Writing off debt is an accounting entry to acknowlege that the asset they have (the loan) is not performing and that investors/readers of the financials, should not consider it valuable. Again, it is a required accounting entry - it does not effect your debt to them, discharge it or reduce it in any way. You still owe. And they will...in fact must (to satisfy those same investors and regulators that read those financials), try and collect it or get some value for it.
journal entry to write off a loan
A bank loan write-off is when the customer doesn't pay the loan and the bank writes it off as a bad debt. In a write-off, the bank includes a bad debt as an uncollectible loss on its tax return.
debit Retained earningscredit loan to company
The unamortized portion of loan fees should be taken as a business deduction. For tax purposes, this is an ordinary deduction. Do not report the write off of loan fees on Form 4797.
If you make the interest payments, you can normally write them off on taxes.
Consider it to be a tax write off!
No, but if you deduct you should be able to write off the interest on a mortgage loan. Contact a tax professional for details.
The dealership should have a trade-in authorization letter so you can get the car title when you pay off your loan. If not, you would just write that you are giving permission to get the title for a trade in.
yes sir i will
If a loan from a credit union has been discharged in bankruptcy court, that credit union cannot collect and must write the loan off.
If in the US, call the Dept. of Education at 1-800-4FedAid Other areas may write the loan off as a loss in the case of the student's death.
The loan must be paid off. Until then you are responsible.The loan must be paid off. Until then you are responsible.The loan must be paid off. Until then you are responsible.The loan must be paid off. Until then you are responsible.