(1) If a fiduciary makes or expects to make a principal disbursement described in subsection (2), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements. (2) To the extent that a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection (1) applies include: (a) An amount chargeable to income but paid from principal because income is not sufficient; (b) The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment; (c) A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions; (d) A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and (e) A disbursement described in s. 738.502(1). (3) If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may make transfers under subsection (1).
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