N.Y. Estates, Powers & Trusts Law Section 11-A-5.3
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.

Source: Section 11-A-5.3 — Transfers from income to principal for depreciation, https://www.­nysenate.­gov/legislation/laws/EPT/11-A-5.­3 (updated Sep. 22, 2014; accessed Feb. 28, 2026).

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Verified:
Feb. 28, 2026

Last modified:
Sep. 22, 2014

§ 11-A-5.3. Transfers from income to principal for depreciation's source at nysenate​.gov

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