When there is a non-arm's length transfer of a depreciable property that has a fair market value in excess of its capital cost, the capital cost to the transferee for UCC and recapture purposes will be equal to the transferor's capital cost, plus one-half of the difference between the fair market value and the transferor's capital cost. What is the reason for this rule?

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The Answer of When there is a non-arm's length transfer of a depreciable property that has a fair market value in excess of its capital cost, the capital cost to the transferee for UCC and recapture purposes will be equal to the transferor's capital cost, plus one-half of the difference between the fair market value and the transferor's capital cost. What is the reason for this rule?

When There Is a Non-Arm's Length Transfer of a Depreciable