{"ok":true,"canonical_url":"https://dealroom.so/glossary/write-offs","api_url":"https://dealroom.so/api/public/glossary/write-offs","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-offs","term":"Write-offs","group":"Reading the business","definition":"Expenses a business deducts for tax purposes that don't always reflect true operating costs. You'll \"add back\" these non-recurring or discretionary items to get a clearer picture of profitability.","what_it_means":"Sellers often run personal expenses through the business to reduce their tax burden. When analyzing financials, identify these write-offs and add them back to profit to see the true owner earnings. These \"add-backs\" are crucial for understanding the business's actual profitability for a new owner.","url":"https://dealroom.so/glossary/write-offs","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":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"}],"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"}]},"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-offs","url":"https://dealroom.so/glossary/write-offs","source_type":"DealRoom Data"}}