Section 72-34-450 - Assets subject to depreciation - transfer from income to principal of portion of net cash receipts(1) For purposes of 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.(2) A trustee may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, under generally accepted accounting principles, but may not transfer any amount for depreciation under this section in any of the following circumstances: (a) as to the 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) if the trustee is accounting under 72-34-435 for the business or activity in which the asset is used.(3) An amount transferred from income to principal need not be held as a separate fund.En. Sec. 30, Ch. 506, L. 2003.