Qualified Opportunity fund deferal

Forum|Forum|5 years ago
July 30, 2021
5 replies
46 views

My client sold stock and invested in QOF.

My problem is that the form 8949 shows an adjustment for the amount of the investment. This results in a capital loss for the amount of the investment.

The stock sold correctly shows on form 8997 as being deferred, it correctly does not show on 8949

I completed the stock sale using 1099-b worksheet. used the zoom function to go to the adjustment worksheet. the transaction populated on part 1.

I went to part III and completed the election for deferral ( cost of QOF date of QOF amount deferred, etc.

this caused an adjustment amount to part I

What have I missed

I have read numerous thread cannot find an answer

ProSeries Professional

This topic has been closed for replies.

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Terry53029

Intuit Community Champion

There are a lot of moving parts in filling out the forms for an QOF. Be sure you quick zoom to the "Capital Gain (Loss) Transaction Worksheet", and not "Capital Gains (Losses) Detailed Entry Worksheet" I've used it a few times in past years, not 2020, and it worked fine. This was for 2019. 2020 has changed, but I suspect it should work if you follow instructions very carefully. The new worksheet in my opinion is not as easy to work with as the old one, but when I used it, the forms came out correctly, but have not done a QOF yet.

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Taxlady711

Level 2

Did you have any luck to get the 8949 to print correctly? I cannot get the sale to show up, but the adjustment does. The 2019 is VERY different than the 2020 program.

Any help would be appreciated.

thanks

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Terry53029

Intuit Community Champion

It seems as there is a programing error. I did a test return and came up with the same results as you did. If you put 0 in amount of deferred gain it comes out fine. I doubt if ProSeries will come up with a fix anytime soon. What i would do is put 0 in deferred gain and fill out supporting statement showing in description " deferred gain $5000" in amount put 0. The $5000 gain was for the test return, yours will be whatever the deferred is for your client

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Taxlady711

Level 2

Except I can't get the 3rd page of 8949 to print. so I cannot get the return to correctly calculate or include the correct forms! this is crazy, no one has noticed this till now?

ljr

Level 9

I had my first QOF client this year. Did you complete Form 8997 Initial & annual Statement of Qualified Opportunity Fund (QOF) Investments. I don't remember now if this form helped kick off to the 8949. This was not easy. I know finally my deferral showed up as a negative to reduce the current gain. Either way from my research this form needs to be included.

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