75A-5-503. Transfer from income to principal for depreciation.
(1) As used 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: of the part of real property used or available for use by a beneficiary as a residence; of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or under this section, to the extent the fiduciary accounts: under Sectionfor the asset; or 75A-5-410 under Sectionfor the business or other activity in which the asset is used. 75A-5-403
(3) An amount transferred to principal under this section need not be separately held.