N.D. Cent. Code § 59-04.2-26: (503) Transfers from income to principal for depreciation

1.In 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 one year.

2.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:

a.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;

b.During the administration of a decedent's estate; or

c.Under this section if the trustee is accounting under section 59-04.2-11 for the business or activity in which the asset is used.

3.An amount transferred to principal need not be held as a separate fund.