Salvage Value

Salvage Value

Salvage Value means:
the estimated value of a property when the owner completes his or her use of it. In determining the amount of depreciation allowable for accounting purposes, salvage value must be subtracted from basis. Value of tangible depreciable property when it is retired from service. Salvage value is ignored by the accelerated cost and modified accelerated cost recovery system rules (such as Former IRC (check if this IRC provision is current here) §168) but is relevant in calculating depreciation for assets acquired before 1981 (under Former IRC (check if this IRC provision is current here) §167).

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

Description and Definition of Salvage Value

The estimated amount an asset is worth at the end of its useful life. Salvage value is ignored by ACRS and MACRS rules.

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