When a depreciable property is transferred to a corporation using the provisions of ITA 85, the elected value will usually be the UCC of the property. In these circumstances, the transferee is required to retain the original capital cost of the asset, with the difference between the capital cost and the UCC being treated as deemed CCA. What is the reason for this rule?

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The Answer of When a depreciable property is transferred to a corporation using the provisions of ITA 85, the elected value will usually be the UCC of the property. In these circumstances, the transferee is required to retain the original capital cost of the asset, with the difference between the capital cost and the UCC being treated as deemed CCA. What is the reason for this rule?

When a Depreciable Property Is Transferred to a Corporation Using