Taxation of a real estate investment is a critical metric and needs to be calculated.  Taxes should be considered on a real estate investment because they significantly impact an investor’s overall returns and cash flow. Tax implications influence income after taxes, which determines the true profitability of the investment. By understanding taxes, investors can take advantage of deductions, depreciation, and other benefits to reduce taxable income. Additionally, considering taxes helps in accurately assessing the investment’s risk and potential gains, enabling better planning for future sales or refinancing. Ignoring tax effects might lead to overestimating returns, resulting in less informed decisions and unexpected liabilities. Therefore, factoring in taxes ensures a realistic evaluation of the investment’s financial performance.