§ 15-1.2-503 — Transfer from income to principal for depreciation - definition

Colorado § 15-1.2-503

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Uniform Fiduciary Income and Principal Act

Text

(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 15-1.2-410 for the asset; or

(II) Under section 15-1.2-403 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.

Legislative History

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 833, � 1, effective January 1, 2022.