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.

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%$

Free, no key, no cap: every number above — both testing dates, the Form 8996 average, each shortfall, the penalty month by month, and the new-money figure that clears 90%.

$60 once · one licence key per person or team seat · 7-day full refund. The full version keeps the work: the month-by-month penalty schedule exported to .csv for the workpaper file, and an alarm before each testing date. At the IRS 7% underpayment rate held through Q4 2026, a $450,000 shortfall costs $2,625 for every month it stands.

Get the CSV penalty schedule and testing-date alarms — $60
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.

Get the complete version $60

This page is the working piece. The full pack has everything below.

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.

At the IRS 7% underpayment rate held through Q4 2026, a $450,000 shortfall costs $2,625 for every month it stands (shortfall x 7% / 12).

Buy the full version — $60

Questions people ask

What does this extension actually work out?

It runs the Form 8996 90 percent asset test on both testing dates a calendar-year fund has, June 30 and December 31, averages them the way the form does, and prices the section 1400Z-2(f)(1) penalty month by month at the IRS underpayment rate you enter. It also gives the dollars needed to get back over 90 percent.

Who is it for?

Managers of US Qualified Opportunity Funds and the CPAs who sign their Form 8996. It fits the person holding a trial balance on June 29 who needs to know, before the testing date closes, whether the fund is over the line and what one month under it costs.

Why not just ask a chatbot or use a free online calculator?

Most of them apply 90 percent to total assets and stop. They miss that cash received in the six months before a testing date, held under a written working-capital plan, comes out of the denominator, and they report the cure as the shortfall when new outside money must cover ten times that amount.

What is free and what needs the key?

Every number is free with no key and no usage cap: both percentages, the average, both shortfalls, the monthly penalty and the cure figure. The $60 key adds two things on a different axis, keeping the work: a month-by-month penalty schedule exported to .csv, and an alarm before each testing date.

What would this cost handled another way?

The penalty is its own yardstick. At the 7 percent underpayment rate the IRS carried through the fourth quarter of 2026, a $450,000 shortfall costs $2,625 for every month it stands, and a full six months of it is $15,750. The key is $60 once, with a seven-day full refund.

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