what you may have done was to sell the property to your daughter then forgive her obligation to pay you.
I'm guessing. if it was to be a direct gift of the property, all that was need was a title transfer - no closing document for sale. either a direct gift or a gift of indebtedness requires the filing of a gift tax return if the gift was more than $15,000.
you now have a sales of the property to report on your return. loss is not deductible because it was to a family member.
There is always the possibility the lawyer messed up and may not have given proper advice.
