Tax write-down is an accounting term for a decrease in the value of a business asset that is used to reduce the amount of taxable income. It’s a way for businesses to recognize losses on their balance sheets and accounts by reducing the overall amount of taxes they need to pay. By writing down an asset, a business can lower its tax burden, allowing it to keep more of its profits and reinvest back into the company. Write-downs are an important part of managing cash flow for businesses and understanding how to best use their money to meet their goals.