What is Form 8996?
Form 8996 is a key document for corporations and partnerships looking to invest in Qualified Opportunity Zones (QOZs). This form certifies that these entities are organized appropriately to make such investments and ensures they meet the required 90% minimum investment standard. Additionally, Form 8996 helps track the performance of these investments and outlines potential penalties for non-compliance. For investors, it plays a vital role in deferring capital gains and adhering to tax regulations associated with QOZ investments.
What is Form 8996 used for?
Form 8996 is important for businesses aiming to invest in specific areas. Here’s what it's used for:
- Certification: Confirms that corporations and partnerships are set up to invest in Qualified Opportunity Zones (QOZs).
- Investment Tracking: Monitors the performance of Qualified Opportunity Funds (QOFs) to ensure they meet the required 90% investment standard.
- Penalty Calculation: Determines penalties if QOFs do not meet the 90% investment requirement.
- Reporting: Provides details about qualified opportunity zone property owned by QOFs.
How to fill out Form 8996?
- 1
Fill in the business name and Employer Identification Number (EIN) at the top of Form 8996.
- 2
Self-certify by marking the box indicating you are a Qualified Opportunity Fund.
- 3
Calculate the investment percentage of Qualified Opportunity Zone property for both periods specified.
- 4
Report any penalties if the QOF did not meet the investment standard.
- 5
Download the completed form and attach it to your tax return by the due date.
Who is required to fill out Form 8996?
Corporations or partnerships must complete Form 8996 to certify their status as a Qualified Opportunity Fund (QOF). This annual filing ensures compliance with the investment standards in Qualified Opportunity Zones (QOZs).
Taxpayers investing in QOZs through a QOF are required to use Form 8996 for proper certification and to facilitate capital gains deferral.
When is Form 8996 not required?
Form 8996 is not required for entities that are not structured as U.S. corporations or partnerships, such as single-member LLCs taxed as disregarded entities, since they cannot self-certify as Qualified Opportunity Funds (QOFs). Qualified Opportunity Zone Businesses (QOZBs) operating in Opportunity Zones also do not file this form, as it is intended exclusively for QOFs that invest in QOZBs or property.
When is Form 8996 due?
The deadline for Form 8996 is annually with your federal income tax return. If you file for an extension, you must submit the form by the extended deadline. This helps ensure that your Qualified Opportunity Fund meets the necessary investment standard and avoids penalties.
How to get a blank Form 8996?
To get a blank Form 8996, Qualified Opportunity Fund, simply visit our website. The Internal Revenue Service (IRS) issues this form, and we have it pre-loaded in our PDF editor for you to fill out. Remember, our platform aids in filling and downloading forms, but not in filing them.
Do you need to sign Form 8996?
No, you do not need to sign Form 8996, Qualified Opportunity Fund. This form is meant for corporations or partnerships to certify their organization for investing in Qualified Opportunity Zone (QOZ) property and to report on compliance with the 90% investment standard. However, it's recommended to check for any updates regarding this form. Use PDF Guru to fill out and download your form, but remember, we do not support submission.
Where to file Form 8996?
To submit Form 8996, attach it to your applicable tax return, such as Form 1120 or Form 1065. Ensure you meet the due date, including any extensions.
Mail the complete tax return, including Form 8996, to the IRS. Remember, this form cannot be submitted online; physical mailing is required.
