Your basis in a car for figuring depreciation is generally its cost. In your case, the cost is zero (0). TurboTax
asks the cost in order to calculate depreciation (if you choose to use actual
expenses instead of mileage).
However, according to IRS Pub.
551 - Basis of Assets:
If you hold the gift as business property, your
basis for figuring any depreciation, depletion, or amortization deduction is
the same as the
donor's adjusted basis
plus or minus any required
adjustments to basis while you hold the property.
If the donor used the car for business, they should be able to tell you the adjusted basis. If they did not use it for business, use the fair market value at the time of the gift.
For additional information, see IRS
Pub.
551 - Basis of Assets.
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