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@RTS1823 wrote:

Daughter paid approx $40k down and made several improvements to the property while living there. 

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In opinion, paying $40,000 as a down payment when the house was originally purchased shows that she was an owner.  It seems like there was essentially a verbal "contract for deed" between her and her father.  I would have the memorialize that contract (showing she was purchasing it) and use that original date as her ownership starting date.