QOF deferral entry

[Elli]

I have a client that sold stock and is deferring the gains to his partnership which was set up for a Qualified Opportunity Fund.  I've entered everything correctly. The gains have been deferred, but on Schedule the deferral is showing up as a loss.  So the return shows a $3,000 capital loss deduction.  Also on Form 8949, it does not show the gain with the offset of the deferral, just the adjustment of the deferral.  If I mark the box that this is a 4797 transaction, it shows up correctly, but it's not a 4797 transaction.  It wasn't property sold, it was Capital Asset (Stocks).  How do I fix this?

Elli

[sjrcpa]

"It wasn't property sold, it was Capital Asset (Stocks)"

Um, stock is property.

[Just-Lisa-Now-]

little spam mixed into that answer?

[Elli]

this is not Section 1231 property.  Which according to IRS is real or depreciable property.  It is cash or the gains from the sell of stock.  So it should not be reported on Form 4797.  

[sjrcpa]

Correct. But your OP said it wasn't property, not that it wasn't 1231 property.

[Elli]

It said it was a gain from the sale of stocks that was being deferred

[spencerhos1]

I have the same problem as Elli. I have followed this thread and do not see the answer. Help

[Terry53029]

@Elli Relax Elli @sjrcpa was just trying to add a little levity into our day. There is another question on QOF's earlier, as some one else is having issues with the new 1099B worksheet, and I replied to him there are a lot of moving parts when filling out all the forms, earlier years were touchy with QOF's, but it did work. This year there is a new 1099B worksheet, and while not as easy to work with I've found it does work. The instruction's have to be followed closely. I have not done a QOF, so all I can say is to go back, and slowly fill out the questions. 

[spencerhos1]

thank you

[Skylane]

If you can’t get the deferral to calculate correctly, try tech support. Maybe they know something…. However,It’s a new workflow so it may be broken (pretty common with new workflows)… if you need a work around try making an adjustment of the deferral amount(s) so the return calculates properly, and put an explanation in preparer notes. Track the deferrals manually.