Before-Tax Basis

Before-Tax Basis

Any calculation that does not account for either income taxes or capital gains taxes. The before-tax basis is not as useful as the after-tax basis for arriving at an accurate figure, particularly given the fact that some investments are tax-exempt. See also: Pretax contribution.
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The company estimates the impact to its statutory reserves will be approximately $200M on a before-tax basis, covering both its active life and claim reserves for long-term care for all its legal entities.
We believe 4QFY16 earnings, estimated at PRs3.2/sh,(5% QoQ jump expected on before-tax basis) along with announcement of 2nd interim dividend of PRs4/sh (FY16E: PRs6.5/sh) can serve as a strong trigger.
This is thanks to tax provisions that begin this year and allow the cost of qualified long term care to be covered using the cash value of life insurance and annuity contracts on a before-tax basis. Baker says new "doublers" payout features on some linked or combination contracts make them especially appealing.
To summarize the difference between the two, first note that if a taxpayer has $4,000 to invest on a before-tax basis, Roth IRAs and traditional IRAs are actuarially equivalent, assuming no change in tax rates.
Now the opportunity to move dollars out of the corporation on a before-tax basis has to be balanced against my asset protection strategy.
As a performance measurement, return on assets is defined as the percentage of operating profit to total net assets, calculated on a before-tax basis for operating profit.
(79) On a before-tax basis, it breaks even, but after-tax it yields 4 percent.
As shown in Exhibit 1, these costs are composed of operations expenses like obsolescence, warehousing, pilferage, insurance, and taxes--all of which are stated on a before-tax basis. The cost of capital is 9 percent and is the after-tax weighted average cost of capital.
It is relatively straightforward to compare the ex post performance of TIPS with conventional Treasury debt on a before-tax basis. The Fisher hypothesis suggests that the nominal yield on conventional debt will compensate for anticipated inflation, thereby providing an acceptable real yield.
Using either the direct or indirect method, the $108,000 NGFO under SFAS 95 is penalized by $12,000 of income tax payments on the $30,000 plant disposal gain, and the $100,000 plant, disposal proceeds are reported on a before-tax basis as an investing inflow.
The authors show theoretically that the rate of return on a mortality swap is equal to the risk-free rate on a before-tax basis, but exceeds on an after-tax basis.
If you are familiar with it, you might want to calculate the firm's WACC on a before-tax basis and compare it to the return-on-asset numbers.