I am not sure what you are asking. I will give scenarios.
If you are carrying over a QOF balance with no changes, in TaxAct, you will have to manually enter the information in Part 1 of the Form 8997 using "Quick Entry." There is a way to access the forms, I can't remember how right now. Like I have said, TaxAct is NOT for dummies! You need to know what you are doing.
If you take a cash out of a QOF and reinvest it, then you have a taxable event. You will show an "out and back in." But you will lose any 10% or 15% exclusions you may have had. If you reinvested probably no effect, but you have to show an out (which creates a taxable event) and back in (which will exclude it from tax).
If your QOF was bought out, DO NOT show an "out" and "back in" as you mentioned above. That will create a taxable event. You do a manual entry using Quick Entry on the form in Part IV where you over write and say "Company B formerly Company A."
If you are investing in a QOF for the first time, (and there are no 10% or 15% exclusions when you claim the gain in 2026 (which may be changed to 2028, pending legislation) if you invest this late) you show your capital gain on the form 8949 (well, you enter it where TaxAct wants you to enter it) and then you show a Z code for the gain you are excluding to Form 8997. It will automatically go to Form 8997 if you enter the Z code.
And I feel your frustration for not getting the Z code on short term gains. Short term gains are eligible to be invested in QOF. But I had trouble getting the Z code to show up in the drop down menu on TaxAct regardless of short or long term. I had to call Tax Act. They were pretty helpful. But I know the correct terms to use. If you are not an Accountant, it may be difficult for you to communicate the issue and for them to understand what you are needing. TaxAct ain't for the squeamish....
Tax Slayer also supports Form 8997 but I am not familiar with it.
And sorry TurboTax, but I will mention TaxAct and TaxSlayer if I want because YOU chose not to support the Form 8997 and YOU lost customers such as me because of it. I would have preferred to keep buying the TurboTax software and install on my computer, but I had to switch to TaxAct because of YOUR choice to not support the Form 8997.
JJ
