I highly recommend professional tax and legal guidance at this point since (a) you actually took title in exchange for the debt and, (b) the transaction involved a relative.
There is a distinct possibility that you could save a lot in taxes as a result of professional tax and legal consultation in terms of reporting the sale as a deed of trust (trust deed) of sorts whereby you were merely holding title as security for the loan. However, you need to discuss the impact on your daughter and her particular financial situation to determine whether or not that arrangement is beneficial or even possible (in your state) since you already disposed of the property.