Is the New York Rule prohibiting a trustee from charging real property income with depreciation?

The New York rule has heretofore been clearly understood as prohibiting a trustee from charging real property income with depreciation, at least in the absence of a contrary direction in the will. The decision in Smith v. Keteltas (62 App. Div. 174) is most frequently cited as setting forth the authoritative declaration of the rule. In that case, the trustee of a testamentary trust had used a portion of an award in condemnation proceedings to construct new buildings in place of old untenantable structures.

[197 Misc. 833]