In Schedule A of Form 709 you will enter your adjusted basis, the date of the gift, and the fair market value of the property on the date of the gift (which will be less $50k).
You could also add the $50k to your basis (the end result is the same either way). If I had an appraisal on the date of the gift (recommended), I would be inclined to go that route.
Note that your daughter's basis will be more complex since the transaction here is part gift/part sale. In those instances the transferee's (your daughter's) basis would be the greater of the amount paid for the property or the transferor's (you) adjusted basis at the time of the transfer.
I actually didn’t get an appraisal at the time. We are doing cost basis based on county tax roll and average sales prices of like property at that time.
i do think the second way is the way to go.
As for her cost basis, I spoke to a real estate attorney and her new home value is the 50k. I am guessing you are discussing this based on capital gains. As long as home doesn’t sell for more than 550001 she should be okay.