D.C. Code § 28-4805.03: Transfers from income to principal for depreciation.

(a)

For the purposes of this 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 may 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 section if the trustee is accounting under § 28-4804.03 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.