Question
When calculating the net return on an investment, the following are subtracted from the gross return figure: capital gains tax, inflation and broker's commission GST, capital gains tax and sales tax broker's commission GST, and capital gains tax Inflation, and capital gains tax
Solution
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(295 Votes)
Orion
Professional ยท Tutor for 6 years
Answer
The correct answer is:**capital gains tax, inflation, and broker's commission**### Explanation:When calculating the **net return** on an investment, you start with the **gross return** (the total return before any deductions) and subtract various costs or factors that reduce the actual return. These include:1. **Capital Gains Tax**: Taxes paid on profits from the sale of investments.2. **Inflation**: The reduction in purchasing power over time, which erodes the real value of returns.3. **Broker's Commission**: Fees paid to brokers for facilitating the buying and selling of investments.These factors are typically considered when determining the net return because they directly impact the investor's actual profit.