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.