Fla. Stat. 738.503
Transfers from income to principal for depreciation

(1)

For purposes of this section, “depreciation” 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 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:Of the part of real property used or available for use by a beneficiary as a residence;Of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; orUnder this section, to the extent that the fiduciary accounts:
Under s. 738.410 for the asset; or
Under s. 738.403 for the business or other activity in which the asset is used.

(a)

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

(b)

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

(c)

Under this section, to the extent that the fiduciary accounts:Under s. 738.410 for the asset; orUnder s. 738.403 for the business or other activity in which the asset is used.
1. Under s. 738.410 for the asset; or
2. Under s. 738.403 for the business or other activity in which the asset is used.

(3)

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

Source: Section 738.503 — Transfers from income to principal for depreciation, https://www.­flsenate.­gov/Laws/Statutes/2024/0738.­503 (accessed Aug. 7, 2025).

738.101
Short title 738.102
Definitions 738.103
Scope 738.104
Governing law 738.201
Fiduciary duties 738.202
Judicial review of exercise of discretionary power 738.203
Fiduciary’s power to adjust 738.301
Definitions 738.302
Applications 738.303
Authority of fiduciary 738.304
Notice 738.305
Unitrust policy 738.306
Unitrust rate 738.307
Applicable value 738.308
Period 738.309
Express unitrust 738.310
Other rules 738.401
Character of receipts from entity 738.402
Distribution from trust or estate 738.403
Business or other activity conducted by fiduciary 738.404
Principal receipts 738.405
Rental property 738.406
Receipt on obligation to be paid in money 738.407
Insurance policy or contract 738.408
Insubstantial allocation not required 738.409
Deferred compensation, annuity, or similar payment 738.410
Liquidating asset 738.411
Minerals, water, and other natural resources 738.412
Timber 738.413
Marital deduction property not productive of income 738.414
Derivatives or options 738.415
Asset-backed securities 738.416
Other financial instrument or arrangement 738.501
Disbursement from income 738.502
Disbursement from principal 738.503
Transfers from income to principal for depreciation 738.504
Reimbursement of income from principal 738.505
Reimbursement of principal from income 738.506
Income taxes 738.507
Adjustment between income and principal because of taxes 738.508
Apportionment of property expenses between tenant and remainderman 738.601
Determination and distribution of net income 738.602
Distribution to successor beneficiary 738.701
When right to income begins and ends 738.702
Apportionment of receipts and disbursements when decedent dies or income interest begins 738.703
Apportionment when income interest ends 738.801
Uniformity of application and construction 738.802
Relation to Electronic Signatures in Global and National Commerce Act 738.803
Severability 738.804
Application

Current through Fall 2025

§ 738.503. Transfers from income to principal for depreciation's source at flsenate​.gov