Iowa § 637.503 Transfers from income to principal for depreciation

Iowa Statutes

§ 637.503 — Transfers from income to principal for depreciation

Iowa § 637.503

Title XVJUDICIAL BRANCH AND JUDICIAL PROCEDURES

Ch. 637UNIFORM PRINCIPAL AND INCOME ACT

This text of Iowa § 637.503 (Transfers from income to principal for depreciation) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 637.503 (2026).

Text

1.For purposes of this section, “depreciation” means a reduction in value of a fixed asset having a useful life of more than one year due to wear, tear, decay, corrosion, or gradual obsolescence.

2.A trustee may transfer to principal a reasonable amount of the net cash receipts from a principalassetthatissubjecttodepreciation, butatransfershallnotbemadefordepreciation under any of the following circumstances:

a.When the depreciation involves the portion of real property used or available for use by a beneficiary as a residence, or tangible personal property held or made available for the personal use or enjoyment of a beneficiary.

b.When the depreciation occurs during the administration of a decedent’s estate.

c.If the trustee is accounting under section 637.403 for the business or ac

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1. For purposes of this section, “depreciation” means a reduction in value of a fixed asset
having a useful life of more than one year due to wear, tear, decay, corrosion, or gradual
obsolescence.
2. A trustee may transfer to principal a reasonable amount of the net cash receipts from a
principalassetthatissubjecttodepreciation, butatransfershallnotbemadefordepreciation
under any of the following circumstances:
a. When the depreciation involves the portion of real property used or available for use
by a beneficiary as a residence, or tangible personal property held or made available for the
personal use or enjoyment of a beneficiary.
b. When the depreciation occurs during the administration of a decedent’s estate.
c. If the trustee is accounting under section 637.403 for the business or activity in which
the asset is used.
3. An amount transferred to principal need not be held as a separate fund.