Inventory write offs are business expenses that allow companies to deduct the costs of unsold, damaged or obsolete items purchased for resale. When businesses remove stock from their inventory and write it off as a tax-deductible expense, they reduce their taxable income and consequently decrease their total tax liability. It’s important to note, however, that in order to be eligible for a tax write off, you must have already paid or incurred the cost of goods before the end of the tax year so ensure you’re taking advantage of this benefit in a timely manner!