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Charging an asset amount to expense or loss, such as through the use of depreciation and amortization of assets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
- Almost Four Dollars of Every Hundred Becomes a Contractual Charge-off
Increase charge-off rate by 75% and reduce MPR by 35%: 'Asf'; 'BB+sf'; 'BB-sf'.
As a percent of total loans and leases, total net charge-offs have fallen from about 0.20 percent in the first quarter of 2012 to about 0.10 percent in the first quarter of 2014.
Conformity: If the insurance company elects to apply the IDD, it must apply it to the SSAP 43R credit-related impairment charge-offs of all eligible debt that is partially worthless.
* 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).
The Tax Court in Findley, 25 TC 311 (1955), stated that, in the case of a debt that has become partly worthless, the charge-off is an act "to perpetuate evidence of taxpayer's election to abandon part of the debt as an asset." While merely increasing a general reserve account without specifically identifying the debt(s) to which the reserve increase relates does not provide evidence sufficient to comply with the statute (see, e.g., International Proprietaries, Inc., 18 TC 133 (1952)), increasing a reserve account for specifically identified debt(s) that are partly worthless can constitute a charge-off for purposes of Sec.
QA I am starting the process of clearing a couple of charge-offs from my credit report, and I have drafted a letter I would like to send to my creditors stating that I will pay them a lump sum if they remove the negative listing.
"Importantly, the six-month lagged charge-off rate, which is an indicator of future charge-off trends, improved in March to 10.26 percent from 10.39 percent in February," the analyst said.
Current ratings for class A, class B, class C, and class D (charge-off steady state: 9.00%; MPR steady state: 17.00%): 'AAAsf'; 'AAsf'; 'Asf'; 'BBBsf'.
Citibank, a unit of Citigroup Inc (NYSE: C) has announced an increase in its card charge-off rates.
When a loan held in a CMBS trust becomes delinquent, the trust has no need to charge it off--instead, the market naturally takes a charge-off by repricing the securities backed by that loan.

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