Solved

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

Forum|Forum|5 years ago
April 11, 2021
3 replies
0 views

Qualified Opportunity Fund investments allow taxpayers to defer eligible gains. The deferment should be reported on Form 8949 as an adjustment code Z, and on form 8997, which details the QOF account balance. Does TurboTax support reporting of QOF deferments, where is the input for this, and what does TurboTax suggest if QOF reporting is not supported?

TurboTax Premier Online

Best answer by rjs

TurboTax does not support deferring gain by investing in Qualified Opportunity Funds. TurboTax does not support adjustment codes Y and Z on Form 8949, nor does it support Form 8997. If you want to defer capital gain by investing in a Qualified Opportunity Fund, you cannot use TurboTax to file your tax return. You have to find another way to file your tax return.

rjsAnswer

TurboTax does not support deferring gain by investing in Qualified Opportunity Funds. TurboTax does not support adjustment codes Y and Z on Form 8949, nor does it support Form 8997. If you want to defer capital gain by investing in a Qualified Opportunity Fund, you cannot use TurboTax to file your tax return. You have to find another way to file your tax return.

V

vidipm

Will it be supported by next year? I had to ditch TT for this reason yesterday and had to go with a CPA. I'd rather prefer to use TT and file my takes on my own.

rjs

@vidipm wrote:

Will it be supported by next year?

@vidipm This is the third year that Qualified Opportunity Funds have been available, and TurboTax still does not support them. I have no reason to think that they will decide to support them next year. They have not given any indication that they intend to support them in the future.

M

mwilgusAuthor

I had to switch away from TurboTax because of the unsupported QOF reporting. I looked into TaxAct, but was ultimately unsatisfied with they way Tax Act handled Form 8997 Part II. I made a QOF investment in calendar year 2021 that affected tax year 2020. TaxAct wasn't reporting this correctly. Ultimately I switched to another Intuit product called ProConnect. It's professional grade software that requires some IRS registrations to use. Best to use a CPA if you're unfamiliar.

A

Anonymous_

@mwilgus wrote:

,,,,Ultimately I switched to another Intuit product called ProConnect. It's professional grade software that requires some IRS registrations to use. Best to use a CPA if you're unfamiliar.

There is absolutely nothing wrong with that product, but the vast majority of TurboTax users, who need to report an investment in a QOF, would be much better off using a CPA (as you indicated) or any other professional income tax preparation service.

Critter-3

A DIY program is only good for 90% of the tax filers and the rest should be using a paid tax pro to handle the forms the DIY programs do not handle by design.

If you still want to do this form yourself you can use the downloaded version where you can make over ride entries in the FORMS mode and file by mail to include the forms not supported. Any overrides in the FORMS mode voids the accuracy guarantee.