{"data":{"id":"us-al/ala.-code-19-3a-503","jurisdiction":"us-al","citation":"Ala. Code § 19-3A-503","heading":"Transfers from Income to Principal for Depreciation.","body":"(a) 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.\n(b) A fiduciary may transfer from income 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 in any of the following circumstances:\n(1) As to the portion of a. real property used or available for use by a beneficiary as a residence or b. tangible personal property held or made available for the personal use or enjoyment of a beneficiary;\n(2) During the administration of a decedent’s estate; or\n(3) If the fiduciary is accounting separately for the business or activity in which the asset is used, pursuant to Section 19-3A-403.\n(c) An amount transferred from income to principal need not be held as a separate fund.","path":["Title 19 Fiduciaries and Trusts.","Chapter 3A Alabama Principal and Income Act.","Article 5 Allocation of Disbursements During Administration of Trust or Decendent’s Estate."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=19-3A-503","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:52Z","sha256":"7da9912a1509a55555c4c00f124a9e207194eb079a40f97ad859be0ccbac58a4","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-19-3a-502","next":"us-al/ala.-code-19-3a-504"},"notice":"GroundRules: Original legal text. Not legal advice."}