Nonfarm proprietors' income
Nonfarm Proprietors' Income consists of the income that is received by nonfarm sole proprietorships and partnerships and the income that is received by tax-exempt cooperatives.The national estimates of nonfarm proprietors' income are primarily derived from income tax data. Because these data do not always reflect current production and because they are incomplete, the estimates also include four major adjustments--the inventory valuation adjustment, the capital consumption adjustment, the "misreporting" adjustment, and the adjustment for the net margins on owner-built housing. The inventory valuation adjustment offsets the effects of the gains and the losses that result from changes in the prices of products withdrawn from inventories; this adjustment for recent years has been small, but it is important to the definition of proprietors' income. The capital consumption adjustment changes the value of the consumption, or depreciation, of fixed capital from the historical-cost basis used in the source data to a replacement-cost basis. The "misreporting" adjustment adds an estimate of the income of sole proprietors and partnerships that is not reported on tax returns. The adjustment for the net margins on owner-built housing is an addition to the estimate for the construction industry. It is the imputed net income of individuals from the construction or renovation of their own dwellings. The source data necessary to prepare these adjustments are available only at the national level. Therefore, the national estimates of nonfarm proprietors' income that include the adjustments are allocated to states, and these state estimates are allocated to the counties, in proportion to tax return data that do not reflect the adjustments. In addition, the national estimates include adjustments made to reflect decreases in monetary and imputed income that result from damage to fixed capital and to inventories that is caused by disasters, such as hurricanes, floods, and earthquakes. These adjustments are attributed to states and counties on the basis of information from the Federal Emergency Management Agency.
Related Data Tables
For estimates relating to Nonfarm proprietors' income please see the following tables
- In the annual state personal income and employment category: SA04 SA05 SA05H SA05N SA30
- In the county annual personal income and employment category: CA04 CA05 CA05N CA30
- In the quarterly state personal income category: SQ4 SQ5 SQ5H SQ5N