How can I/do I need to file form 8997?

[gzhuwea]

Hi I just to want to see if this worked for you. I am running into the same issue right now, wonder what to do...

[user322]

I switched to TaxAct, which supports the form.

[gzhuwea]

Thank you! Did you use TaxAct Online? I'm new to the program and have a few questions. How should I enter the acquisition date? I entered the cost basis as zero with a negative proceed—does that sound correct? Also, where can I enter the letter "Z" in column F?

Thank you so much!

[DXS]

No no no no no no no no no.  TaxActOnline is NOT user friendly and is NOT for dummies.  I have an accounting degree and I do my own taxes and I still had to figure it out. 

You enter the actual sale, and the actual cost basis.  In the Capital Gain column, you use the drop down menu and then it lets you code it Z.  Coding it Z sends it straight to the Form 8997.  I think......

I invested mine in 2020 and in the subsequent years it was just "carried forward" so I gotta go back and look for sure how I did it. 

I will look and see what I did.

JJ

[DXS]

Ok, in the screen where you enter your information, you enter the cost basis and the sale amount.  Then there is a question on "other details" and you check "I need to make an adjustment."  The Z code SHOULD appear there.  But it took me forever to get it to show.  Like I said, TaxAct is NOT user friendly. 

JJ

[trex4]

I tried using Tax Act Online.  I had purchased the QOZ in a previous year and only wanted to use form 8997 for the annual reporting but the program only seemed to work for current year deferrals.  I could never find a way around this in Tax Act.

Tubo Tax if you are listening, please include form 8997 or at least allow for the attachment of a non Turbo Tax form.

[DXS]

If this is the first time using TaxAct and you purchased your QOZ in a previous year, I don't think there is a screen to enter the carryover information.  I think you manually enter it on the form within the software.  You go to the specific form and there is a way to manually enter it.  I have a QOZ that is being "bought out."  So, Company A will show on carryover in Part I (cuz I used TaxAct last year) and in Part IV I have to manually overwrite it (I figured out how....) with "Company B formerly Company A."  That is the way TaxAct lets you do it on a fund buyout because if you show an "out and back in" it will create a taxable event.  But if your fund is "bought out" the event is not taxable and you keep your timeline. 

Based on what I have to do on my fund buyout, I think..... the form will allow you to "overwrite" directly on the form online in Part I.  But figuring out how to get to the form is tricky.  As I have mentioned, TaxAct "ain't for dummies."  It's not user friendly for people who do not have Accounting degrees. 

Ok, I just checked my account.  Yes, I am right!  It's called "Quick Entry."  You do a search for Form 8997.  You get a long list.  Scroll down down down down down, until you get Form 8997.  On Part I and Part IV you can do a "quick entry."  If you have no current year additions, just go to the form online and do "Quick entry" for Part I and Part IV.  You won't need Parts II and III. 

[gzhuwea]

Thank you. Do you make two transactions: 1) to sell the stock, and 2) to reverse the stock? I noticed that if you want to do it all in one transaction, you have to select the "F" long-term transaction for which you did not receive a Form 1099-B. If you select the "E" long-term transaction, where the basis was not reported to the IRS, the "Z" option will disappear.

Where do you find the forms? Right now, I can only do step by step.