Services Cost Segregation | What Is It? Cost Segregation is a strategy approved by the IRS to reclassify specific real property assets that usually receive a depreciation life of 39 years (commercial real property) or 27.5 (commercial residential) into "tangible personal property", which is treated as five (5) year property or land improvements which are treated as fifteen (15) year property for depreciation purposes. This effectively increases a business taxpayer's depreciation expense, which translates into significant tax savings. Download our Proposal Checklist to get a head start on your preliminary review. Home Services Resources Advisors Contact © 2008 New Harbor CSA, L.L.C. | Saint Paul, MN 55127