South Dakota Codified Laws
Chapter 13A - Uniform Principal And Income Act
Section 55-13A-503 - Transfers from income to principal for depreciation.

55-13A-503. Transfers from income to principal for depreciation.
(a) 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.
(b) A trustee 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 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 §55-13A-403 for the business or activity in which the asset is used.
(c) An amount transferred to principal need not be held as a separate fund.

Source: SL 2007, ch 282, §28.

Structure South Dakota Codified Laws