Was hoping he would have posted back by now. The way he's talking about doing this is going to cost them tax-wise. If they do it "the right way" and if the daughter has lived in the house for at least 2 of the last 5 years she owned it, then not only will there be no tax on the gain (based on the numbers provided) but she wouldn't even have to report the sale on a tax return, provided a 1099-S is not issued.
