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 ?
The two loan categories that comprise the largest shares of total net charge-offs are consumer loans and real estate loans.
Certification: Upon examination by the IRS, an insurance company that has used its SSAP 43R credit-related impairment charge-offs of eligible debt items reported on its annual statement as the amount of a Sec.
Net charge-offs for FDIC institutions in the first quarter of 2013 are at 16 billion, falling from 18.5 billion in the previous quarter.
"Most charge-offs are so old that when you analyze the loan problems, you find out you are not making loans that way any longer anyway," she said.
banks have now recognized about three-fourths of their crisis-related loan charge-offs," said Joseph Pucella, Moody's vice president-senior analyst, financial institutions group.
The company said that its charge-off rate fell to 9.4 per cent of balances from 10.27 per cent in October.
First things first, It takes at least seven years for a charge-off to be removed from your credit report.
For March, charge-offs were 8.62 percent, compared with 8.08 percent in February and 7.62 percent in January.
Detailed data on net charge-offs and delinquencies by type of loan are available for medium and large banks and for all banks with foreign offices (chart 12).
There were no loan charge-offs for 3Q14 compared to USD 123,000 in net loan charge-offs the quarter ended September 30, 2013.
For nearly all loan categories, losses as represented by net charge-offs (loans charged-off less recoveries) as a percent of loans declined in the first quarter of 2012.
"With charge-offs decreasing, provision expenses are much lower, if not negative," said Steve Dunham, president/CEO of the $130 million Canyon State Credit Union.