After-tax basis

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After-tax basis

The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond.

After-Tax Basis

A comparison of net yield between taxable and tax-exempt bonds, especially corporate bonds and tax-free municipal bonds. A corporate bond yields less than its stated interest rate because of taxation, whereas a tax-exempt municipal bond does not. Thus, a municipal bond paying a lower interest rate will often net the bondholder more than a corporate bond with a slightly higher interest rate, depending upon one's tax bracket. See also: Municipals-over-bonds spread.
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In Letter Ruling 200019005,(51) the IRS ruled that when employees choose to pay long-term disability premiums under an employee welfare benefit plan on an aftertax basis, any subsequent benefits received are excludible from income under Sec.
Its objective is to provide investors with "attractive" long-term returns on an aftertax basis with a balanced portfolio of stocks and municipal bonds.
They're extremely profitable, over 15% profits on an aftertax basis, and they're a sort of Internet play too.
The rating action follows the company's third-quarter earnings release, which indicates that it will be strengthening reserves by an additional $25 million on an aftertax basis.
Another decision companies face is whether to show the components of other comprehensive income on a beforetax or aftertax basis.
Earnings per share of 46 cents (after a charge taken at Morton Automotive Safety Products which reduced earnings per share on an aftertax basis by one cent) versus 39 cents in the same quarter last year showed an 18 percent increase.
The deductible IRA contribution usually will accumulate the most funds for retirement on an aftertax basis because the taxpayer needs to contribute only $1,340 of savings to the IRA, the rest ($660) comes from tax savings--deferral.
On an aftertax basis and net of catastrophe reinsurance, these storm losses reduced 1993 earnings by $19.
This amount is computed on an aftertax basis and is adjusted to reflect the tax savings from amortizing the covenant over its contractual life.
0 million in 1996 on an aftertax basis before realized gains was the result of improved persistency and mortality, as well as from gains in both variable products and Enterprise mutual fund sales.
On an aftertax basis, income from continuing operations was $3,000 (a loss per share of $.