When one
sells an
asset, the
profit on that
sale after any applicable taxes on it are paid. For example, if one
sells a house for a $100,000 profit (after paying off the remaining
mortgage and making
realtor fees and so forth) but owes $25,000 in taxes from the sale, the after-tax proceeds from resale are only $75,000. The amount of the after-tax proceeds from re-sale may vary on the same investment depending on whether one owes
income tax or
capital gains tax.