do not confuse a write off with a write down in a write down an asset s value may be impaired but it is not totally eliminated from one s accounting books 
write offs vs write downsa write off is an extreme version of a write down where the book value of an asset is reduced below its fair market value for example damaged equipment may be written down to a lower value if it is still partially usable and debt may be written down if the borrower is only able to repay a portion of the loan value the difference between a write off and a write down is a matter of degree where a write down is a partial reduction of an asset s book value a write off indicates that an asset is no longer expected to produce any income this is usually the case if an asset is so impaired that it is no longer productive or useful to the owners 