Are Your Expenses "Average?"

Column by Barbara Weltman

The IRS's Statistics of Income Bulletin describes the percentage of total deductions for each type of expense for non–farm sole proprietors (for 2001, the most recent year for which statistics are available). See how you compare with the averages. Here are the largest expenses (as a percentage of total deductions):

• Salary and wages — 14.6%
• Car and truck expenses — 10.9%
• Rent on business property, machinery and equipment — 7.7%
• Depreciation — 7.7%
• Supplies — 5.3%
• Utilities — 4.7%
• Taxes paid — 3.3%
• Insurance — 3.3%
• Commissions — 2.8%
• Repairs — 2.8%

Find more statistics

For additional statistics on sole proprietorship returns, visit the IRS web site.

Back to top

LIMITATIONS. The information contained in this article is for general guidance. Such information is provided on a blind-basis, without any knowledge as to your industry, identity, or specific circumstances. The application and impact of relevant laws will vary from jurisdiction to jurisdiction. There may also be delays, omissions, or inaccuracies in information contained in this site. The information on this site is provided with the understanding that Staples.com and its affiliated entities, and various authors and publishers providing such information are not engaged in, and that providing such information does not constitute the rendering of, legal, accounting, tax, career, or other professional advice or services. As such, information on this site should not be relied upon or used as a substitute for direct consultation with professional advisors. Please refer to our Legal Terms and Conditions for further information.