First, the mortgage holder has to okay the quit claim action. the only way I've ever seen a lender okay this, is if you sell the property to a qualifying borrower who then has to sign documents making them liable for the loan. Basically, if your daughter would not qualify for a loan without you cosigning, that's not gonna happen.
But if it did happen and you quit claim the property to her, then you no longer have a legal obligation to the property (for property taxes) or to pay the mortgage. The fact you may be the one that pays the mortgage is irrelevant. You wouldn't have a legal obligation to do so. Therefore, you can't claim property taxes, mortgage interest or any other expenses associated with the property. So this would actually be over ten times more costly since you would have to claim the rental income if you were the one receiving it. Not one penny of that passive rental income would be tax deductible either.
