7 July 2006 Internal T.I. 2006-0185961I7 F - Choix en vertu de 110.6(19) - Impact sur la FNACC -- summary under Paragraph 39(1)(a)

As a result of the application of s. 13(7)(e)(iii) to a building for which a s. 110.6(19) election had been made, on a subsequent disposition of the property, the taxpayer, in addition to realizing a capital gain of $52,452, realized recapture of depreciation of $58,452. However, as a result of the wording of s. 39(1)(a) precluding the double recognition of proceeds, the taxpayer was required to recognize only the recapture.