S. 75(2) applies to the transfer of one of the individual’s rental properties to a trust. In confirming that the rental property restriction rules apply separately to the computation of the income attributed to the individual and the computation of income from rental properties held by the individual directly, CRA stated:
[T]he trust does not own rental property owned by the individual personally. Consequently, if the property transferred by the individual to the trust is the only rental property owned directly or through a partnership by the trust, its capital cost allowance will be limited to the rental income from that property.
Similarly, the individual does not own the property that was transferred to the trust. Consequently, when computing capital cost allowance on rental property owned by the individual, the individual will not take into account the rental income from the property that was transferred to the trust, even if it was attributed to the individual by virtue of subsection 75(2).