Before-Tax Basis

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Before-Tax Basis

Any calculation that does not account for either income taxes or capital gains taxes. The before-tax basis is not as useful as the after-tax basis for arriving at an accurate figure, particularly given the fact that some investments are tax-exempt. See also: Pretax contribution.
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Thus, favorable financing is a Class V asset, and will be allocated tax basis up to its FMV before tax basis is allocated under the residual method to any Sec.