Tax Shield: Definition, Formula for Calculation, and Example
Tax-efficient investment strategies are cornerstones of investing for high net-worth individuals and corporations, whose annual tax bills can be very high. Therefore, while the company paid $100,000 for the machinery, the actual after-tax cost is effectively lowered to $73,000 ($100,000 – $27,000) thanks to the depreciation tax shield. This is one of the ways companies manage their […]
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