After-tax Basis
After-tax Basis definition :
The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond.
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after-tax basis
basis for comparing the returns on a corporate taxable bond and a municipal tax-free bond. For example, a corporate bond paying 10% would have an after-tax return of 7.5% for someone in a 33% tax bracket.
AFTER-TAX BASIS - The comparison basis used to analyze the net after-tax returns on a corporate taxable...
AFTER-TAX CASH FLOW - The net proceeds from an income-producing property, after all costs (taxes, mortg...
After-Tax Basis
The basis for weighing the performance of two investments against each other after taxes have been factored into the equation.
Equity See stock Equivalent taxable yield The taxable return that must be achieved in order to equal, on an after-tax basis, a given tax-exempt return.
after-tax basis The standard used to compare rates of return between a corporate taxable bond and a municipal tax-free bond. after-tax contributions Any kind of Contributions to a retirement plan which are subject to federal income tax.
For ordering purposes, withdrawals are first treated as coming from regular contributions (which are not taxed since you made the contributions on an after-tax basis); ...
The cost of capital is the minimum acceptable rate of return (usually on an after-tax basis) required by the management of the firm to be earned by a capital expenditure. In making this determination, the level of risk is considered.
See: Secondary market.
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 profit margin ...
Roth 401k plans are similar to traditional 401k plans except that workers contribute wages on an after-tax basis. These contributions are invested, and the worker pays no tax when he begins receiving distributions.
After-Tax Basis (business term)
Thrift Plan (insurance term)
Adjusted Basis or Adjusted Tax Basis (business term)
Adjusted Tax Basis
Acquisition Cost (finance term)
Bargain Sale (insurance term)
Appreciation ...
A rate of return on an investment on an after-tax basis and adjusted for inflation.
Agency. A relationship between a principal and an agent who acts on behalf of the principal in a transaction with a third party.
an after-tax basis. A business should earn at least its weighted-average
rate on the capital invested in its assets. The weighted-average cost-ofcapital
rate is used as the discount rate to calculate the present value ...
The original Bankers Trust RAROC system provided results on an after-tax basis. Today, systems typically perform calculations before tax. The 1988 Basel Accord was apparently motivated by Bankers Trust's RAROC system.
If the fund had a three-year annualized pre-tax return of 10%, an investor in the fund took home about 8% on an after-tax basis. (Because the returns are compounded, the after-tax return is actually 7.8%.) ...
The basis lets the investor know what tax-free yield is required in order to receive the equivalent or greater return of a corporate yield. In determining the after-tax basis, one needs to consider the investor's tax bracket.
Therefore, cash inflows and outflows associated with a particular investment should be carefully analyzed on an after-tax basis.
 See also: Tax basis, Capital investment, Cost of capital, Expense, Average cost of capital
  
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