N.Y. EPT Law § 11-A-5.4

§ 11-A-5.4 Transfers from income to reimburse principal\n (a) If a trustee makes or expects to make a principal disbursement\ndescribed in this section, the trustee may transfer an appropriate\namount from income to principal in one or more accounting periods to\nreimburse principal or to provide a reserve for future principal\ndisbursements.\n (b) Principal disbursements to which paragraph (a) applies include the\nfollowing, but only to the extent that the trustee has not been and does\nnot expect to be reimbursed by a third party:\n (1) an amount chargeable to income but paid from principal because it\nis unusually large, including extraordinary repairs;\n (2) a capital improvement to a principal asset, whether in the form of\nchanges to an existing asset or the construction of a new asset,\nincluding special assessments;\n (3) disbursements made to prepare property for rental, including\ntenant allowances, leasehold improvements, and broker's commissions;\n (4) periodic payments on an obligation secured by a principal asset to\nthe extent that the amount transferred from income to principal for\ndepreciation is less than the periodic payments; and\n (5) disbursements described in subparagraph 11-A-5.2 (a)(7).\n (c) If the asset whose ownership gives rise to the disbursements\nbecomes subject to a successive income interest after an income interest\nends, a trustee may continue to transfer amounts from income to\nprincipal as provided in paragraph (a).\n