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FundTaxes

Opportunity Zone funds

The 90% test, QOZB tests and every investor’s inclusion, for Opportunity Zone funds.

Enter the fund’s assets on each testing date and FundTaxes works out the 90% test and the penalty if it fails, each QOZB’s tests and every investor’s deferred gain and inclusion, then fills the Form 8996 and Form 8997 worksheets.

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From $49 per fund per month after the 14-day trial, no card. Unlimited investors and QOZBs.

2027 Opportunity Zone dates

With the rules
Feb 1, 2027QOZB statements to the fund (proposed rule)Mar 1, 2027Investor statements for inclusion events (proposed rule)Mar 15, 2027Form 8996 due with Form 1065Jun 30, 2027First testing date (end of first 6-month period)Dec 31, 2027Year-end testing date

Next date QOZB statements to the fund (proposed rule)

  • Opportunity Zone funds
2027 Opportunity Zone fund dates
DateLineFiling
February 1, 2027Opportunity Zone fundsQOZB statements to the fund (proposed rule)
March 1, 2027Opportunity Zone fundsInvestor statements for inclusion events (proposed rule)
March 15, 2027Opportunity Zone fundsForm 8996 due with Form 1065
June 30, 2027Opportunity Zone fundsFirst testing date (end of first 6-month period)
December 31, 2027Opportunity Zone fundsYear-end testing date

What’s included

  • The 90% asset test

    Both testing dates for calendar, fiscal and short first years, the six-month exclusion for new cash, and the §1400Z-2(f) penalty at each month’s underpayment rate. IRC §1400Z-2(d)(1), (f)

  • Each investor’s 2026 inclusion

    The lesser of the deferred gain or fair market value, less basis, with the 10% or 15% step-up where the holding period earned it. IRC §1400Z-2(b)

  • Forms 8996 and 8997

    The fund’s Form 8996 worksheet and filled PDF, and a Form 8997 worksheet for each investor’s preparer, reachable from their portal link.

  • QOZB tests

    70% of tangible property in the zone, 50% of gross income from the active business there, 40% of intangibles used there, and nonqualified financial property under 5%, per business and year. Reg. §1.1400Z2(d)-1(d)

  • Working-capital plans

    The written plan and schedule of up to 31 months a QOZB needs for its cash to count, with the month-24 and month-30 reviews on the calendar. Adopting a plan is $349 per fund, one-time. Reg. §1.1400Z2(d)-1(d)(3)(v)

  • Substantial improvement

    A 30-month clock for each building bought: additions to basis must exceed its starting basis (half of it in a rural zone under OZ 2.0), checked against spend to date.

  • OZ 2.0

    Investments after December 31, 2026: the rolling five-year deferral, the 10% step-up (30% for rural funds), the 2027 zone map when it is certified, and a tract report you can share.

  • Investor portal and statements

    A private link for each investor with their deferred gain, 180-day window, inclusion and documents, and statement packs for the year.

Free Opportunity Zone tools

No account needed. The same rules engine as the app.

All free tools

What we don’t do

So you can plan around it.

  • Prepare or e-file the fund’s Form 1065 or 1120, or the investors’ returns: your preparer files from the worksheets.
  • Say whether a tract is in the 2027 map before Treasury certifies it.
  • Value property or fund interests: valuation quotes come from partner firms, and say who pays whom.
  • Give tax or legal advice on how the fund is structured.

from $49

per fund per month

  • StarterUp to $5M of assets, 10 investors and one QOZ business$49
  • StandardUp to $10M of assets$98
  • LargeMore than $10M of assets$245

Or ten times the monthly price per year. Start a 14-day free trial

Questions

What does the 90% asset test measure?
Whether at least 90% of the fund’s assets are qualified opportunity zone property, averaged over two testing dates: the last day of the first six-month period of the fund’s year and the last day of the year. Cash contributed in the six months before a testing date can be left out of the test. A shortfall costs a monthly penalty at the underpayment rate.
What is the December 31, 2026 inclusion?
Gain deferred into a fund before 2027 under OZ 1.0 is included in income on December 31, 2026 if the investment has not been sold earlier. The amount is the lesser of the deferred gain or the investment’s fair market value, less the investor’s basis, which includes any 10% or 15% step-up earned by holding five or seven years. It goes on the 2026 return with Form 8997.
What changes for investments after 2026?
OZ 2.0 makes the program permanent with rolling ten-year designations from January 1, 2027. A gain invested after December 31, 2026 is deferred for five years or until the investment is sold, with a 10% basis step-up at five years (30% in a qualified rural fund), and the ten-year exclusion is capped at thirty years.
Does it prepare Form 8996 for me?
It fills the Form 8996 worksheet and the official PDF from the fund’s testing-date values, QOZBs and the penalty computation, and a Form 8997 worksheet for each investor. Your preparer files them with the fund’s Form 1065 or 1120 and the investors’ returns.
How is a fund priced?
By size, in fund units: Starter $49, Standard $98, Large $245 a month, or ten times that a year. Unlimited investors, QOZBs and users inside each fund. Real estate funds without OZ tests are $49 a month.
Will it tell me whether a tract is in the 2027 map?
Not before Treasury certifies the 2027 designations. The free map lookup shows a tract’s status under the original designations today, and the tract report says what is known about OZ 2.0 and offers an alert when the map is published.

Related guides

All guides

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