After-Tax Return

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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 ?
One constant concern of financial planners is how to maximize not just investment returns, but also after-tax returns. Sid Kess provides a guide to retirement accounts with advice on when and how to use each for the most tax-efficient investment approach.
The platform will help advisors minimize their clients' taxes and maximize their after-tax returns. The integration uses the Tamarac open API to integrate Tamarac information into LifeYield's software, which provides financial analytics for tax efficiency.
Individual tax reductions therefore increase savers' after-tax returns while business tax reductions lower the cost of capital.
Pre-tax and after-tax returns on average equity were 29pc and 18.7pc respectively.
"It's after-tax returns that make the difference," said Pape.
Pre-tax and after-tax returns on equity reach at 22.6 percent and 14.8 percent respectively; whereas pre-tax and after tax return on assets are at 1.5 percent and 1 percent respectively.
Based on the average annualized difference of after-tax returns, this cost would have been recovered by the performance differential in the first year.
The study finds that tax-efficient funds have tended to outperform other funds with respect to both before-tax and after-tax returns.
Taxation is a dry, yet critical, topic for any investor who seeks maximum risk-adjusted and net after-tax returns in the low-return investment environment that many of us--including the IMF and World Bank--anticipate in the future.
This article examines opportunities for gold investors to substantially increase their after-tax returns via an IRA.
Normal after-tax returns have averaged approximately 1 percent of transaction reserves.