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What’s included in the annual Dec. 31 testing requirements for QOF?

Is there any way to get an extension?


Answers
  • Matthew Rappaport
    December 19, 2019

    They are testing whether the QOF is at least 90% invested in QOZ property. You can't get an extension, but there is a new cash safe harbor for the first testing period, so perhaps that'll be of use in your particular situation.

  • Scott McIntosh
    December 18, 2019

    It doesn't have to be filed on December 31. That's just the date you'll look at when calculating whether the fund has met the 90% investment threshold. Check out IRS Form 8996 for more detail on how the fund's asset test is calculated/reported. Assuming your fund is a partnership, you'll file Form 8996 with the fund's annual tax return by March 16 (or September 15th, if you request an extension). Scott McIntosh, J.D. Opportunity Zone Consulting Group Mobile: 859-421-1899 www.ozconsultinggroup.com

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