Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 81 - Principal and Income
Section 8164 - Transfers from income to principal for depreciation


(a) Transfers.--A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation. However, a trustee 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 section 8143 (relating to business and other activities conducted by trustee) for the business or activity in which the asset is used.
(b) Separate fund unnecessary for amount transferred.--An amount transferred to principal need not be held as a separate fund.
(c) Definition.--As used in this section, the term "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 year.

Structure Pennsylvania Consolidated & Unconsolidated Statutes

Pennsylvania Consolidated & Unconsolidated Statutes

Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES

Chapter 81 - Principal and Income

Extra - Chapter Notes

Section 8101 - Short title of chapter

Section 8102 - Definitions

Section 8103 - Fiduciary duties; general principles

Section 8104 - Trustee's power to adjust

Section 8105 - Power to convert to unitrust

Section 8106 - Judicial control of discretionary powers

Section 8107 - Express trusts

Section 8113 - Charitable trusts

Section 8121 - Determination and distribution of net income

Section 8122 - Distribution to residuary and remainder beneficiaries

Section 8131 - When right to income begins and ends

Section 8132 - Apportionment of receipts and disbursements when decedent dies or income interest begins

Section 8133 - Apportionment when income interest ends

Section 8141 - Character of receipts

Section 8142 - Distribution from trust or estate

Section 8143 - Business and other activities conducted by trustee

Section 8144 - Principal receipts

Section 8145 - Rental property

Section 8146 - Obligation to pay money

Section 8147 - Insurance policies and similar contracts

Section 8148 - Insubstantial allocations not required

Section 8149 - Retirement benefits, individual retirement accounts, deferred compensation, annuities and similar payments

Section 8150 - Liquidating asset

Section 8151 - Minerals, water and other natural resources

Section 8152 - Timber

Section 8153 - Property not productive of income

Section 8154 - Derivatives and options

Section 8155 - Asset-backed securities

Section 8161 - Mandatory disbursements from income

Section 8162 - Mandatory disbursements from principal

Section 8163 - Discretionary allocation of disbursements

Section 8164 - Transfers from income to principal for depreciation

Section 8165 - Transfers from income to reimburse principal

Section 8166 - Income taxes

Section 8167 - Adjustments between principal and income because of taxes

Section 8191 - Uniformity of application and construction