Amount by which total income on an investment is reduced due to taxes. Calculating tax drag is important for evaluating tax-sheltered vs. non-tax-sheltered investment vehicles or strategies, and is important as well for wealth management or estate planning.
Related information about tax drag:
- Tax Drag Definition | Investopedia
The reduction of potential income due to taxes. Drag describes the loss in returns owing to taxation, usually on an investment. Tax drag is commonly used when ...
- What is tax drag? definition and meaning
Definition of tax drag: Amount by which total income on an investment is reduced due to taxes. Calculating tax drag is important for evaluating tax-sheltered vs.
- Tax Drag Definition, Example & Formula | InvestingAnswers
We explain the definition of Tax Drag, provide a clear example of the formula and explain why it's an important concept in business, finance & investing.
- The Tax Drag Dilemma | On Wall Street
Jul 1, 2012 ... Advisors need to address asset location strategies for their clients.
- The Hidden Tax Burden of MLP ETFs
Jul 24, 2012 ... In other words, because of its classification as a C corporation, for every dollar that a non-RIC MLP fund earns, there is a 35-cent “tax drag” that ...
- Learn how taxes can reduce your investment returns
Learn about the effect of taxes on investment returns in a long-term mutual fund account.
- The Advantages of Tax-Managed Investing
a fourth of the tax drag, 26% of that 32% paid in taxes, is due to dividends paid on the underlying stocks (see. Exhibit 1). Even this is not the entire story, because ...
- The Importance of Tax-Efficient Investing
Jan 14, 2011 ... Periodically rebalancing your portfolio to maintain your strategic asset allocation will cause additional tax drag on returns, to the extent you ...