# Debt Service Cash Tax Formula Basis

Show how a lender-defined cash-tax adjustment changes debt-service coverage without asserting one universal formula.

## Scope
Preparation and review only. No account action or professional decision.

## Inputs
EBITDA, cash taxes, principal due, interest due, period and lender-defined formula.

## Workflow
1. Record the exact formula policy from the lender or reviewer.
2. Distinguish EBITDA proxy from actual cash flow.
3. Calculate supplied EBITDA-only and cash-tax-adjusted illustrative bases separately.
4. Return policy-sensitive results without credit advice or covenant certification.

## Output contract
period | EBITDA | cash_taxes | principal | interest | basis | illustrative_DSCR | hold

## Fictional acceptance test
Fictional EBITDA 120,cash taxes20,principal30,interest20 produce2.4 on EBITDA/(principal+interest) and2.0 on (EBITDA-cash taxes)/(principal+interest). Unknown covenant policy prevents a compliance verdict.

## Review gates
Keep original values, source IDs and version dates. Unknown facts stay held. Use qualified review for hiring, legal and accounting conclusions. No send, share, sign-in, scheduling, ledger change or payment. Fictional contract review is not a live account compatibility test.

## Method source
https://corporatefinanceinstitute.com/resources/commercial-lending/debt-service-coverage-ratio/

Checked October 13, 2026. Oct13 live AIS Search Console: marketing Copilot37 impressions, Planable/Claude43, Planable/ChatGPT24, campaignbrief12, investoragent19, MuseIndia103. Social calendar/reporting topics follow parent-query leads; other professions follow documented workflow needs, not measured exact intent. Site impressions are not monthly volumes; exact topic volume is unmeasured.