How do I include Form 8997 Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments in TurboTax?

[Anonymous_ · Accepted solution]

You will have to print and mail your return. TurboTax does not support Form 8997.

[IggyL]

I have thought and used the following work-around: assuming you can e-file, file your taxes as usual, wait until they are accepted, and IRS online account shows that they have received and processed your return, and THEN file an amended return, which now consists only of 1040X (with no changes in $ amounts) and Form 8997, since it's just informational anyway, and does not affect the amount of tax due or refund.

I would like to hear if anyone thinks this is NOT a good idea, and if so - why. 

[Critter-3]

The 8997 instructions say this :

Who Must File ... An eligible taxpayer holding a QOF investment at any point during the tax year must file Form 8997 with the taxpayer's timely filed federal income tax return (including extensions).

[Anonymous_]

I agree with @Critter-3; do not deviate from the rules and procedures. 

Not filing the form in a timely manner as specified could result in the gain not being deferred (as planned). 

Follow the instructions.

[IggyL]

Sorry for responding almost a year later; somehow I did not get any notifications of your replies at the time. So, resurrecting that old thread - why do you feel that filing the form as part of amended return violates the procedure?  Is amended return not considered being a "timely filed return", even when I do it within days of initial return having been processed?  I didn't see this explicitly prohibited, or even discouraged, in the filing instructions, and I don't feel this violates "the spirit of the law". 

[Anonymous_]

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@IggyL wrote:

Is amended return not considered being a "timely filed return", even when I do it within days of initial return having been processed?

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I am not sure anyone here is arguing that your position is not that case.

[mark kay]

I'm a LONG, LONG, TIME Turbotax (TT) user, and last year I invested in a OZ requiring  8997 and also the "Z" code in column (f) of form 8949.  Since TT refuses to support either of these, I just used TT to prepare the return and then edited the 8949 and added the 8997 and sent in a paper copy.   The IRS took nearly 4 months to even get the return in the system.   I can't do this for the next 9 years (the remaining life of the OZ investment).  

You'd think TT would AT LEAST support filling out for 8997 for years where no changes in OZ investments or withdrawals occur (i.e. ONLY parts I and IV of 8997).   I'd really like to know why TT is writing off these users.   I have to consider TaxAct now, and will just have to eat the 1-year of filling in all the info that is "legacy" in TT.  

(I looked into the 1040-X option last year, but was a) unclear of the timing, trying to get the 1040-X in AFTER the 1040 was accepted/digested by the IRS, and b) had read somewhere that 1040-X was not appropriate if there was no change in income or tax; not sure if this is correct)

[GanatraRam]

There is no adequate place the file amended return and include IRS form 8997. The issue is not yet resolved please call me to further discuss

Ramesh Ganatra

[Anonymous_]

How do I contact TurboTax? (intuit.com)

TurboTax does not support the form.