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CostSegregationMatch

Cost Segregation Asset Classification: Search 254 IRS Rows by Component

By CostSegregationMatch · Updated October 2026

Cost segregation asset classification sorts property costs into tax lives such as 5, 7, 15, 27.5 or 39 years. In the IRS's own matrix for rental housing, 62 of 115 component rows stay on the building's schedule and only 24 are 5-year property, according to CostSegregationMatch's count of IRS Publication 5653, October 2026. Search all 254 rows below.

Which class is my building component in?

Type the part. Read the row. This lookup holds 254 rows from three IRS tables: 115 for rental housing, 73 for stores, and 66 for restaurants. Each row shows the tax life the IRS prints, the condition behind it, and the exact IRS row it comes from.

Two words before you search. The IRS calls each of these big tables a matrix. And tax life is our plain name for what the IRS calls the recovery period: the number of years you spread a deduction over. Every tax life in the lookup is under GDS, the General Depreciation System, which is the normal IRS schedule. These are the periods printed in the February 2025 guide. Later commercial remodels can meet a separate 15-year rule.

Short on time? These are the parts people ask about most.

Table 1. Common building components and their IRS tax life (GDS)
ComponentRental housingStores and restaurantsWhat changes the answer
Surface parking lot15 years15 yearsA parking garage is building property: 27.5 years if attached to a rental building, 39 if it stands alone.
Kitchen cabinets, counters, sinks27.5 yearsNot listed as a kitchen rowDecorative cabinets and counters in a selling or dining area can be 5 years when they do not serve building operation. Built-in restroom cabinets are 39.
Stove, refrigerator, dishwasher5 yearsRestaurant food equipment: 5 yearsThese are appliances, not parts of the building.
Central heating and air (HVAC)27.5 years39 yearsStores and restaurants: a separate equipment unit can be 5 years when essential temperature or humidity needs are its sole reason for installation. Incidental employee comfort does not rule it out.
Carpet, vinyl tile (VCT), sheet vinyl5 yearsRetail: 5 years. Restaurants: carpet is 5; other coverings depend on attachment.The restaurant matrix treats all carpet as nonpermanent. Other restaurant coverings need the strippable-adhesive condition.
Tile, marble, fixed wood flooring27.5 years39 yearsFixed in place with permanent adhesive, nails, screws, cement or grout.
Lights that light the room27.5 years39 yearsStill building property if a fancy fixture is the main light.
Decorative lights that do not provide general lighting5 years5 yearsOther lights must be enough with the decorative fixture off; it must not serve building operation or maintenance.
Pole lights for parking and walks15 years15 yearsBuilding-mounted lights for building operation or maintenance stay with the building. Separate decorative-lighting rows have a 5-year treatment.
Landscaping15 years, or not depreciable15 yearsIn the residential matrix, plants destroyed when a related depreciable asset is replaced are 15 years. General site landscaping that survives is land.
On-site fences, sidewalks, curbs and grade-level driveways15 years15 yearsThese are land improvements. The residential matrix has a separate rule for off-site improvements given to a municipality as a permit condition.
Structural roof, walls, windows and ordinary building doors27.5 years39 yearsStructural parts keep the building's tax life. Special lightweight commercial doors have separate rows.
Plumbing, wiring, general outlets27.5 years39 yearsDedicated hookups to qualifying appliances or equipment can be 5 years. The residential matrix keeps garbage-disposal wiring and plumbing at 27.5.
Blinds and curtains5 years5 yearsMust come off easily.
Ceiling fans27.5 yearsRestaurant décor: 5 yearsThe residential row describes a fan typically fitted with the room's main lights. The restaurant row covers decorative mobile props.
Furniture in a furnished unit5 yearsStore and restaurant furniture: 5 yearsOffice desks and file cabinets are 7 years in all three matrices.
Building security systems and cameras27.5 years39 yearsElectronic systems used mainly to prevent merchandise theft in a store are 5 years. A rental-site access gate and its equipment are 15.

Source: CostSegregationMatch IRS Component Lookup, built from IRS Publication 5653 (revised February 2025), Chapter 7: retail, pages 172–183; restaurants, pages 184–195; residential rental, pages 297–322. Where the residential matrix prints "27.5 or 39," use the property definition: 27.5 for residential rental property and 39 for nonresidential property, including a separate rental office or clubhouse that does not meet the residential definition. Checked October 6, 2026.

Key cost segregation asset classification statistics

Lines 1 to 9 are CostSegregationMatch's own counts and comparisons of IRS Publication 5653 (revised February 2025), made in October 2026. A "row" is one listed entry in an IRS matrix. A row continued onto the next page counts once. Separate entries can overlap; these are not counts of unique physical parts or dollars.

  1. In the IRS residential rental matrix, 62 of 115 component rows (54%) keep the building's tax life of 27.5 or 39 years. (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  2. Only 24 of 115 rows (21%) in the IRS residential rental matrix are 5-year property, and 2 rows (2%) are 7-year property. (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  3. In the IRS residential rental matrix, 23 of 115 rows (20%) are 15-year land improvements, such as parking lots, sidewalks, fences and site lighting. (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  4. In the IRS retail matrix, 31 of 73 rows (42%) are 5-year property. That is twice the share in the IRS residential rental matrix (21%). (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  5. In the IRS restaurant matrix, 27 of 66 rows (41%) are 5-year property and 29 rows (44%) stay with the 39-year building. (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  6. Across the IRS matrices for rental housing, stores and restaurants, 122 of 254 rows (48%) stay with the building, 82 (32%) are 5-year, 39 (15%) are 15-year and 4 (2%) are 7-year. (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  7. The IRS retail matrix gives 16 of its 54 asset names more than one tax treatment. (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · Link to this statistic

  8. Parking has three tax lives in the IRS residential rental matrix: 15 years for a surface lot, 27.5 for an attached parking structure and 39 for a stand-alone one. That is a 24-year spread. (CostSegregationMatch comparison of IRS Publication 5653, October 2026.) Source · Link to this statistic

  9. In the IRS residential rental matrix, 49 of 115 rows (43%) print a tax life of 5, 7 or 15 years. Those periods meet the 20-years-or-less test for tangible property under the bonus rule; this count does not establish eligibility. In the retail matrix it is 40 of 73 rows (55%). (CostSegregationMatch count of IRS Publication 5653, Rev. 2-2025; October 2026.) Source · 20-year rule · Link to this statistic

  10. In a rental kitchen, the IRS residential matrix gives appliances a 5-year tax life and gives cabinets, counters and sinks 27.5 years. (IRS Publication 5653, revised February 2025, Chapter 7, Section H.) Source · Link to this statistic

  11. The IRS residential rental matrix puts the central heating and air system primarily serving the residence and its occupants at 27.5 years and says "allocation of HVAC is not appropriate." (IRS Publication 5653, revised February 2025, Chapter 7, Section H.) Source · Link to this statistic

  12. For rental property, the IRS lists appliances, carpets and furniture at 5 years, office furniture at 7, roads, shrubbery and fences at 15, and the building at 27.5 years under GDS. (IRS Publication 527 for 2025, Table 2-1.) Source · Link to this statistic

  13. For qualifying tangible property acquired and placed in service after January 19, 2025, the first-year special ("bonus") depreciation allowance is 100% under the 20-years-or-less rule, unless an election or exclusion applies. (IRS Publication 946 for 2025; IRS Notice 2026-11.) Source · Link to this statistic

  14. The IRS Cost Segregation Audit Techniques Guide, Publication 5653, was last revised February 6, 2025. It runs 348 pages and holds seven industry matrices. (IRS, checked October 6, 2026.) Source · Link to this statistic

On this page: Asset classes · Counts by class · 5-year list · 15-year list · What stays with the building · Same part, different answers · Stores and restaurants · How the IRS decides · Remodels · Why it matters in 2026 · Method · Limits · Cite · Download · FAQ · Sources

What are the asset classes in a cost segregation study?

A cost segregation study sorts a property's cost into the groups below. The personal-property examples here use 5 or 7 years. Land improvements in class 00.3 use 15 years. The building generally uses 27.5 years for rental housing or 39 years for nonresidential property. Land gets no depreciation deduction.

Think of a rental house as a box with stuff in it. The box takes 27.5 years. The fridge takes 5. The driveway takes 15. The dirt under all of it is land, so you cannot depreciate that cost.

Table 2. Asset classes and tax lives for rental and commercial property
GroupExamples the IRS givesTax life, GDSTax life, ADS
Personal propertyAppliances such as stoves and refrigerators; carpets; furniture used in rental property5 years9 years
Office furniture and equipmentDesks, files7 years10 years
Land improvementsRoads, shrubbery, fences15 years20 years
Residential rental buildingBuildings and structural components such as furnaces, water pipes and venting27.5 years30 years*
Nonresidential buildingStores, restaurants, offices and other buildings that are not rental housing39 years40 years
LandThe ground itselfNoneNone

Sources: IRS Publication 527 (2025), Table 2-1, for the first four rows. IRS Publication 946 (2025) for the 39-year GDS life. IRS Publication 5653, Chapter 6, page 86, for the 40-year ADS life. Checked October 6, 2026. *The residential ADS period is generally 40 years for property placed in service before January 1, 2018. It is 30 years for that older property if held by an electing real property trade or business under section 163(j)(7)(B), and none of section 168(g)(1)(A)–(E) applied before 2018. These are the conditions in Publication 527, Table 2-1, footnote 1.

GDS, the General Depreciation System, is the normal schedule. ADS, the Alternative Depreciation System, generally uses longer periods. Some owners must use it or choose to use it. Unless marked ADS, tax lives on this page are GDS.

What is the difference between a tax life, a class life and an asset class?

They sound alike. They are three different things, and mixing them up is how a desk ends up on the wrong schedule.

Table 3. Three IRS asset classes used in this lookup
Asset classWhat it coversClass lifeTax life, GDSTax life, ADS
57.0 Distributive Trades and ServicesAssets used in wholesale and retail trade and in personal and professional services9 years5 years9 years
00.11 Office Furniture, Fixtures, and EquipmentDesks, files, safes10 years7 years10 years
00.3 Land ImprovementsSidewalks, roads, drainage, fences, landscaping shrubbery20 years15 years20 years

Source: IRS Publication 946 (2025), Appendix B, Tables B-1 and B-2. Checked October 6, 2026.

The IRS residential matrix says class 57.0 "applies to most of the § 1245 property used with" residential rental property. That is why so many small items land at 5 years.

How many building components does the IRS put in each class?

In the IRS matrix for rental housing, 62 of 115 rows (54%) stay with the building, 24 (21%) are 5-year property, and 23 (20%) are 15-year land improvements. In the store matrix the split is different: 31 of 73 rows (42%) are 5-year. These are counts of rows, not dollars.

Picture the residential matrix as a 115-line checklist for an apartment building. You would tick "stays with the building" 62 times and "5-year" 24 times.

Table 4. IRS matrix rows by class
ClassResidential rental (115 rows)Retail (73 rows)Restaurant (66 rows)All three (254 rows)
Stays with the building (27.5 or 39 years)62 (53.9%)31 (42.5%)29 (43.9%)122 (48.0%)
5-year24 (20.9%)31 (42.5%)27 (40.9%)82 (32.3%)
7-year2 (1.7%)1 (1.4%)1 (1.5%)4 (1.6%)
15-year23 (20.0%)8 (11.0%)8 (12.1%)39 (15.4%)
15-year or land (landscaping)1 (0.9%)001 (0.4%)
Land, not depreciable1 (0.9%)1 (1.4%)1 (1.5%)3 (1.2%)
No fixed class2 (1.7%)1 (1.4%)03 (1.2%)

Source: CostSegregationMatch count of IRS Publication 5653 (revised February 2025), Chapter 7: retail, pages 172–183; restaurants, pages 184–195; residential rental, pages 297–322. Rows are component types, not dollars. Counted October 2026.

More than half of the IRS's residential rental rows stay with the buildingBar chart. Of the 115 rows in the IRS residential rental matrix, 62 stay with the building, 24 are 5-year property, 23 are 15-year, 2 are 7-year and 4 are other.Residential rental · 115 rowsIRS rows62 · 54%24 · 21%23 · 20%Building (27.5 or 39 years): 62 (54%)5-year: 24 (21%)15-year: 23 (20%)7-year: 2 (2%)Other: 4 (3%)Source: CostSegregationMatch count of IRS Publication 5653 (Rev. Feb. 2025), Ch. 7, Sec. H. Rows are component types, not dollars. Counted Oct. 2026.
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A row count is not a share of cost. One row can be the roof. Another can be a kitchen fire extinguisher. What share of your building's cost moves to a shorter life depends on your building, and this page does not estimate it.

Which building components are 5-year property?

In rental housing, the IRS lists 24 of its 115 rows as 5-year property. Most are things you can take out without hurting the building: kitchen appliances, carpet and sheet vinyl, blinds, furniture, and wiring or pipes that serve one appliance. All 24 fall in asset class 57.0.

Here is the full list, in the IRS's order.

Table 5. The 24 rows the IRS residential rental matrix lists as 5-year property
IRS rowCondition, in plain words
Awnings & CanopiesReadily removable cover over a window or door; not part of the building shell
Balcony – FalseExterior ornament only; does not provide outdoor use or protect occupants from falling
Data Cable and WiringPhone, internet, cable or satellite TV and Wi-Fi wiring used with equipment that is not a structural component
Electrical Branch Circuits - AppliancesDedicated outlets, wiring and breakers for a specific appliance (dryer, range, washer, dishwasher, refrigerator, built-in microwave)
Electrical Lighting - Exterior - Decorative/Special FixtureLighting that highlights only the landscaping or building exterior, not parking areas, walkways or entrances, and does not serve building operation or maintenance
Electrical Lighting – Interior – Decorative/Special FixtureDecorative fixtures (neon, track, grow lights) that do not provide general illumination; other lighting is sufficient with them off. Primary lighting is § 1250
Electrical - Primary and Secondary EDS – AppliancesShare of the electrical distribution system that serves § 1245 appliances, allocated by design load
Fire Protection EquipmentFire detection or suppression tied to a piece of equipment, such as a kitchen fire extinguisher
Floor Coverings – Readily RemovableFlooring installed with strippable adhesive that can be removed in substantially the same condition or moved and reused, stored or sold in its entirety; all VCT, sheet vinyl and carpeting are treated as nonpermanent
Furnishings - Pool, Clubhouse, Exercise RoomChairs, lounges, exercise equipment, benches and lockers
Furnishings - ResidentialFurniture in a furnished unit, such as beds, chairs, sofas and tables
Kitchen AppliancesStove or oven, refrigerator, icemaker, microwave, dishwasher
Kitchen – Electrical - Dedicated BranchWiring and outlets dedicated to the range, dishwasher, refrigerator or built-in microwave
Kitchen – Plumbing - Dedicated BranchWater or gas hook-ups connected directly to appliances
Light Fixtures - Exterior - Accent/Decorative/Special FixtureLighting that highlights only the landscaping or building exterior, not parking areas or walkways, and does not serve building operation or maintenance
Light Fixtures – Interior - Accent/Decorative/Special FixtureDecorative fixtures not needed to operate the building; § 1250 if they are the primary light source
Loading Dock - EquipmentCompactors, conveyors, hoists and balers
Signs - Interior/ExteriorDirectory signs and signs showing business functions; not tied to operating the building
Signs - Pylon or Monument Sign FaceOnly the sign face or message screen
Sound SystemsEquipment and wiring for amplified music or sound, such as at the pool or clubhouse; excludes applications linked to fire protection or alarm systems
Spa – Freestanding and Hook-upsFreestanding jacuzzis and whirlpools in the clubhouse; excludes hookups associated with swimming pools or pool equipment
Wall Coverings - NonpermanentStrippable wallpaper that does not damage the wall
Walls Interior PartitionsPartitions that can be readily removed in substantially the same condition, or are meant to be moved and reused, stored or sold in their entirety
Window TreatmentsReadily removable drapes, curtains, louvers, blinds and post-construction tinting

Source: IRS Publication 5653 (revised February 2025), Chapter 7, Section H, Exhibit A, pages 297–322. Conditions are CostSegregationMatch summaries of the IRS text. Checked October 6, 2026.

Notice what is missing. No cabinets. No ceiling fans. No door hardware. More on that in the 27.5-year section.

What is 5-year property in a store or restaurant?

Stores and restaurants get a longer 5-year list: 31 rows in the retail matrix and 27 in the restaurant matrix. The extra rows are mostly business gear and décor.

Search either matrix in the lookup to see every row.

Which building components are 15-year property?

Land improvements in asset class 00.3 are 15-year property. In the IRS residential rental matrix that is 23 of 115 rows, including parking lots, sidewalks and curbs, roadways, fences and retaining walls, patios, site lighting, outdoor pools and lawn sprinkler systems.

A simple way to hold it in your head: if it sits out on the land and is not part of the building, check the 15-year list first.

Table 6. The 23 rows the IRS residential rental matrix lists as 15-year property
IRS rowCondition, in plain words
Bollards and Guardrails - SitePermanent posts or rails that protect land improvements such as signs, poles or trees
Common Areas – ExteriorPermanent outdoor pools and spas with their equipment, sport courts and playground equipment built on land
Community Mailboxes and Structure - ExteriorFreestanding roofed structure for community mailboxes (not USPS-owned boxes)
Concrete Footings and Foundations – Land ImprovementsFootings for signs, light poles and other land improvements
Decks/Gazebos (Freestanding)Permanent decks and gazebos not attached to buildings
Electrical Lighting – Site LightingPole-mounted or freestanding outdoor lighting for sidewalks, parking or recreation areas
Electrical - SiteElectrical service to site lighting, sump pumps and exterior receptacles not attached to the building
Fencing, Gates, Retaining Walls, Fountains, and Other Land ImprovementsFences, gates, retaining walls, fountains, drainage, ponds and irrigation systems
Grading - Excavation & Fine Grading for Depreciable Site ImprovementsExcavation and finish grading for roads, sidewalks and parking lots
Land ImprovementsDepreciable improvements to land, such as sidewalks, roads, drainage, fences, landscaping and shrubbery; excludes buildings, structural components, improvements assigned to another class, public-utility initial clearing/grading and building sanitary-sewer utilities
Lighting - SitePole-mounted or freestanding outdoor lighting for sidewalks, parking or recreation areas
PatiosGround-level paved outdoor area next to a building
Parking LotsSurface parking: paving, bumper blocks, curbs, striping, landscape islands, perimeter fences, sidewalks, traffic control systems
Parking Lot CanopiesStand-alone canopy or covering over parking spaces
Plumbing – Lawn/Landscaping Sprinkler SystemLawn or landscape sprinkler system
Poles & PylonsLight poles and poles for signs or flags, set in concrete or bolt-mounted
RoadwaysGrade-level driveways and roads, with guard rails and curb work
Security Gate - SiteSecurity gate and equipment that limit access to the site
Sidewalks and CurbsSidewalks and curbs
Signs - ExteriorExterior signs that direct traffic and parking
Signs - Pylon or MonumentPylon or monument structure set in the ground or on a foundation
Site WorkCurbing, paving, fencing, landscaping, roads, storm sewers, sidewalks and site drainage not directly related to the building; sanitary sewer service belongs in Site Utilities
Trash Enclosure – Not AttachedPermanent freestanding trash enclosure on a concrete pad

Source: IRS Publication 5653 (revised February 2025), Chapter 7, Section H, Exhibit A, pages 297–322. Conditions are CostSegregationMatch summaries of the IRS text. Checked October 6, 2026.

Is a parking lot 15-year property?

A surface parking lot is 15-year property in all three matrices. A parking structure is not. In the residential matrix, a structure attached to the rental building is 27.5 years and a stand-alone structure is 39 years.

Table 7. Parking in the IRS residential rental matrix
What it isIRS rowTax life, GDS
Surface parking lotParking Lots15 years
Stand-alone canopy over parking spacesParking Lot Canopies15 years
Garage, canopy or carport attached to the rental buildingParking Structures - Attached27.5 years
Separate garage or parking rampParking Structures – Stand Alone39 years

Source: IRS Publication 5653 (revised February 2025), Chapter 7, Section H, Exhibit A, pages 314–315. Checked October 6, 2026.

Parking has three tax lives in the IRS residential rental matrixBar chart. In the IRS residential rental matrix a surface parking lot has a 15-year tax life, an attached parking structure 27.5 years and a stand-alone parking structure 39 years.Surface parking lot15 yearsAttached parking structure27.5 yearsStand-alone parking structure39 years24-year spreadSource: CostSegregationMatch comparison of IRS Publication 5653 (Rev. Feb. 2025), Ch. 7, Sec. H. Tax lives, not tax savings. Checked Oct. 2026.
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Same cars. Same owner. Three different tax lives, and 24 years between the shortest and the longest.

Is landscaping always 15-year property?

No. The IRS residential matrix splits landscaping in two. Plants that would be destroyed if the building or other depreciable asset were replaced are a 15-year land improvement. General site landscaping that would survive is treated as land, with no depreciation deduction.

So the shrubs hugging the foundation and the old oaks at the back fence can get different answers.

Which building components stay with the building for 27.5 or 39 years?

In rental housing, 62 of the IRS's 115 rows stay on the building's schedule: 51 at 27.5 years, 7 at "27.5 or 39," and 4 at 39 years. That covers the roof, walls, windows, doors, plumbing, wiring, the central HVAC system, and built-in cabinets and counters.

The four 39-year rows are all about a separate building on the site: the rental office or clubhouse, its cabinetry, a guard house, and a stand-alone parking structure.

The IRS residential matrix does not place the items below in the 5-year group.

Table 8. Fourteen items the IRS residential rental matrix does not treat as 5-year property
ItemIRS residential rowTax life, GDS
Kitchen cabinets, counters, sinksCabinetry - Kitchen; Kitchen Components27.5 years
Bathroom cabinets, counters, sinksCabinetry - Restroom; Restroom Components27.5 years
Ceiling fansCeiling Fans27.5 years
Door hardware, locks, garage door openersDoors27.5 years
Building fire/smoke alarmsFire Protection and Alarm Systems27.5 years
Closet shelving and rodsFinish Carpentry27.5 years
Built-in stove hoodKitchen - Stove Hood (Special HVAC)27.5 years
Towel racks, toilet paper holders, medicine cabinets, bath fansRestroom Components27.5 years
Security systems, cameras, alarmsSecurity Systems - Building27.5 years
Crown molding, baseboard, trimMillwork - Building or Structural27.5 years
Garbage disposalKitchen - Electrical; Kitchen – Plumbing27.5 years
ThermostatsEnergy Management Systems27.5 years
Central heating and airHeating, Ventilating & Air Conditioning (HVAC) - Residence27.5 years
Permanent outdoor pool equipmentCommon Areas – Exterior15 years

Source: IRS Publication 5653 (revised February 2025), Chapter 7, Section H, Exhibit A, pages 297–322. Checked October 6, 2026.

The kitchen is the clearest case. The fridge is 5 years. The cabinet it stands next to is 27.5. That is a 22.5-year gap between two things that touch.

Why does the same component get different answers?

Because the IRS classifies by use and attachment, not by name. The IRS retail matrix gives 16 of its 54 asset names more than one tax treatment. Those 16 names cover 35 of the matrix's 73 rows. In the restaurant matrix it is 14 of 50 names.

A carpet and a tile floor do the same job. One peels up. One does not. The IRS gives them different tax lives.

Table 9. Same kind of thing, different tax life
ComponentShorter tax life when…Building tax life when…
FlooringCarpet in all three matrices; VCT or sheet vinyl in residential and retail (5). Other restaurant coverings need the strippable-adhesive condition.It is tile, marble or wood fixed in place with permanent adhesive, nails, screws, cement or grout
LightingIt is decorative, does not provide general lighting and leaves enough other light (5), or is qualifying pole-mounted site lighting (15)It provides general light or serves building operation or maintenance, including building-mounted safety lighting
HVAC in stores and restaurantsA separate unit is installed solely for temperature or humidity needs essential to equipment or processing (5); incidental employee comfort is allowedIt serves the building generally, or equipment needs plus another significant purpose such as customer comfort or ventilation
Plumbing and wiringIt directly serves qualifying appliances or equipment (5)It serves building systems; the residential matrix also keeps garbage-disposal hookups at 27.5
SignsIt shows a brand, menu or directory without serving building operation (5), or directs traffic or parking outdoors at a rental property (15). A pylon sign's 5-year row covers its face or message screen; the residential pylon structure is 15.It is a building, exit or room-identification sign
Trash enclosureIt stands alone on a concrete pad (15)It forms part of the building shell and cannot be moved without damage to the building
Interior wallsA partition can come out in substantially the same condition or be moved and reused as a whole (5); retail limits this row to merchandise display. Small reusable rental-office partitions and cubicles are 7.Load-bearing walls, and building partitions that divide rooms or control movement
Wall coveringStrippable wallpaper that comes off without damage to the wall or its surface (5)Paint, tile or paneling fixed in place
Loading dockCompactors, conveyors, hoists, balers (5)Bumpers, levelers, seals, overhead doors

Source: CostSegregationMatch IRS Component Lookup, from IRS Publication 5653 (revised February 2025), Chapter 7: retail, pages 172–183; restaurants, pages 184–195; residential rental, pages 297–322. Building tax life is 27.5 years for rental housing and 39 years for stores and restaurants. Checked October 6, 2026.

Are cabinets 5-year property?

It depends on the building and the room. Across IRS matrices a cabinet can land in four different tax lives: 5, 7, 27.5 or 39 years.

Table 10. One cabinet, four tax lives
Where the cabinet isIRS rowTax life, GDS
Decorative, in a store's selling area or restaurant, without serving building operation; excludes restroom cabinetsMillwork – Decorative (Sections B and C)5 years
Decorative, in a casino area, without serving building operation; excludes restroom cabinetsMillwork - Decorative (Section E, asset class 79.0)7 years
Kitchen or bathroom of rental housingCabinetry - Kitchen; Cabinetry - Restroom (Section H)27.5 years
Separate rental office or clubhouse; built-in restroom cabinets of a store or restaurantCabinetry – Rental Office/Clubhouse (Section H); Restroom Accessories (Sections B and C)39 years

Source: IRS Publication 5653 (revised February 2025), Chapter 7: retail millwork page 177, restaurant millwork page 190, casino millwork page 220, and residential cabinets page 298. The casino example is outside the 254-row dataset. Checked October 6, 2026.

How is lighting classified?

Lighting has three tax lives in the IRS residential rental matrix. Decorative fixtures that do not provide general light and are not needed for building operation are 5 years. Pole-mounted or freestanding site lighting is 15 years. General room lighting and building-mounted lighting used for building operation or maintenance are 27.5 years.

One IRS condition is simple enough to picture. Turn the decorative light off. The other lights must still let you use the room, and the fixture must not serve building operation or maintenance. If it was the main light, it stays with the building. Exterior decorative rows also exclude lights for parking areas and walkways.

Are stores and restaurants classified differently from rental housing?

Yes. The IRS lists far more 5-year rows for stores and restaurants. In the retail matrix, 31 of 73 rows (42%) are 5-year, against 24 of 115 (21%) in the residential matrix. Fewer rows stay with the building, too: 42% in retail against 54% in residential.

Table 11. Share of rows that are 5-year, and share that stay with the building
IRS matrixRows5-year rowsShareRows that stay with the buildingShare
Residential rental1152420.9%6253.9%
Retail733142.5%3142.5%
Restaurant662740.9%2943.9%

Source: CostSegregationMatch count of IRS Publication 5653 (revised February 2025), Chapter 7: retail, pages 172–183; restaurants, pages 184–195; residential rental, pages 297–322. Rows are component types, not dollars. Counted October 2026.

5-year rows are twice as common in the IRS retail matrix as in its residential matrixBar chart. 5-year rows are 20.9% of the IRS residential rental matrix, 42.5% of the retail matrix and 40.9% of the restaurant matrix. Rows that stay with the building are 53.9%, 42.5% and 43.9%.Residential rental20.9%53.9%Retail42.5%42.5%Restaurant40.9%43.9%5-year rowsStays with the buildingSource: CostSegregationMatch count of IRS Publication 5653 (Rev. Feb. 2025), Ch. 7, Sec. H, B and C. Rows are component types, not dollars. Counted Oct. 2026.
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The lists reflect different uses. The retail matrix names shelves, registers and display cases. The restaurant matrix names ovens and booths. The residential matrix lists more building rows. These row counts do not measure how much of any property is building or equipment.

The IRS also warns against borrowing an answer from the wrong matrix. Each one is written for its own kind of property and, in the IRS's words, "may not be applicable" to others. The business can even change the tax life of the same kind of item:

How does the IRS decide between 5 years and 27.5 or 39?

The first question is whether the item is a building or a structural part of one. If it is, the matrix generally keeps it on the building's tax life of 27.5 or 39 years; later commercial work may meet the separate improvement rule below. The IRS also looks at how firmly it is attached and what it serves. Across the 254 rows, five plain questions help explain the differences.

The tax code has names for these categories. Section 1250 property includes buildings and their structural parts. Section 1245 property includes personal property, like equipment and furniture. Some land improvements can fall in either category. The section number alone does not set the tax life. The IRS guide calls sorting one from the other "the crux of cost segregation."

Here are five useful questions drawn from the matrix entries:

  1. The removable test (flooring, partitions, wallpaper). Can it come out and stay in about the same shape? The matrices distinguish strippable flooring from tile fixed with permanent adhesive or grout.
  2. The main-light test (lighting). If you switched it off, could you still use the room? A decorative fixture must also be separate from building operation or maintenance.
  3. The sole justification test (HVAC in stores and restaurants). Is a separate unit there solely to meet temperature or humidity needs essential to machinery or processing? A walk-in cooler's refrigeration unit is an IRS example. Incidental employee comfort is allowed; a significant purpose such as dining-room comfort is not.
  4. The dedicated test (wiring and plumbing). Does the line serve qualifying equipment, or the building in general? A circuit serving only a clothes dryer is an IRS example. A general-use hallway outlet is not. The residential matrix separately keeps garbage-disposal hookups with the building.
  5. The site-or-building test (land improvements). Is it out on the land, or part of the building? A freestanding trash enclosure on its own pad is 15 years. One that forms part of the building shell and cannot move without damaging it is building property.

The guide discusses older court cases behind classification, including Hospital Corporation of America v. Commissioner (1997) and Whiteco Industries v. Commissioner (1975). If a row and your facts do not match, the facts win.

Does remodeling a commercial building change the class?

It can. An interior improvement you make to a nonresidential building can be qualified improvement property (QIP): 15 years under GDS, or 20 under ADS. It must be Section 1250 property placed in service by you after 2017 and after anyone first placed the building in service. It does not cover enlarging the building, any elevator or escalator, or the building's internal structural framework.

This is a separate rule that sits on top of the lookup. The lookup shows where the IRS matrices put an item to begin with. A later remodel of a store or restaurant gets a second look under this rule.

Table 12. The checks for qualified improvement property
CheckWhat has to be true
Kind of buildingNonresidential real property. Rental housing does not count.
Where the work isAn interior portion of the building
WhenPlaced in service by you after December 31, 2017, and after the date anyone first placed the building in service
WhoThe improvement is made by the taxpayer; buying an earlier owner's completed work does not itself meet this test
Property typeSection 1250 property
Tax life15 years under GDS; 20 under ADS
Left outEnlarging the building; any elevator or escalator; the internal structural framework

Sources: IRS Publication 946 (2025), qualified improvement property; Treasury Regulation 1.168(b)-1(a)(5); Revenue Procedure 2020-25, section 2.01, for 15-year GDS and 20-year ADS; IRS Publication 5653 (revised February 2025), Chapter 6. Checked October 6, 2026.

Say you buy a ten-year-old restaurant and later redo the dining room floor in tile. The restaurant matrix says permanent flooring is 39 years. This rule may move your new tile to 15. Your tax preparer makes that call.

Why does the class matter more in 2026?

Because qualifying costs in the short classes can be deducted all at once. For qualified property acquired and placed in service after January 19, 2025, IRS Publication 946 sets the first-year special ("bonus") depreciation allowance at 100%, unless an election or exclusion applies. For tangible components in this reference, the relevant route is a tax life of 20 years or less under Section 168(k). The printed 5-, 7- and 15-year rows meet that period test. Ordinary building costs at 27.5 or 39 years do not.

At a 100% rate, the class can decide whether a cost is deducted this year or over decades.

Say a $10,000 line on a study is carpet in a rental. As 5-year property that passes every other test for 100% bonus, with no election out, the whole $10,000 can be a year-one depreciation deduction. Now say the same $10,000 is permanent tile. It stays with the building, and the deduction is about $364 for a full year ($10,000 ÷ 27.5). The first year is prorated under the IRS mid-month rule. These are deductions, not tax savings; rental-loss limits can affect when you use them.

Here is how many rows print a 5-, 7- or 15-year period, before applying other rules:

Table 13. IRS rows that print a 5-, 7- or 15-year tax life
IRS matrixRows at 5, 7 or 15 yearsAll rowsShare
Residential rental4911543%
Retail407355%
Restaurant366655%
All three12525449%

Source: CostSegregationMatch count of IRS Publication 5653 (revised February 2025), Chapter 7: retail, pages 172–183; restaurants, pages 184–195; residential rental, pages 297–322; 20-year rule from IRS Publication 946 (2025). Counted October 2026.

Tax life is only the first test. Bonus depreciation has other rules, and you can elect out of it. Your tax preparer checks the rest. The table does not count possible QIP treatment, the mixed landscaping row or rows with no fixed period. Required ADS can also rule out Section 168(k) bonus. IRS Notice 2026-11 gives the current bonus guidance.

There is also a separate 100% election for certain qualified production property, meaning eligible parts of production buildings, under Section 168(n). It does not make ordinary rental, sales, parking or office space eligible. IRS Notice 2026-16 sets out that separate rule.

Two more dated facts explain why people are looking this up now:

If you are weighing a study for your own building, the next question is what kind of study fits it. You can see three published study offers side by side before you talk to anyone.

How we built this

On October 6, 2026, we listed every row of three exhibits in the IRS Cost Segregation Audit Techniques Guide (Publication 5653, revised February 2025): 115 rows for residential rental property, 73 for retail and 66 for restaurants. We tagged each row with the tax life the IRS prints, then counted.

Step by step:

  1. Collect. Chapter 7, Section B (retail, pages 172–183), Section C (restaurants, pages 184–195) and Section H (residential rental, pages 297–322). Each has an "Exhibit A" matrix. We took every logical entry, in order. A continued row counts once; repeated cells at page breaks do not make new rows. Separate entries remain separate even when their descriptions overlap.
  2. Tag. For each row we recorded the IRS asset name, property type, asset class and printed GDS tax life. We normalized spacing and some category labels. We kept conditional values such as "27.5 or 39," nondepreciable land and rows with no fixed class. Each row links to its exact PDF page.
  3. Group. We placed each row in one of seven groups: stays with the building (27.5 or 39 years), 5-year, 7-year, 15-year, 15-year or land, land, or no fixed class.
  4. Count. Every count on this page is a count of rows in the downloadable file.
  5. Summarize. We wrote a short plain-language condition for each row. Those summaries are ours. The full IRS row is the source.
  6. Re-check. We checked all 254 entries against the official IRS PDF, including page continuations and the alignment of the description, class and tax-life columns. We checked all 115 residential entries, all 73 retail entries and all 66 restaurant entries. We also checked the separate casino example on page 220. We then recomputed the counts from the final CSV.

For the "same name, different treatment" count, we grouped rows by the IRS asset-name label in the file, within each matrix, and counted names with different printed treatments. Retail has 16 such names covering 35 rows; restaurants have 14 covering 30 rows. Some groups include nondepreciable land. The residential matrix gives every entry its own name, so that count covers retail and restaurants only.

To redo our work, open the IRS guide, go to the page ranges above, and count each logical entry of each Exhibit A by its printed tax life. In the CSV, group by irs_matrix and class_group. Divide each group count by its matrix total and multiply by 100; round to one decimal for tables and the nearest whole percent in the key statistics. You should get our numbers. The current_rule_note column explains why a printed period is not a final tax result or proof of bonus eligibility.

How we source and correct our pages is in our methodology and editorial standards.

What does this data show, and what doesn't it show?

It shows 254 entries in IRS guidance for three kinds of property. Entries can overlap or describe different uses of the same part. It does not show the law, your building, or dollars.

A classification list is where a study starts, not where it ends. If you are choosing who should do that work, Find My Cost Seg Provider lets you compare study options without an account or contact details.

How to cite this page

Cite CostSegregationMatch for the counts, the comparisons and the lookup. For a single row, cite the IRS row too, and keep the property type, condition and GDS label with the number.

Page citation

CostSegregationMatch. "Cost Segregation Asset Classification: Search 254 IRS Rows by Component." Updated October 2026. https://costsegregationmatch.com/research/cost-segregation-assets/

Citation for a finding

In the IRS's own matrix for rental housing, 62 of 115 component rows stay on the building's schedule and only 24 are 5-year property, according to CostSegregationMatch's count of IRS Publication 5653, October 2026.

Every statistic and every row in the lookup has its own link and a copy control.

Download the full dataset

Both files are free. No form, no account.

IRS text is in the public domain. Our counts, plain-language summaries and charts may be reused; credit CostSegregationMatch for that work, keep the underlying source credit and any applicable source terms, and note that this permission covers only our contribution. No link is required.

Frequently asked questions

What properties qualify for cost segregation?

Buildings that are depreciated. The IRS guide covers residential rental property, which has a 27.5-year tax life, and nonresidential buildings, which have a 39-year tax life. Its Chapter 7 has matrices for seven kinds of property: retail, restaurants, drug and biotech, casinos, auto dealerships, auto manufacturing and residential rental. Bare land does not qualify, because land is not depreciated. Source: IRS Publication 5653, Chapter 7.

What are the rules for cost segregation bonus depreciation in 2026?

The first-year allowance is 100% for qualified property acquired and placed in service after January 19, 2025, unless an election or exclusion applies. For tangible components under Section 168(k), the 5-, 7- and 15-year periods here meet the 20-years-or-less test; ordinary building costs at 27.5 or 39 years do not. A period alone does not prove eligibility, and QIP and qualified production property have separate rules explained above. The sources are IRS Publication 946 for 2025 and IRS Notice 2026-11.

Can I do cost segregation on a building I bought four years ago?

Often, yes. A study can cover a building placed in service in an earlier year. Fixing the earlier years usually runs through a change in accounting method on Form 3115, which the IRS guide covers in Chapter 6. Your tax preparer decides which filing fits. Sources: IRS Publication 5653, pages 78–83, and Publication 946, correcting depreciation.

Are kitchen cabinets 5-year property?

In rental housing, the IRS matrix says no. Kitchen cabinets, counters and sinks are on the 27.5-year schedule. In a store or restaurant, decorative cabinets and counters in the selling or dining area are 5-year property when they do not serve building operation. Built-in restroom cabinets stay with the building in all three matrices. Sources: residential cabinets, page 298; retail millwork, page 177; restaurant millwork, page 190.

What counts as 15-year property in cost segregation?

Land improvements in asset class 00.3 use 15 years. In the IRS residential rental matrix that is 23 of 115 rows. Examples are parking lots, sidewalks, fences, patios, site lighting, permanent outdoor pools and lawn sprinkler systems. Source: residential matrix, pages 297–322; full 23-row list.

Is HVAC 5-year or 27.5-year property?

In rental housing, the central system primarily serving the residence and occupants is 27.5 years, and the IRS says allocating it is not appropriate. General building HVAC in stores and restaurants is 39 years. A separate unit installed solely for temperature or humidity needs essential to machinery or processing can be 5 years; incidental employee comfort is allowed. The matrices do not permit splitting a mixed HVAC system into those two treatments. Sources: residential HVAC, page 310; retail HVAC, page 176; restaurant HVAC, page 188.

Is flooring 5-year property?

Some of it. Carpet is 5-year property in all three matrices. Vinyl composition tile and sheet vinyl are 5-year in the residential and retail matrices. Tile, marble and wood fixed in place stay with the building. The IRS rows do not name vinyl plank or laminate, so those turn on how the floor is installed. Sources: residential flooring, pages 306–307; retail flooring, pages 175–176; restaurant flooring, page 187.

What is the difference between Section 1245 and Section 1250 property?

Section 1245 includes personal property like equipment and furniture; Section 1250 includes buildings and their structural parts. These section numbers do not set one tax life. The matrices include 5- and 7-year Section 1245 property, while 15-year land improvements can be either kind. QIP can be Section 1250 property with a 15-year GDS life. Sources: IRS Publication 5653, page 171, and Publication 946, qualified improvement property.

Is the IRS matrix the law?

No. The IRS says its directives are not an official pronouncement of the law. But the guide tells examiners that when a return matches the matrix, they should not make adjustments to the class or tax life. A study can classify an item differently when the facts support it. Source: IRS Publication 5653, page 296.

What if my component is not in the lookup?

A failed search means no matching row was found in this reference; the IRS may use another name. That does not mean the item fails to qualify for anything. Try another name or change the filters; the lookup shows related rows when it finds a real match. The answer turns on the facts: is the item part of the building, how is it attached, and what does it serve.

Do these classes apply to short-term rentals?

The residential rule uses an 80% test: at least 80% of the building's gross rental income for the tax year must come from dwelling units. A unit does not count as a dwelling unit if it is in a hotel, motel or other establishment where more than half the units are used on a transient basis. If you use part of the building personally, include that part's fair rental value in gross rental income for this test. IRS Publication 527 states the rule; your tax preparer applies it to your short-term rental.

Sources

All sources were checked on October 6, 2026.

  1. Internal Revenue Service. Cost Segregation Audit Techniques Guide, Publication 5653, revised February 6, 2025. Chapter 1; Chapter 6; Chapter 7, Sections B, C, E and H. https://www.irs.gov/pub/irs-pdf/p5653.pdf
  2. Internal Revenue Service. Publication 946 (2025), How To Depreciate Property. Special depreciation allowance; recovery periods under GDS; qualified improvement property; Appendix B, Tables B-1 and B-2. https://www.irs.gov/publications/p946
  3. Internal Revenue Service. Publication 527 (2025), Residential Rental Property. Table 2-1, MACRS Recovery Periods for Property Used in Rental Activities. https://www.irs.gov/publications/p527
  4. Internal Revenue Service. Instructions for Form 4562 (2025). Qualified property acquired after January 19, 2025. https://www.irs.gov/instructions/i4562
  5. CostSegregationMatch. IRS Component Lookup (irs-cost-segregation-component-lookup.csv) and row counts (irs-component-counts-by-class.csv). Compiled October 6, 2026, from source 1.
  6. U.S. Department of the Treasury. Treasury Regulation 1.168(b)-1(a)(5), definition of qualified improvement property. https://www.ecfr.gov/current/title-26/section-1.168(b)-1
  7. Internal Revenue Service. Revenue Procedure 2020-25, section 2.01, GDS and ADS treatment of qualified improvement property. https://www.irs.gov/pub/irs-drop/rp-20-25.pdf#page=3
  8. Internal Revenue Service. Notice 2026-11, Section 168(k) bonus depreciation guidance. https://www.irs.gov/irb/2026-06_IRB
  9. Internal Revenue Service. Notice 2026-16, Section 168(n) qualified production property guidance. https://www.irs.gov/irb/2026-11_IRB