Georgia Code § 53-12-452 - Transfers From Income to Principal for Depreciation

(a) As used in this Code 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 shall 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 Code section if the trustee is accounting under Code Section 53-12-412 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.

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Last modified: October 14, 2016