I’m assuming you’re a U.S. citizen or “resident for tax purposes” (otherwise your foreign prize would generally not be U.S. source income, and not be taxable here). In that case, if you won the car in 2022, you’d report the “fair market value” as income on this tax return. (Here’s a relevant TurboTax article.) You can do that near the very bottom of the “Your 2022 Income Summary” page, in “Prizes, Awards, and Gambling Winnings” under “Less Common Income.”
Once you’ve been taxed in the U.S. (by reporting it that way), the fair market value you used becomes your “basis” in the property. And if you sell it, that’s subtracted from the proceeds to determine the gain or loss amount for further tax purposes. (For example, if the car was originally worth $30,000 and you end up selling it for $40,000, you have a $10,000 gain). Importantly, if you have held it for over a year when you sell it, long-term capital gains rates can possibly save you significant tax money (as discussed here).
I’m guessing you didn’t sell it in 2022, but if you did, this would be an additional entry on the tax return you’re now doing. (Go to “Stocks, Mutual Funds, Bonds, Other” under “Investment Income”—personal property is actually included there.) Also note that if you sell it for less than your basis (which is common with vehicles), you have a “non-deductible personal loss,” which the TurboTax program will handle automatically as long as you’ve indicated no business use.
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