Salvage Value


Salvage Value
The estimated value that an asset will realize upon its sale at the end of its useful life. The value is used in accounting to determine depreciation amounts and in the tax system to determine deductions. The value can be a best guess of the end value or can be determined by a regulatory body such as the IRS.

The salvage value is used in conjunction with the purchase price and accounting method to determine the amount by which an asset depreciates each period. For example, with a straight-line basis, an asset that cost $5,000 and has a salvage value of $1,000 and a useful life of five years would be depreciated at $800 ($5,000-$1,000/5 years) each year.

Within the tax system, when a person donates a car he or she receives a tax deduction. The value of this deduction depends on the salvage value of the car. This salvage value is determined to be the current fair market value that could be obtained had the car been sold on that day rather than donated.


Investment dictionary. . 2012.

Look at other dictionaries:

  • salvage value — n 1: the value of damaged property 2: the actual or estimated value realized on the sale of a fixed asset at the end of its useful life ◇ Salvage value is used in calculating depreciation. Merriam Webster’s Dictionary of Law. Merriam Webster.… …   Law dictionary

  • Salvage value — Scrap value of plant and equipment. The New York Times Financial Glossary Scrap value of plant and equipment. Bloomberg Financial Dictionary * * * salvage value ˈsalvage ˌvalue noun [uncountable] ACCOUNTING the value of equipment, machinery etc… …   Financial and business terms

  • salvage value — See residual value * * * salvage value ˈsalvage ˌvalue noun [uncountable] ACCOUNTING the value of equipment, machinery etc owned by a company if it is sold at the end of its useful life: • The expected salvage value of the truck at the end of… …   Financial and business terms

  • salvage value — scrap value The net residual value of an asset at the end of its useful life, when it is no longer suitable for its original use. Fixed assets, stock, or waste arising from a production process can all have a salvage value …   Accounting dictionary

  • salvage value — scrap value The net realizable value of an asset at the end of its useful life, when it is no longer suitable for its original use. Fixed assets, stock, or waste arising from a production process can all have a salvage value …   Big dictionary of business and management

  • salvage value — antrinio panaudojimo vertė statusas T sritis turto vertinimas apibrėžtis Turto, kurio naudojimo pagal paskirtį ekonominis amžius baigėsi, vertė. Toks turtas dar gali būti vertingas naudoti kitais tikslais arba gali būti perdirbtas. atitikmenys:… …   Lithuanian dictionary (lietuvių žodynas)

  • salvage value — noun : an amount estimated as expected to be realized or actually realized on sale of a fixed asset at the end of its useful life used in calculating depreciation …   Useful english dictionary

  • Ликвидационная стоимость (LIQUIDATION VALUE, SALVAGE VALUE, ABANDONMENT VALUE)  — 1 Стоимость, которая может быть получена в результате ликвидации актива.  2 Ликвидационной стоимостью объекта оценки признается стоимость объекта оценки в случае, если объект оценки должен быть отчужден в срок меньше обычного срока экспозиции… …   Словарь терминов по управленческому учету

  • Net salvage value — The after tax net cash flow for terminating the project. The New York Times Financial Glossary …   Financial and business terms

  • net salvage value — The after tax net cash flow for terminating the project. Bloomberg Financial Dictionary …   Financial and business terms


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