Can anyone help with LBO modeling? "How do you account for the "bonus" depreciation in an LBO?

This is for all the modeling pros out there who can help.

In a full 3-statement LBO model, how do you take into consideration the "bonus" depreciation until 2023 introduced by the tax reform? (i.e., 100% of Capex incurred)

From what I understand, GAAP depreciation was not affected so the Income Statement does not reflect the change... Do you create a separate schedule and reflect the difference as DTL in the bs/cf?

 

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