New Mexico § 46-3A-503 Transfers from income to principal for depreciation

New Mexico Statutes

§ 46-3A-503 — Transfers from income to principal for depreciation

New Mexico § 46-3A-503

Ch. 46Fiduciaries and Trusts

Art. 5ALLOCATION OF DISBURSEMENTS

This text of New Mexico § 46-3A-503 (Transfers from income to principal for depreciation) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 46-3A-503 (2026).

Text

(a)As used 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 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; or (3) under this section if the trustee is accounting under Section 403 [46-3A- 403 NMSA 1978] for the business or activity in which the asset is used.

(c)An

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(a) As used 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 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; or (3) under this section if the trustee is accounting under Section 403 [46-3A- 403 NMSA 1978] for the business or activity in which the asset is used. (c) An amount transferred to principal need not be held as a separate fund.