                                 CODE OF VIRGINIA

RENTAL PROPERTY (§ 64.2-1052)

To the extent a fiduciary does not account for the management of rental property
as a business under § 64.2-1050, the fiduciary shall allocate to income an
amount received as rent of real or personal property, including an amount
received for cancellation or renewal of a lease. An amount received as a
refundable deposit, including a security deposit or a deposit that is to be
applied as rent for future periods:

1. Shall be added to principal and held subject to the terms of the lease,
except as otherwise provided by law other than this chapter; and

2. Is not allocated to income or available for distribution to a beneficiary
until the fiduciary&#8217;s contractual obligations have been satisfied with
respect to that amount.

HISTORY: 2022, c. 354.