{"ok":true,"canonical_url":"https://dealroom.so/glossary/write-off","api_url":"https://dealroom.so/api/public/glossary/write-off","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"write-off","term":"Write-off","group":"Reading the business","definition":"An accounting term for reducing the value of an asset or eliminating an uncollectible debt from a company's books, often reducing taxable income. Buyers should understand what's truly a business expense versus a discretionary owner perk.","what_it_means":"Sellers often \"write off\" personal expenses through the business to reduce their taxable income, which will show up as expenses on the P&L. As a buyer, you need to identify these discretionary expenses as \"add-backs\" to accurately determine the true owner earnings (SDE) and the business's profitability. Reclassifying these is critical for underwriting.","url":"https://dealroom.so/glossary/write-off","official_sources":[],"related":[{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"Do I need to write a formal business plan to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-write-a-formal-business-plan-to-apply-for-an-sba-7-a-loan"},{"question":"Are there penalties if I pay off my SBA 7(a) loan early?","url":"https://dealroom.so/sba-loans/basics/are-there-penalties-if-i-pay-off-my-sba-7-a-loan-early"},{"question":"Can I use an SBA 7(a) loan to pay off personal debts?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-pay-off-personal-debts"},{"question":"Can an SBA 7(a) loan be used to pay off personal debts?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-pay-off-personal-debts"},{"question":"Can I use an SBA 7(a) loan to pay off personal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-pay-off-personal-debt"},{"question":"Can I use an SBA 7(a) loan to pay off existing personal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-pay-off-existing-personal-debt"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Write-off","url":"https://dealroom.so/glossary/write-off","source_type":"DealRoom Data"}}