{"data":{"id":"us-nc/n.c.-gen.-stat.-37a-5-503","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 37A-5-503","heading":"Transfers from income to principal for depreciation.","body":"(a)\tIn 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)\tA 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 any amount for depreciation:\n(1)\tOf that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;\n(2)\tDuring the administration of a decedent's estate; or\n(3)\tUnder this section if the trustee is accounting under G.S. 37A-4-403 for the business or activity in which the asset is used.\n(c)\tAn amount transferred to principal under this section need not be held as a separate fund. (2003-232, s. 2.)","path":["Chapter 37A. Uniform Principal and Income Act.","Article 5. Allocation of Disbursements During Administration of Trust."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_37A/GS_37A-5-503.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:01:42Z","sha256":"0d77a9c58b02ffbf6a54554274b8df9c444f66e40caef1b2e564bd1b55f3545f","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-37a-5-502","next":"us-nc/n.c.-gen.-stat.-37a-5-504"},"notice":"GroundRules: Original legal text. Not legal advice."}