TurboTax for 2018 does not support deferring capital gain by investing in a qualified opportunity zone. There is no way to enter the deferral in TurboTax.

If the gain occurred in 2018, you have to report the gain and the deferral on your 2018 tax return, even if you made the investment in the opportunity zone in 2019.

This is a big gap in the software.  i am having to hire an accountant to do my taxes for major bucks.  When will this be fixed?

I'm in the same situation.  Sold an investment property in 2019 and have 180 days to invest into an Opportunity Zone fund.  But, need to calculate the capital gains.  I've hired an accountant, but they need more data than what TT provides to calculate the capital gains.  Anyone else have any luck in calculating their capital gains in the middle of the tax year?

As I understand from the IRS site I filed an amended return showing zero for the tax due on that portion of the cap gains reinvested in the Opportunity Zone. 

I sold my rental properties and want to invest in a Qualified Opportunity Zone, but Turbo Tax offers nothing of how to enter this in my taxes for 2022.  My tax accountant said use Turbo Tax.  This is rediculous.  What are we suppose to do?  I see everything but this option in Turbo Tax.  This is a common practice my investors so come on Turbo Tax step up.

Anyone have any suggestions?  Maybe get rid of Turbo Tax and use something else?

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@Doug900 wrote:

I sold my rental properties and want to invest in a Qualified Opportunity Zone, but Turbo Tax offers nothing of how to enter this in my taxes for 2022.  My tax accountant said use Turbo Tax.

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TurboTax does not support Form 8997 (your accountant is most likely unaware).

See https://www.irs.gov/forms-pubs/about-form-8997

This is a common practice my investors so come on Turbo Tax step up.

But it is not common enough among TT users, who typically are DIY taxpayers.

That doesn't help me at all.  I think I will look for another tax program.  I have been a loyal Turbo Tax customer for over 15 years.

Even if TurboTax doesn't support form 8997 to keep track of the OZ investments over the years, it should still provide a mechanism to allow a user to add the single line to form 8949 with code "Z" in column (f), then OZ deferral amount in column (g) as a negative number, putting the OZ EIN in column (a), the OZ date in column (b), and leaving columns (c), (d), and (e) blank. This is straight out of IRS instructions for form 8949.  

This inability of TurboTax "Premium(sic)" to handle this will unfortunately cause this VERY long-term TT user to switch to another platform.   

Sad, very sad.

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@mark kay wrote:

....it should still provide a mechanism to allow a user to add the single line to form 8949 with code "Z" in column (f), then OZ deferral amount in column (g) as a negative number, putting the OZ EIN in column (a), the OZ date in column (b), and leaving columns (c), (d), and (e) blank.....

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What you have outlined can be accomplished but it requires the use of Forms Mode, which is only available in desktop versions of TurboTax.

Tried that, as I have desktop version, but it doesn’t take the “Z” code.   Apparently it’s not a valid code.   It does, however, accept a “X” code, which is some kind of Washington DC exception.   Still researching, but may end up mailing in the return with that 8949 changed to the “Z” code and putting the correct info in the other columns per IRS direction.   

if turbo tax would just accept the “z” it would be a lot easier; I still have to verify that the tax calculation is the same between “x” and”z”.  Will send bill for my hourly research time to TurboTax LOL…

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@mark kay wrote:

Tried that, as I have desktop version, but it doesn’t take the “Z” code.  

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Correct. With TurboTax, you have to do an override in Forms Mode (which invalidates the accuracy guarantee as well as eliminates the possibility of e-filing, but there is no other method available in the program).

Do you know what cell you input the override?  I have a customer who invested part of his gain from a sale of rental property into an Opportunity Zone investment and wants to defer the gain.  

Thanks!