Capital Cost Allowance is not income. It's depreciation for tax purposes - usually a deduction.
A recapture of capital cost allowance (CCA) occurs when the proceeds from the sale of depreciable rental property are more than the total of both:
the undepreciated capital cost (UCC) of the class at the start of the period
the capital cost of any new additions during the period
Your UCC will be negative, and you'll have to report this amount as income.
You not only check off the box in Area A, but you have to fill out the dispositions section (Area E & D on the T776 form).
