BEFORE-TAX CASH FLOW (BTCF)
- Annual debt service was the last adjustment needed to calculate before-tax cash flow (BTCF). some points to keep in mind about before-tax cash flow are the following:
- Unlike earlier uses of the term cash flow to lean money simply as income or out-lay, before-tax cash flow is an indicator of financial health.
- The before-tax cash flow figure is the owner’s income before taxes are considered. Once the BTCF is known, the owner can decide whether to reallocate part of cash flow to the property.