Form 1099-B - Reporting and Deferring Capital Gains for Investing in a Qualified Opportunity Fund

The IRS may allow you to defer paying tax on a stock sale if the gain is invested in a Qualified Opportunity Fund.

Whether the gain is reported to you on Schedule K-1 or Form 1099-B, follow these TaxAct entry steps:

1. Click Federal 
2. Click Investment Income to expand the section
3. Click Gain or loss on the sale of investments to expand the section
4. Click Capital gain or loss (Form 1099-B)
5. Add a new copy
6. Click Step-by-Step Guidance
7. Enter the description of the QOF investment (# of shares, % interest, etc.) as the description
8. Enter the EIN of the QO Fund as the description
9. Enter the date the investment was made to the QO Fund as the date acquired, click Continue
10. Choose Form 8949 category C for a short-term gain. Choose Category F for a long-term gain. 
11. Click Continue
12. Do not enter a cost basis or sales proceed
13. Click Continue.
14. On the screen titled Investment Sales – Adjustment Code(s) choose Code Z – Deferral of gain invested in a QO Fund
15. Enter the deferred gain that was invested as a negative number
16. Click Continue
17. Enter the EIN of the Qualified Opportunity Fund