Independent form guide. BrieflyGo is not affiliated with or endorsed by IRS, USCIS, SSA, DOL, or any U.S. government agency. Official forms are sourced from public government websites.
Official form guide
Form 8997: Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
IRS Form 8997 is the Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, filed by taxpayers who are foreign eligible. If a taxpayer checks 'Yes' to waiving treaty benefits, they must do so before deferring an eligible gain.
Need help with Form 8997?
Open it in the AI Editor for field guidance, checks, and PDF export.
Need help? AI Editor guides you through every field of Form 8997.
Start filling →Form Overview
IRS Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
IRS Form 8997 is the Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, filed by taxpayers who are foreign eligible. If a taxpayer checks 'Yes' to waiving treaty benefits, they must do so before deferring an eligible gain.
Risk Radar
Scan points- 1If a foreign eligible taxpayer defers gain but fails to check 'Yes' on page 1 regarding treaty benefits waiver, the deferral may not be recognized.
- 2Failing to check 'Yes' on page 1 if deferring gain as a foreign eligible taxpayer.
- 3Not providing the required identification details for transfers in Part III or Part IV.
- 4Entering the wrong special gain code ('F') when reporting transactions.
- 5Incorrectly assigning deferred gain amounts to column (e) vs. column (f).
Plain English
This form tells the IRS about investments made in a Qualified Opportunity Fund (QOF). It reports gains that are being postponed because of these QOF investments and details when those investments were acquired. Taxpayers use this to track their QOF activity for tax purposes.
Submission Date
- Filing date: 2025-12-30 12:29:28
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
AI co-pilot
Fill it faster. Catch mistakes before you file.
What this form is for
- Use this form when an eligible taxpayer holds a QOF investment at any point during the tax year and must report recognition of gains under federal income tax accounting principles.
- Do not use it when you are not required to file a return, unless you are a grantor trust or held a QOF investment at any point during the tax year (in which case attach Form 8997).
- Check Form 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120-F, 1120-REIT, 1120-RIC, 1120-S, or 990-T instead when filing the required tax return.
Form selector
Use this form or another form?
Consolidated Group Member
A consolidated group must include a separate Form 8997 for each member that held a QOF investment during the tax year.
✓ Check Part I and ensure all members are accounted for.
Trusts (non-grantor)
These entities must file Form 8997 even if they are not otherwise required to file a return, provided they held a QOF investment.
✓ Ensure the appropriate TIN is listed for the trust on the form.
QOF Investment Disposal/Distribution
Part III details inclusion events such as selling or transferring the QOF interest, receiving distributions, or declaring it worthless.
✓ Verify that columns (a) through (c) are completed for each investment reported in Part III.
Deadline or filing window
The filing is generally tied to the tax year, with individuals reporting deferred gains as of December 31, 2025. The source does not specify a final due date, but Part I requires entering totals from columns (e) and (f) before submission.
Checklist
What you need before filling it out
Purpose
To inform the IRS of QOF investments and deferred gains held at beginning/end of year, plus disposed investments. · Part III / General Instructions
Filer Requirement (General)
An eligible taxpayer holding a QOF investment at any point during the tax year must file Form 8997 with their timely filed federal income tax return. · Who Must File section
Basis Adjustment (5-year)
If held for at least 5 years, eligibility for a 10% basis adjustment increase of the deferred gain. · General Instructions / Part III reference
Basis Adjustment (7-year)
If held for at least 7 years, eligibility for an additional 5% basis adjustment increase (totaling 15%) of the deferred gain. · General Instructions / Part III reference
Special Gain Code
A code entered when QOF investment originated from an elected deferred gain (e.g., SGC Gain origination A, B, C...). · Special gain code section on Form 8997
Before you submit
- 1Ensure Part I correctly lists your Total QOF Investment Holdings for the beginning of the tax year.
- 2If Part I differs from last year's ending holdings, attach an explanation document.
- 3Confirm that any deferred gain is *not* reported in Part II or on Form 8949 (unless required by other rules).
- 4Review Part III to ensure you have accounted for every inclusion event (sale, distribution, worthless declaration, etc.).
- 5For transactions with no included deferred gain, verify Column (c) reads 'Exception' and cites the regulation paragraph.
- 6Check the box in Part III if you disposed of a QOF investment without receiving Form 1099-B.
- 7Verify that all Special Gain Codes entered align with the source document details.
How to file this form
- 1Complete your Name, Address, and Taxpayer Identification Number (TIN) in the designated spaces on Form 8997.
- 2Report your Total QOF Investment Holdings for the beginning of the tax year in Part I, attaching an explanation if this figure differs from last year's ending holdings.
- 3Complete Part III by detailing every inclusion event that occurred during the current tax year (e.g., sales or distributions).
- 4For each investment reported in Part III, complete columns (a) through (c), ensuring Column (d) shows the deferred gain amount included due to the event.
- 5Sign and date Form 8997 before submitting it with your federal income tax return.
Known limitations
- 1The IRS Form 8997 (2025) must be attached to specific income tax returns: Form 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120-F, 1120-REIT, 1120-RIC, 1120-S, or 990-T.
- 2If a taxpayer does not elect to defer tax on an eligible gain by investing in a QOF, they must not report the deferral of that gain in Part II of Form 8997 or on Form 8949.
- 3Only investments in the entity certified as a Qualified Opportunity Fund (QOF) are reported on Form 8997; other nonqualifying investments in that same entity are not reported.
- 4If an eligible taxpayer is foreign but checks 'No' to waiving treaty benefits, they skip the question regarding waiver and proceed directly to Part III of Form 8997.
Field map
Compact field-by-field guide
Entity Info
1 items
Name and taxpayer ID of the entity claiming the credit.
Credit Info
1 items
Type of credit or incentive being claimed.
Calculation
2 items
The base amount used to calculate the credit.
Calculated credit amount after applying formulas and limitations.
Certification
1 items
Detailed breakdown supporting the credit calculation.
Signatures
1 items
Sign and date the form.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is 20/25, and the form was created on 12/23/25; readers should visit www.irs.gov/Form8997 for the latest information.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20/25.
- Taxpayer Identification Number (TIN) — confirm you have entered your SSN, ITIN, or EIN correctly based on your entity type.
- Attachment requirement — confirm that if Part I differs from last year's ending holdings, an explanation is attached.
- Part III completion — confirm all inclusion events during the current tax year are reported in Part III.
- Waiver of Treaty Benefits — confirm you have checked this box before deferring an eligible gain if applicable.
Quick Facts
Downloads
After you file
- 1Retain a copy of the filed IRS Form 8997 (2025) for your records.
- 2The filing deadline is concurrent with the timely filing date of the associated tax return.
- 3If the QOF investment holdings are different from last year's ending amounts, an explanation must be attached to Form 8997.
- 4If a mistake occurs, corrections should be made on the form and filed with the relevant tax return.
Sources
- SRCForm 8997 (2025) | Attached to Form 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120-F, 1120-REIT, 1120-RIC, 1120-S, or 990-T (Instructions p.1).
- SRCForm 8997 (2025) | Must be filed with the taxpayer’s timely filed federal income tax return (including extensions) if an eligible taxpayer holds a QOF investment at any point during the year (Instructions p.3).
- SRCForm 8997 (2025) | If you are foreign and check 'Yes' to waiving treaty benefits, report the deferral in Part II of Form 8997 and on Form 8949 (Instructions p.1).
- SRCForm 8997 (2025) | Basis adjustment increases by an additional 5% (totaling 15%) if held for at least 7 years, as detailed in Part III (Instructions p.3).
- SRCForm 8997 (2025) | Basis adjustment increase of 10% is available if the investment was held in the QOF for at least 5 years (Instructions p.3).
- SRCForm 8997 (2025) | A QOF investment must generally occur within the 180-day period beginning on the date the gain would be recognized if the eligible taxpayer didn’t elect to defer recognition of that gain (Instructions p.3).
Common confusion points
Who must file Form 8997?
An eligible taxpayer holding a QOF investment at any point during the tax year must file it.
→ Check if you are required to report gains under federal income tax accounting principles.
What is an 'eligible taxpayer'?
A person who is required to report the recognition of gains during the tax year under federal income tax accounting principles.
→ Review your current year's gain reporting obligations.
When must I file Form 8997?
It must be filed with the taxpayer’s timely filed federal income tax return (including extensions).
→ Confirm the deadline based on which form you are filing it with.
What is a QOF investment?
An investment of eligible gain into a QOF to defer recognition of that eligible gain, typically as an equity interest.
→ Ensure your investment meets the definition and occurred within 180 days prior to when the gain would be recognized.
When do I need to report the basis adjustment increase?
If you held the QOF investment for at least 5 years (for a 10% increase) or at least 7 years (for an additional 5%, totaling 15%).
→ Check your holding period against the specific gain amount being reported.
What if I am foreign and check 'Yes' to waiving treaty benefits?
You must report the deferral of the eligible gain in Part II of Form 8997 and on Form 8949.
→ Confirm that you checked 'Yes' before electing to defer tax.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Errors can be corrected on Form 8997 itself.
Questions about IRS Form 8997
What is IRS Form 8997 used for?
This form tells the IRS about investments made in a Qualified Opportunity Fund (QOF). It reports gains that are being postponed because of these QOF investments and details when those investments were acquired. Taxpayers use this to track their QOF activity for tax purposes.
Who must file IRS Form 8997?
A foreign eligible taxpayer must file IRS Form 8997, which includes individuals required to file Form 1040-NR, a foreign corporation, or a foreign estate or trust.
What information does IRS Form 8997 require?
The form collects information in several parts: Part I covers general details; Part II reports capital gains deferred by investing in a QOF; Part III tracks inclusion events (like sales); and Part IV summarizes the total deferred gain held.
When is IRS Form 8997 due?
The filing timing is generally tied to the tax year, with individuals having deadlines around December 31, 2025, for reporting deferred gains.
How do I complete IRS Form 8997?
A taxpayer must complete Part II for each QOF investment reporting deferred gains. Then, Part III details inclusion events, and Part IV summarizes the total deferred gain. The form requires completing these parts before finalizing totals in columns (e) or (f).
What happens if IRS Form 8997 is filed incorrectly?
The form serves to report deferrals; failure to correctly report these can result in incorrect tax liability, as indicated by the need to complete all sections accurately for IRS review.
Who must file Form 8997?
An eligible taxpayer holding a QOF investment at any point during the tax year must file it. Check if you are required to report gains under federal income tax accounting principles.
What is an 'eligible taxpayer'?
A person who is required to report the recognition of gains during the tax year under federal income tax accounting principles. Review your current year's gain reporting obligations.
Source transparency
Copyright & Licensing - US Government Forms
BrieflyGo links to and explains official public form sources. We are not a government agency, and this page is for general form guidance, not legal advice.
Understand the agreement before you sign it.
Review risky clauses in plain English, fix the document, and keep it moving toward signature.