N.Y. Est. Powers & Trusts Law § 11-a-5.3

§ 11-A-5.3 Transfers from income to principal for depreciation\n (a) In this section, "depreciation" means a reduction in value due to\nwear, tear, decay, corrosion, or gradual obsolescence of a fixed asset\nhaving a useful life of more than one year.\n (b) A trustee may transfer to principal a reasonable amount of the net\ncash receipts from a principal asset that is subject to depreciation,\nbut may not transfer any amount for depreciation:\n (1) of that portion of real property used or available for use by a\nbeneficiary as a residence or of tangible personal property held or made\navailable for the personal use or enjoyment of a beneficiary;\n (2) during the administration of a decedent's estate; or\n (3) under this section if the trustee is accounting under 11-A-4.3 for\nthe business or activity in which the asset is used.\n (c) An amount transferred to principal need not be held as a separate\nfund.\n