I am not an attorney, nor do I play one on TV. However, if the house is also in your daughter's name, half of the income will be attributed to her. If she is going to also be on the new home, this is not a problem, I think.
There are new rules on capital gains and reinvestment in real estate. I think you are ok, but PLEASE spend a bit of money to consult a tax attorney or a real estate attorney. $100 spent now will make sure you don't have to give the government a lot more later.
34, thanks for the advice, s-i-l checking with tax attorney as we speak, I just don't want to do the wrong thing.