8997

Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

Agency
IRS
Revision
2025
Fillable fields
143
Pages
4
Official source
IRS form page
Checked
October 21, 2026
Fill 8997 online
Page 1 of form 8997

Form 8997: Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is used by an investor in a QOF to inform the IRS of the QOF investments and deferred gains held at the beginning and end of the tax year, any capital gains deferred by investing in a QOF, and QOF investments disposed of during the year.

This is the 2025 form. It says to attach it to Form 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120-F, 1120-REIT, 1120-RIC, 1120-S or 990-T. Its four parts list holdings at the start of the year, current year deferrals, inclusion events and year end holdings, each by QOF EIN, date, description, special gain code and short-term or long-term deferred gain. The instructions are printed on pages 3 and 4 of the form.

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What's on Form 8997

Part I: holdings at the start of the year

QOF investment holdings due to deferrals before the start of the tax year. If they differ from last year's ending holdings, the form says to attach an explanation.

Part II: current year deferrals

Capital gains deferred during the year by investing in a QOF, followed by the foreign eligible taxpayer and treaty benefit waiver questions.

Part III: inclusion events

Inclusion events and certain other transfers during the year, with a box to check for a disposition without a Form 1099-B from the QOF or other third party.

Part IV: holdings at year end

Total QOF investments due to deferrals at the end of the tax year.

Columns (a) through (f)

Each part asks for the QOF EIN, a date, a description, a special gain code, and short-term and long-term deferred gain amounts, with a line for continuation sheet totals and a totals line.

How to fill out Form 8997

  1. 1

    Name and TIN

    Individuals enter an SSN or ITIN. C corporations, partnerships, S corporations, non-grantor trusts, estates and Indian tribes enter an EIN.

  2. 2

    Part I

    List each QOF investment held at the start of the year, generally January 1, 2025 for individuals, and enter the remaining deferred gain in column (e) or (f) depending on whether it was short-term or long-term.

  3. 3

    Part II

    Report capital gains deferred this year by investing in a QOF. The form points to its instructions for reporting the line 2 totals on Form 8949.

  4. 4

    Special gain codes

    Codes A to H mark gains from section 1256, Form 4797 (section 1231), straddles, collectibles, a treaty exemption, a noninclusion transfer, or a 5-year or 7-year basis adjustment.

  5. 5

    Part III

    Report each inclusion event. If a regulatory exception applies, enter "Exception" and the citation in column (c) and leave columns (d) to (f) blank. For a 5-year or 7-year basis adjustment, use code G or H.

  6. 6

    Part IV

    List holdings at year end, generally December 31, 2025 for individuals. If an investment continues one in a different QOF, enter "Formerly" and the earlier QOF's EIN in column (c).

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Where it goes, timing and extra sheets

Where it goes

Attach it to the return listed on the form: Form 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120-F, 1120-REIT, 1120-RIC, 1120-S or 990-T.

When

The instructions say it is filed with the taxpayer's timely filed federal income tax return, including extensions.

Continuation sheets

If there are more QOF investments than lines in a part, attach and label a separate continuation sheet and carry its totals to line 1 of that part.

Form 8949

The instructions say a QOF investment is also reported on Form 8949.

180-day period

The instructions say the investment generally must have occurred within the 180-day period beginning on the date the gain would be recognized if the taxpayer did not elect to defer it.

Related forms

Who files Form 8997?

  • Individual investors

    Individuals who held a QOF investment during the year attach it to their Form 1040, 1040-SR or 1040-NR and enter an SSN or ITIN.

  • Corporations and partnerships

    C corporations, partnerships and S corporations that held a QOF investment attach it to their returns and enter an EIN.

  • Trusts and estates

    Non-grantor trusts and estates enter an EIN. Form 1041 is among the returns the form lists.

  • Consolidated groups

    The instructions say a consolidated group includes with its return a separate Form 8997 for each group member that held a QOF investment during the year.

  • Foreign eligible taxpayers

    A foreign eligible taxpayer answers the treaty waiver questions. The form says it may not elect to defer an eligible gain by investing in a QOF unless it checks Yes to the waiver.

  • Holders with no other return

    The instructions say a holder not otherwise required to file a return, with the exception of grantor trusts, attaches Form 8997 to an appropriate return with name, address and TIN.

The instructions say an eligible taxpayer holding a QOF investment at any point during the tax year files Form 8997 with its timely filed federal income tax return (including extensions).

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Questions about Form 8997

What is a QOF?

The instructions describe it as an investment vehicle organized as a corporation or partnership to invest in qualified opportunity zone property (other than another QOF) that holds at least 90% of its assets in that property.

Who files Form 8997?

An eligible taxpayer holding a QOF investment at any point during the tax year, with its timely filed federal income tax return, including extensions.

Where are the instructions?

On pages 3 and 4 of the form itself. The About page lists no separate instructions.

What is new for 2025?

The What's New section says an investment held at least 7 years may be eligible for an additional 5% basis increase, for a total of 15% of the deferred gain. It is reported in Part III with code H.

What if no Form 1099-B was received for a sale?

Check the box in Part III if a QOF investment was disposed of during the year and no Form 1099-B reporting it came from the QOF or another third party.

Does a foreign investor have to waive treaty benefits?

The form says a foreign eligible taxpayer may not elect to defer tax on an eligible gain by investing in a QOF unless it checks Yes to the treaty benefit waiver.