738.503 Transfers from income to principal for depreciation.

152 words·~1 min read·/fl/title-xlii/chapter-738/738-503

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)For purposes of 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 1 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 that the fiduciary accounts:

1. Under s. 738.410 for the asset; or

2. Under s. 738.403 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.