Tennessee § 35-6-503 Transfers from income to principal for depreciation

Tennessee Statutes

§ 35-6-503 — Transfers from income to principal for depreciation

(a)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 (1) 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 § 35-6-403 for the business or activity in which the asset is used.

(c)An amount transferred to princ

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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 fixed asset having a useful life of more than one (1) 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 § 35-6-403 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.

Tennessee § 35-6-503 (Transfers from income to principal for depreciation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.