Looking for a Form 1066 Templates? Download it for free!

•

Line 1c — Compensation for services.

Any payment in the nature of a

revoked only with the consent of the

Enter the receipt by the REMIC of any

guarantee.

Commissioner.

•

amount representing a fee or other

Any contribution during the 3-month

Item H — Foreign financial accounts.

compensation for services.

period beginning on the startup day.

Check the “Yes” box if either 1 or 2 below

•

Any contribution to a qualified reserve

applies to the REMIC. Otherwise, check

Line 1d — Gain from the disposition of

fund by any holder of a residual interest in

the “No” box.

cash flow investments (except from a

the REMIC.

qualified liquidation). Enter the amount

1. At any time during the 2005

of gain from the disposition of any cash

Attach a schedule showing your

calendar year, the REMIC had an interest

flow investment except from a qualified

computation.

in or signature or other authority over a

liquidation. A “cash flow investment” is

bank, securities, or other financial

Designation of Tax Matters

any investment of amounts received

account in a foreign country (see Form

Person (TMP)

under qualified mortgages for a temporary

TD F 90-22.1, Report of Foreign Bank

period (not more than 13 months) before

A REMIC may designate a TMP in the

and Financial Accounts); and

distribution to holders of interests in the

same manner that a partnership may

a. The combined value of the

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

designate a tax matters partner under

accounts was more than $10,000 at any

definition of a qualified liquidation.

Regulations section 301.6231(a)(7)-1.

time during the calendar year and

When applying that section, treat all

b. The account was not with a U.S.

Part II — Tax on Net Income From

holders of a residual interest in the

military banking facility operated by a U.S.

Foreclosure Property

REMIC as general partners. The

financial institution.

For a definition of foreclosure property,

designation may be made by completing

2. The REMIC owns more than 50%

see instructions on page 7 for Schedule

the Designation of Tax Matters Person

of the stock in any corporation that would

L, line 1c. Net income from foreclosure

section on Form 1066, page 4.

answer “Yes” to item 1 above.

property must also be included in the

Additional Information

computation of taxable income (or net

If the “Yes” box is checked:

Be sure to answer the questions and

•

loss) shown on Form 1066, page 1,

Enter the name of the foreign country

provide other information in items E

Section I.

or countries. Attach a separate sheet if

through L.

Line 6 — Gross income from

more space is needed.

•

Item E — Type of entity. Check the box

foreclosure property. Do not include on

File Form TD F 90-22.1 by June 30,

for the entity type of the REMIC

line 6 amounts described in section

2006, with the Department of the

recognized under state or local law. If the

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

Treasury at the address shown on the

REMIC is not a separate entity under

form. Because TD F 90-22.1 is not a tax

Line 8 — Deductions. Only those

state or local law, check the box for

form, do not file it with Form 1066. You

expenses that are directly connected with

“Segregated Pool of Assets,” and state

can order Form TD F 90-22.1 by calling

the production of the income shown on

the name and type of entity that owns the

1-800-TAX-FORM (1-800-829-3676) or

line 7 may be deducted to figure net

assets in the spaces provided.

you can download it from the IRS website

income from foreclosure property.

Item F — Number of residual interest

Allowable deductions include depreciation

holders. Enter the number of persons

Item I — Foreign trust. The REMIC may

on foreclosure property, interest accrued

who were residual interest holders at any

be required to file Form 3520, Annual

on debt of the REMIC attributable to the

time during the tax year.

Return To Report Transactions With

carrying of foreclosure property, real

Foreign Trusts and Receipt of Certain

estate taxes, and fees charged by an

Item G — Consolidated REMIC

Foreign Gifts, if:

independent contractor to manage

proceedings. Generally, the tax

•

It directly or indirectly transferred

foreclosure property. Do not deduct

treatment of REMIC items is determined

money or property to a foreign trust (for

general overhead and administrative

at the REMIC level in a consolidated

this purpose, any U.S. person who

expenses.

REMIC proceeding, rather than in

created a foreign trust is considered a

separate proceedings with individual

Line 10 — Tax on net income from

transferor);

residual interest holders.

foreclosure property. The REMIC is

•

It is treated as the owner of any part of

allowed a deduction for the amount of tax

Check the box for item G if any of the

the assets of a foreign trust under the

shown on this line. Include this amount in

following apply.

grantor trust rules; or

•

The REMIC had more than 10 residual

computing the deduction for taxes

•

It received a distribution from a foreign

entered on Form 1066, page 1, Section I,

interest holders at any time during the tax

trust.

year (a husband and wife count as one

line 11.

For more information, see the

holder).

Part III —Tax on Contributions

•

Instructions for Form 3520.

Any residual interest holder was a

After the Startup Day

Note. An owner of a foreign trust must

nonresident alien, or was other than an

Do not complete this part if the startup

ensure that the trust files an annual

individual, a C corporation, or an estate,

day was before July 1, 1987. For this

unless there was at no time during the tax

information return on Form 3520-A,

purpose, startup day means any day

Annual Information Return of Foreign

year more than one holder of the residual

selected by a REMIC that is on or before

interest.

Trust With a U.S. Owner. For details, see

•

the Instructions for Form 3520-A.

the first day on which interests in the

The REMIC has elected to be subject

REMIC are issued.

to the rules for consolidated REMIC

To report information required under

proceedings.

Line 11 — Tax. Enter the amount of

section 6038B the REMIC may be

contributions received during the calendar

“Small REMICs,” as defined in

required to file Form 926, Return by a

year after the startup day (as defined in

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

U.S. Transferor of Property to a Foreign

the prior paragraph). Do not include cash

regulations of both, are not subject to the

Corporation, or Form 8865, Return of

contributions described next.

rules for consolidated REMIC

U.S. Persons With Respect to Certain

•

Any contribution to facilitate a clean-up

proceedings, but may make an election to

Foreign Partnerships. See the instructions

call or a qualified liquidation.

be covered by them. This election can be

for these forms for more information.

-6-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2005 Page 6

Related Articles

Related forms

Related Categories