Legal Question in Tax Law in Canada

Re: Capital Gains Tax

I would need more information to fully answer this question, such as:

1. Are you located in Canada?

2. When did the parents acquire the house that they gave to the child and was it the parents principal residence up to the time of the transfer?

[If YES, the capital gains would be exempt under the principal residence tax free exemption.]

If NO - i.e., the property was not the parents' principal residence then there will be a taxable capital gain between the amount the parents paid for the property and the fair market value of the property at the time they transferred it to the child. Note, however, that capital gains are taxed at much lower rate than income tax.]