Additionally, if the house's fair market value is more than $160,000, then you are also giving your daughter a gift of equity. If that gift is more than $15,000 per person, you need to file a gift tax return to report the gift. (No tax will be owed unless your lifetime total of gifts and estate is more than $11 million.)
You and your spouse can each give up to $15,000 to your daughter without triggering the requirement to file a gift tax return, so you will only need to file a gift tax return if the fair market value of the house is more than $190,000.
