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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 ?
The two loan categories that comprise the largest shares of total net charge-offs are consumer loans and real estate loans.
Movements in the Retail Index also exhibited the same trends found in the Prime and Subprime Indices for charge-offs and one month excess spread.
When asked about current trends, Boehm said: "It is not that there are so many more charge-offs in the industry today than in previous years, but we are gaining more business because our company is becoming better known, and our service better understood.
In an interview with Credit Union Times, Becker stressed that Trans Union was not arguing that charge-offs had played no role in the balance decline, just that they were not the only factor.
Global Banking News-16 June 2010-Bank of America reports drop in charge-offs in May(C)2010 ENPublishing - http://www.
Banks increased loss provisions more than net charge-offs and ended the year with somewhat higher loan loss reserves (chart 2).
With the decline in nonperforming assets and delinquencies, Fitch expects net charge-offs to remain close to current levels.
Pro forma net charge-offs as a percentage of average receivables[sup.
The Callahan data shows that FirstLook credit unions posted a second quarterly decline in both delinquency and charge-offs for the first time since 2006.
In August, bank-issued credit card charge-offs climbed 81bps compared to 31bps in July.
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.
Selling charge-offs that collection agencies cannot collect turns worthless assets into immediate cash and profits, and for forward flow arrangements, selling charge-offs becomes a budget line item of revenue that the seller can count on," Boehm reports.