Va. Code § 64.2-1068: Reimbursement of principal from income

A. If a fiduciary makes or expects to make a principal disbursement described in subsection B, the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements.B. To the extent a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection A applies include:1. An amount chargeable to income but paid from principal because income is not sufficient;2. 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;3. A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;4. 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; and5. A disbursement described in subsection A of § 64.2-1065.C. 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 continue to make transfers under subsection A.2022, c. 354.