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 ?
Pre-tax and after-tax returns on average equity were 29pc and 18.
It's after-tax returns that make the difference," said Pape.
He also said the link between taxes and output in the economy, according to Joint Committee on Taxation, can directly influence the level of labor supply, physical capital, human capital, and technology in an economy by changing the after-tax returns to certain economic activities or changing the cost of pursuing them.
Clients' TSI accounts can be monitored frequently for tax-loss harvesting opportunities, which can lead to greater savings over time and better after-tax returns.
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.
Therefore, to maximize after-tax returns, a tax-efficient vehicle for gold investments becomes critical.
For many, optimizing after-tax returns begins by consulting with an advisor to discuss the concept of "asset location," a strategy to determine which assets in the portfolio should be located in taxable vehicles and what portion should be tax-deferred.
Ball expects that the after-tax returns of the acquired operations will surpass its return requirements, it added.
The results are similar for after-tax returns, although the non-significant category changes to Corporate Bonds and Government Bonds becomes significant.
In essence, this reduces the manager's after-tax returns by the amount of gains generated due to the inadequate tool.