(1) For purposes of this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.
(2) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:
Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;
During the administration of a decedent's estate; or
Under this section if the trustee is accounting under section 15-1-413 for the businessor activity in which the asset is used.
(3) An amount transferred to principal need not be held as a separate fund.
Source: L. 2000: Entire part R&RE, p. 1145, § 1, effective July 1, 2001.