Arizona § 14-7427 Transfers from income to principal for depreciation; definition

Arizona Statutes

§ 14-7427 — Transfers from income to principal for depreciation; definition

Arizona § 14-7427

Title 14Arizona Revised Statutes

Ch. 7TRUST ADMINISTRATION

Art. 4Revised Uniform Principal and Income Act

This text of Arizona § 14-7427 (Transfers from income to principal for depreciation; definition) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 14-7427 (2026).

Text

A.A trustee 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 that 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.

2.During the administration of a decedent's estate.

3.Under this section if the trustee is accounting under section 14-7412 for the business or activity in which the asset is used.

B.An amount transferred to principal need not be held as a separate fund.

C.For the purposes of this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion or gradual obsolescence of a

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A. A trustee 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 that 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.

2. During the administration of a decedent's estate.

3. Under this section if the trustee is accounting under section 14-7412 for the business or activity in which the asset is used.

B. An amount transferred to principal need not be held as a separate fund.

C. For the 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 one year.