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from a default on one or more qualified

the production of the income shown on

“Segregated Pool of Assets,” and state

mortgages, or to facilitate a clean-up call.

line 7 may be deducted to figure net

the name and type of entity that owns the

A clean-up call is the redemption of a

income from foreclosure property.

assets in the spaces provided.

class of regular interests when, by reason

Allowable deductions include depreciation

Item F — Number of residual interest

of prior payments with respect to those

on foreclosure property, interest accrued

holders. Enter the number of persons

interests, the administrative costs

on debt of the REMIC attributable to the

who were residual interest holders at any

associated with servicing that class

carrying of foreclosure property, real

time during the tax year.

outweigh the benefits of maintaining the

estate taxes, and fees charged by an

class. It does not include the redemption

independent contractor to manage

Item G — Consolidated REMIC

of a class in order to profit from a change

foreclosure property. Do not deduct

proceedings. Generally, the tax

in interest rates.

general overhead and administrative

treatment of REMIC items is determined

expenses.

at the REMIC level in a consolidated

Line 1a — Gain from certain

REMIC proceeding, rather than in

Line 10 — Tax on net income from

dispositions of qualified mortgages.

separate proceedings with individual

foreclosure property. The REMIC is

Enter the amount of gain from the

residual interest holders.

disposition of any qualified mortgage

allowed a deduction for the amount of tax

shown on this line. Include this amount in

transferred to the REMIC other than a

Check the box for item G if any of the

computing the deduction for taxes

disposition from:

following applies:

•

entered on line 11, Section I, page 1,

1. The substitution of a qualified

The REMIC had more than 10 residual

Form 1066.

replacement mortgage for a qualified

interest holders at any time during the tax

mortgage (or the repurchase in lieu of

year (a husband and wife count as one

Part III—Tax on Contributions

substitution of a defective obligation).

holder).

After the Startup Day

•

2. The foreclosure, default, or

Any residual interest holder was a

Do not complete this part if the startup

nonresident alien or was other than an

imminent default of the mortgage.

day was before July 1, 1987. For this

3. The bankruptcy or insolvency of the

individual, a C corporation, or an estate,

purpose “startup day” means any day

REMIC.

unless there was at no time during the

selected by a REMIC that is on or before

4. A qualified liquidation.

tax year more than one holder of the

the first day on which interests in the

residual interest.

See section 860F(a) for details and

•

REMIC are issued.

The REMIC has elected to be subject

exceptions.

Line 11 — Tax. Enter the amount of

to the rules for consolidated REMIC

Line 1b — Income from nonpermitted

contributions received during the calendar

proceedings.

assets. Enter the amount of any income

year after the startup day (as defined

“Small REMICs,” as defined in

received or accrued during the year

above). Do not include cash contributions

sections 860F(e), 6231(a)(1)(B), and the

attributable to any asset other than a

described below:

regulations of both, are not subject to the

qualified mortgage or permitted

rules for consolidated REMIC

1. Any contribution to facilitate a

investment. See section 860G(a) for

proceedings but may make an election to

clean-up call or a qualified liquidation.

definitions.

be covered by them. This election can be

2. Any payment in the nature of a

revoked only with the consent of the

Line 1c — Compensation for services.

guarantee.

Commissioner.

Enter the amount of fees or other

3. Any contribution during the 3-month

compensation for services received or

period beginning on the startup day.

Item H — Foreign financial accounts.

accrued during the year.

4. Any contribution to a qualified

Check the “Yes” box if either 1 OR 2

reserve fund by any holder of a residual

Line 1d — Gain from the disposition of

below applies to the REMIC. Otherwise,

interest in the REMIC.

cash flow investments (except from a

check the “No” box:

qualified liquidation). Enter the amount

Attach a schedule showing your

1. At any time during the 2001

of gain from the disposition of any “cash

computation.

calendar year, the REMIC had an interest

flow investment” except from a qualified

in or signature or other authority over a

Designation of Tax Matters

liquidation. A cash flow investment is any

bank, securities, or other financial

Person (TMP)

investment of amounts received under

account in a foreign country; and

•

qualified mortgages for a temporary

A REMIC may designate a tax matters

The combined value of the accounts

period (not more than 13 months) before

person in the same manner that a

was more than $10,000 at any time

distribution to holders of interests in the

partnership may designate a tax matters

during the calendar year; and

•

REMIC. See section 860F(a)(4) for the

partner under Temporary Regulations

The account was not with a U.S.

definition of a qualified liquidation.

section 301.6231(a)(7)-1T. When

military banking facility operated by a U.S.

applying that section, treat all holders of a

financial institution.

Part II —Tax on Net Income From

residual interest in the REMIC as general

2. The REMIC owns more than 50%

Foreclosure Property

partners. The designation may be made

of the stock in any corporation that would

For a definition of foreclosure property,

by completing the Designation of Tax

answer the question “Yes” to item 1

see instructions on page 7 for Schedule

Matters Person section on page 4 of

above.

L, line 1c. Net income from foreclosure

Form 1066.

property must also be included in the

Get Form TD F 90-22.1, Report of

Additional Information

computation of taxable income (or net

Foreign Bank and Financial Accounts, to

loss) shown in Section I, page 1, Form

see if the REMIC is considered to have

Be sure to answer the questions and

1066.

an interest in or signature or other

provide other information in items E

authority over a financial account in a

Line 6 — Gross income from

through L.

foreign country.

foreclosure property. Do not include on

Item E — Type of entity. Check the box

line 6 amounts described in section

for the entity type of the REMIC

If you checked “Yes” for item H, file

856(c)(3)(A), (B), (C), (D), (E), or (G).

recognized under state or local law. If the

Form TD F 90-22.1 by June 30, 2002,

Line 8 — Deductions. Only those

REMIC is not a separate entity under

with the Department of the Treasury at

expenses that are directly connected with

state or local law, check the box for

the address shown on the form. Form TD

-6-

Form 1066 - Instructions For U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return Form Page 6

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