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

class outweigh the benefits of

contractor to manage foreclosure

determined at the REMIC level in a

maintaining the class. It does not

property. Do not deduct general

consolidated REMIC proceeding, rather

include the redemption of a class in

overhead and administrative expenses.

than in separate proceedings with

order to profit from a change in interest

individual residual interest holders.

Line 10 — Tax on net income from

rates.

foreclosure property. The REMIC is

Check the box for item G if any of

Line 1a — Gain from certain

allowed a deduction for the amount of

the following apply.

•

dispositions of qualified mortgages.

tax shown on this line. Include this

The REMIC had more than 10

Enter the amount of gain from the

amount in computing the deduction for

residual interest holders at any time

disposition of any qualified mortgage

taxes entered on Form 1066, page 1,

during the tax year (a husband and wife

transferred to the REMIC other than a

Section I, line 11.

count as one holder).

•

disposition from:

Any residual interest holder was a

Part III—Tax on Contributions

•

The substitution of a qualified

nonresident alien, or was other than an

After the Startup Day

replacement mortgage for a qualified

individual, a C corporation, or an

mortgage or the repurchase in lieu of

Do not complete this part if the startup

estate, unless there was at no time

day was before July 1, 1987. For this

substitution of a defective obligation;

during the tax year more than one

•

purpose, startup day means any day

The foreclosure, default, or imminent

holder of the residual interest.

•

selected by a REMIC that is on or

default of the mortgage;

The REMIC has elected to be subject

•

before the first day on which interests in

The bankruptcy or insolvency of the

to the rules for consolidated REMIC

the REMIC are issued.

REMIC; or

proceedings.

•

A qualified liquidation.

Line 11 — Tax. Enter the amount of

“Small REMICs,” as defined in

contributions received during the

See section 860F(a) for details and

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

calendar year after the startup day (as

exceptions.

the regulations of both, are not subject

defined in the prior paragraph). Do not

to the rules for consolidated REMIC

Line 1b — Income from nonpermitted

include cash contributions described

proceedings, but may make an election

assets. Enter the amount of any

next.

to be covered by them. This election

income received or accrued during the

•

Any contribution to facilitate a

can be revoked only with the consent of

year attributable to any asset other than

clean-up call or a qualified liquidation.

the Commissioner.

a qualified mortgage or permitted

•

Any payment in the nature of a

investment. See section 860G(a) for

Item H — Foreign financial accounts.

guarantee.

definitions.

Check the “Yes” box if either 1 or 2

•

Any contribution during the 3-month

below applies to the REMIC. Otherwise,

Line 1c — Compensation for

period beginning on the startup day.

check the “No” box.

•

services. Enter the receipt by the

Any contribution to a qualified

REMIC of any amount representing a

1. At any time during the 2006

reserve fund by any holder of a residual

fee or other compensation for services.

calendar year, the REMIC had a

interest in the REMIC.

financial interest in or signature or other

Line 1d — Gain from the disposition

Attach a schedule showing your

authority over any foreign financial

of cash flow investments (except

computation.

account, including bank, securities, or

from a qualified liquidation). Enter

other types of financial accounts in a

the amount of gain from the disposition

Designation of Tax Matters

foreign country (see Form TD F

of any cash flow investment except

Person (TMP)

90-22.1, Report of Foreign Bank and

from a qualified liquidation. A “cash flow

A REMIC may designate a TMP in the

Financial Accounts); and

investment” is any investment of

same manner that a partnership may

amounts received under qualified

a. The combined value of the

designate a tax matters partner under

mortgages for a temporary period (not

accounts was more than $10,000 at

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

more than 13 months) before

any time during the calendar year and

When applying that section, treat all

distribution to holders of interests in the

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

holders of a residual interest in the

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

military banking facility operated by a

REMIC as general partners. The

definition of a qualified liquidation.

U.S. financial institution.

designation may be made by

2. The REMIC owns more than 50%

Part II—Tax on Net Income

completing the Designation of Tax

of the stock in any corporation that

From Foreclosure Property

Matters Person section on Form 1066,

would answer “Yes” to item 1 above.

page 4.

For a definition of foreclosure property,

If the “Yes” box is checked:

see instructions on page 7 for Schedule

Additional Information

•

L, line 1c. Net income from foreclosure

Enter the name of the foreign country

Be sure to answer the questions and

property must also be included in the

or countries. Attach a separate sheet if

provide other information in items E

computation of taxable income (or net

more space is needed.

through L.

•

loss) shown on Form 1066, page 1,

File Form TD F 90-22.1 by June 30,

Section I.

Item E — Type of entity. Check the

2007, with the Department of the

box for the entity type of the REMIC

Treasury at the address shown on the

Line 6 — Gross income from

recognized under state or local law. If

foreclosure property. Do not include

form. Because TD F 90-22.1 is not a

the REMIC is not a separate entity

tax form, do not file it with Form 1066.

on line 6 amounts described in section

under state or local law, check the box

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

You can order Form TD F 90-22.1 by

for “Segregated Pool of Assets,” and

calling 1-800-TAX-FORM

Line 8 — Deductions. Only those

state the name and type of entity that

(1-800-829-3676) or you can download

expenses that are directly connected

owns the assets in the spaces

it from the IRS website at

with the production of the income

provided.

shown on line 7 may be deducted to

Item I — Foreign trust. The REMIC

Item F — Number of residual interest

figure net income from foreclosure

may be required to file Form 3520,

holders. Enter the number of persons

property. Allowable deductions include

Annual Return To Report Transactions

who were residual interest holders at

depreciation on foreclosure property,

With Foreign Trusts and Receipt of

any time during the tax year.

interest accrued on debt of the REMIC

Certain Foreign Gifts, if:

•

attributable to the carrying of

Item G — Consolidated REMIC

It directly or indirectly transferred

foreclosure property, real estate taxes,

proceedings. Generally, the tax

money or property to a foreign trust (for

and fees charged by an independent

treatment of REMIC items is

this purpose, any U.S. person who

-6-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2006 Page 6

Related Articles

Related forms

Related Categories