Sorry, the prior answer is incorrect. When your mother died, your father inherited your mother's half of the house, and got to write up the full value since it's a community property state. His cost basis in the property at that point was $168. He is still alive and is now gifting you with 100% of the house. Since his cost basis was $168, that now becomes your cost basis of $168. He should file a gift tax return but would likely owe no tax on the gift.
