Transfer from income to principal for depreciation.
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(1) In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year.
(2) A fiduciary 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:
(a) of the part of real property used or available for use by a beneficiary as a residence;
(b) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or
(c) under this section, to the extent the fiduciary accounts:
(i) under Section 22-3-410 for the asset; or
(ii) under Section 22-3-403 for the business or other activity in which the asset is used.
(3) An amount transferred to principal under this section need not be separately held.