If I add my dauther’s name to the title of my rental house, would she be able to take the money from the rental after selling it and use it toward her residence house without paying any taxes?
Your daughter can take the money from the sale of your rental property and use it any way she sees fit. However, the sale will have a tax consequence.
Not only will you create a potential capital gain for your daughter, but you will have gift tax issues to address too.
Not all gifts result in an actual gift tax, but a Gift Tax Return may still need to be filed with the IRS.