Select on forms attached to your return.
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How do I report an OZ deferral on my taxes?
How do I properly document my OZ tax deferral so I can benefit from the tax benefits?
Answers
If you are merely investing in a QOF run by an unrelated sponsor, you file IRS Forms 8949 and 8997 to report those investments. If you run your own QOF, you'll also need to file IRS Form 8996. Consult your local jurisdiction to figure out which forms you might need to file at the state and local level.
New for the 2019 tax year, Opportunity Fund investors report their investments in one or more qualified opportunity funds on IRS Form 8997 by recording the date and amount of the investment and the FEIN of the Opportunity Funds they invested in.
You will need to make the election on form 8949 to be included with your tax return for the year in which the gain was realized.
The qualified opportunity zone fund where you invested should have sent you an acknowledgment of your investment. Keep this document for your records. You will report your qualified capital gain deferral on Form 8997 Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments with your personal tax return.
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