The purpose of the Tax Schedule is to calculate cash taxes on a levered basis for use in the free cash flows schedule. With increasing complexity of the tax code (particularly the Tax Cuts and Jobs Act of 2017 in the U.S.) – this is no longer as straightforward an exercise as it was in the early days of PE. We now need additional sub-schedules in our tax schedule to calculate:
Tax Deductible D&A, including any Bonus Depreciation available to us
Limitations on Tax Deductibility of Interest Expense incurred
Net Operating Losses – creation, usage, and limitation on their use
The table below presents the summary schedule for Levered Cash Taxes and the linkages in and out across the six core schedules:
![tax summary table](/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2Fskujqwe3kdjo%2F2aG2IPj95XY9Tp8mQ2V4gs%2F4ab5a1eccd0e6731a9b94140ee7a1416%2F8-tax-sum.png&w=3840&q=75)