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Line 1d — Gain from the disposition of

4. Any contribution to a qualified

below applies to the REMIC. Otherwise,

cash flow investments (except from a

reserve fund by any holder of a residual

check the “No” box:

qualified liquidation). Enter the amount

interest in the REMIC.

1. At any time during the 2002

of gain from the disposition of any “cash

calendar year, the REMIC had an interest

Attach a schedule showing your

flow investment” except from a qualified

in or signature or other authority over a

computation.

liquidation. A cash flow investment is any

bank, securities, or other financial

Designation of Tax Matters

investment of amounts received under

account in a foreign country; and

•

qualified mortgages for a temporary

Person (TMP)

The combined value of the accounts

period (not more than 13 months) before

was more than $10,000 at any time

A REMIC may designate a tax matters

distribution to holders of interests in the

during the calendar year; and

person in the same manner that a

•

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

The account was not with a U.S.

partnership may designate a tax matters

definition of a qualified liquidation.

military banking facility operated by a U.S.

partner under Temporary Regulations

financial institution.

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

Part II — Tax on Net Income From

2. The REMIC owns more than 50%

applying that section, treat all holders of a

Foreclosure Property

of the stock in any corporation that would

residual interest in the REMIC as general

For a definition of foreclosure property,

answer the question “Yes” to item 1

partners. The designation may be made

see instructions on page 7 for Schedule

above.

by completing the Designation of Tax

L, line 1c. Net income from foreclosure

Matters Person section on page 4 of

Get Form TD F 90-22.1, Report of

property must also be included in the

Form 1066.

Foreign Bank and Financial Accounts, to

computation of taxable income (or net

see if the REMIC is considered to have

Additional Information

loss) shown in Section I, page 1, Form

an interest in or signature or other

1066.

Be sure to answer the questions and

authority over a financial account in a

provide other information in items E

Line 6 — Gross income from

foreign country.

through L.

foreclosure property. Do not include on

If you checked “Yes” for item H, file

Item E — Type of entity. Check the box

line 6 amounts described in section

Form TD F 90-22.1 by June 30, 2003,

for the entity type of the REMIC

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

with the Department of the Treasury at

recognized under state or local law. If the

Line 8 — Deductions. Only those

the address shown on the form. Form TD

REMIC is not a separate entity under

expenses that are directly connected with

F 90-22.1 is not a tax return. Do not file it

state or local law, check the box for

the production of the income shown on

with Form 1066.

“Segregated Pool of Assets,” and state

line 7 may be deducted to figure net

The REMIC can get Form TD F

the name and type of entity that owns the

income from foreclosure property.

90-22.1 from an IRS Distribution Center

assets in the spaces provided.

Allowable deductions include depreciation

or by calling 1-800-TAX-FORM

Item F — Number of residual interest

on foreclosure property, interest accrued

(1-800-828-3676) or you can download it

holders. Enter the number of persons

on debt of the REMIC attributable to the

from the IRS Web Site at

who were residual interest holders at any

carrying of foreclosure property, real

Also, if “Yes” is checked for this

time during the tax year.

estate taxes, and fees charged by an

question, enter the name of the foreign

Item G — Consolidated REMIC

independent contractor to manage

country or countries. Attach a separate

proceedings. Generally, the tax

foreclosure property. Do not deduct

sheet if more space is needed.

treatment of REMIC items is determined

general overhead and administrative

Item I — Foreign trust. The REMIC may

at the REMIC level in a consolidated

expenses.

be required to file Form 3520, Annual

REMIC proceeding, rather than in

Line 10 — Tax on net income from

Return To Report Transactions With

separate proceedings with individual

foreclosure property. The REMIC is

Foreign Trusts and Receipt of Certain

residual interest holders.

allowed a deduction for the amount of tax

Foreign Gifts, if:

Check the box for item G if any of the

•

shown on this line. Include this amount in

It directly or indirectly transferred

following applies:

computing the deduction for taxes

•

property or money to a foreign trust. For

The REMIC had more than 10 residual

entered on line 11, Section I, page 1,

this purpose, any U.S. person who

interest holders at any time during the tax

Form 1066.

created a foreign trust is considered a

year (a husband and wife count as one

transferor.

holder).

Part III —Tax on Contributions

•

It is treated as the owner of any part of

Any residual interest holder was a

After the Startup Day

the assets of a foreign trust under the

nonresident alien or was other than an

Do not complete this part if the startup

grantor trust rules.

individual, a C corporation, or an estate,

•

day was before July 1, 1987. For this

It received a distribution from a foreign

unless there was at no time during the

purpose “startup day” means any day

trust.

tax year more than one holder of the

selected by a REMIC that is on or before

For more information, see the

residual interest.

the first day on which interests in the

•

Instructions for Form 3520.

The REMIC has elected to be subject

REMIC are issued.

Note: An owner of a foreign trust must

to the rules for consolidated REMIC

ensure that the trust files an annual

Line 11 — Tax. Enter the amount of

proceedings.

information return on Form 3520-A,

contributions received during the calendar

“Small REMICs,” as defined in

Annual Information Return of Foreign

year after the startup day (as defined

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

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

above). Do not include cash contributions

regulations of both, are not subject to the

the Instructions for Form 3520-A.

described below:

rules for consolidated REMIC

proceedings but may make an election to

1. Any contribution to facilitate a

To report information required under

be covered by them. This election can be

clean-up call or a qualified liquidation.

section 6038B the REMIC may be

revoked only with the consent of the

2. Any payment in the nature of a

required to file Form 926, Return by a

Commissioner.

guarantee.

U.S. Transferor of Property to a Foreign

3. Any contribution during the 3-month

Item H — Foreign financial accounts.

Corporation, or Form 8865, Return by

period beginning on the startup day.

Check the “Yes” box if either 1 OR 2

U.S. Persons With Respect to Certain

-6-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2002 Page 6

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