if income is distributed to the beneficiaries who gets the deduction for the depreciation.
According to sections 167(d), 611(b)(3) and 642(e), depreciation and depletion deductions must be allocated between the trust and its beneficiaries based on the proportion of net accounting income minus distributions to net accounting income. If the trustee is required by the trust instrument or state law to allocate depreciation to the trust, the entire deduction (to the extent there is trust income) belongs to the trust. Note that in the case of an estate, the depreciation deduction is apportioned between the estate and beneficiaries regardless of the terms of the will.
