Open data · CC-BY 4.0

New York City, NY cost segregation benchmarks (2026)

Engine-derived ROI data from 5 representative New York City-area properties. Methodology transparent below. CC-BY 4.0, journalists, CPAs, and researchers may cite this dataset with attribution.

Three key findings for New York City

  1. Median engine-estimated Year-1 federal savings: $27,167 (interquartile range $26,857–$46,489, full range $18,968–$60,333) across 5 representative fixtures with purchase prices $685,000–$1,850,000. Assumptions: 100% bonus depreciation under OBBBA; 37% federal top marginal bracket. Individual property results vary substantially based on specific condition, renovation history, and rental treatment.
  2. Median reclassification ratio: 16.0% (interquartile range 12.2%–16.3%, full range 11.4%–18.5%). Furnished STRs sit higher in the range due to FF&E density; long-term rentals sit lower; renovation-cost-pool-driven properties span both. Your specific property may fall outside this range either direction depending on actual condition and renovation history.
  3. Median land allocation: 34.3% (interquartile range 34.1%–44.8%, full range 31.1%–60.0%). Resort-tier and high-cost-of-land neighborhoods (where the engine's premium land floor often applies) compress depreciable basis as a percentage of purchase price, but produce larger absolute dollar deductions. See the methodology note below the neighborhood table for the premium-floor mechanism.

Important framing: These are engine outputs for representative fixture scenarios, not predictions about any specific property. The cost segregation engine takes real property data (address, year built, square footage, renovation history, assessor records) and produces a study tailored to your actual property. The aggregate numbers shown here describe the New York City market's general profile; your specific results will reflect your specific property.

Per-fixture results

Each fixture was run through the Cost Seg Smart engine, the same engine that produces real customer studies. Numbers below are reproducible from cities/nyc.json via scripts/run_city_stats.py.

Property Neighborhood Price Basis Land % 5-yr 15-yr Reclass % Y1 fed savings @ 37%
Park Slope Brownstone LTR
SFR · Built 1890
Brooklyn pre-war (Park Slope / Brooklyn Heights / Cobble Hill) $1,850,000 $1,021,015 44.8% $94,636 $68,425 16.0% $60,333
Manhattan Condo Rental
CONDO · Built 2014
Manhattan condo (mid-tier) $1,485,000 $594,000 60.0% $67,406 $5,181 12.2% $26,857
Astoria Queens Triplex
TRIPLEX · Built 1928
Queens (Astoria / LIC / Forest Hills) $985,000 $678,764 31.1% $78,581 $47,065 18.5% $46,489
Riverdale Bronx Co-op Building Unit
CONDO · Built 1962
Bronx (Riverdale / Pelham Bay) $685,000 $449,771 34.3% $46,477 $4,789 11.4% $18,968
Staten Island SFR Rental
SFR · Built 1968
Staten Island $685,000 $451,278 34.1% $42,859 $30,564 16.3% $27,167

Reclassification by property type

Engine property typeFixturesMedian reclass %MinMax
SFR 2 16.1% 16.0% 16.3%
CONDO 2 11.8% 11.4% 12.2%
TRIPLEX 1 18.5% 18.5% 18.5%

"STR" denotes residential property operating as a short-term rental, the engine applies an FF&E density uplift not captured in the LTR (long-term rental) treatment.

Typical land allocation by neighborhood

NeighborhoodTypical valueTypical land allocationProfile note
Brooklyn pre-war (Park Slope / Brooklyn Heights / Cobble Hill) $1,850,000 ~38% 1880s–1900s brownstone and townhome stock. Highest land allocation in NYC fixtures due to dense-urban scarcity. Heavy renovation cost-seg drives the math.
Manhattan condo (mid-tier) $1,485,000 ~30% Mid-rise and high-rise condo dominant. Vertical density compresses land allocation. New construction (2010+) supports cleaner reclassification ratios.
Queens (Astoria / LIC / Forest Hills) $985,000 ~32% 1920s–1940s row-house, small-MF, and condo stock. Mid-tier land allocation. Active small-multifamily investor activity.
Bronx (Riverdale / Pelham Bay) $685,000 ~28% 1930s–1960s small-MF and co-op stock. Lower land allocation than Brooklyn or Manhattan. Strong LTR cash flow profile.
Staten Island $685,000 ~22% SFR-dominant with 1950s–1980s stock. Lowest land allocation among NYC boroughs. Mix of fix-and-flip and SFR rental. Lighter STR enforcement than core boroughs.
Why per-fixture engine output may differ from the typical land allocation:

The "typical land allocation" column reflects baseline patterns for each sub-market based on county assessor records and statistical modeling. For specific properties where reconstruction cost (RSMeans 2024 component build-up adjusted for time and geography) exceeds 2.0× the implied depreciable basis after subtracting the baseline land, the engine applies a premium land floor (~50%) to keep the study within audit-defensible territory. This typically affects ultra-premium resort inventory (ski-in/ski-out, beachfront, view-premium properties), where land scarcity premium dominates the purchase price. The per-fixture table above shows the actual land_source used by the engine for each fixture, values of statistical_premium_floor indicate the premium-floor mechanism was applied.

The takeaway: typical neighborhood allocations describe the market baseline. Individual property results depend on specific reconstruction-cost-vs-purchase-price ratios, and ultra-premium product may show higher land allocation in the engine output than the neighborhood typical.

New York tax context

New York state position on §168(k) bonus depreciation:

New York partially decouples from federal §168(k), NY has historically required an addback for federal bonus depreciation, with the addback recovered over the regular MACRS schedule for state purposes. NYC has its own local income tax stacked on top. For 2025+ acquisitions under OBBBA's 100% federal bonus, NY-side timing impact is meaningful given the high state-plus-local rates. The federal §168(k) acceleration is unaffected; the state-and-city-side reconciliation is the variable.

Decoupling: NY has periodically modified bonus depreciation conformity. Verify current-year treatment with your CPA. NYC's local income tax is separate from state but applies on the same federal-adjusted base.

State income tax structure: Progressive NY state schedule plus separate NYC local income tax. Highest combined state-plus-local income tax in the United States.

Verify with your CPA. State tax conformity for federal §168(k) is adjusted frequently. Framing reflects our understanding as of May 2026, verify current-year treatment with a qualified tax professional.

Methodology

Every figure on this page is reproducible. The pipeline:

  1. Fixture definition. 5 New York City-area properties defined in cities/nyc.json under the engine_fixtures array, each with address, property type, purchase price, year built, square footage, and STR/LTR flag.
  2. Engine run. The script scripts/run_city_stats.py instantiates a PropertyInput for each fixture and calls engine.run_study(), the same path that produces a real customer study.
  3. Base costs. RSMeans 2024 construction-cost data by component category, applied as base-rate per square foot.
  4. Time index. BLS Producer Price Index (Construction Materials series WPUFD49207) adjusts RSMeans 2024 dollars to acquisition-date dollars.
  5. Geographic factor. Six-tier resolver: pinned metros → calibrated → manual → state → region → national default.
  6. Land allocation. County assessor records when reliability gate passes; statistical fallback (metro → state → national medians) otherwise. Premium floor applies when reconciliation factor (rf_raw) exceeds 2.0.
  7. MACRS classification. IRS Pub. 946 + Rev. Proc. 87-56 asset class lives, 5-year (personal property), 7-year (office equipment), 15-year (land improvements), 27.5-year (residential structure), 39-year (commercial structure).
  8. Bonus depreciation. 100%, the One Big Beautiful Bill Act (OBBBA, signed July 2025) permanently restored 100% bonus for property placed in service in 2025 and later.
  9. Federal tax savings illustration. Computed at the 37% top marginal bracket. Actual savings vary by taxpayer; consult your CPA.

For full methodology details including QC validation, reconciliation logic, and audit-defense documentation, see costsegsmart.com/methodology.

Citation

This dataset is licensed under the Creative Commons Attribution 4.0 International License. You may republish, remix, or extend this data for any purpose with attribution. Suggested citation format:

Cost Seg Smart Research Team. (2026). "New York City, NY Cost Segregation Benchmarks 2026." Cost Seg Smart. 5 representative fixtures.
Retrieved from https://nyccostseg.com/data/nyc-cost-seg-stats/

For interview requests, additional data slices, or related questions: [email protected].

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