What is a qualified opportunity fund (QOF)?

A Qualified Opportunity Fund (QOF) is an investment vehicle designed to provide tax incentives for investing in economically distressed communities. By investing in a QOF, investors can defer or even eliminate capital gains taxes on eligible investments held for at least 5 years.

How do I report eligible gains from section 1231 property in a QOF?

To report eligible gains from section 1231 property, including gains from installment sales and like-kind exchanges, by investing in a QOF, you must report the deferral election on Form 8949 in the tax year of the deferral. Each QOF investment of section 1231 gains will use two separate rows in Part II (long-term transactions) of Form 8949.

What should I do if I have multiple Forms 8949 to attach to my tax return?

If you are attaching multiple Forms 8949 to your tax return, attach the Form(s) 8949 that lists code 'Z' in column (f) first.

How many rows are needed for reporting a QOF investment in Form 8949?

Two rows are required to report a QOF investment in Form 8949. The first row is used to report the investment itself, while the second row is used to report the gain deferred from the section 1231 property sale or exchange that was invested in the QOF.

What is Form 8949 used for?

Form 8949, Sale of Business Property, is used to report the gain or loss from the sale or exchange of business property in the United States. This form is necessary when reporting gains or losses on section 1231 property, installment sales, and like-kind exchanges.

Where do I enter the EIN of the QOF investment in Form 8949?

Enter the Employer Identification Number (EIN) of the QOF investment in column (a) of the second row when reporting the gain from the sale or exchange of a QOF investment on Form 8949.

What is the difference between reporting a deferral election and a gain inclusion on Form 8949?

A deferral election is reported when taxpayers are deferring eligible gains from section 1231 property by investing in a QOF, while a gain inclusion is reported when taxpayers are recognizing the previously deferred gain from a QOF investment sale or exchange.

Form 8949

Fill out this form

Create Web Form

Sales and Other Dispositions of Capital Assets

Rev. 2023

Form 8949 is a form used by taxpayers to report sales and other dispositions of capital assets. It is used to list transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. The form includes instructions and the latest information which can be found on the IRS website. The form has three parts: Part I (Short-Term), Part II (Long-Term) and Part III (Additional Information). Part I and Part II are used to report short-term and long-term transactions, respectively. Part III is used to provide additional information about the transactions reported in Parts I and II.

Instructions

Form 8949 Instructions - Instructions for Form 8949, Sales and Other Dispositions of Capital Assets

Search tags

FAQ

What is a qualified opportunity fund (QOF)?
A Qualified Opportunity Fund (QOF) is an investment vehicle designed to provide tax incentives for investing in economically distressed communities. By investing in a QOF, investors can defer or even eliminate capital gains taxes on eligible investments held for at least 5 years.
How do I report eligible gains from section 1231 property in a QOF?
To report eligible gains from section 1231 property, including gains from installment sales and like-kind exchanges, by investing in a QOF, you must report the deferral election on Form 8949 in the tax year of the deferral. Each QOF investment of section 1231 gains will use two separate rows in Part II (long-term transactions) of Form 8949.
What should I do if I have multiple Forms 8949 to attach to my tax return?
If you are attaching multiple Forms 8949 to your tax return, attach the Form(s) 8949 that lists code 'Z' in column (f) first.
How many rows are needed for reporting a QOF investment in Form 8949?
Two rows are required to report a QOF investment in Form 8949. The first row is used to report the investment itself, while the second row is used to report the gain deferred from the section 1231 property sale or exchange that was invested in the QOF.
What is Form 8949 used for?
Form 8949, Sale of Business Property, is used to report the gain or loss from the sale or exchange of business property in the United States. This form is necessary when reporting gains or losses on section 1231 property, installment sales, and like-kind exchanges.
Where do I enter the EIN of the QOF investment in Form 8949?
Enter the Employer Identification Number (EIN) of the QOF investment in column (a) of the second row when reporting the gain from the sale or exchange of a QOF investment on Form 8949.
What is the difference between reporting a deferral election and a gain inclusion on Form 8949?
A deferral election is reported when taxpayers are deferring eligible gains from section 1231 property by investing in a QOF, while a gain inclusion is reported when taxpayers are recognizing the previously deferred gain from a QOF investment sale or exchange.

HOW TO

How to fill out Form 8949 for free, online in 3 easy steps:

1
Open form template in editor
Click on the “Get this template” button.
2
Fill out Form 8949
Wait a moment and you will be redirected to our online PDF Filler app.
3
Download file
Download your completed Form 8949 for free. You can also save it to a cloud storage.

ABOUT

Tax forms

Form 8949 is one of Tax forms that are documents used to report information about an individual's or business's income, deductions, and tax liability to the relevant tax authority. These forms are necessary to comply with tax laws and fulfill tax obligations. Tax forms vary depending on the country and the specific tax requirements in place. Here are some common types of tax forms:

Individual Tax Forms: These forms are used by individual taxpayers to report their personal income and claim deductions, credits, and exemptions. Examples include the 1040 form in the United States or the Self-Assessment Tax Return form in the United Kingdom.

Business Tax Forms: Business tax forms are used by companies, partnerships, or self-employed individuals to report their business income, expenses, and other tax-related information. Examples include the Schedule C form (Profit or Loss from Business) in the United States or the CT600 form (Company Tax Return) in the United Kingdom.

Payroll Tax Forms: These forms are used by employers to report the wages, salaries, and taxes withheld from their employees' paychecks. Examples include the W-2 form in the United States or the P60 form in the United Kingdom.

Sales Tax Forms: Sales tax forms are used by businesses to report and remit sales tax collected on taxable goods or services. The specific sales tax forms vary by jurisdiction.

Value Added Tax (VAT) Forms: VAT forms are used in countries that impose a value-added tax to report and remit VAT collected on sales and claim VAT credits for purchases. Examples include the VAT return forms used in many countries.

Estimated Tax Forms: Estimated tax forms are used to report and pay estimated taxes on income that is not subject to withholding, such as self-employment income or investment income.

These are just a few examples of the numerous tax forms that may exist. The specific forms required depend on the tax laws and regulations in your country or jurisdiction. It is important to consult the tax authority's guidelines or seek professional advice to determine which forms are applicable to your situation.

FEATURES

PDF Filler

The easiest way to fill Form 8949 online

Quickly fill out Form 8949
Looking for a way to quickly fill Form 8949 online? With our online free PDF form filler, you’ll know how to how to edit and fill this pdf document in less than a minute.
Easy to use online PDF editor
Fed up with printing out PDF files so you can edit them, before rescanning and sending them back? Edit PDF documents for free online. Use our online pdf editor to save time and paper.
Great tools, all platforms
Wondering how to fill in Form 8949 on a Mac, or maybe how to use a PDF filler free? Our online PDF tools work on all platforms.
Secure file storage
Completed "Form 8949" files are stored in a secured database managed by Amazon Cloud hosting. You can delete your files from our system anytime. In any case, these files are automatically deleted after 24 hours.
Chat with Form 8949
Chat with "Form 8949" on Chatize that is a free PDF reader assistant. Ask questions and get answers from "Form 8949". Just click on Chat With Document button above.

Products

Docs

Websites

About