5 October 2012 Roundtable, 2012-0453201C6 F - Règles d'attribution- séparation & décès -- summary under Subsection 13(1)

Before finding that there was no attribution of recapture of depreciation by virtue of the exception from the application of s. 74.1(1) contained in s. 74.5(3)(a), CRA stated, in its summary:

[T]he nature of recapture of depreciation is analogous to the nature of the depreciation expense that was claimed in the past. That expense was for a rental property, so the recapture will be income from the property.