Nevada Revised Statutes 164.910 – Transfer of net cash receipts from principal asset subject to depreciation to principal
1. As used 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 1 year.
Terms Used In Nevada Revised Statutes 164.910
- 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
- Decedent: A deceased person.
- Fiduciary: A trustee, executor, or administrator.
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trustee: A person or institution holding and administering property in trust.
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 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;
(b) During the administration of a decedent‘s estate; or
(c) Under this section if a trustee is accounting under NRS 164.835 for the business or activity in which the asset is used.
3. An amount transferred to principal need not be held as a separate fund.