Opportunity Zone

[jpeiiicpa]

Has anyone out there addressed the issue of whether or not you could defer the income on Capital Gain Distributions by investing those gain in an Opportunity Zone?  If you could do it, which I don't think you can, what is your basis for doing so and how would you report it on the 8949, let alone elsewhere on the tax return?

[Karl]

I actually don't know, but this article says you can and makes a decent case for it.

https://www.hcvt.com/alert-Opportunity-Zones

As far as how you enter it into Lacerte, I don't know for certain, but I'd imagine you still use Screen 17 (because there's nothing for it on Screen 12) to do *only* the QOZ line entry (normally you input two entries: one reg disposition line and another to defer it to QOZ - Lacerte has Knowledge Base articles you can look up on this).  And then it should net out on the bottom of Sch D.

I haven't had any clients want to do this or have big Cap Gains to be eligible, but it sure looks cool.  Good luck!