In the United States, it is common practice to perform all projections on a before-tax basis. This is because no two real estate investors’ tax situation is the same, and so to properly make apples-to-apples comparisons we look at opportunities pre-tax. This is also why when using PV to value real estate, it is done on unlevered cash flows. Because no two investors’ financing structures are exactly the same.
With all of that said. We have included a basic ‘After-Tax’ returns module in the All-in-One for those who want to try to estimate returns post-tax.
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