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A. 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 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 § 64.2-1011 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. 1999, c. 64.2-1011 , § 55-277.27; 2012, c. 64.2-1011 .
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