{"data":{"id":"us-ia/iowa-code-637.503","jurisdiction":"us-ia","citation":"Iowa Code § 637.503","heading":"Transfers from income to principal for depreciation.","body":"1. For purposes of this section, “depreciation” means a reduction in value of a fixed asset having a useful life of more than one year due to wear, tear, decay, corrosion, or gradual obsolescence.\n2. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but a transfer shall not be made for depreciation under any of the following circumstances:\na. When the depreciation involves the portion of real property used or available for use by a beneficiary as a residence, or tangible personal property held or made available for the personal use or enjoyment of a beneficiary.\nb. When the depreciation occurs during the administration of a decedent’s estate.\nc. If the trustee is accounting under section 637.403 for the business or activity in which the asset is used.\n3. An amount transferred to principal need not be held as a separate fund.","path":["Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES (Ch. 595 - 686D)","Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT","Subchapter V - ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST"],"source_url":"https://www.legis.iowa.gov/docs/code/2026/637.503.pdf","current_through":"Iowa Code 2026 edition","vintage":"","retrieved_at":"2026-09-14T19:40:16Z","sha256":"c3b12cc2e09657c9adc81c07abc3fae89a6d584a708c2e9f1563e02303f8315c","source_id":"us-ia","stale":false,"prev":"us-ia/iowa-code-637.502","next":"us-ia/iowa-code-637.504"},"notice":"GroundRules: Original legal text. Not legal advice."}