Does TurboTax support Qualified Opportunity Fund (QOF) reporting for form 8949, box f code Z, and form 8997, the annual statement of QOF funds?

[Gator1944]

How can I file the form without a CPA?

[mkossman]

Has anyone successfully obtained a refund from TurboTax for the cost of the software? It's ridiculous that it doesn't support Form 8997 and, setting aside the workaround noted in this string, it's now useless. I believe Form 8997 has to be filed annually (until QOF matures or is sold), so it's no only useless this year, but for 10-12 years to come! @TurboTax what are you doing about this?!

[tagteam]

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@mkossman wrote:

I believe Form 8997 has to be filed annually (until QOF matures or is sold), so it's no only useless this year, but for 10-12 years to come!

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Is it getting extended? Otherwise, if not, the deferred gain has to be included on or before 12/31/2026.

See https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

[mkossman]

Yes, that's right. Was getting the two benefits mixed up in my TT frustration (sorry!). Gain has to be reported by 2026, but the gain exclusion on the QOF itself remains as long as you hold onto it for 10 years. 

[mkossman]

I may be getting fuzzy at the end of the day and after lots of clicks and staring at this, but it seems like all the fields on 8949 can be overridden, so it is allowing me to enter a negative gain (for the QOF deferral), and then I could complete an 8997 manually and file the return on paper. Not a great solution, but at least I wouldn't have to convert to a new app this year.

[gyaqwe]

Great info and work-around folks.

If one does add a Form 8997, then e-File is out of the question, am I right? Need to switch to paper?

Also generally speaking (not TT related) - can I select which Cap-Gains I'm offsetting with QOF? obviously I want to do this only/mainly for Short-term CG.

Thanks for any tips!

-G

[CatinaT1]

Correct, the program does not support this form.

[gyaqwe]

@CatinaT1  Thank you. Is it acceptable to e-file the entire return and only send 8949 by mail? OR else file without QOZ electronically and then file QOZ as an amendment? Trying to avoid a complete paper return, here. TIA

[DaveF1006]

No. If you report QOF investments in your return and if you deferred gains from these investments, the 8997 needs to be filed with your return.