{"data":{"id":"us-az/a.r.s.-14-7428","jurisdiction":"us-az","citation":"A.R.S. § 14-7428","heading":"Transfers from income to reimburse principal","body":"A. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.\n\nB. Principal disbursements to which subsection A of this section applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:\n\n1. An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs.\n\n2. A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments.\n\n3. Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements and brokers' commissions.\n\n4. Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments.\n\n5. Disbursements described in section 14-7426, subsection A, paragraph 7.\n\nC. If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection A of this section.","path":["Title 14 Trusts, Estates and Protective Proceedings"],"source_url":"https://www.azleg.gov/ars/14/07428.htm","current_through":"2026-09-04","vintage":"2026-08-09","retrieved_at":"2026-09-04T00:49:56Z","sha256":"56123eb840931df56c8813226f1285fca98e6daf8689b497399ed9a080c75d10","source_id":"us-az","stale":true,"prev":"us-az/a.r.s.-14-7427","next":"us-az/a.r.s.-14-7429"},"notice":"GroundRules: Original legal text. Not legal advice."}