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 Proceeds From Broker and Barter Exchange Transactions, follow these TaxAct entry steps:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
- Click Investment Income in the Federal Quick Q&A Topics menu to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
- Click + Add Form 1099-B to create a new copy of the form or click Edit to review a form already created.
- Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
- On the screen titled Investment Sales - Transaction Details, enter the Description of the QOF investment (# of shares, % interest, etc.) - including the EIN of the QO Fund, enter the Date acquired when the investment was made to the QO Fund, then click Continue.
- On the screen titled Investment Sales - Reporting Category, select either "C - Short-term transaction for which you did NOT receive a Form 1099-B" or "F - Long-term transaction for which you did NOT receive a Form 1099-B" from the Form 8949 category drop-down, then click Continue.
- On the screen titled Investment Sales – Adjustment Code(s), select "Z - Deferral of gain invested in QOF" from the Other adjustment code drop-down, then click Continue.
- On the screen titled Investment Sales - Adjustment Amount, enter the deferred Adjustment amount that was invested as a negative number, then click Continue.
- On the screen titled Investment Sales - Qualified Opportunity Fund EIN, enter the Qualified Opportunity Fund EIN, then click Continue.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.