8996 Qualified Opportunity Fund

8996

Form
(Rev. December 2021)
Department of the Treasury
Internal Revenue Service

Qualified Opportunity Fund
▶

Go to www.irs.gov/Form8996 for instructions and the latest information.
▶ Attach to your tax return. See instructions.

Part I

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12

Investment Standard Calculation

Enter the amount from Part VI, line 2, for total QOZ property held by the taxpayer on the last day of
the first 6-month period of the taxpayer’s tax year. See instructions if Part I, line 3, is “Yes” . . . .
Total assets held by the taxpayer on the last day of the first 6-month period of the taxpayer’s tax year.
See instructions if Part I, line 3, is “Yes” . . . . . . . . . . . . . . . . . . . . .
Divide line 7 by line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount from Part VI, line 3, for total QOZ property held by the taxpayer on the last day of the
taxpayer’s tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets held by the taxpayer on the last day of the taxpayer’s tax year . . . . . . . . .
Divide line 10 by line 11 . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III
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15

General Information and Certification

Type of taxpayer:
Corporation
Partnership
Is the taxpayer organized for the purpose of investing in qualified opportunity zone (QOZ) property (other than another qualified
opportunity fund (QOF))?
No. STOP. Do not file this form with your tax return.
Yes. Go to line 3.
Is this the first period the taxpayer is a QOF?
Yes. By checking this box, you certify that by the end of the taxpayer’s first QOF year, the taxpayer’s organizing
documents include a statement of the entity’s purpose of investing in QOZ property and a description of the trade or
business(es) that the QOF is engaged in either directly or through a QOZ business. See instructions.
No.
If you checked “Yes” on line 3, provide the first month in which the fund chose to be a QOF . . . . . . ▶
Did any investor dispose of, in part or in whole, their equity interest in the fund?
Yes. Attach a statement with each investor’s name, the date of disposal, and the interest that they transferred during the
QOF’s tax year.
No.
Do not check this box. Reserved for future use.

Part II
7

Attachment
Sequence No. 996
Employer identification number

Name

1
2

OMB No. 1545-0123

7
8
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10
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12

Qualified Opportunity Fund Average and Penalty

Add lines 9 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Divide line 13 by 2.0. See instructions if Part I, line 3, is “Yes”
. . . . . . . . . . . . .
Is line 14 equal to or more than 0.90?
Yes. Enter -0- on this line and file this form with your tax return.
No. The fund has failed to maintain the investment standard. Complete Part IV to figure the penalty.
Enter the penalty from line 8 of Part IV on this line. See instructions . . . . . . . . . . .

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 37820G

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Form 8996 (Rev. 12-2021)

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Form 8996 (Rev. 12-2021)

Part IV

Line 15 Penalty

If you checked “No” in Part III, line 15, complete Part IV to figure the penalty. Enter the number from line 8 below on Part III, line 15. See instructions if Part I, line 3, is “Yes.”

1
2
3
4
5
6
7

(a)
Month 1

(b)
Month 2

(c)
Month 3

(d)
Month 4

(e)
Month 5

(h)
Month 8

(i)
Month 9

(j)
Month 10

(k)
Month 11

(l)
Month 12

Total assets on the last day of the month .
Multiply line 1 by 0.90 . . . . . . . .
Total QOZ property on the last day of the
month . . . . . . . . . . . . .
Subtract line 3 from line 2. If less than zero,
enter -0- . . . . . . . . . . . .
Underpayment rate
. . . . . . . .
Multiply line 4 by line 5 . . . . . . .
Divide line 6 by 12.0. Round up to two
decimal places. See instructions if Part I, line
3, is “Yes” . . . . . . . . . . .
(f)
Month 6

(g)
Month 7

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2
3
4
5
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7
8

Penalty. Add columns (a) through (l) of line 7. Enter the total here and on Part III, line 15 .

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Form 8996 (Rev. 12-2021)

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Form 8996 (Rev. 12-2021)

Part V

QOZ Business Property—Directly Owned or Leased by Taxpayer

Enter every QOZ where QOZ business property directly owned or leased by the
taxpayer is located
(a)
QOZ No.

1

(b)
Owned Property Value

(c)
Leased Property Value

(d)
Owned Property Value

(e)
Leased Property Value

Value of QOZ stock or partnership
interest held on last day of the first
6-month period of the tax year
apportioned to each QOZ

Tangible property held by QOZ
business on last day of the first
6-month period of the tax year

Value of QOZ stock or partnership
interest held on last day of the
tax year apportioned to
each QOZ

Tangible property held by QOZ
business on last day of the tax year

(c)
Investment Value

(d)
(e)
Owned Property Leased Property
Value
Value

(f)
Investment Value

(g)
(h)
Owned Property Leased Property
Value
Value

QOZ Stock or Partnership Interests

For every QOZ business in which the taxpayer holds stock or a partnership
interest, enter every QOZ in which the tangible property of the QOZ business is
located and the EIN of that QOZ business
(a)
QOZ No.
(indicate non-QOZs by 99999999999)

2
3
4

QOZ business property held directly on last day of the tax year

If the taxpayer directly owned/leased QOZ business
property used in one or more QOZs, see instructions
and enter the total QOZ business property value from
the separate statement . . . . . . . . . .

Part VI

1

QOZ business property held directly on last day of the first 6-month
period of the tax year

(b)
EIN of QOZ Business

If additional lines are needed, see instructions and
enter total QOZ business value held by the taxpayer
from Part VII, line 2, columns (c) and (f) . . . . .
6-month test QOZ property. Add Part V, columns (b) and (c), and Part VI, column (c). Enter the total here and on Part II, line 7 .
Year-end test QOZ property. Add Part V, columns (d) and (e), and Part VI, column (f). Enter the total here and on Part II, line 10 .
Type of accounting method used to value the property listed on this form.
Applicable financial statement valuation method.
Alternative valuation method.

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Form 8996 (Rev. 12-2021)

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Form 8996 (Rev. 12-2021)

Part VII

QOZ Stock or Partnership Interests (continued)

For every QOZ business in which the taxpayer holds stock or a partnership
interest, enter every QOZ in which the tangible property of the QOZ business is
located and the EIN of that QOZ business
(a)
QOZ No.
(indicate non-QOZs by 99999999999)

1

2

(b)
EIN of QOZ Business

Value of QOZ stock or partnership
interest held on last day of the first
6-month period of the tax year
apportioned to each QOZ

Tangible property held by QOZ
business on last day of the first
6-month period of the tax year

Value of QOZ stock or partnership
interest held on last day of the
tax year apportioned to
each QOZ

Tangible property held by QOZ
business on last day of the tax year

(c)
Investment Value

(d)
(e)
Owned Property Leased Property
Value
Value

(f)
Investment Value

(g)
(h)
Owned Property Leased Property
Value
Value

If taxpayer invested in QOZ business(es) that have
locations in more than the QOZs listed in Part VI and
above, see instructions and enter total QOZ business
value held by the taxpayer from continuation sheet . .
Total columns (c) and (f). Enter the total here and on
Part VI, line 1, columns (c) and (f), respectively
. .
Form 8996 (Rev. 12-2021)