Mortgage free individual wants to buy rental property

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David, a question on some rental properties I'm purchasing:
1. I'm buying 3 investment condo's in a complex called XXXXX XXXXXXXXXXXX in XXXXXXXXXXX, AB.  They close on August 1, cost about $250,000 each of which I'll put 25% down, maybe more. Are there any tax strategies to consider to help shelter the rental income from being taxed in a high tax bracket?  P.S. I don't have a house mortgage or any debts to pay off.  Should we setup a corporation or a trust for the kids to divert the income?
2. I'm also building a house in Canmore that we had planned to move into last year but a job out of Canmore fell through for me, so my wife and I are in Edmonton working.  This house will be paid for in cash. If I were to sell the house and make a profit would I be hit with Capital Gains tax or Income Tax?  Instead of selling we're also thinking of renting it for 1 year periods.
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david ingram replies
1.    Consider putting a condo in each kids name.  That way any income or loss will be credited to you under section 75.1 but any capital gains are the kids'.
2.    Rent it out.  Any profit will be taxable to you and your wife.  An eventual sale will be capital gains and only taxed at a half the rate.
If you sell it right away, you would likely win Capital gains status because you were going to live in it and work there. 
Keep any documentation about the job because Canmore has so many speculatore there that the CCRA WILL BELOOKING at all sales..
Thanks, XXXXXXX
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