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parentheses the type of entity the

quarter. The sum of the totals for the 4

Accounting fees,

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nominee represents:

quarters in the calendar year must

Litigation expenses, and

•

I – Individual, C – Corporation, F –

equal the amount shown on Form

The cost of preparing and distributing

Estate or Trust, P – Partnership, E –

1066, Section I, line 15.

reports and notices to interest holders.

Exempt Organization, R – REMIC, or

Line 1b — Your share of the taxable

Line 3b — Your share of section 212

IRA – Individual Retirement

income (net loss) for the calendar

expenses for the calendar quarter.

Arrangement.

quarter. Enter the residual interest

Enter the residual interest holder’s

Item B — Residual interest holder’s

holder’s share of the taxable income

share of the amount shown on line 3a.

percentage of ownership. Enter in

(net loss) shown on line 1a (determined

Privacy Act and Paperwork

item B2 the percentage at the end of

by adding the holder’s daily portions

Reduction Act Notice. We ask for the

the calendar quarter. However, if a

under section 860C(a)(2) for each day

information on this form to carry out the

residual interest holder’s percentage of

in the quarter the holder held the

Internal Revenue laws of the United

ownership changed during the quarter,

residual interest). If line 1a is a loss,

States. You are required to give us the

enter in item B1 the percentage

enter the residual interest holder’s full

information. We need it to ensure that

immediately before the change. If there

share of the loss, without regard to the

you are complying with these laws and

are multiple changes in the percentage

adjusted basis of the residual interest

to allow us to figure and collect the right

of ownership during the quarter, attach

holder’s interest in the REMIC.

amount of tax. Section 6109 requires

a statement giving the date and

Line 2a — Sum of the daily accruals

return preparers to provide their

percentage before each change.

under section 860E for all residual

identifying numbers on the return.

Item C — REMIC assets. Enter in item

interests for the calendar quarter.

You are not required to provide the

C the percentage of the REMIC’s

Enter the product of the sum of the

information requested on a form that is

assets during the calendar quarter

adjusted issue prices of all residual

subject to the Paperwork Reduction Act

represented by each of the following

interests at the beginning of the quarter

unless the form displays a valid OMB

categories of assets:

and 120% of the long-term federal rate

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control number. Books or records

Real estate assets under section

(determined on the basis of

relating to a form or its instructions

856(c)(5)(B), and

compounding at the end of each

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must be retained as long as their

Assets described in section

quarter and properly adjusted for the

contents may become material in the

7701(a)(19)(C) (relating to the definition

length of such quarter). See section

administration of any Internal Revenue

of a domestic building and loan

860E(c) for details.

law. Generally, tax returns and return

association).

Line 2b — Sum of the daily accruals

information are confidential, as required

under section 860E for your interest.

These percentages must be

by section 6103.

Enter zero if line 2a is zero. Otherwise,

computed using the average adjusted

The time needed to complete and

divide the amount shown on line 2a by

basis of the assets held during the

file this form and related schedule will

the number of days in the quarter.

calendar quarter. To do this, the REMIC

vary depending on individual

Multiply the result by the residual

must make the appropriate computation

circumstances. The estimated average

interest holder’s percentage of

as of the close of each month, week, or

times are:

ownership for each day in the quarter

day and then average the monthly,

weekly, or daily percentages for the

that the residual interest holder owned

Schedule Q

the interest. Total the daily amounts

quarter. The monthly, weekly, or daily

Form 1066

(Form 1066)

computation period must be applied

and enter the result.

Recordkeeping

32 hr., 3 min.

6 hr., 27 min.

uniformly during the calendar quarter to

Line 3 — Complete lines 3a and 3b

Learning about

both categories of assets, and may not

only for residual interest holders

the law or the

be changed in succeeding calendar

who are individuals or other

form . . . . . . .

8 hr., 51 min.

1 hr., 40 min.

quarters without IRS consent. If the

pass-through interest holders (as

Preparing the

percentage of the REMIC’s assets for

defined in Temporary Regulations

form . . . . . . . 12 hr., 33 min.

1 hr., 52 min.

either category is at least 95%, the

Copying,

section 1.67-3T).

assembling,

REMIC may show “95 or more” for that

Line 3a — Section 212 expenses of

and sending the

category in item C.

the REMIC for the calendar quarter.

form to the IRS

48 min.

If less than 95% of the assets of the

Enter the REMIC’s allocable section

If you have comments concerning

REMIC are real estate assets (as

212 expenses for the calendar quarter.

the accuracy of these time estimates or

defined in section 856(c)(5)(B)), the

The term “allocable section 212

suggestions for making this form and

REMIC must also report to any real

expenses” means the aggregate

related schedule simpler, we would be

estate investment trust that holds a

amount of the expenses paid or

happy to hear from you. You can write

residual interest the information

accrued in the calendar quarter for

to the Internal Revenue Service, Tax

specified in Regulations section

which a deduction is allowable under

Products Coordinating Committee,

1.860F-4(e)(1)(ii)(B).

section 212 in determining the taxable

SE:W:CAR:MP:T:T:SP, 1111

income of the REMIC for the calendar

Item F — Reconciliation of residual

Constitution Ave. NW, IR-6526,

quarter.

interest holder’s capital account.

Washington, DC 20224. Do not send

See the instructions for Schedule M on

Section 212 expenses generally

the tax form to this office. Instead, see

page 7.

include operational expenses such as:

Where To File on page 2.

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Rent,

Line 1a — Taxable income (net loss)

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Salaries,

of the REMIC for the calendar

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Legal fees,

quarter. Enter the REMIC’s taxable

income (net loss) for the calendar

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Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2008 Page 8

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