@luntzb wrote:
TurboTax should make all other corrections based on the entries made in the 8949 form's mode (including changing the AGI and all other necessary1040 adjustments)?
@luntzb I wouldn't count on that. An override can cause the calculations in TurboTax to break in unexpected ways, even in places that you might not think are related to the override. Once you start messing with overrides you are on your own.
@luntzb wrote:
Would Audit Defense still work/ apply?
Audit Defense does not explicitly say that they exclude tax returns with overrides. But if your tax return is wrong because of the override, all they would be able to do is agree with the corrections that the IRS proposes. Audit Defense would handle the correspondence with the IRS on your behalf, but they can't defend a tax return that's clearly wrong.
Also, because of the nature of the deferral of capital gain, a problem might not become apparent until years later, when you sell the QOZ investment. If you lose the tax benefit because of an error in your 2019 tax return, that's not an audit, and Audit Defense is not going to help you with it.
TurboTax is not designed to handle deferring gain by investing in Qualified Opportunity Zones. Trying to force it to do something it's not designed to do is asking for trouble. Find another way to file your tax return.
