Will support for Opportunity Zone Investments be added to Premium?

[rjs]

No. TurboTax does not support deferring gains by investing in Qualified Opportunity Funds, and there are no plans to add support for it.

[bslocum1098]

Another commentator suggested a work around by modifying form 8949. Butr, when I attempted to open form 8949,  TT stated that it is automatically generated by Schedule D. However, my completed Schedule D does not have a form 8949 linked to it and I am unable to open form 8949. Any suggestions on how to do this?

[John San Diego]

Thank you. That’s disappointing. I posed the same question to TaxACT, but have not heard back. 

[rjs]

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@bslocum1098 wrote:

Another commentator suggested a work around by modifying form 8949. Butr, when I attempted to open form 8949,  TT stated that it is automatically generated by Schedule D. However, my completed Schedule D does not have a form 8949 linked to it and I am unable to open form 8949. Any suggestions on how to do this?

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Information flows from Form 8949 to Schedule D, not the other way around. In TurboTax the help for Form 8949 says "The information on Form 8949 will flow directly to Schedule D." The entries on Form 8949 come from either a Form 1099-B Worksheet or a Capital Gain (Loss) Transaction Worksheet.

There is no way to force Form 8949 in TurboTax to correctly report investment in a qualified opportunity fund. If you have deferred gain by investing in a qualified opportunity fund, you cannot use TurboTax to prepare your tax return.

[bc127]

It looks from this message that TTAX will not support Opportunity Zones -  If so you just lost a 20+ year Premium Customer. 

[DavidD66]

That is correct.  As mentioned above, TurboTax does not support opportunity zone investments. 

[Blou]

Can I file using TT without electing to defer my capital gains invested in the opportunity fund, file that first and follow immediately with an amended return to report the deferral election?  

[DXS]

The issue with Turbo Tax is that they are choosing NOT to support the Form 8997.  If you invest in a Qualified Opportunity Zone fund, you MUST use the Form 8997 which is detail to support the exclusion you report on Form 8949 (which is the detail to feed into Schedule D.)

I did some googling and I found an online (or can download software) company that WILL support the Form 8997. I am guessing that Intuit would not appreciate me mentioning it on here.  If TurboTax refuses to support the Form 8997 it's their loss.

If you want to find the company that DOES support the Form 8997, just google (name of a company), and Form 8997.  If you go through a list of all the competitors, you will find it.  I would love to tell you personally but I don't know if there is a message form on here.

[DXS]

John San Diego, the company you mentioned..... google their name and Form 8997 and you will find out.

[Reissps]

Why not?

[DXS]

Although that sounds like a logical way to do it, I would not do that.  Why?  Because it takes the IRS FOR FREAKING EVER to process a 1040X.  You would have to do the Form 8997 by hand and send it in.  You would not be able to do the 1040X with TurboTax because you would need to include the Form 8997.

But proceed with caution if you choose to do that.

[pnpgator]

Me too!!! After all these years, this gap has me looking for a real tax accountant. 

This is sad, I spent a bunch of money on TT Premier over the years and expected this to be handled since its not uncommon (like other things that TT does support are). Wasted my money, going to have to hire a real tax expert. Also since this OZ investment defers taxes all the way to 2026 and TurboTax can't handle it, I guess TT will not be getting my money for at least the next 5 years.  Someone at TurboTax, really didn't prioritize this. The lost customers for multiple years if not forever could really add up!  

[mark kay]

Even if TurboTax doesn't support form 8997 to keep track of the OZ investments over the years, it should still provide a mechanism to allow a user to add the single line to form 8949 with code "Z" in column (f), then OZ deferral amount in column (g) as a negative number, putting the OZ EIN in column (a), the OZ date in column (b), and leaving columns (c), (d), and (e) blank. This is straight out of IRS instructions for form 8949.  

This inability of TurboTax "Premium(sic)" to handle this will unfortunately cause this VERY long-term TT user to switch to another platform.   

Sad, very sad.