And you could guess what the next line is going to be, given that this says pre tax.

Please pay the tax.

And of course the difference is the money that he had to spend on tax.

You're left with 500,000 of pre tax income.

Once you subtract that out, then you actually have your pre tax income, and if we assume that we have to pay taxes, this is how much we pay in taxes, and this is actually the net income that goes to the owners of the company.

A 10 tax will be withheld from the payment to you.

And I normally have to pay 30 .

Well I'll save 30 of this.

In general, there are three types of taxes value added tax (VAT)

The taxes names have my uncles in seizure... the castle had be sold.

Whoever spends 3000 Euros will be taxed for 17 of the total amount.

Please pay the tax on the items over there.

You will pay for that life, or you will pay with yours.

The total amount including tax is 1500 per person... ...estimate included.

That's a lot.

The IRS might consider that to be income

Because the money he spends is the money that pays everything else.

When we did return on asset, we looked at the operating profit, because this is what our company generated before we paid the bank or Uncle Sam or anything like that.

And so his pre tax income is now 30 plus 2 minus 5 is 27,000.

So I'm not getting interest there.

Both elements in the parse tree that are involved in the transaction.

From this point onwards there will be a progression.

You might as well come. You're paying for it.

So you take the interest out.

Whoever pays 2000 Euros will have contributed 1000 Euros in taxes.

And we were to add back the taxes and the interest.

actually I have to pay a little bit more than that, but we're getting a little bit of income tax savings on the deduction on the property taxes.

And the payments?

Did you pay the taxes?

The mortgage payment, we calculated that before, using our mathematical knowledge of geometric series.

Minus 500,000.

McMansion for me.

And then, let's just say they're in the Caribbean and they don't have to pay taxes.

A basic income points in the same direction.

I've got to pay taxes now?

You're being wellpaid.

You might want to watch the videos on present value.

Because some of them have paid, and some of them are still paying.

Payment

Pay up

And then year 10, I pay the 100,000 plus I pay back the 1 million.

And the reason they didn't grow by that amount is because we actually ended up having to pay taxes on some of that.

So who knows?

In this example that I did in the previous video, it was the pre tax return on asset.

I bought that one for 600. I'll use it for 6 weeks.