NRS164.910. Transfer of net cash receipts from principal asset subject to depreciation to principal.

      1.  As used 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 1 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 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;

      (b) During the administration of a decedent’s estate; or

      (c) Under this section if a trustee is accounting under NRS 164.835 for the business or activity in which the asset is used.

      3.  An amount transferred to principal need not be held as a separate fund.

      (Added to NRS by 2003, 1980)