No, there is nothing your wife needs to do on her taxes as far as reporting the gifted house. If she made any payments, such as property tax, she could claim those payments.
I do suggest you make sure you understand how the house was "gifted".
If the mother used a "Life Estate" to add her daughters, the basis will be different versus actually giving complete ownership to them. This will be important down the line if the house is ever sold.
Check with a local real estate attorney if necessary, as real estate is governed by laws of the state. Usually with a Life Estate, the daughters would be considered remaindermans, and as such get a stepped-up basis. If they were given complete ownership, the basis would be based on the value on the date the gift was given.
For example, the house is worth 200,000.
Ten years later it is sold for 300,000.
If the house was put into Life Estate and the daughters sold it right after they inherited it through the life estate, there would be no Capital Gains.
If the house is now owned by the daughters and they sell it ten years from now for 300,000, there would be 100,000 Capital Gains for them to split between them (50,000 each).
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