---
title: O.C.G.A. § 53-12-452. Transfers from income to principal for depreciation.
collection: code
id: 53-12-452
cite_as: O.C.G.A. § 53-12-452 (2025)
canonical_url: https://georgiacommons.org/code/53-12-452
md_url: https://georgiacommons.org/code/53-12-452.md
text_url: https://georgiacommons.org/code/53-12-452/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t52-t53-(v40)-2021-pdf.pdf?sfvrsn=d23ba203_0#page=956
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES / TRUSTS / GEORGIA PRINCIPAL AND INCOME ACT / ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
---

# O.C.G.A. § 53-12-452. Transfers from income to principal for depreciation.

(a) As used in this Code 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 shall 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 Code section if the trustee is accounting under Code Section 53-12-412 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.

## History

Code 1981, § 53-12-452, enacted by Ga. L. 2010, p. 579, § 1/SB 131; Ga. L. 2011, p. 551, § 18/SB 134.