LBO Cash Taxes
What calculation do you use for your LBO models?
Is the most recent form:
EBITDA - CapEx - D&A - Interest Expense (capped at 30% of EBITDA (through 2021) or EBIT (2022 onward) = Taxable Income
TI x state/fed?
For US Corp
What calculation do you use for your LBO models?
Is the most recent form:
EBITDA - CapEx - D&A - Interest Expense (capped at 30% of EBITDA (through 2021) or EBIT (2022 onward) = Taxable Income
TI x state/fed?
For US Corp
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Your post is confusing... capex isn't even an income statement line item.
Just calculate taxable income (book) as EBIT - Interest, then apply the effective tax rate on that total amount to get book taxes. Marginal tax rate is only on next dollar basis.
The above is GAAP so get to cash taxes you need to add-back D&A that wasn't tax deductible as well as other non-recurring adjustments that weren't tax deductible to get the cash tax basis and then apply the tax rate to get cash taxes.
Section 179
I think he’s referencing the temporary bonus capex deduction
Is the 30% cap of ebitda also applicable in europe or is this a us thing?
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