A. 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. B. 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: 1. Of the part of real property used or available for use by a beneficiary as a residence; 2. Of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or 3. Under this section, to the extent the fiduciary accounts: a. Under § 64.2-1057 for the asset; or b. Under § 64.2-1050 for the business or other activity in which the asset is used. C. An amount transferred to principal under this section need not be separately held. 2022, c. 354.
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