Kansas Statutes 58-9a,503. Transfer from income to principal for depreciation
Terms Used In Kansas Statutes 58-9a,503
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Residence: means the place which is adopted by a person as the person's place of habitation and to which, whenever the person is absent, the person has the intention of returning. See Kansas Statutes 77-201
(a) In 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 one year.
(b) 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:
(1) Of the part of real property used or available for use by a beneficiary as a residence;
(2) of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or
(3) under this section, to the extent the fiduciary accounts:
(A) Under Kan. Stat. Ann. 2023 Supp. 58-9a-410, and amendments thereto, for the asset; or
(B) under Kan. Stat. Ann. 2023 Supp. 58-9a-403, and amendments thereto, for the business or other activity in which the asset is used.
(c) An amount transferred to principal under this section need not be separately held.