After-Tax Basis
Barron's Business Dictionary:
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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. So any nontaxable municipal bond paying higher than 5% would yield a higher after-tax return.
| After-Acquired Property, After-Acquired Clause, Affreightment | |
| After-Tax Cash Flow, After-Tax Equity Yield, After-Tax Proceeds From Resale |
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After-Tax Basis
Investopedia Financial Dictionary:
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After-Tax Basis
The basis for weighing the performance of two investments against each other after taxes have been factored into the equation.
Investopedia Says:
After-tax basis calculations are often used to compare yields between taxable bonds, such as corporate securities, and tax-exempt municipal bonds. The taxable equivalent yield is the yield an investor would have to earn on a taxable investment in order to match the tax-exempt return of a municipal bond. Variations of the taxable equivalent yield formula can be used to compare government bond yields, which are taxable at the federal level but not subject to state taxes, with municipal and corporate securities.
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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