You can gift you daughter the property and she would owe no federal income tax. Any tax due on the gift will be pay by you. A taxpayer can give $13,000 per person to any number recipients in a calendar year without paying federal estate and gift tax. Each spouse has an annual exclusion. Couples can therefore therefor transfer a combined total of $26,000 to a single recipient each year. If the property you would gift your daughter is worth $35,000 you would have a taxable gift in the amount of $9,000 (35,000 - 26,000 = 9,000).
If a gift in excess of $13,000 is made by one spouse, the couple can use both annual exclusions by filing gift tax returns (Form 709, www.irs.gov/pub/irs/pdf/f709.pdf, electing to split gifts.
A gift tax return (Form 709) must be filed if a taxpayer makes any "taxable gift" in the calendar year. "Taxable gifts" are generally amounts over $13,000 given to someone other than a spouse or charity. Although tax is calculated on the return, no tax is due until the taxpayer exhausts the $ 1 million exclusion.