2006 New York Code - Transfers From Income To Principal For Depreciation

 
  § 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.