Once again, everyone who posted here is getting something wrong and, in some cases, everything wrong (a large part of that is people are posting without reading previous posts).
@mgawro01
1. When your Dad quitclaimed his interest in the house to you and reserved a life estate, he essentially made a gift to you, but it was a gift of a future interest (a remainder), not one-half of the property. For that year, a gift tax return (Form 709) should have been filed for the value of the remainder interest you received. However, since your Dad passed, that is now somewhat of a moot point.
2. The proceeds you gave to your siblings is, indeed, a gift since your interest passed outside the will. You received your interest in the property as a direct result of the deed and the language therein. Thus, you will most likely need to file a Form 709 for each gift that exceeds the annual exclusion amount.
3. Your siblings do not have any basis in the property; you owned 100% of it since it passed to you upon the death of your Dad. Again, distributing part of the proceeds to your siblings would constitute a gift from you to your siblings.
