Texas § PR.116.203 - TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION
Full text of Texas The Texas Constitution § PR.116.203 — TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION, with citation guidance and answers to common questions.
§ PR.116.203. TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION
TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION. (a) 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 116.153 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. Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § PR.116.203
What does The Texas Constitution § PR.116.203 cover?
Section PR.116.203 ("TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION") is part of the The Texas Constitution, the codified statutory law of Texas. 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 Texas § PR.116.203?
A common citation format is "The Texas Constitution § PR.116.203" (Texas). 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 Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § PR.116.203 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas 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 Texas.