Dictionary of Business Terms: after-tax proceeds from resale
after-tax proceeds from resale
the amount of money left for the investor after all obligations of the transaction, and personal income taxes on the transaction. For example:
Dictionary of Real Estate Terms: after-tax proceeds from resale
after-tax proceeds from resale
the amount of money left for the investor after all obligations of the transaction and after personal income taxes on the transaction.
Example: Table 1.
| TABLE 1 | |
| AFTER-TAX PROCEEDS | |
| Resale price | $1,300,000 |
| Less: Transaction costs | - 100,000 |
| Outstanding mortgage | - 900,000 |
| Tax on gain | - 180,000 |
| After-tax proceeds from resale | $ 120,000 |
