write-off

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Write-off

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

Write-Off

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.

write-off

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 ?
Since 1984, courtesy of Congress, Alaska's native corporations have been the only ones allowed to sell their losses to businesses seeking tax write-offs.
In fact, the companies that enjoyed the biggest tax write-offs actually performed the worst.
Accountants will tell you they can usually find enough tax write-offs (especially on a self-employed person's returns) to more than pay for the cost of their fees.
The Company was able to secure financing without diluting shareholders interest, while the investors received tax write-offs of $16 million over two years.