After-Tax Return

After-Tax Return

The return on an investment after any applicable taxes on it are paid. For example, if one sells a house for $100,000 but owes $25,000 in taxes from the sale, the after-tax return on the house is only $75,000. The amount of the after-tax return may vary on the same investment depending on whether one owes income tax or capital gains tax. It should not be confused with the after-tax value, which is similar but is not contingent on the sale of an asset or the closing of an investment.
References in periodicals archive ?
seek to increase the value of UBS by achieving a sustainable, after-tax return on equity of a minimum of 20% (UBS previously targeted a range of 15-20%)
2 billion, up 9 percent compared with 1999; after-tax return on sales was 2.
4 billion, up 9 percent compared with 1998; after-tax return on sales was 3.
20 /PRNewswire/ -- The Vanguard Group is expanding its online investor toolkit with the introduction of an after-tax return calculator to its popular website (www.
6 billion, up 12 percent from year ago levels, with after-tax return on sales for the quarter at 3.
The project will generate an after-tax return on investment of about 26% with a payback period of less than three years.
Vanguard shareholder reports will devote a full page, titled "A Report On Your Fund's After-Tax Return," to comment on a fund's pretax and after-tax performance, accompanied by the following graphical depiction of the returns:
While unnerving, the volatility highlighted an important opportunity for smart investors: to employ strategies aimed at minimizing their tax bills, thereby improving after-tax return potential.
Gold's 12% annual pretax return over the past decade declines to less than 10% on an after-tax basis, but if the gold investment had been classified as a capital asset and taxed at a 15% capital gains rate, the after-tax return would have been nearly 11 %.
The bank would also review pay practices to boost profitability, as well as setting a roadmap to increase its after-tax return on equity to at least 12 percent by 2015, from 8.
The findings clearly illustrate what Lipper articulated in their report--that it's not a fund's total return that matters but the after-tax return that you pocket.