, & tire stores 492000 Couriers & messengers
rental & leasing 441222 Boat dealers
441221 Motorcycle dealers