Form 8997 is used by investors in Qualified Opportunity Funds (QOF) to inform the IRS of the investments and deferred gains held at the beginning and end of the current tax year, as well as any capital gains deferred by investing in a QOF and QOF investments.
Do I need to file Form 8997?
An eligible taxpayer holding a QOF investment at any point during the tax year must file Form 8997 with their return.
What part of Form 8997 do I complete?
For detailed information on which section of Form 8997 you need to complete, please refer to the IRS instructions.
Program Entry
To report your Form 8997, please follow the steps below.
- Access your return
- Federal
- Income (Select my forms)
- Investments
- Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
How do I access the various parts of Form 8997?
After navigating to Form 8997, you will first be asked general questions. You must answer yes to the following question to access the various parts of the form: "Do you hereby irrevocably waive any benefits available under an applicable U.S. income tax convention that would exempt gains that you are deferring by investing in a QOF from being subject to federal income tax at the time of inclusion?"