New York Laws
Part 5 - Allocation of Disbursements During Administration of Trust
11-A-5.3 - Transfers From Income to Principal for Depreciation

(a) In this section, "depreciation" means a reduction in value due to
wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset
having a useful life of more than one year.
(b) A trustee may transfer to principal a reasonable amount of the net
cash receipts from a principal asset that is subject to depreciation,
but may not transfer any amount for depreciation:
(1) of that portion of real property used or available for use by a
beneficiary as a residence or of tangible personal property held or made
available for the personal use or enjoyment of a beneficiary;
(2) during the administration of a decedent's estate; or
(3) under this section if the trustee is accounting under 11-A-4.3 for
the business or activity in which the asset is used.
(c) An amount transferred to principal need not be held as a separate
fund.

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