1. Depreciation. 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.
2. Reasonable amount of net cash receipts. 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 for depreciation any amount:
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; or
C. Under this section if the trustee is accounting under section 7-443 for the business or activity in which the asset is used.
3. Separate fund not required. An amount transferred to principal pursuant to subsection 2 need not be held as a separate fund.