Utah Code 75A-5-503. Transfer from income to principal for depreciation
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(1) As used in 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 one year.
Terms Used In Utah Code 75A-5-503
- 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 :(3)(a) for a trust:(3)(a)(i) a current beneficiary, including a current income beneficiary and a beneficiary that may receive only principal;(3)(a)(ii) a remainder beneficiary; and(3)(a)(iii) any other successor beneficiary;(3)(b) for an estate, an heir and devisee; and(3)(c) for a life estate or term interest, a person that holds a life estate, term interest, or remainder, or other interest following a life estate or term interest. See Utah Code 75A-5-102
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes :
(8)(a) a trustee, trust director as defined in Section75-12-102 , personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;(8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and(8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Utah Code 75A-5-102
(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:(2)(a) of the part of real property used or available for use by a beneficiary as a residence;(2)(b) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or(2)(c) under this section, to the extent the fiduciary accounts:(2)(c)(i) under Section75A-5-410 for the asset; or(2)(c)(ii) under Section75A-5-403 for the business or other activity in which the asset is used.(3) An amount transferred to principal under this section need not be separately held.