Form 8996 90% asset test - both 2026 testing dates

Both testing dates, the six-month cash carve-out, and the monthly section 1400Z-2(f)(1) penalty, worked while the balance sheet is still on screen.

Total assets on testing date 1 (Jun 30) $ QOZ property held on testing date 1 $ Cash received in the 6 months before date 1 $ Total assets on testing date 2 (Dec 31) $ QOZ property held on testing date 2 $ Cash received in the 6 months before date 2 $ Leave that recent cash out of total assets (written plan on file) Months under 90% in the first half of the year months Months under 90% in the second half months IRS underpayment rate for the quarter (sec. 6621) %

QOZ share on testing date 1	—	%
QOZ share on testing date 2	—	%
Form 8996 average of the two dates	—	%
Shortfall on date 1 (convert assets already held)	—	$
Shortfall on date 2	—	$
Penalty, first-half months	—	$
Penalty, second-half months	—	$
Penalty for the year	—	$
New outside QOZ property needed to clear 90%	—	$

Both testing dates, then the average
Form 8996 tests the last day of the first six-month period and the last day of the tax year, then averages the two percentages. Entering one date and calling it the answer is the most common way a fund believes it passed.

Recent cash out of the denominator
Cash a fund received in the six months before a testing date, held under a written working-capital plan, is left out of total assets for that date. Toggle it off and watch the same fund go from passing to failing.

Penalty priced by the month, at the rate you enter
Section 1400Z-2(f)(1) charges the shortfall times the section 6621 underpayment rate divided by 12, for each month the fund is under 90 percent. First-half months price off testing date one, second-half months off testing date two.

What it actually costs to get back over 90 percent
New QOZ property lands on both sides of the ratio, so covering a $450,000 shortfall with outside money takes $4,500,000, not $450,000. The tool gives both routes side by side.

Workpaper CSV and a testing-date alarm
The full-version key writes the month-by-month penalty schedule to .csv for the file, and sets a browser alarm before each testing date so the next test is measured on the day instead of reconstructed in March.

Open full tool → getreadystack.com