Turbo Tax will ask if the person you have entered the personal info for on the next CONTINUE page if the person is deceased on one of the check boxs. You will t...

Was this vehicle claimed under your schedule C? If you did, was the vehicle depreciated fully or still being depreciated?

If it is a gift under $12,000 (it may now be 14,000...) per year, it is tax free and not considered income. You do not have to claim it.