Tax after allowable costs.
A worked example
Starting figures
- Yearly rent
- $24,000
- Allowable costs
- $7,500
- Depreciation
- $4,000
- Marginal rate
- 24%
What it returns
- Tax due
- $3,000
- Taxable profit
- $12,500
- Cash profit before tax
- $16,500
- After-tax cash
- $13,500
How to read the results
With the defaults above, tax due works out at $3,000.