Why tax reform could mean bigger bills for businesses

Meanwhile, there are many areas where accounting departments are struggling against the clock to interpret the meaning and implications as best they can. One cornerstone of the TCJA that has become significantly clearer is the limit on interest-expense deductions that companies can take. Meant as a way to offset the steep reduction in the corporate tax rate, the law stipulates that companies can only deduct interest expenses up to 30 percent of their tax-basis earnings before interest, depreciation and amortization.