Agree with @Critter on this one. If the house was "in fact" rented out before your daughter moved in, all you need to do is convert it to personal use at least one day before she moved in, and you're done. You'll claim all income and expenses up to the date of conversion, and that's it.
From the conversion date on, the only thing you can claim is mortgage interest and property taxes on SCH A subject to the $10K SALT limits.
