Tax basis
In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes.
In the context of investments, the price of a stock or bond plus the broker's commission.
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
The ratio of net income to net sales.
The tax basis of the new bonds will be their cost (the price paid for the bonds).
Aftertax Basis
It is the basis for comparing the return of a tax-free bond to a corporate bond. 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.
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.
Contributions can be made to retirement accounts on a pre-tax basis or after taxes have already been paid.
Contributions from an employer or employee may be made on a pre-tax basis through an employer.
In general, the voluntary contribution is made on what is known as an after-tax basis. Essentially, this creates a situation where the employee can defer tax on any future earnings that may come about from the contributed amount.
Your 401(k) contributions are made on a pre-tax basis. This means that they aren't reported to the Internal Revenue Service as current income on your W-2 form to the Internal Revenue Service.
A deferred contribution plan set up by an employer that allows employees to deduct a portion of their salary from their paycheck to be set aside for retirement on a pre-tax basis.
The taxable return that must be achieved in order to equal, on an aftertax basis, a given tax-exempt return. Equivalent taxable yield is calculated by dividing the available tax-exempt yield by one minus the investor's marginal tax rate.
A commission increases the tax basis of the purchased security (thereby reducing the eventual capital loss or gain). In 1975, deregulation led to the creation of discount brokers, who charge lower commissions than full service brokers.
A merger or consolidation in which (1) the acquirer`s tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree`s, ...
Definition: A deferred tax liability occurs when a company underpays its taxes due to a difference between how it accounts for an asset on its books versus how it accounts for it on a tax basis.
Since preferred stock is considered an equity security, the dividends paid on preferred are taken on an after-tax basis, just like common stock.
A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis.
There is a quick and dirty way to look at how a municipal bond compares with a stock on an after-tax basis (which, after all, is the only basis that matters).
Do the Math ...
To many high tax brackets investors, municipal bond investing is a great investment on an after-tax basis because interest payments are usually exempt from both federal income taxes and state taxes if investors reside in the issuing state.
Contributions are made on the basis of a percentage of their income on a pretax basis and the annuity earns tax-deferred income until retirement. There are restrictions on withdrawals and contribution levels set forth in the U.S.
In the cases where bonds are purchased in the secondary market at a discount or a premium, on the sale of the bond the premium and the discount affect the bond holder’s tax basis for the purposes of calculating the capital gain or capital loss.
Because of these tax savings, the yield on a muni is usually lower than that of a taxable bond. Depending on your personal situation, a muni can be a great investment on an after-tax basis.
Corporate Bonds ...
 See also: Basis, Investment, Income, Account, Interest
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