Arkansas § 28-77-503 Transfer from income to principal for depreciation

Arkansas Statutes

§ 28-77-503 — Transfer from income to principal for depreciation

Arkansas § 28-77-503

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This text of Arkansas § 28-77-503 (Transfer from income to principal for depreciation) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 28-77-503 (2026).

Text

(a)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.

(b)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:

(1)of the part of real property used or available for use by a beneficiary as a residence;

(2)of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or (3) under this section, to the extent the fiduciary accounts:

(A)under § 28-77-410 for the asset; or (B) under § 28-77-403 for the business or other activity in which the asset is used.

(c)An amount transferred to

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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 tangible asset having a useful life of more than one year. (b) 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: (1) of the part of real property used or available for use by a beneficiary as a residence; (2) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or (3) under this section, to the extent the fiduciary accounts: (A) under § 28-77-410 for the asset; or (B) under § 28-77-403 for the business or other activity in which the asset is used. (c) An amount transferred to principal under this section need not be separately held.