The Big Move: I own a rental home in California. How can I leave it to my daughter so she can avoid capital gains taxes?

I live in California and own a single-family rental property that has a tenant with a 12-month renewable lease. The home is in a revocable trust.

I would like to leave the property to my daughter. I have one other child who I don’t intend to leave any of this property to.

My daughter will probably keep the property as a rental,…