Bottom line: regardless of how the money passes to the daughter (gift, salary, etc), the rental income must be reported on the property owner's tax return. Income that is earned by one person cannot be assigned to another for federal income tax purposes. What the property owner does with the income after reporting it is a separate issue.
https://www.irs.gov/businesses/small-businesses-self-employed/abusive-trust-tax-evasion-schemes-ques....
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
