An after-tax ROI overlay is a deal-level analysis that shows how tax strategy changes a buyer’s actual return on a property. Instead of stopping at pre-tax NOI and cap rate, the overlay incorporates tools like cost segregation, Section 179D, 1031 exchanges, and other incentives to show the buyer’s expected after-tax cash flow and yields.

For owners and brokers, this becomes a way to talk about value in the language serious investors care about: after-tax cash returns, not just income on paper.

Two buyers can look at the same NOI and see very different outcomes once taxes are involved. High-tax investors, 1031 exchangers, and long-term holders all evaluate deals through their own after-tax lens. When you present only pre-tax numbers, you leave that story for them to guess—or worse, to underestimate.

An after-tax ROI overlay quantifies the impact of depreciation, deductions, and deferrals on a specific deal. It helps buyers see why your pricing is reasonable, why the structure is attractive, and why your property might outperform other options once taxes are accounted for.