Write-Off

Removing an asset's value from the books because it's no longer worth anything.

A write-off records that an asset has lost its value: a customer's bill that will never be paid, inventory that spoiled, an acquisition that soured. The company takes the loss on its income statement and removes the asset from its balance sheet. Partial reductions are write-downs. In everyday speech 'writing something off' on taxes means deducting an expense — related but distinct: both reduce reported income, but a true write-off marks a real loss, not just a deductible cost.

The bank took a $2 billion write-off on loans it no longer expected borrowers to repay.