{"data":{"id":"us-tn/tenn.-code-ann.-35-6-503","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 35-6-503","heading":"Transfers from income to principal for depreciation","body":"(a) 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 one (1) year. (b) A 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: (1) Of 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; (2) During the administration of a decedent's estate; or (3) Under this section if the trustee is accounting under § 35-6-403 for the business or activity in which the asset is used. (c) An amount transferred to principal need not be held as a separate fund. Acts 2000, ch. 829, § 1.\n(a) 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 one (1) year.\n(b) A 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: (1) Of 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; (2) During the administration of a decedent's estate; or (3) Under this section if the trustee is accounting under § 35-6-403 for the business or activity in which the asset is used.\n(1) Of 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) During the administration of a decedent's estate; or\n(3) Under this section if the trustee is accounting under § 35-6-403 for the business or activity in which the asset is used.\n(c) An amount transferred to principal need not be held as a separate fund.","path":["TN Code","Title 35","Chapter 6"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"ec4c316fd4a325064d41a113f8ca2590912d22111ac0de05c080361a6c414720","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-35-6-502","next":"us-tn/tenn.-code-ann.-35-6-504"},"notice":"GroundRules: Original legal text. Not legal advice."}