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A method for placing value on property as of the time of its loss or damage. ACV may be determined as replacement cost, new, less depreciation. The market value of an item may be used to help determine actual cash value. Contrast with replacement cost.

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Q: What does ACV mean?
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The Insurance Companies use ACV or Actual Cash Market Value. The ACV for any private passenger vehicle can be found at Kelly Blue Book.


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Tax-wise the total price paid is a tax write-off. It does not matter if the price was higher or lower then the actual cash value (ACV). In a sales transaction the difference between the ACV and a higher than ACV would be referred to as 'blue sky'. It is important here to make sure you understand 'blue sky; paid remains a tax deductible expense, however; the blue sky paid does NOT add to the ACV as far as the new owner's net worth.


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