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?

[TomD8 · Accepted solution]

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.

[bryanrmill]

Thanks!