Section 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.

Code 1981, § 53-12-452, enacted by Ga. L. 2010, p. 579, § 1/SB 131; Ga. L. 2011, p. 551, § 18/SB 134.