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Charging an asset amount to expense or loss, such as through the use of depreciation and amortization of assets.


A reduction in an individual's or a company's income as the result of an expense. For example, an unpayable credit sale may be a write-off for the creditor, especially if the debtor declares bankruptcy. The bankruptcy means that the debtor is unable to pay the debt, which results in a loss of income for the creditor. A write-off may usually be deducted from one's taxable income.


To take an asset entirely off the books because it no longer has any value.If an accrualbasis taxpayer has taken money into income when bills were sent out to customers,but then some of the bills became uncollectible, the taxpayer may write off the uncollectible ones as a deduction against income. Financial institutions are required to write off loans when they become delinquent by a certain amount.

References in periodicals archive ?
As a percent of total loans and leases, total net charge-offs have fallen from about 0.
Some of the industries which had higher charge-off rates for franchises than for total SBA charge-off rates included gift/novelty, sporting goods, automobile related, and hobby/toy segments (Note: These industries were singled out only if they had a minimum of $10 million in franchise disbursals).
1933), addressed the specific charge-off requirement and noted that Congressional intent was to allow a deduction for business bad debts in the year in which ascertained worthless, provided there was "some specific act of the taxpayer clearly indicating their abandonment as assets.
Notably, the Service rejected requests for deemed charge-off relief when a taxpayer acquired, at a discount, debt that had been charged off previously (i.
For this large subset of banks, seasonally adjusted charge-off and delinquency rates for the major types of loans commercial and industrial, real estate, and consumer--rose through the first half of 1991.
The amount of the deemed charge-off is the amount by which the MDI's tax basis exceeds the greater of its fair market value (FMV) or the amount of the debt recorded on the bank's books and records (reduced as appropriate by specific loan loss allowances).
For the banking system as a whole, the net charge-off rate on all loans rose from 0.
In a regulatory filing, the McLean, Virginia-based company said that the annual net charge-off rate, or the percentage of loans the company believes won't be repaid to total managed loans, rose to 9.
The projected increase in the provision for loan loss expense for the fourth quarter is the result of the sale or charge-off of various non- performing and adversely classified loans.
Net charge-off rates (charge-offs less recoveries as a percentage of total loans) and past due rates (loans past due 90 days or more and nonaccruing loans as a percentage of total loans) are calculated for the nonbank subsidiaries engaged in commercial finance, mortgage banking, consumer finance, and leasing that reported values of more than zero for loans and leases.
Asset Quality The overall charge-off rate resumed its upward climb last year, after falling somewhat in 1987.
Now debtors can make payments, self-cure delinquent accounts or self-settle charged-off accounts 24 hours a day, seven days a week, by utilizing Apollo's web-hosted solutions - IDS Pay[TM] for current account payments, IDS Collect[TM] for delinquent account collection and IDS Recover[TM] for post charge-off recovery.

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