How is the performance of an investment typically assessed for tax purposes?

The performance of an investment for tax purposes is typically assessed after accounting for taxes. This means that the net return, which considers taxes owed on realized gains, is what's ultimately important when evaluating how an investment has performed from a tax perspective. It highlights the fact that investors need to understand the impact of tax liabilities on their overall returns, especially when making decisions about buying or selling investments.

Gross revenue does not provide a complete picture because it does not take into account the taxes that will ultimately reduce the investor's take-home return. Similarly, projections of future gains focus on potential returns rather than realized gains or the tax implications of those gains, which are important for actual performance assessment. Lastly, while comparing an investment to peer investments can provide insight into relative performance, it does not address the unique tax liabilities that may affect an investor's specific tax situation. Therefore, the most accurate assessment for tax purposes is indeed based on net returns after accounting for taxes, which is represented by the correct answer.