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.
South Dakota Legal Code