# Specific charge-off method

> Specific charge-off method — The federal income tax method for business bad debts: a deduction for a specific debt in the year it becomes wholly or partly worthless, never for an estimated reserve — and, for an accrual-method business, only for an amount already included in income.

Source: https://lopifi.com/glossary/specific-charge-off-method
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is specific charge-off method?** In accounting, specific charge-off method means the federal income tax method for business bad debts: a deduction for a specific debt in the year it becomes wholly or partly worthless, never for an estimated reserve — and, for an accrual-method business, only for an amount already included in income.

## Words this system refuses for it

- allowance
- reserve method (repealed in 1986)

- **Category:** Receivables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** accrual