Riverside Mill QOF LLC · QOF Tracker

90% investment standard · 2026

Taxable year Jan 1, 2026 – Dec 31, 2026. Two testing dates. IRC §1400Z-2(d)(1); Reg. §1.1400Z2(d)-1

Jun 30, 2026

First testing date (end of first 6-month period) · 6 months in period

87.50%

QOZ property $4,900,000 of $5,600,000$140,000 more QOZ property needed to reach 90% on this date.

Dec 31, 2026

Year-end testing date · 6 months in period

79.69%

QOZ property $5,100,000 of $6,400,000$660,000 more QOZ property needed to reach 90% on this date.

Average of testing dates

83.59%

Result

Below 90%

§1400Z-2(f) penalty

$27,650.00

Penalty computation

For each testing date: shortfall × the IRS underpayment rate for each month in the period ÷ 12. No penalty applies if the failure is due to reasonable cause (IRC §1400Z-2(f)(3)).

Testing date	Shortfall	Months and rates	Penalty
Jun 30, 2026	$140,000	2026-01 @ 7%, 2026-02 @ 7%, 2026-03 @ 7%, 2026-04 @ 6%, 2026-05 @ 6%, 2026-06 @ 6%	$4,550.00
Dec 31, 2026	$660,000	2026-07 @ 7%, 2026-08 @ 7%, 2026-09 @ 7%, 2026-10 @ 7%, 2026-11 @ 7%, 2026-12 @ 7%	$23,100.00

Average per Form 8996 Part III; penalty per IRC §1400Z-2(f)(1) and Form 8996 Part IV. Underpayment rates from IRS.gov, IRC §6621(a)(2).

Reasonable-cause statementAdd-on · $299 — included during launch

Your fund missed the 90% test by $800,000 (penalty $27,650.00). Build a reasonable-cause statement from your records, then route it to a partner CPA for review. No penalty applies if the failure is due to reasonable cause; the statement is attached to the return and kept with an evidence file. IRC §1400Z-2(f)(3); IRM 20.1.1.3.2

New statement

Services

Referral and add-on services that fit this fund. QOF Tracker may be paid when you use one; the terms are on each card.

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Fair-market valuation quotes

Referral

1 investor needs a fair-market value for the December 31, 2026 inclusion. Until a value is entered the full deferred gain is assumed, which may overstate what they report.

Firms may pay QOF Tracker a referral fee; your price is unchanged

Request quotes

Cost segregation study

Referral

Riverside Mill building (1904) carries about $3,750,000 of depreciable basis. A study typically moves 20–30% of building cost into 5-, 7- and 15-year property; at 25% that is ≈ $937,500, and at 100% bonus depreciation ≈ $937,500 could be deducted in the first year (illustrative, before the study fee). IRC §168(k)

30-month improvement clock still open (deadline Sep 14, 2027, $450,000 still to add). A study that carves rehab costs into 5-, 7- or 15-year (§1245) property can reduce what counts toward the substantial-improvement test and the QOZB's 70% tangible-property test. Scope the study to the purchase price (≈ $525,000 first year, illustrative) or defer it until the test is met. IRC §1400Z-2(d)(2)(D)(ii)

Studies typically $5,000–$15,000; the provider pays QOF Tracker a referral fee (up to 15%). Your price is unchanged.

Request a study quote

Your name Email Phone (optional) Property Property typePlaced in service (actual or expected)Decides the bonus depreciation rate.Building basis (purchase price excl. land)

$

Improvement / rehab basis

$

Square feetUnits (residential or hotel)Under a binding contract before Jan 20, 2025?If yes, the property stays on the 40% / 20% / 0% bonus phase-down.Construction drawings or cost detail available?Anything else (optional)

We pass your request to an independent cost segregation provider. QOF Tracker does not perform studies and does not endorse any provider's conclusions. The provider pays QOF Tracker a referral fee of up to 15% of its fee; it does not change your price.

I agree that QOF Tracker may share this request and the details above with its partner firm(s), and I understand QOF Tracker may be paid as described.

Property-tax appeal review

Referral

Riverside Mill building (1904): its 30-month improvement window runs to Sep 14, 2027 ($450,000 still to add), so completion, and with it a likely reassessment, is coming up. Reassessment risk is highest right after a substantial improvement is completed: the next notice may value the building on its improved cost. An appeal firm checks whether that value is supportable and files a protest within the county's window if it is not; you pay only a share of any first-year savings, and no reduction is promised. IRC §1400Z-2(d)(2)(D)(ii); state protest windows vary

Appeal firms work on contingency, typically 25–50% of first-year savings; the firm pays QOF Tracker a share of its fee or a flat lead fee. Your price is unchanged. No outcome is promised.

Request an appeal review

Your name Email Phone (optional) Property Street address County State (2 letters) Matches you with a firm that works in this state.Parcel or account numberProperty typeCurrent assessed value

$

Last annual tax bill

$

Improvement completed (actual or expected)A completed improvement is the usual trigger for a reassessment.Anything else (optional)

We pass your request to an independent property-tax appeal firm that works in your state. QOF Tracker is a lead source only: it does not review assessments, file protests or give tax advice, and it does not promise any reduction or savings. The firm pays QOF Tracker a negotiated share of its contingency fee (typically 10–20%) or a flat fee per lead; it does not change your price.

I agree that QOF Tracker may share this request and the details above with its partner firm(s), and I understand QOF Tracker may be paid as described.

Fund administration and K-1 preparation quotes

Referral

It is October: administrators take on new funds for the coming year now, so quotes for next year's bookkeeping, K-1s and the Form 8996 package are easiest to get before year end. Proposed REG-116506-25 would make Form 8996 a standalone return with a $500-per-day late penalty (capped at $10,000, or $50,000 for a QOF over $10M). The proposed rules are not final; they would apply to tax years beginning after the final regulations. Proposed IRC §6726; REG-116506-25 (Sept 11, 2026)

Administrators typically charge $2,500–$7,500 a year for small QOFs and $25,000+ for funds over $10M; K-1s are billed per investor. The administrator pays QOF Tracker a referral fee (about 10% of year-one fees). Your price is unchanged.

Request quotes

Your name Email Phone (optional) Fund size (gross assets)Investors (K-1s needed)QOZBsFiscal year ends inCurrent administrator or bookkeeper (if any)Services wantedState (2 letters)Prefers an administrator that works in your state.TimelineAnything else (optional)

We pass your request to independent fund administrators experienced with Opportunity Zone funds. QOF Tracker is software, not an administrator or a tax adviser, and does not endorse any administrator's work. The administrator pays QOF Tracker a referral fee of about 10% of its first-year fees; it does not change your price. The request carries a fund profile (entity type, year end, investor and QOZB counts, gross assets and the 90% test status) but not the fund's name or EIN until you share them.

I agree that QOF Tracker may share this request and the details above with its partner firm(s), and I understand QOF Tracker may be paid as described.

Investors

Manage investors and worksheets →

Investors

3

Remaining deferred gain

$4,800,000

OZ 1.0 gain included for 2026

$4,085,000

1 investor needs a fair-market value

Qualified opportunity zone businesses

Business	Census tract	Ownership	Tests
Mill Street Retail LLC	39035107101	99%	Incomplete
Riverside Mill Holdings LLC	39035107101	99%	All pass

Add a QOZB

Substantial improvement

Additions to basis within 30 months must exceed the property's adjusted basis at the start of the period (50% for rural opportunity zones under OZ 2.0). IRC §1400Z-2(d)(2)(D)(ii); Reg. §1.1400Z2(d)-2(b)(4)

Property	Acquired	30-month deadline	Required	Added so far	Status	Actions
Riverside Mill building (1904)	Mar 14, 2025	Sep 14, 2027	$2,100,000	$	$450,000 to go · 339 days Cost-seg candidate · est. first-year deduction ≈ $937,500 (illustrative) Request a study →Reassessment risk after improvement · check the assessment Request a review →

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Deadlines for 2026

All funds →

Jun 30, 2026

First testing date (end of first 6-month period)

Value assets for the 90% test on this date. IRC §1400Z-2(d)(1)

Dec 31, 2026

Year-end testing date

Value assets for the 90% test on this date. IRC §1400Z-2(d)(1)

Feb 1, 2027

ProposedQOZB statements to the fund

Each QOZB furnishes a statement with compliance attestations under penalties of perjury. Prop. Reg. under IRC §6039L (REG-116506-25)

Mar 1, 2027

ProposedInvestor statements for inclusion events

Statements to investors reporting dispositions and inclusion events in the prior calendar year. Prop. Reg. under IRC §6039K(c) (REG-116506-25)

Mar 15, 2027

Form 8996 due with Form 1065

Extended due date would be 2027-09-15. Form 8996 instructions; IRC §§6072, 6081

Proposed late-filing penalty (§6726)

Proposed in REG-116506-25 (Sept 11, 2026). Not in force until final regulations are published; it would apply to returns originally due on or after that date.