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Analyzing the 421g Tax Abatement in NYC

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  • Analyzing the 421g Tax Abatement in NYC


    Can you please help me understand those property tax bills with multiple tax abatements?

    For example, I have enclosed here the property tax bill for 1 Wall St Ct #1001. As you can see, current annual property tax is $10,387, which is consistent with the monthly tax reported on ($10,387/12 = $866).

    However, the property tax bill (found on the NYC Department of Finance website) has two abatements on it. One is called "Resid-Conv. Low Manh", in the amount of $3,051. The other abatement is called "Residential Conversion Abatement", in the amount of $3,626.

    My question is: if I buy the property and rent it out (instead of using it as my primary residence), will I lose both abatements or just one of these two abatements? In other words, once I start renting (and assume the building's 421g abatement expires at that time), will my annual tax bill become $17,064? or will it become $14,013?

    Thank you very much for your kind help Chris!

    Best regards,

  • #2
    The 421g tax abatement and exemption in NYC explained. History of the 421-g tax incentive and how to calculate and verify the incentive. Projection model.