your basis is the lower of FMV on date of gift or her basis under IRC 1015
However, if you sell or otherwise disposes of the property in a disposition subject to recapture, the you must take into account the depreciation she deducted in figuring the gain to be reported as ordinary income.
your holding period begins with her acquisition
if the value is more than $15,000 she must file a gift tax return.
neither of you pay income taxes on the gift
