Section 59-04.2-26 - (503) Transfers from income to principal for depreciation1. 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.2. 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: a. 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;b. During the administration of a decedent's estate; orc. Under this section if the trustee is accounting under section 59-04.2-11 for the business or activity in which the asset is used.3. An amount transferred to principal need not be held as a separate fund.