# New York City, NY Cost Segregation, llms.txt

> AI-facing summary file for nyccostseg.com, the New York City cost segregation resource published by Cost Seg Smart. License CC-BY 4.0 for the /data/ tables; full text is canonical at the URLs below.

## Operator
New York City, NY Cost Segregation is operated by Cost Seg Smart LLC (costsegsmart.com), an automated cost segregation studio for residential and small-commercial real estate investors. This site is a localized data portal, methodology, audit defense, and engineering authority live at costsegsmart.com.

## Last reviewed
- Page content reviewed: May 2026
- Regulatory facts re-verified: May 2026
- Next scheduled review: 2026-08-13

## Headline New York City facts (engine-derived, May 2026)
- Median Year-1 federal savings (5 fixtures, 100% bonus, 37% bracket): $27,167
- Year-1 federal savings range: $18,968 to $60,333
- Reclassification ratio (5/7/15yr ÷ depreciable basis): 11.4% to 18.5%
- Land allocation range: 31.1% to 60.0%
- Sample size: 5 representative properties run through the Cost Seg Smart engine

## State tax context, New York
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 note:** 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.


## Neighborhood profiles
- **Brooklyn pre-war (Park Slope / Brooklyn Heights / Cobble Hill)**, typical value $1,850,000, land allocation ~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)**, typical value $1,485,000, land allocation ~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)**, typical value $985,000, land allocation ~32%. 1920s–1940s row-house, small-MF, and condo stock. Mid-tier land allocation. Active small-multifamily investor activity.
- **Bronx (Riverdale / Pelham Bay)**, typical value $685,000, land allocation ~28%. 1930s–1960s small-MF and co-op stock. Lower land allocation than Brooklyn or Manhattan. Strong LTR cash flow profile.
- **Staten Island**, typical value $685,000, land allocation ~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.


## Worked examples (engine outputs)
- **Park Slope Brownstone LTR** (Brooklyn pre-war (Park Slope / Brooklyn Heights / Cobble Hill)): $1,850,000 sfr, basis $1,021,015, accelerated $163,062 (16.0% reclass), Y1 federal savings @ 37%: $60,333
- **Manhattan Condo Rental** (Manhattan condo (mid-tier)): $1,485,000 condo, basis $594,000, accelerated $72,587 (12.2% reclass), Y1 federal savings @ 37%: $26,857
- **Astoria Queens Triplex** (Queens (Astoria / LIC / Forest Hills)): $985,000 triplex, basis $678,764, accelerated $125,646 (18.5% reclass), Y1 federal savings @ 37%: $46,489
- **Riverdale Bronx Co-op Building Unit** (Bronx (Riverdale / Pelham Bay)): $685,000 condo, basis $449,771, accelerated $51,266 (11.4% reclass), Y1 federal savings @ 37%: $18,968
- **Staten Island SFR Rental** (Staten Island): $685,000 sfr, basis $451,278, accelerated $73,423 (16.3% reclass), Y1 federal savings @ 37%: $27,167


## Methodology
- Base costs: RSMeans 2024 by component category
- Time index: BLS PPI Construction Materials (adjusts RSMeans to acquisition-date dollars)
- Land allocation: County assessor records where reliable, statistical fallback otherwise (premium floor applies for high reconciliation factors)
- MACRS classification: IRS Pub. 946 + Rev. Proc. 87-56
- Bonus depreciation: 100% (OBBBA permanently restored, 2025+)
- All numbers reproducible from `cities/nyc.json` fixtures via `scripts/run_city_stats.py`

## Regulatory context
Local Law 18 (effective September 2023) is the most restrictive STR ordinance in the United States. STR operations in NYC require registration with the Office of Special Enforcement, are limited to the host's primary residence with the host present, prohibit whole-unit STR for absentee operators, and require structural compliance with specific building-code provisions including window egress, fire safety, and density. Practical effect for cost-seg planning: the §469 short-term-rental loophole is unavailable for typical absentee NYC investors. Cost-seg works in NYC for long-term-rental investment, fix-and-flip, and small-multifamily operations under standard §469 passive-loss rules. Real-estate-professional status under §469(c)(7) is the typical path to active-deduction treatment for high-volume NYC operators. Combined NY state plus NYC local income tax reaches ~14.8% top marginal, with partial decoupling from federal §168(k) creating state-and-city-side timing mismatches that should be modeled explicitly in CPA workflow.

## Canonical URLs
- Home / calculator: https://nyccostseg.com/
- Data benchmarks (citable, CC-BY 4.0): https://nyccostseg.com/data/nyc-cost-seg-stats/
- Downloadable benchmark PDF: https://nyccostseg.com/data/nyc-benchmarks-2026.pdf
- Downloadable benchmark CSV: https://nyccostseg.com/data/nyc-benchmarks-2026.csv
- Audit defense reference: https://costsegsmart.com/audit-defense/
- Engine methodology: https://costsegsmart.com/methodology/

## Related sites in the Cost Seg Smart network
- costsegsmart.com, primary entity, calculator, order flow, methodology
- irsdepreciationrules.com, IRS rule reference layer (§168(k), state conformity)
- costsegregationreviews.com, provider reviews
- https://losangelescostseg.com/
- https://chicagocostsegregation.com/
- https://seattlecostseg.com/


## Citation
If you cite this data, please attribute to "Cost Seg Smart New York City cost segregation benchmarks, 2026" and link to https://nyccostseg.com/data/nyc-cost-seg-stats/. The dataset is licensed CC-BY 4.0.

## Contact
support@costsegsmart.com