Short-Term Rental (STR) cost segregation in New York.

Why short-term rentals reclassify well in New York

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.

Short-Term Rental (STR) properties have a particular profile that makes cost segregation especially valuable: Airbnb / VRBO — pairs with the §469 STR strategy to offset W-2 income. The shell sits on a 27.5-year recovery period under MACRS — but every short-term rental (str) is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a short-term rental (str) in New York, TDA studies typically reclassify 28–35% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.

New York markets we serve

We deliver short-term rental (str) cost segregation studies across New York, including New York City, Buffalo, Rochester, Yonkers, Syracuse. Engineering-based methodology and RSMeans cost data on every engagement.