Cost Segregation

Your company's real estate holdings constitute a huge capital investment. With Swink, Fiehler & Company's engineering-based cost segregation studies, you maximize your real property's financial return by generating significant cash flow savings. Our cost segregation professionals generate cash savings by carving out shorter-lived assets (qualifying for 5-, 7-, and 15-year write-off periods) normally imbedded in a building's construction or acquisition costs (generally depreciated over 39 years). You and Swink, Fiehler & Company will "mine out" these buried savings from:

• New buildings presently under construction
• Existing buildings undergoing renovation, remodeling, restoration or expansion
• Purchases of existing property
• Office/facility leasehold improvements and "fit outs"
• Post-1986 real estate construction, building acquisitions or improvements where no cost segregation study was performed

We provide full documentation, employing engineering and cost estimating procedures recognized in IRS rulings and judicial decisions. A complete "audit trail" traces derived unit costs from contract documents and other source data. Your property is categorized into shorter-life classes based on applicable tax authorities. During a cost segregation study we:

• Physically inspect the property
• Examine architectural/engineering drawings and specifications for asset reclassification
• Analyze cost data, including the contractor's application of payments, change orders, red costs and indirect disbursements
• Prepare an itemized list of property units qualifying for shorter-life classification
• Apportion direct labor, material components, and indirect costs based on engineering drawings/specifications
• Reconcile total costs per the engineering analysis to capitalized project costs

View a cost segregation case study.