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 ?
As a percent of total loans and leases, total net charge-offs have fallen from about 0.
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).
Excessive charge-off strictness means that examiners are forcing banks to charge off loans that ultimately will be repaid, or to charge off greater proportions of loans than ultimately will be lost on these loans.
Increase charge-off rate by 25% and reduce MPR by 15% for class A: 'AAA'sf'
All else being equal, were similar percentage charge-offs applicable to and applied to loans in CMBS, the reported CMBS delinquency rate would be more than a full percentage point lower than it currently is.
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.
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.
First National Bank of Springdale is the only bank in Washington County that reported a positive recovery for net charge-offs to loans for 2000.
The lack of good recovery post charge-off is one factor that further impacts the overall performance of the Credit Unions.
Many people in the financial services industry believe charge-offs have been the leading factor in declining credit card debt since the start of the recession," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.
1m were sold for USD41m, which resulted in an additional charge-off of USD1.

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