                                 CODE OF VIRGINIA

TRANSFER FROM INCOME TO PRINCIPAL FOR DEPRECIATION (§ 64.2-1066)

A. As used in this section, &#8220;depreciation&#8221; 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.

B. 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:

   1. Of the part of real property used or available for use by a beneficiary as
   a residence;

   2. Of tangible personal property held or made available for the personal use
   or enjoyment of a beneficiary; or

   3. Under this section, to the extent the fiduciary accounts:
   				a. Under &#xA7; 64.2-1057 for the asset; or
   				b. Under &#xA7; 64.2-1050 for the business or other activity in which the
   asset is used.

C. An amount transferred to principal under this section need not be separately
held.

HISTORY: 2022, c. 354.