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.
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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.
Increasing the tax efficiency of an investment portfolio allows the investor to increase after-tax returns without assuming additional risk.
Completion of the deal is expected before year-end and is part of the firm's broader growth strategy which involves acquisition of long-term revenue-generating projects with low operational costs to generate predictable future cash flows and attractive after-tax returns.
The primary goal of the funds is to generate superior, long-term after-tax returns though the purchase and sale of stocks and bonds of companies in the US and emerging markets that have limited downside risk, but substantial appreciation potential.
Exhibit 1 shows that after-tax returns from electing out of the installment sale method decrease as the length of the note increases from two to 10 years.
To help investors assess mutual fund performance, the SEC recently required the disclosure of mutual fund after-tax returns (SEC Release Nos.
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.
As a result, there was a material increase in supply of tax equity in 2014; however, tax equity investors after-tax returns held steady.
Therefore, to maximize after-tax returns, a tax-efficient vehicle for gold investments becomes critical.
The results are similar for after-tax returns, although the non-significant category changes to Corporate Bonds and Government Bonds becomes significant.
Considering after-tax returns, building an "efficient" portfolio, and investing for the long-term have proven to be a winning strategy.