Allocating for land - rental real estate - New York City

[Judy rocks]

I'm a California EA. A client bought a New York apartment for 700,000. I'm looking for suggestions on making the allocation for land in New York City?

[MDEA]

Land nyc

Is it a condo or cooperative?

[Roland Slugg]

When the buyer receives his first property tax bill, or better yet his first valuation assessment notice, if it shows a land/improvements breakdown, that will be a possible guide. Assessed valuations are often very inaccurate, though, so don't treat the breakdown as the Holy Grail. The New York realtor may also be able to offer a rough allocation.

I would suggest that you not go overboard trying to allocate the highest possible amount to the building. Yes, it's depreciable, but it all comes back in one lump sum when the property is later sold. That nice $20k deduction each year may not look so wonderful ten years later when the place is sold and there is $200k of unrecaptured §1250 gain to report.