What’s the best way to minimize taxes when gifting two rental properties?

Parents who want to hand a townhouse and a condo to their daughter run into a tax reality that surprises many families: gifting property in Canada is generally treated as a sale at fair market value, which can trigger capital gains even though no money changes hands. This piece looks at how to approach that transfer thoughtfully rather than tripping into an avoidable tax bill. It's most relevant to parents holding rental real estate they'd like to pass along during their lifetime, and to anyone weighing whether to give now or leave it as an inheritance. The thinking it works through centres on timing, how a gift is structured, and the trade-offs between the generosity of helping a child today and the tax consequences that come with moving appreciated property out of your hands.