State Codes and Statutes
Statutes > North-carolina > Chapter_37A > GS_37A-5-503§ 37A‑5‑503. 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 ofmore than one year.
(b) A trustee maytransfer to principal a reasonable amount of the net cash receipts from aprincipal asset that is subject to depreciation, but may not transfer anyamount for depreciation:
(1) Of that portion ofreal property used or available for use by a beneficiary as a residence or oftangible personal property held or made available for the personal use orenjoyment of a beneficiary;
(2) During theadministration of a decedent's estate; or
(3) Under this sectionif the trustee is accounting under G.S. 37A‑4‑403 for the businessor activity in which the asset is used.
(c) An amounttransferred to principal under this section need not be held as a separatefund. (2003‑232,s. 2.)
