Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

QOF deferral entry

Elli
Level 2

I have a client that sold stock and is deferring the gains to his partnership which was set up for a Qualified Opportunity Fund.  I've entered everything correctly. The gains have been deferred, but on Schedule the deferral is showing up as a loss.  So the return shows a $3,000 capital loss deduction.  Also on Form 8949, it does not show the gain with the offset of the deferral, just the adjustment of the deferral.  If I mark the box that this is a 4797 transaction, it shows up correctly, but it's not a 4797 transaction.  It wasn't property sold, it was Capital Asset (Stocks).  How do I fix this?

Elli

 

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

9 Comments 9
sjrcpa
Level 15

"It wasn't property sold, it was Capital Asset (Stocks)"

 

Um, stock is property.

The more I know, the more I don't know.
Just-Lisa-Now-
Level 15
Level 15
little spam mixed into that answer?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Elli
Level 2

this is not Section 1231 property.  Which according to IRS is real or depreciable property.  It is cash or the gains from the sell of stock.  So it should not be reported on Form 4797.  

0 Cheers
sjrcpa
Level 15

Correct. But your OP said it wasn't property, not that it wasn't 1231 property.

The more I know, the more I don't know.
Elli
Level 2

It said it was a gain from the sale of stocks that was being deferred

spencerhos1
Level 2

I have the same problem as Elli. I have followed this thread and do not see the answer. Help

0 Cheers
Terry53029
Level 14
Level 14

@Elli Relax Elli @sjrcpa was just trying to add a little levity into our day. There is another question on QOF's earlier, as some one else is having issues with the new 1099B worksheet, and I replied to him there are a lot of moving parts when filling out all the forms, earlier years were touchy with QOF's, but it did work. This year there is a new 1099B worksheet, and while not as easy to work with I've found it does work. The instruction's have to be followed closely. I have not done a QOF, so all I can say is to go back, and slowly fill out the questions. 

spencerhos1
Level 2

thank you

Skylane
Level 11
Level 11

If you can’t get the deferral to calculate correctly, try tech support. Maybe they know something…. However,It’s a new workflow so it may be broken (pretty common with new workflows)… if you need a work around try making an adjustment of the deferral amount(s) so the return calculates properly, and put an explanation in preparer notes. Track the deferrals manually. 

If at first you don’t succeed…..find a workaround