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Updated almost 4 years ago on . Most recent reply

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Kaitie Carson
  • Rental Property Investor
  • Fernie, BC
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Cash Flow After Tax?

Kaitie Carson
  • Rental Property Investor
  • Fernie, BC
Posted

Should cash flow on a property be calculated after subtracting tax?

Tax is high in Canada ~45%, so this makes a big difference.

Thanks,

Kaitie

Most Popular Reply

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Taylor L.
  • Rental Property Investor
  • RVA
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Taylor L.
  • Rental Property Investor
  • RVA
Replied

I think that's a reasonable thing to do, but it does complicate the cash flow calculation even further. Particularly if you're using depreciation to show paper losses.

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