What can be done to not fail the 12-month requirement?
Failure to reinvest prior to 12 months could cause the QOF to fail its 90% investment standard. Please note that the QOF has this 12 month cure period to keep the cash from being an ineligible asset. This does not keep the related gain from being taxable to the fund or investors.
You can show reasonable cause, maybe. If the delay is caused by circumstances outside of your control, penalties might get waived.
If the delay is due to the government causing delays on submitted complete applications for example; construction development, the 12 month requirement will be extended to accommodate such government delay.
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