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It depends. It's not quite clear if you inherited the car or your parents gave you the car. I will answer on the assumption it was inherited first because it came from their estate.
If you inherited the car and then sold it you will report the sale as follows.
Inherited cost basis: Your cost basis would be the fair market value on the date of death of your parents. You would use this cost basis when entering the sale. Be sure to select that is was inherited, if this is the case, because long term capital gains will apply.
Gift cost basis: If your parents gave you the car while they were still alive your cost basis is determined on whether there is a gain or loss on the sale.
To figure out the basis of property received as a gift, you must know three amounts:
Note: If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither a gain nor loss on the sale or disposition of the property. IRS Gift FAQ
How to report in TurboTax: Where do I enter investment sales?
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