Determination of income for applied or accumulated funds excludes depreciation deductions, altering tax treatment of trust property distributions.

Where income must be applied, accumulated, or set apart for application, such income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset whose acquisition has been claimed as an application of income; and where a registered trust or institution holds registration in force for a previous year, most exclusions under the general exclusion provision shall not exclude income derived from property held under trust from the total income of the person receiving it.

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