@mgawro01 wrote:
That is correct. He quit claimed the property to me and continued to live there until his death. The thought being I could just sell the house upon his death without going through probate.
Most likely, if the life estate was not specifically stated in the deed (as being retained), then there is certainly an excellent argument for an implied life estate - same result either way with respect to your basis being the fair market value on the date of your Dad's death.
You might want to seek guidance from a local tax professional and, if you decide to do so, mention an implied life estate and Section 20.2036-1 (if the person has never heard of this, try someone else).
https://www.law.cornell.edu/cfr/text/26/20.2036-1
