What is the Depreciation Period for Street Sweepers?
2 Answers
Sprinkler trucks and street sweepers generally have a depreciation period of 12 years. Definition of Vehicle Depreciation: Vehicle depreciation is the financial representation of vehicle investment recovery. It involves allocating a certain amount of funds annually for vehicle replacement to maintain transportation reproduction. Vehicle depreciation cannot reflect the national economic input into transportation vehicles. What effectively reflects the economic price of vehicle depreciation is the capital recovery cost of the vehicle. Regulations on Depreciation Period: According to tax laws, passenger cars have a depreciation period of 5 years with a residual value rate of 5%. Even for used cars, the depreciation period is calculated as 5 years from the date of purchase. Tax laws specify the following minimum depreciation periods for fixed assets: 20 years for houses and buildings; 10 years for trains, ships, machinery, and other production equipment; 5 years for electronic equipment and transportation vehicles other than trains and ships, as well as tools, furniture, etc. related to production and operation, with a unified residual value ratio of 5% of the original price. The higher the depreciation rate, the worse the vehicle condition and the lower the residual value.
Let me break down the depreciation period for street sweepers. Generally, the standard range is 4 to 8 years, but specifics depend on national regulations and company policies. In China, tax rules set an average 10-year depreciation for industrial equipment, but specialized vehicles like sweepers are often classified as transport assets—most cases settle around 5 years. Depreciation allocates the purchase cost over its useful life; proper maintenance may extend actual use, but accounting requires straight-line or accelerated methods to reflect book value. Residual value (scrap metal worth) matters too. All this hinges on corporate depreciation policies—consulting accountants is wise to avoid tax disputes. Many peers adopt 5 years, balancing practicality and financial planning.
