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 ?
These great results are set to continue with tens of thousands more small businesses able to access the instant asset write-off thanks to the Governments increase in the small business turnover threshold to $10 million per year.
a write-off. (67) The following Medicaid fee schedule illustrates this
When write-offs occur, particular attention should be paid to the facts and circumstances leading to management's impairment of goodwill as required by the standard (SFAS 142, ASC 350-20-50-2).
Leading car data provider HPI says that being aware of the different categories of insurance write-offs can save potential customers money and, in extreme cases, may even save lives..
The number of total losses declared by insurance companies has risen by 86 per cent a year since 1998, meaning write-offs now amount to almost a quarter of all insurance claims.
However, counter to the way implemented by many taxpayers, the repeal of the reserve method does not require them to rely on the write-off entry recorded for financial accounting purposes; Congress intended to allow a deduction for partially worthless business bad debts in the year in which ascertained worthless, provided they are charged off by the taxpayer.
This is AOT's second capital restructuring to write off accumulated losses--the first was in 1996 when the High Court agreed to a [pounds sterling]16m write-off.
107-314) required GAO to review and report on DOD's use of this write-off authority.
These may include an apology, an explanation, assurance that it won't happen again, a new doctor or nurse, a change in policies or procedures or, of course, a reduction or write-off of the bill.
Section 179 of the tax code, however, permits a full write-off of some equipment purchases as business expenses.