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Pretax Rate of Return
(redirected from Pre-Tax Return)

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Pretax rate of return
Gain on a security before taxes.

Pretax Rate of Return
The rate of return on an investment before capital gains or other taxes. Most of the time, when one sees a calculation of the rate of return it is the pretax rate of return. For a tax-free investment, the pretax and post-tax rates of return are identical.


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Portfolio A reports a pre-tax return of 12 percent and Portfolio B reports a pre-tax return of 10 percent.
58) In particular, as a result of the existence of the corporate income tax, the UBIT is necessary in order to prevent a tax-exempt entity from shifting resources away from widely-held corporations and towards business ventures controlled by the tax-exempt entity in situations in which the pre-tax return accruing to resources used by the widely-held corporation is greater than the pre-tax return accruing to resources used by a business controlled by the tax-exempt entity.
1 billion for the first three quarters of the outgoing year with the Pre-tax Return on Assets of 1.
 
 
 
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