alert-icon
Only limited material is available in the selected language. All content is available on the global site.
  • Solutions Directory
  • Careers
  • Investors

Wolters Kluwer

Wolters Kluwer is a global leader in information, software solutions and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG.

About Us
  • Who We Are
  • Organization
  • Strategy
  • Newsroom
Insights
  • Artificial Intelligence
  • Future Ready Accountant
  • Future Ready Lawyer
  • Business Transformation
  • Data Analytics & Reporting
  • Risk & Regulatory Compliance
  • All Insights
Get Help
  • Contact Us
  • Login
  • eShop & Bookstores
  • Solutions Directory
  • Careers
  • Investors
PrimaryNav Button
Wolters Kluwer Logo
Search Wolters Kluwer
    No Suggestion
    WK logo
    Visit our global site in English, or select an alternative location or language below
    • Americas
    • Europe
    • Asia & Pacific
    Brazil
    Home page:
    • Portuguese
    Canada
    Home page:
    • English
    • French
    Latin America
    Home page:
    • Spanish
    United States
    Home page:
    • English
    Current Page:
    • English
    Belgium
    Home page:
    • Dutch
    • French
    Czech Republic
    Home page:
    • Czech
    Denmark
    Home page:
    • Denmark
    France
    Home page:
    • French
    Germany
    Home page:
    • German
    Hungary
    Home page:
    • Hungarian
    Italy
    Home page:
    • Italian
    Netherlands
    Home page:
    • Dutch
    Norway
    Home page:
    • Norwegian
    Poland
    Home page:
    • Polish
    Portugal
    Home page:
    • Portuguese
    Romania
    Home page:
    • Romanian
    Slovakia
    Home page:
    • Slovak
    Spain
    Home page:
    • Spanish
    Sweden
    Home page:
    • Swedish
    United Kingdom
    Home page:
    • English
    Australia
    Home page:
    • English
    China
    Home page:
    • Simplified Chinese
    Hong Kong
    Home page:
    • English
    India
    Home page:
    • English
    Japan
    Home page:
    • Japanese
    Malaysia
    Home page:
    • English
    New Zealand
    Home page:
    • English
    Philippines
    Home page:
    • English
    Singapore
    Home page:
    • English
    South Korea
    Home page:
    • English
    Taiwan
    Home page:
    • English
    Thailand
    Home page:
    • English
    Vietnam
    Home page:
    • English
    Primary Navigation
    • Health

      Trusted clinical technology and evidence-based solutions that drive effective decision-making and outcomes across healthcare. Specialized in clinical effectiveness, learning, research and safety.

      Health Overview
      Solutions
      • UpToDateIndustry-leading clinical decision support
      • OvidThe world’s most trusted medical research platform
      • UpToDate LexidrugEvidence-based drug referential solutions
      • Simplifi+ Pharmacy ComplianceAn automated suite of compliance solutions to optimize your operations
      View All Solutions
      Roles
      • Hospital technology leaders
      • Nursing leaders
      • Clinical leaders
      • Pharmacy leaders
      • Health plan executives
      • Medical librarians
      View All Roles
      Expert Insights
      • From dispensing to consulting: The future-focused role of pharmacists
      • Bridging medical specialties with the LWW Clinical Medicine Journal Collection on Ovid
      • The pharmacist’s growing role in patient care and whole-person wellness
      • The State of Drug Diversion Report
      View All Expert Insights
    • Tax & Accounting

      Enabling tax and accounting professionals and businesses of all sizes drive productivity, navigate change, and deliver better outcomes. With workflows optimized by technology and guided by deep domain expertise, we help organizations grow, manage, and protect their businesses and their client’s businesses.

      Tax & Accounting Overview
      Solutions
      • Tax & Accounting U.S. HubCentral hub for all U.S. solutions
      • CCH Axcess™ SuiteCloud-based tax preparation and compliance, workflow management and audit solution
      • CCH® ProSystem fx®Integrated tax, accounting and audit, and workflow software tools
      • TaxWise®Tax Preparation Software for Tax Preparers
      View All Solutions
      Trending Topics
      • Audit Management
      • Future Ready Accountant
      • Artificial Intelligence (AI) in Tax and Accounting
      • BEPS Pillar Two Compliance
      Expert Insights
      • New reporting requirement for Qualified Charitable Distributions: Code Y required in Box 7 of IRS Form 1099-R
      • Health Savings Accounts: 2026 cost-of-living adjustments
      • Federal payments go paperless: Key provisions of the recent executive order
      • Innovating tax workflows: The AI-driven flywheel effect
      View All Expert Insights
    • ESG

      Enterprise software to drive financial and sustainability performance, manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact.

      ESG Overview
      Solutions
      • CCH TagetikUnified performance management software
      • Corporate TaxDirect and indirect tax software solutions
      • TeamMateAudit and assurance solutions for corporate and public sector organizations
      • Enablon Software solutions for Environment, Health and Safety (EHS), ESG, and Operational Excellence
      View All Solutions
      Expert Insights
      • Excel pitfalls when performing risk assessments
      • Excel versus BowTieXP – Which one is better?
      • Expert Insights: Fire Safety, Risk Assessment, and Bowties
      • Enhancing Safety Through Integrated Incident Investigation Methods
      • Sustainability reporting and auditing Scope 3 supplier emissions
      • How to use EHS software for proactive risk management
      • Verdantix Smart Innovators 2025: ESG & Sustainability Reporting and Data Management Software
      • 10 Predictions for ESG and Sustainability in 2025 and Beyond
      View All Expert Insights
    • Finance

      Our solutions for regulated financial departments and institutions help customers meet their obligations to external regulators. We specialize in unifying and optimizing processes to deliver a real-time and accurate view of your financial position.

      Finance Overview
      Solutions
      • CCH TagetikUnified performance management software
      • eOriginal eOriginal securely digitizes the lending process from the close to the secondary market
      • Lien SolutionsMarket leader in UCC filing, searches, and lien management
      • OneSumX for Finance, Risk and Regulatory ReportingIntegrated solution suite for finance, risk, regulatory compliance, and reporting
      View All Solutions
      Expert Insights
      • E-contracting origination volume up 2%
      • Built for stress: Rethinking liquidity management in a new era of risk
      • Be audit ready for exempt sales with CertifyTax
      • The CFO Guide: Finance transformation for banks
      • The ultimate buyer’s guide to financial planning and analysis software
      • Financial Transformation in action: How East West Bank streamlined finance with OneSumX
      • EMEA Q1 Finance, Risk, and Regulatory update 2025
      • California’s climate disclosure laws explained
      View All Expert Insights
    • Compliance

      Enabling organizations to ensure adherence with ever-changing regulatory obligations, manage risk, increase efficiency, and produce better business outcomes.

      Compliance Overview
      Solutions
      • BizFilingsSmall business incorporation services
      • Compliance Solutions Gain the visibility, agility, and insight required to better satisfy borrowers, secure capital, and navigate regulatory change
      • TeamMateAudit and assurance solutions for corporate and public sector organizations
      • CT CorporationRegistered agent & business license solutions
      View All Solutions
      Trending Topics
      • Economic and interest rate forecasts
      • Future Ready Lawyer
      Expert Insights
      • What happens when your business license is revoked?
      • New reporting requirement for Qualified Charitable Distributions: Code Y required in Box 7 of IRS Form 1099-R
      • Health Savings Accounts: 2026 cost-of-living adjustments
      • Best Practices for implementing Control-of-Work software
      View All Expert Insights
    • Legal

      Serving legal professionals in law firms, General Counsel offices and corporate legal departments with data-driven decision-making tools. We streamline legal and regulatory research, analysis, and workflows to drive value to organizations, ensuring more transparent, just and safe societies.

      Legal Overview
      Solutions
      • MediRegsEasy-to-use tools, calculators and batch analytics reduce hospital error rates by up to 5%
      • Enterprise Legal ManagementLegal spend and matter management, AI legal bill review, and analytics solutions
      • LegiswayAll-in-one legal management software for legal departments
      • VitalLaw® AIIn-depth legal research and practical analysis enhanced with innovative AI technology
      View All Solutions
      Trending Topics
      • Economic and interest rate forecasts
      • Future Ready Lawyer
      Expert Insights
      • Turning transactions into partnerships: Strengthening relationships with outside counsel
      • Webinar: The Relationship Equation Part 2 - How to Use Data and Process to Power Better Partnerships Between In-House Counsel Clients and Law Firm Attorneys
      • Webinar: The Relationship Equation Part 1 - Building Stronger Partnerships Between In-House Counsel and Law Firm Attorneys
      • LegalVIEW® DynamicInsights: Transforming legal benchmarking with data-driven intelligence
      View All Expert Insights
    1. Back to Home >
    2. Back to Expert Insights >
    3. IRS Finalizes Form 8997, Form 8949 and Schedule D for Report...
    blog image
    Tax & AccountingFebruary 05, 2020|UpdatedDecember 01, 2020

    IRS Finalizes Form 8997, Form 8949 and Schedule D for Reporting QOF Investments

    By: Wolters Kluwer Tax & Accounting North America United States

    Taxpayers must report their investments in Qualified Opportunity Funds (QOF) on new IRS Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. Individuals who dispose of any QOF investments during the year must also report the gain or loss on Form 8949, Sales and Other Dispositions of Capital Assets; and on Schedule D (Form 1040), Capital Gains and Losses.

    Form 8997, initial and annual statement of Qualified Opportunity Fund (QOF) investments

    Any taxpayer who holds a QOF investment during the tax year must file Form 8997, even if they did not dispose of any QOF investments. Thus, individuals, C corporations, S corporations, partnerships, estates and trusts with QOF investments must file Form 8997.

    Filling out Form 8997

    Form 8997 has four sections:

    1. Part I asks for information about QOF investments held at the beginning of the tax year.
    2. Part II asks for information about capital gains realized during the tax year, but deferred because they were invested in the QOF.
    3. Part III asks for information about QOF investments disposed of during the tax year.
    4. Part IV asks for information about QOF investments held at the end of the tax year.

    The taxpayer cannot combine QOF investments; each must be reported on a separate line.

    Information required for Form 8997

    Each part of Form 8997 requires five pieces of information:

    • The QOF’s employer identification number (EIN)
    • The date the taxpayer acquired the QOF interest
    • A description of the taxpayer’s QOF investment, such as the number of shares in a corporate QOF or the percentage interest in a partnership QOF
    • The amount of short-term gain that the taxpayer has deferred by investing it in the QOF (or that’s included in income if the taxpayer disposed of the interest during the year)
    • The amount of long-term gain that the taxpayer has deferred by investing in the QOF (or that’s included in income if the taxpayer disposed of the interest during the year)

    A taxpayer who disposes of a QOF investment should be able to get most of this information from the Form 1099-B, Proceeds from Broker or Barter Exchanges, that the QOF (or a third party) should provide.  Part III for Form 8997 also includes a box for taxpayers to check if they did not receive a Form 1099-B.

    QOF reporting on Form 8949 and Schedule D

    All taxpayers use Form 8949 to report:

    1. their initial decision to defer capital gain by investing it in a QOF, and
    2. any disposition of an interest in a QOF.

    Thus, taxpayers must file Form 8949 for the first year and the last year of a QOF investment. However, they do not have to file Form 8949 for years in which they merely hold a QOF investment.

    Form 8949 reporting may be simplified for some particular gains and losses, but these streamlined rules don’t apply to QOF reporting. Thus, taxpayers cannot:

    • skip Form 8949 and report QOF deferrals and dispositions directly on Schedule D,
    • aggregate QOF deferrals and dispositions, or
    • report summary totals from QOF deferrals or dispositions.

    Instead, taxpayers must provide detailed information about each QOF deferral and each QOF disposition.

    However, QOF deferrals from different transactions may be combined on a single line if the gains are of the same character (that is, short-term or long-term) and the taxpayer invests them in the same QOF on the same date.

    Reporting QOF investments on Schedule D

    After Form 8997 and Form 8949, Schedule D reporting for QOF dispositions is a breeze. Taxpayers need only check a box on Schedule D if they disposed of a QOF investment. Of course, they also need to attach Forms 8997 and 8949, and carry relevant amounts from them over to Schedule D. Taxpayers also must use Schedule D to report any capital gain that they are deferring when they make a QOF investment.

    Deferring capital gain with QOF investments

    QOF investments offer taxpayers immediate tax savings—but more importantly they also offer potentially extraordinary savings to long-term investors.

    QOFs are corporations or partnerships that are organized to invest in qualified opportunity zones (QOZ). The IRS has designated 8,764 low-income tracts as QOZs.

    Taxpayers may defer capital gains by rolling them over into a QOF within 180 days. The taxpayer generally must recognize the gain when the QOF investment is sold or exchanged or, if earlier, on December 31, 2026. However, some of the gain is not taxed at all if the taxpayer holds the investment for at least five years.

    Longer-term investors may realize an even bigger bonanza. A taxpayer who holds a QOF investment for at least 10 years may elect to avoid federal income tax on the appreciation in the investment that is attributable to the deferred gain. The taxpayer’s basis in the appreciation is also stepped up to fair market value when the investment is sold or exchanged.

    This combination of immediate deferral of gains, plus potentially tax-free long-term gains, is why many taxpayers think QOF investments are worth the paperwork.

    By Kelley Wolf, JD, LLM

    Login to read more on CCHAnswerConnect.

    Not a subscriber? Sign up for a free trial or contact us for a representative.

    The Wolters Kluwer Logo
    Wolters Kluwer Tax & Accounting North America United States
    Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency.

    Explore related topics

    Expert insightsTaxFederal Tax News and Legislation
    Solutions for Tax & Accounting Professionals

    Tax, accounting, workflow, and firm management solutions to help your firm succeed, with the research tools you need to stay informed.

     

    U.S. Tax & Accounting Hub
    How we help
    Professional Tax Software
    Tax & Accounting Research

    Related insights

    New reporting requirement for Qualified Charitable Distributions: Code Y required in Box 7 of IRS Form 1099-R Health Savings Accounts: 2026 cost-of-living adjustments Federal payments go paperless: Key provisions of the recent executive order

    Related Insights

    • New reporting requirement for Qualified Charitable Distributions: Code Y required in Box 7 of IRS Form 1099-R
      Article
      Compliance
      Tax & Accounting
      May 20, 2025

      New reporting requirement for Qualified Charitable Distributions: Code Y required in Box 7 of IRS Form 1099-R

      Beginning in 2025, IRA custodians must include Code Y in Box 7 of Form 1099-R to report Qualified Charitable Distributions (QCDs). The distribution must be made directly to a qualified charity and meet all IRS QCD requirements.
      Learn More
    • Health Savings Accounts: 2026 cost-of-living adjustments
      Article
      Compliance
      Tax & Accounting
      May 16, 2025

      Health Savings Accounts: 2026 cost-of-living adjustments

      Earlier in May, the Internal Revenue Service released the 2026 Health Savings Accounts COLAs. Contribution limits and amounts that determine whether a health plan is an HSA-eligible high-deductible health plan will again increase.
      Learn More
    • Federal payments go paperless: Key provisions of the recent executive order
      Article
      Tax & Accounting
      May 15, 2025

      Federal payments go paperless: Key provisions of the recent executive order

      Tax preparers and their clients will soon be impacted by Executive Order 14247 which eliminates paper refund checks. Read to learn more.
      Learn More
    • A closer look: Discussion and analysis of current accounting and reporting issues related to tariffs
      Article
      Tax & Accounting
      May 12, 2025

      A closer look: Discussion and analysis of current accounting and reporting issues related to tariffs

      Recent significant changes in tariffs initiated by the U.S. government have consumed global news and introduced significant uncertainty into business operations and financial markets.
      Learn More
    Footer Navigation
    • About Wolters Kluwer
    • Strategy
    • Organization
    • Management
    • News & Press Releases
    • Events
    • Solutions Directory
    • Health
    • Tax & Accounting
    • ESG
    • Finance
    • Compliance
    • Legal
    • Expert Insights
    • Careers
    • Investors
    • Sitemap
    • Site Owner

    Wolters Kluwer Tax & Accounting US

    • My Account
    • Shop
    • Support
    • Product Training
    • Product Login
    Follow Wolters Kluwer US
    • Facebook
    • Twitter
    • LinkedIn
    • Instagram
    • YouTube
    Wolters Kluwer Logo

    When you have to be right

    • Terms of Use
    • Privacy & Cookies
    • Your California Privacy Choices
      Your California privacy Choices

    © 2025 Wolters Kluwer N.V. and/or its subsidiaries. All rights reserved.

    Back To Top