Transfer from income to principal for depreciation

Ark. Code Ann. § 28-77-503 — under — Receipts Normally Apportioned.

Ark. Code Ann. § 28-77-503

(a) 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.

(b) 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:(1) of the part of real property used or available for use by a beneficiary as a residence;(2) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or(3) under this section, to the extent the fiduciary accounts:(A) under § 28-77-410 for the asset; or(B) under § 28-77-403 for the business or other activity in which the asset is used.

(1) of the part of real property used or available for use by a beneficiary as a residence;

(2) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or

(3) under this section, to the extent the fiduciary accounts:(A) under § 28-77-410 for the asset; or(B) under § 28-77-403 for the business or other activity in which the asset is used.

(A) under § 28-77-410 for the asset; or

(B) under § 28-77-403 for the business or other activity in which the asset is used.

(c) An amount transferred to principal under this section need not be separately held.