72-34-450. Assets subject to depreciation -- transfer from income to principal of portion of net cash receipts.
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/mt/title-72/chapter-34/part-4/72-34-450·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
72-34-450 . Assets subject to depreciation -- transfer from income to principal of portion of net cash receipts.
(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 1 year.
(2)A trustee may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, under generally accepted accounting principles, but may not transfer any amount for depreciation under this section in any of the following circumstances:
(a)as to the 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;
(b)during the administration of a decedent's estate; or
(c)if the trustee is accounting under 72-34-435 for the business or activity in which the asset is used.
(3)An amount transferred from income to principal need not be held as a separate fund.