Yes.

 The gain on the sale of a primary residence is usually excludable  from income (up to $250,000). But, since the property was used for “non qualified use" prior to it being your residence, after 2008 (when  the tax law changed), you only get to exclude a prorated share of the gain. If the property was rented out, Depreciation recapture will also be taxed. His cost basis and accumulated depreciation transferred to you with the quit claim deed.