{"data":{"id":"us-fl/fla.-stat.-738.505","jurisdiction":"us-fl","citation":"Fla. Stat. § 738.505","heading":"Reimbursement of principal from income.","body":"(1) If a fiduciary makes or expects to make a principal disbursement described in subsection (2), the fiduciary 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(2) To the extent that a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection (1) applies include:\n(a) An amount chargeable to income but paid from principal because income is not sufficient;\n(b) 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;\n(c) A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;\n(d) 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; and\n(e) A disbursement described in s. 738.502(1).\n(3) 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 make transfers under subsection (1).\nHistory.—s. 1, ch. 2002-42; s. 30, ch. 2012-49; s. 40, ch. 2024-216; s. 87, ch. 2025-6.","path":["CHAPTER 738 UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT"],"source_url":"https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute\u0026URL=0700-0799/0738/0738.html","current_through":"2026 Florida Statutes","vintage":"","retrieved_at":"2026-08-27T02:13:31Z","sha256":"4661ef5b2a50537f458e9ae448bb6b1d4705f5acac63b39ca56a58fa2b254302","source_id":"us-fl","stale":false,"prev":"us-fl/fla.-stat.-738.504","next":"us-fl/fla.-stat.-738.506"},"notice":"GroundRules: Original legal text. Not legal advice."}