New Mexico § 46-3A-503 - Transfers from income to principal for depreciation
Full text of New Mexico New Mexico Statutes Annotated § 46-3A-503 — Transfers from income to principal for depreciation, with citation guidance and answers to common questions.
§ 46-3A-503. Transfers from income to principal for depreciation
(a) As used 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. (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 Section 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: official New Mexico text · Last verified 2026-08-27
Frequently Asked Questions About New Mexico § 46-3A-503
What does New Mexico Statutes Annotated § 46-3A-503 cover?
Section 46-3A-503 ("Transfers from income to principal for depreciation") is part of the New Mexico Statutes Annotated, the codified statutory law of New Mexico. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Mexico § 46-3A-503?
A common citation format is "New Mexico Statutes Annotated § 46-3A-503" (New Mexico). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Mexico law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Mexico official source linked on this page or consult a licensed New Mexico attorney.
How does New Mexico § 46-3A-503 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Mexico can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Mexico.