Qualified Opportunity Funds (QOF)

[ajp]

A client sold some stocks to invest in a QOF.  He was told that he should be able to defer the gains.  I can't seem to fill out the forms correctly to make this happen.  I have the numbers for long/short term gains.  I know what was invested in these funds (more than the gains combined).  

I've tried clicking the box (and not clicking the box) on the schedule D regarding QOF.  

I've tried filling out Form 8997.  I have the fund name, EIN, amount invested, etc.  I tried using both the amount invested number and the long/short term gain number on this form.  

Has anyone done this before.  Nothing I do is making a difference.  I feel like there must be something simple I am missing.  I have read the form instructions and the FAQ from the IRS website.  

Thanks for your help. 

--Amy

[ajp]

Just had a thought??? Perhaps I am not supposed to list the sale on schedule D at all, just keep them recorded on the QOF form?  If that is the case, do I keep the amount invested or just the gain deferred?

Or???

[sjrcpa]

 It is supposed to be shown on Sch D. It gets deferred by showing some Code. I don't use ProSeries so I can't help with the input.

[dkh · Accepted solution]

For the record, I've never done this type of transaction but I do use ProSeries Professional.    From what I see.... if you select the Schedule D there are two QuickZoom options. The second is for your QOF transaction.   Part I line 3 has a check box that needs selected - then your QOF transactions needs entered in Part VIII.   Is that how you entered?

[ajp]

Thank You!

I didn't see that the quick zoom had the QOF option.  Now, I'm getting somewhere!

[rightnowtoday]

Were you able to figure this out?

Lots of clients not actually qualifying due to incorrect filing, Were you able to see if the gains deferred amount has to be even listed on the scheduled D?