Edited answer: She still needs to track the adjusted basis. She will receive the home with the basis "as-is", in other words, whatever you originally paid for the home minus depreciation taken. She still has no other additional reporting on her tax return.
A quitclaim is normally a taxable gift except in a situation that Critter describes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
