Question 1

Does New York have unique title closing requirements?

Accepted Answer

Yes. New York requires attorney presence at residential closings and most commercial transactions. Title insurance must be issued by an underwriter licensed by the NY Department of Financial Services through an authorized agent. This differs from many states where a title company can close without an attorney.

Question 2

How does New York's transfer tax affect 1031 exchanges?

Accepted Answer

New York imposes a real property transfer tax of 0.4% to 0.65% plus a mansion tax on residential sales over $1M. 1031 exchanges defer federal and NY state/city capital gains taxes but do not avoid transfer taxes, which are assessed at the time of each sale.

Question 3

Are cost segregation studies viable for New York City properties?

Accepted Answer

Absolutely. High-basis NYC commercial properties generate very large cost segregation benefits. A $5M multifamily building in Brooklyn can generate $150,000+ in accelerated deductions in the first year, providing immediate federal and state income tax relief.

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