Appendix C: 2007 Data Including Returns with Losses

Distribution of Returns with Proprietor or Pass-through Income or Loss
Percent with Sole Proprietor income or loss Percent with S corporation/partnership income or loss
No liability 20.3% 5.1%
5.35 percent bracket 15.5 4.0
7.05 percent bracket 15.3 7.5
7.85 percent bracket 20.1 31.0
All filers 16.5 7.6
9.25 percent bracket ($250,000) 23.6 48.7
9.0 percent bracket ($300,000) 23.2 51.4
Distribution of Income by Income Type for Returns with Proprietor or Pass-through Income or Loss
FAGI Sole proprietor income S corporation/partnership income
No liability 1.7% 7.0% (9.4%)
5.35 percent bracket 14.2 20.8 1.4
7.05 percent bracket 47.9 37.4 10.3
7.85 percent bracket 36.3 34.8 97.7
9.25 percent bracket ($250,000) 23.7 20.1 82.3
9.0 percent bracket ($300,000) 21.7 16.6 79.2
Pass-through Income as a Percent of FAGI for Returns with Proprietor or Pass-through Income or Loss
Sole Proprietor income or loss as a percent of FAGI S corporation/partnership income or loss as a percent of FAGI
5.35 percent bracket 21.7% 10.5%
7.05 percent bracket 12.4 13.5
7.85 percent bracket 10.6 29.8
All filers 13.6 24.4
9.25 percent bracket ($250,000) 8.6 30.4
9.0 percent bracket ($300,000) 7.8 30.9
Percent of Returns with Proprietor or Pass-through Income Greater than 20 percent of FAGI, Returns with Proprietor or Pass-through Income or Loss
Sole Proprietor income or loss greater than 20 percent of FAGI S corporation/partnership income or loss greater than 20 percent of FAGI
5.35 percent bracket 5.9% 1.3%
7.05 percent bracket 3.1 2.1
7.85 percent bracket 4.3 14.9
All filers 5.7 2.7
9.25 percent bracket ($250,000) 4.5 23.7
9.0 percent bracket ($300,000) 4.1 25.9

The content of this and any related posts has been copied or adopted from the Minnesota House of Representatives Research Department’s Information Brief, Taxation and Small Businesses in Minnesota, written by legislative analysts Nina Manzi and Joel Michael.

This post is also part of a series of posts on the tax implications of different business entity types.