Salvage Value refers to the approximate value that an asset will bring after it is sold. This value is used to figure out depreciation amounts. It can also help determine deductions in a tax system. For example, if you are donating your car for tax deduction purposes, the amount of the deduction depends on the salvage value of the car.
Additional meaning of Salvage Value:
It is often an estimated value unless outlined by the IRS or another regulatory organization.