{"data":{"id":"us-mi/mich.-comp.-laws-555.903","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 555.903","heading":"Depreciation; amount transferred to principal.","body":"Sec. 503.\n\nAs used 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 1 year.\n\nA trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer an amount for depreciation as follows:\n\nAn amount for that portion of real property used or available for use by a beneficiary as a residence or an amount for tangible personal property held or made available for the personal use or enjoyment of a beneficiary.\n\nAn amount during the administration of a decedent's estate.\n\nAn amount under this section, if the trustee is accounting under section 403 for the business or other activity in which the asset is used.\n\nAn amount transferred to principal need not be held as a separate fund.","path":["MI Code","Chapter 555","Act Act-159-of-2004"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-555-903","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"54d2c3fd8667cb79d93077fb275795feb03fc8272e3ae46f544bd5825e289286","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-555.902","next":"us-mi/mich.-comp.-laws-555.904"},"notice":"GroundRules: Original legal text. Not legal advice."}