Cash flow before tax, what taxes are we talking about ?

Hi all !

Just a quick question to make sure I'm not mistaken, I've seen several websites talking about Cash on Cash returns with the calculation of CFBT / Cash invested

Before taxes means before the taxes of the investor's revenue, right ? But this amount includes property taxes ?

He's how things look in my messed up head:

Gross potential income
- Vacancies/bad debt
Gross operational income
- Maintenance (doesn't include improvement capex)
- Property taxes
- Insurance
Net Operating Income
- Improvement capex ?
- interests
- debt amortization
Cash flow before taxes

And investor calculate their cash on cash return and IRR based on those yearly CFBT, right ?

Also, I guess most investors (like RE PE firms) use a company to buy RE assets. Therefore, they pay a normal corporate tax rate on those cash flows, + additional taxes when they transfer those cash flows from the company to their personal accounts (through dividends/wages/or whatever), no ?

In advance, many thanks for you help/corrections if I'm wrong :)

 

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