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I bought a house and gave it to my daughter.

Your facts are different from the OP.

It appears that the OP wants to give the house he's living in to his child. IMHO, that's an incredibly bad idea.

You wanted (and apparently did) make a gift of a house you are NOT living in to help out your child. That is not nearly as bad an idea, and may be perfectly fine, depending on the particulars.

The big difference is that once you have given the house away, you're done. You don't care what your child does with it. If they screw up and lose the house or squander it away, it doesn't matter to you.

On the other hand, the OP cares very much what happens to the house. That is their home - the roof over their head. Should their child squander away the gift, the OP will not have a place to live. What their child does with this gift will matter very much to the OP.

As I understand it, the IRS wants to know about it, but I won't have to pay taxes on it. It will be deducted from some maximum lifetime amount that I'm allowed to give or something.

That's basically correct. Both you and the OP would need to file a gift tax return if the value of the house is over $13k.

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