Given the same expectations for future rents and expenses,a new buyer may earn a different after-tax return than the current owner of the same property.

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Quizplus · Accepted Answer

This is because the new buyer may have different financing terms and tax rates, which would affect their after-tax return. Additionally, the current owner may have already depreciated the property, while the new buyer would have a fresh depreciation schedule, also affecting their after-tax return.

Given the Same Expectations for Future Rents and Expenses,a New