Is a surviving spouse affiliated with the deceased?

Where an individual transferred a depreciable property with an accrued terminal loss to his spouse at fair market value, then died before being able to claim full CCA on the amount of that loss under the notional depreciable property rule in s. 13(21.1), CRA considers that such residual loss amount is vaporized because none of the release events in ss. 13(21.2)(iii)(A)-(E) applies.

This is questionable.  His wife presumably ceased to be affiliated with him when he died.  It likely follows that he was deemed immediately before that time to cease to own the notional depreciable property (under the "A" release event).  Accordingly, at the end of his last taxation year (i.e., December 31 if you take the calendar year rule in s. 249(1)(b) at face value) he would recognize a terminal loss as he would no longer be deemed to own the notional property at that time.

Neal Armstrong.  Summary of 7 January 2013 T.I. 2012-0452611E5 under s. 13(21.2).