For those struggling with k1 capital gain invested in QOF, here are some tips.
- If you just have K-1 gains, your TurboTax will not have form 8949 to manually override. To get the form to appear, just search for 1099-B, and jump to that section. Enter a fake sale. Put in dates more than 1 year apart for long-term capital gains, and less than 1 year for short term. This way, things will carry over correctly to the correct section of the 8949 form. Put in anything; you'll be overriding them in the next step.
- Next, go to form view. You should see form 8949 now. This is where you will make overrides. First, be sure you are on the correct section, short-term or long-term. For K-1 gains invested, you'll be checking box C for short-term, or box F for long-term. Next, simply follow the advice others have given in this thread, and more specifically, the IRS instructions for form 8949:
Report the deferral of the eligible gain
on its own row of Form 8949 in Part I with
box C checked or Part II with box F
checked (depending on whether the gain
being deferred is short-term or long-term).
If you made multiple investments in
different QO Funds or in the same QO
Fund on different dates, use a separate
row for each investment. If you invested
eligible gains of the same character (but
from different transactions) on the same
date into the same QO Fund, you can
group those investments on the same row.
In column (a), enter only the EIN of the QO
Fund into which you invested. In column
(b), enter the date you invested in the QO
Fund. Leave columns (c), (d), and (e)
blank. Enter code “Z” in column (f) and the
amount of the deferred gain as a negative
number (in parentheses) in column (g).
You should see your working refund numbers in TurboTax increase according to your capital gains rates.
With the overrides, you will of course need to file manually.
I hope this helps!
- Paul
