Write Off Meaning Examples Bad Debts Car Loans Taxes
Write-Off Meaning It is achieved by moving a part of or all of the asset account balance into an expense account. Writing-off is used for reducing tax liabilities. These expenses curtail the company’s taxable income and decrease the book value of the assets. How Does a Write-Off in Accounting Work? Businesses often write-off expenses and non-performing assets—to unload irrelevant elements from balance sheets. Writing off improves the accuracy of cost accounting....