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Table 5.4 Required Pretax Corporate Return, R, for Corporation to Earn Same After-Tax Return as Partnership for Different Holding Periodsa (Assumes Partnership Before-Tax Return, Rp, of 10% and Corporate Dividends of 0) Required R*, for n-Year Holding Period % Period R to te tcg n=1 5 10 20 50 Pre-1981 10.0 46 70 28 7.72 7.55 7.37 7.09 6.56 1982-1986 10.0 46 50 20 11.57 11.32 11.06 10.67 10.06 1987 10.0 40 " 8 8 8 39 28 14.12 13.56 13.02 12.29 11.28 19881990 10.0 34 28 28 15.15 14.46 13.82 13.00 11.95 1991-1992 10.0 34 31 28 14.52 13.88 13.29 12.51 11.49 19931996 10.0 35 39.6 28 12.91 12.40 11.91 11.24 10.32 1997-2000 10.0 35 39.6 20 11.62 11.31 11.02 10.60 9.99 2001-2002 10.0 35 38.6 18 11.52 11.25 10.99 10.61 10.06 20032012 10.0 35 35 15 11.76 11.53 11.30 10.98 10.51 2013b-2017 10.0 35 39.6 20 11.62 11.31 11.02 10.60 9.99 2018- 10.0 21 29.6 20 11.14 10.81 10.50 10.07 9.50 2018- 10.0 21 37 20 9.97 9.70 9.44 9.07 8.55 Table 5.4 Required Pretax Corporate Return, R, for Corporation to Earn Same After-Tax Return as Partnership for Different Holding Periodsa (Assumes Partnership Before-Tax Return, Rp, of 10% and Corporate Dividends of 0) Required R*, for n-Year Holding Period % Period R to te tcg n=1 5 10 20 50 Pre-1981 10.0 46 70 28 7.72 7.55 7.37 7.09 6.56 1982-1986 10.0 46 50 20 11.57 11.32 11.06 10.67 10.06 1987 10.0 40 " 8 8 8 39 28 14.12 13.56 13.02 12.29 11.28 19881990 10.0 34 28 28 15.15 14.46 13.82 13.00 11.95 1991-1992 10.0 34 31 28 14.52 13.88 13.29 12.51 11.49 19931996 10.0 35 39.6 28 12.91 12.40 11.91 11.24 10.32 1997-2000 10.0 35 39.6 20 11.62 11.31 11.02 10.60 9.99 2001-2002 10.0 35 38.6 18 11.52 11.25 10.99 10.61 10.06 20032012 10.0 35 35 15 11.76 11.53 11.30 10.98 10.51 2013b-2017 10.0 35 39.6 20 11.62 11.31 11.02 10.60 9.99 2018- 10.0 21 29.6 20 11.14 10.81 10.50 10.07 9.50 2018- 10.0 21 37 20 9.97 9.70 9.44 9.07 8.55
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