Fla. Stat. 738.505
Reimbursement of principal from income
(1)
If a fiduciary makes or expects to make a principal disbursement described in subsection (2), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.(2)
To the extent that a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection (1) applies include:An amount chargeable to income but paid from principal because income is not sufficient;The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; andA disbursement described in s. 738.502(1).(a)
An amount chargeable to income but paid from principal because income is not sufficient;(b)
The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;(c)
A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;(d)
A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and(e)
A disbursement described in s. 738.502(1).(3)
If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary 1may make transfers under subsection (1).
Source:
Section 738.505 — Reimbursement of principal from income, https://www.flsenate.gov/Laws/Statutes/2024/0738.505 (accessed Aug. 7, 2025).