Instructions For Form 1066 - 2007 (Page 8 of 8) in pdf

•

Assets described in section

Line 2a — Sum of the daily accruals

Privacy Act and Paperwork

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

under section 860E for all residual

Reduction Act Notice. We ask for the

of a domestic building and loan

interests for the calendar quarter.

information on this form to carry out the

association).

Enter the product of the sum of the

Internal Revenue laws of the United

adjusted issue prices of all residual

States. You are required to give us the

These percentages must be

interests at the beginning of the quarter

information. We need it to ensure that

computed using the average adjusted

and 120% of the long-term federal rate

basis of the assets held during the

you are complying with these laws and

(determined on the basis of

to allow us to figure and collect the right

calendar quarter. To do this, the REMIC

compounding at the end of each

must make the appropriate computation

amount of tax. Section 6109 requires

quarter and properly adjusted for the

return preparers to provide their

as of the close of each month, week, or

length of such quarter). See section

identifying numbers on the return.

day and then average the monthly,

860E(c) for details.

weekly, or daily percentages for the

You are not required to provide the

Line 2b — Sum of the daily accruals

quarter. The monthly, weekly, or daily

information requested on a form that is

under section 860E for your interest.

computation period must be applied

subject to the Paperwork Reduction Act

Enter zero if line 2a is zero. Otherwise,

uniformly during the calendar quarter to

unless the form displays a valid OMB

divide the amount shown on line 2a by

both categories of assets, and may not

control number. Books or records

the number of days in the quarter.

be changed in succeeding calendar

relating to a form or its instructions

Multiply the result by the residual

quarters without IRS consent. If the

must be retained as long as their

interest holder’s percentage of

percentage of the REMIC’s assets for

contents may become material in the

ownership for each day in the quarter

either category is at least 95%, the

administration of any Internal Revenue

that the residual interest holder owned

REMIC may show “95 or more” for that

law. Generally, tax returns and return

category in item C.

the interest. Total the daily amounts

information are confidential, as required

and enter the result.

by section 6103.

If less than 95% of the assets of the

Line 3 — Complete lines 3a and 3b

REMIC are real estate assets (as

The time needed to complete and

only for residual interest holders

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

file this form and related schedule will

who are individuals or other

REMIC must also report to any real

vary depending on individual

pass-through interest holders (as

estate investment trust that holds a

circumstances. The estimated average

defined in Temporary Regulations

residual interest the information

times are:

section 1.67-3T).

specified in Regulations section

Schedule Q

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

Line 3a — Section 212 expenses of

Form 1066

(Form 1066)

the REMIC for the calendar quarter.

Item F — Reconciliation of residual

Enter the REMIC’s allocable section

interest holder’s capital account.

Recordkeeping

32 hr., 3 min.

6 hr., 27 min.

212 expenses for the calendar quarter.

See the instructions for Schedule M on

Learning about

The term “allocable section 212

the law or the

page 7.

form . . . . . . .

8 hr., 51 min.

1 hr., 40 min.

expenses” means the aggregate

Line 1a — Taxable income (net loss)

Preparing the

amount of the expenses paid or

of the REMIC for the calendar

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

1 hr., 52 min.

accrued in the calendar quarter for

quarter. Enter the REMIC’s taxable

Copying,

which a deduction is allowable under

assembling,

income (net loss) for the calendar

section 212 in determining the taxable

and sending the

quarter. The sum of the totals for the 4

form to the IRS

48 min.

income of the REMIC for the calendar

quarters in the calendar year must

quarter.

equal the amount shown on Form

If you have comments concerning

Section 212 expenses generally

1066, Section I, line 15.

the accuracy of these time estimates or

include operational expenses such as:

suggestions for making this form and

Line 1b — Your share of the taxable

•

Rent,

related schedule simpler, we would be

income (net loss) for the calendar

•

Salaries,

quarter. Enter the residual interest

happy to hear from you. You can write

•

Legal fees,

to the Internal Revenue Service, Tax

holder’s share of the taxable income

•

Accounting fees,

(net loss) shown on line 1a (determined

Products Coordinating Committee,

•

Litigation expenses, and

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

by adding the holder’s daily portions

•

The cost of preparing and distributing

Constitution Ave. NW, IR-6526,

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

reports and notices to interest holders.

Washington, DC 20224. Do not send

in the quarter the holder held the

Line 3b — Your share of section 212

the tax form to this office. Instead, see

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

expenses for the calendar quarter.

Where To File on page 2.

enter the residual interest holder’s full

Enter the residual interest holder’s

share of the loss, without regard to the

share of the amount shown on line 3a.

adjusted basis of the residual interest

holder’s interest in the REMIC.

-8-

Instructions For Form 1066 - 2007 Page 8

Related Articles

Related forms

Related Categories