Transfer from income to principal for depreciation.

(1) As used in this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year. (2) A fiduciary 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: (a) of the part of real property used or available for use by a beneficiary as a residence; (b) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or (c) under this section, to the extent the fiduciary accounts: (i) under Section 75A-5-410 for the asset; or (ii) under Section 75A-5-403 for the business or other activity in which the asset is used. (3) An amount transferred to principal under this section need not be separately held.