Write-off

A write-off is the removal of a debt or outstanding claim from a company's financial records when collection becomes impossible or impractical. In real estate, this commonly applies to rent arrears that have remained unpaid despite prolonged collection efforts and offer no realistic recovery prospect.

It represents a formal accounting decision to recognize the amount as a loss. This differs from debt forgiveness, where a creditor actively releases the debtor from obligation, and from depreciation, which reflects asset value decline. A write-off typically concludes an exhausted collection process.