Section 22-3-503 - [Renumbered Effective 9/1/2024] Transfer from income to principal for depreciation(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.Renumbered as § 75A-5-503 by Chapter (number not assigned at time of publication), 2024 General Session ,§ 164, eff. 9/1/2024.Amended by Chapter 495, 2019 General Session ,§ 35, eff. 7/1/2020.Enacted by Chapter 285, 2004 General Session.