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states that purchases must be both ordinary and necessary. This means that deductible items must be usual and required for the business owner's field of work. For example, a telemarketer may deduct the purchase of a telephone, since telephones are crucial for that line of work, whereas a professional
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A negative write-off refers to the decision not to pay back an individual or organization that has overpaid on an account. Negative write-offs can sometimes be seen as fraudulent activity if those who overpay a claim or bill are not informed that they have overpaid and are not given any chance to
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that is declared non collectable (such as a loan on a defunct business, or a credit card due that is in default), removing it from their balance sheets. A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are
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In business accounting, the term "write-off" is used to refer to an investment (such as a purchase of sellable goods) for which a return on the investment is now impossible or unlikely. The item's potential return is thus canceled and removed from ("written off") the business's
91:. Common write-offs in retail include spoiled and damaged goods. In commercial or industrial settings, a productive asset may be subject to write-off if it suffers failure or accident damage that is infeasible to repair, leaving the asset unusable for its intended purpose.
145:. If it becomes apparent that the purchased asset no longer has the value recorded in the goodwill account (i.e., if the asset cannot be resold at the same price), the value in the goodwill asset account is "written down". One example is when
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of an item's value from a person's taxable income. Thus, if a person in the United States has a taxable income of $ 50,000 per year, a $ 100 telephone for business use would lower the taxable income to $ 49,900. If that person is in a 25%
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Some institutions such as banks, hospitals, universities, and other large organizations regularly perform negative write-offs, especially when the amount is considered low (e.g., $ 5 at some institutions or up to $ 15 or more at others).
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129:. The value of an asset may change due to fundamental changes in technology or markets. One example is when one company purchases another and pays more than the net
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A write-down is sometimes considered synonymous with a write-off. The distinction is that while a write-off is generally completely removed from the
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publisher Dow Jones at a 60% premium in 2007, which News Corp. later had to write down by $ 2.8 billion because of declining advertising revenues.
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Alachua County Policy on
Removal of Uncollectible Accounts from the Financial Statements (Amended)
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rules: "Washington Mutual will write down by $ 150 million the value of $ 17 billion in loans".
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696200 Miscellaneous
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In order for
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45:, this is a recognition of the reduced or zero value of an asset. In
277:"Write-down Definition of Write-down by Merriam-Webster"
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is a reduction of the recognized value of something. In
354:Small Dollar Balance Policy at Purdue University
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113:reconcile their overpayment or be refunded.
325:"Washington MutuAl 3Q Earnings to Tumble"
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27:Recognition of a reduced or zero value
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61:calculation, a write-off is the
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227:"Deducting Business Expenses"
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251:"Marketplace: Write-downs"
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231:Internal Revenue Service
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172:financial institutions
168:2007 subprime crisis
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257:. 10 February 2009
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301:"Writedown"
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286:2021-11-05
261:2009-03-19
236:2020-12-06
214:References
193:Charge-off
131:fair value
121:Write-down
82:Accounting
59:income tax
53:Income tax
47:income tax
43:accounting
32:Total loss
266:(podcast)
198:Depletion
151:News Corp
39:write-off
373:Category
182:See also
143:goodwill
101:bad debt
379:Expense
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133:of its
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