Florida Statutes 738.503 – Transfers from income to principal for depreciation
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(1) For purposes of this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than 1 year.
(2) A fiduciary 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:
(a) Of the part of real property used or available for use by a beneficiary as a residence;
Terms Used In Florida Statutes 738.503
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: includes :(a) For a trust:1. See Florida Statutes 738.102
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes a trustee, a trust director as defined in…. See Florida Statutes 738.102
- Personal property: All property that is not real property.
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Florida Statutes 738.102
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b) Of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or(3) An amount transferred to principal under this section need not be separately held.