The complete removal of an asset from the accounting books, typically because it has become worthless or uncollectible. This accounting action reduces both the asset value and the company's taxable income, recognizing that the asset no longer has economic value.
From the literal action of 'writing off' or crossing out entries in accounting ledgers. The phrase emerged in early 20th-century bookkeeping practices when accountants would physically mark through worthless accounts. The term gained broader usage with the development of modern tax accounting.
A write-off is like declaring something officially dead in your accounting books - whether it's a bad debt from a customer who disappeared or equipment that became obsolete overnight! The silver lining is that 'killing' the asset on your books often reduces your tax bill.
Complete word intelligence in one call. Free tier — 50 lookups/day.