I have a very unique situation. I invested in a QOZ and had to use TaxAct. Well, after two years, the company I invested with decided it was too much hassle and they are liquidating everyone. This means I have to claim the gain this year instead of waiting until 2026 as the law currently allows (there is proposed legislation to extend it to 2028...)
The law as written does not give any provision for a "roll-over" where you keep your original timeline. Basically you have to take the liquidation, but the law allows you to "re-defer" with another company within 180 days. But, you lose your original timeline and you may lose your 10% or 15% exclusion. (If you re-defer by the end of this year, and the law is extended to 2028, you will get the 10% exclusion.)
On the form 8997 itself, you will have to show the liquidation in Section 3 of the 8997. This sends it back to the 8949 for you to claim the gain (and pay taxes). But, you are allowed to "re-defer" (if you invest with another company within 180 days). Re-deferring would send that original gain back to the 8997 in Section 1 under Company 2 name.
My problem is..... I don't think TaxAct Online's software can accommodate a "re-deferral. I called them and they are clueless. Then wanted me to contact "Expert help" (for a fee of course). I explained that "expert help" can only explain the tax law, not the programming, so "expert help" is no help. I need to know if the programming can accommodate a "re-deferral." A gain you originally deferred in 2020 and it's liquidated but you "re-defer" it this year (and start the clock over.....)
There is an option to "give product suggestions." I am going to try that.
