Cost segregation for New York City property investors
Highest-basis market in the country. Multifamily, office, and adaptive-reuse studies dominate; even small reclassification percentages produce massive deductions. Whether you own a single property or a portfolio in New York City, an engineering-based cost segregation study reclassifies components of your building from 27.5- or 39-year real property into 5-, 7-, and 15-year MACRS class lives.
Under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation has been restored for qualifying property acquired and placed in service after January 19, 2025 — meaning every dollar of accelerated property identified in your New York City study can be deducted in year one. For a typical property in this market, that often translates to 20–35% of cost basis reclassified into shorter recovery periods.
New York market context
New York hosts the country's densest commercial real estate market in NYC. High state and city income tax rates make federal cost segregation deductions extremely valuable. NY also decouples from federal bonus depreciation, so studies model both books.
Every TDA New York City study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.