Alabama § 19-3A-503 Transfers from Income to Principal for Depreciation

Alabama Statutes

§ 19-3A-503 — Transfers from Income to Principal for Depreciation

Alabama·Title 19 Fiduciaries and Trusts·Ch. 3A Alabama Principal and Income Act·Art. 5 Allocation of Disbursements During Administration of Trust or Decendent’s Estate

(a)In 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 one year.

(b)A fiduciary may transfer from income 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 in any of the following circumstances:

(1)As to the portion of a. real property used or available for use by a beneficiary as a residence or b. tangible personal property held or made available for the personal use or enjoyment of a beneficiary;

(2)During the administration of a decedent’s estate; or

(3)If the fiduciary is accounting separately for the business or activity in which the asset is used, purs

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(a) In 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 one year.
(b) A fiduciary may transfer from income 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 in any of the following circumstances:
(1) As to the portion of a. real property used or available for use by a beneficiary as a residence or b. tangible personal property held or made available for the personal use or enjoyment of a beneficiary;
(2) During the administration of a decedent’s estate; or
(3) If the fiduciary is accounting separately for the business or activity in which the asset is used, pursuant to Section 19-3A-403.
(c) An amount transferred from income to principal need not be held as a separate fund.

Alabama § 19-3A-503 (Transfers from Income to Principal for Depreciation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.