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What Are Tax Write-Offs?

By Adam LevyUpdated Dec 13, 2024 at 10:34 AM

Key Points

  • Tax write-offs allow businesses to reduce taxable income by recognizing asset impairments.
  • Common write-offs include unpaid bank loans, overdue accounts, and damaged inventories.
  • Write-offs improve cash flow by lowering tax payments, increasing cash on the balance sheet.

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