Many thanks for the tips/info. I went thru the thread and as of today, TaxAct-Online seems to be working a little differently and below are the simple steps:
1. Goto Federal->Income->Capital gains and losses
2. Click on "Review" for Form 8949.
3. Enter capital gains entries as usua.
4. Add a separate entry by clicking on "Add Another sale"
5. For "Term and Type" select either C (for short-term gain deferral) or F (for Long-term gain deferral). If anything else is selected "Z" code will NOT be available in the drop down on the next step.
6. Enter value for 1a "Description of Investment or Property" as "x% INTEREST in [name of QOF here without brackets]" or "x SHARES in [name of QOF here without brackets]"
7. Under "Other detais", click on "I need to make an adjustment". Right below that, 2 new fields will appear. Enter amount being deferred (as a negative as in -100,000 for example) and select Z from the dropdown.
8. Click Continue and again Continue on the next page.
9. TaxAct will ask for the EIN of the QOF. Enter it and continue thru the next 2 screens.
10. That's it; TaxAct will automatically create the entries in Form 8949 and generate Form 8997 and reflect the deferral in Schedule D.
One thing I have yet to figure out is that the generated Form 8997 is shown with Part II filled out but not Part IV. Would be grateful for tips on how to fix this.
