Ark. Code § 28-77-405

Current with legislation from 2024 Fiscal and Special Sessions.

Section 28-77-405 - Rental property

To the extent a fiduciary does not account for the management of rental property as a business under § 28-77-403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods:

(1) must be added to principal and held subject to the terms of the lease, except as otherwise provided by law other than this chapter; and

(2) is not allocated to income or available for distribution to a beneficiary until the fiduciary's contractual obligations have been satisfied with respect to that amount.

Ark. Code § 28-77-405

Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.