Deductions & credits

When the house is sold, the owners must each pay their share of whatever capital gains tax is due, period.  What's done with the profits after the sale has no impact on this.

 

If, after the sale, you give your daughter your share of the profits with the expectation of being paid back, then, as @AmeliesUncle said, you've given her a loan, not a gift.  If you choose to do this, you'd be wise to do it in a formal way, with a written loan agreement.

 

However, if you give her your share of the profits with no expectation of being paid back, then you've given her a gift.  You and your wife can each give her $17,000 in tax year 2023 without having a file a gift tax return.  If your gifts as a married couple in 2023 exceed $34,000, you must file a gift tax return, IRS Form 709.  (The obligation to file a gift tax return rests with the donor, not the recipient).  No actual gift tax is due unless you've exceeded the lifetime gift tax exclusion amount.  For 2023, the lifetime gift and estate tax exemption is $12.92 million ($25.84 million per married couple).  But the IRS requires that Form 709 must be filed for informational purposes if your combined gifts in 2023 exceed $34,000.

https://www.irs.gov/forms-pubs/about-form-709

 

All that said, I agree with the others that you'd be wise to obtain professional guidance through the whole process.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.