Question #1: How will this impact her tax situation? ====>>nothing impacts her tax situation; gifts are usually tax free to your daughter, the donee (recipient). You, as the donor pay the gift tax, if ANY I mean your net gidft amount is $5.45M or higher. The donee does have to pay tax on the income earned on the gifted amount in your case the rental income from the condo.
however when she disposes of the ocndo she must recapture the unrecap depreciation of sec 1250 depreciation as ordinary income taxed at 25%.
Question #2: How will it impact my tax situation====.In general nothing impacts your tax situation; however, I believe you must file form 709 on your return aslongas the amount of the gift exceeds $28K; I mean If you gave gifts to someone in 2017 totalling more than $14k (other than to your spouse) or $28K in the case of gift splitting , you probably must file Form 709. Form 709 is an annual return.
Generally, you must file the Form 709 no earlier than Jan 1, but not later than Apr 15, of the year after the gift was made.
For gift splitting to be official, both spouses must agree to the gift and specify the situation when filing taxes. In 2017, the gift tax exemption was set at $14K per individual gift annually. Gift splitting allows a couple, you and you spouse, to donate a total of $28K before being taxed on the contribution. A penalty applies if you are subject to penalties for tax evasion if the IRS determines that the act was a willful attempt to avoid the gift tax. Other penalties apply if the yu file late or make errors. A penalty for intentionally underestimating the value of a gift applies if the value shown on the form is less than 66 % of the true market value. Interest is charged on the taxes due.