[NEED LEGAL HELP?] Call our 24/7 Helpline: 1-866-723-4855


Definition - What does Write-Off mean?

A write off is a tax deduction that is made by a company due to loss or depreciation. It can also mean the inability to recoup value such as when a vehicle is insured and crashes to the extent it cannot be repaired. The vehicle would be said to be a write off. If a company has an asset that that has a loan against it, the law allows the company to deduct a set amount or percent of the value of the asset each year in keeping with the idea that the asset has a set life span and, therefore, loses value each year.

From a debt and even a business perspective, a write-off can also be bad debt that the company believes will not be repaid by the borrower. They often "write-off" the debt from their books as the cost of doing business.

Justipedia explains Write-Off

There are different reasons for write-offs. They can be calculated over a set amount of time or by a percent of the overall value. Once the asset is completely written off it would not appear as an asset on the company accounts.

Connect with us

Justipedia on Linkedin
Justipedia on Linkedin
"Justipedia" on Twitter

Sign up for Justipedia's Free Newsletter!

Find a Lawyer