My car was gifted to me by my parents on July 1, 2014, I used it for 2 years and sold it on July 1 2016. How do I report this sale on my return for 2016?

First, you have to determine the fair market value of the car at the time it was gifted to you.  If you subsequently sold it at a profit over that amount, you'd owe capital gains tax on the amount of the profit.

If you sold it at a loss, there's nothing for you to report on your tax return.

Thanks!