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Eliminate or write off.

The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless.

A classic case is the bad debt, which is an uncollectible debt. A bad debt is a permissible business tax deduction, and a non-business bad debt may also be claimed as a charge-off in the year the debt becomes entirely worthless. Charge-off is generally used in reference to a charge or debt that is not paid when due.

References in periodicals archive ?
Net Charge-Offs as a Percentage of Total Loans and Leases
166(a)(2) deduction is equal to the company's SSAP 43R credit-related impairment charge-offs for the same items as reported on the company's annual statement.
Out of a total of 520 North American Industry Classification System industries which had both franchise and non-franchise data, SBA franchise loans had a lower charge-off rate in 376 industries (72 percent), and had a higher charge-off rate in 114 industries (22 percent).
t+i] ratio also may understate examiner strictness because of examiner charge-off procedures.
Rating sensitivity to increased charge-off rate and reduced MPR (charge-off steady state: 6%; MPR steady state: 39%):
The result is that CMBS statistics, including balances and delinquency rates, are generally reported for the entire outstanding balance and do not contend with issues such as write-downs or charge-offs.
166-1(c)) is recoverable only in part, the IRS may allow the amount that has become worthless as a deduction only to the extent charged off during the tax year (specific charge-off method).
If you settle, the account will most likely be reported as "settled charge-off.
s credit business experienced increased charge-offs in March as well as higher delinquencies.
The Bank of Arkansas in Fayetteville reported the highest charge-off with 1.
TransUnion also noted that the percentage of pay down versus charge-off varied depending on where a borrower fell on the spectrum of credit eligibility.

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