I think you should seek professional advice. This is more involved here with significant consequences than makes sense for a volunteer Internet forum.
For example:
- adding your daughter's name to the property is likely a gift and will probably require filing a gift tax return, though no gift tax will probably be due unless you have previously gifted many millions of dollars.
- adding your daughter's name to the property means her creditors might have access to the property. also your daughter could cause the property to be sold at anytime (co-owners have a "partition" and sale right in most cases.)
- I think we may be missing some details. I don't understand how you could go a 1031 exchange to a personal use property (i.e. no rent charged much less fair-market rental). See for example this article describing how to convert a 1031 to personal use. It involves renting the property at fair market rental value for certain periods of time (~ 2 years). If you met those time conditions described below, no problem, if not you need to figure out what to do about the 1031.
Given these issues, I think you would be best off discussing the titling/gifting options with an estate planning attorney and the 1031 issues with a tax attorney, CPA, or enrolled agent who specializes in 1031 exchanges.
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