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§ 28–4805.03. Transfers from income to principal for depreciation.

DC Code § 28–4805.03 (2019) (N/A)
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(a) For the purposes of this section, the term “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 § 28-4804.03 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.

(Apr. 27, 2001, D.C. Law 13-292, § 502(c), 48 DCR 2087.)

This section is referenced in § 28-4804.10.

Uniform Law: This section is based upon § 503 of the Uniform Principal and Income Act (1997 Act).

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§ 28–4805.02. Disbursements from principal.
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§ 28–4805.04. Transfers from income to reimburse principal.