How to enter a capital gain investment into an opportunity zone deferral?

Forum|Forum|6 years ago
June 1, 2019
3 replies
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Within 180 days I have invested a portion of my capital gains into an opportunity zone and would like to know how TurboTax treats this.

TurboTax Premier Online

rjs

Employee

TurboTax for 2018 does not support deferring capital gain by investing in a qualified opportunity zone. There is no way to enter the deferral in TurboTax.

If the gain occurred in 2018, you have to report the gain and the deferral on your 2018 tax return, even if you made the investment in the opportunity zone in 2019.

gregput

This is a big gap in the software. i am having to hire an accountant to do my taxes for major bucks. When will this be fixed?

gregdan

I'm in the same situation. Sold an investment property in 2019 and have 180 days to invest into an Opportunity Zone fund. But, need to calculate the capital gains. I've hired an accountant, but they need more data than what TT provides to calculate the capital gains. Anyone else have any luck in calculating their capital gains in the middle of the tax year?

whoppmeyerAuthor

As I understand from the IRS site I filed an amended return showing zero for the tax due on that portion of the cap gains reinvested in the Opportunity Zone.

Anonymous

Hi guys, I will be selling my rental home and looking into doing a 1031 for an opportunity fund. No one in my friends circle know what I am talking about and I myself just discovered this option. Any leads into which opportunity zone fund to you've invested in and can refer me to look into something you've found to be giving stable returns.

thank you,

mark kay

Even if TurboTax doesn't support form 8997 to keep track of the OZ investments over the years, it should still provide a mechanism to allow a user to add the single line to form 8949 with code "Z" in column (f), then OZ deferral amount in column (g) as a negative number, putting the OZ EIN in column (a), the OZ date in column (b), and leaving columns (c), (d), and (e) blank. This is straight out of IRS instructions for form 8949.

This inability of TurboTax "Premium(sic)" to handle this will unfortunately cause this VERY long-term TT user to switch to another platform.

Sad, very sad.

Anonymous_

Employee

@mark kay wrote:

....it should still provide a mechanism to allow a user to add the single line to form 8949 with code "Z" in column (f), then OZ deferral amount in column (g) as a negative number, putting the OZ EIN in column (a), the OZ date in column (b), and leaving columns (c), (d), and (e) blank.....

What you have outlined can be accomplished but it requires the use of Forms Mode, which is only available in desktop versions of TurboTax.

mark kay

Tried that, as I have desktop version, but it doesn’t take the “Z” code. Apparently it’s not a valid code. It does, however, accept a “X” code, which is some kind of Washington DC exception. Still researching, but may end up mailing in the return with that 8949 changed to the “Z” code and putting the correct info in the other columns per IRS direction.

if turbo tax would just accept the “z” it would be a lot easier; I still have to verify that the tax calculation is the same between “x” and”z”. Will send bill for my hourly research time to TurboTax LOL…