I am paying off my daughters mortgage of $200,000.00 and then she is selling the house to me for a $1.00

I'm not sure I understand.  If you bought the house for $200,000 and you are going to sell it eventually for $150,000 - you don't have capital gain, you have capital LOSS.  If she deeds it to you for a dollar, that value is irrelevant, its considered a gift, and you get "transfer basis" meaning that the amount you will be deemed to have bought it for is the amount she paid for it, the basis will be $200,000 for you.  If you sell it for less that $200,000 then you will have a loss.