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where the threatened default resulted

shown on line 7 may be deducted to

owns the assets in the spaces

from a default on one or more qualified

figure net income from foreclosure

provided.

mortgages, or to facilitate a clean-up

property. Allowable deductions include

Item F — Number of residual interest

call. A clean-up call is the redemption

depreciation on foreclosure property,

holders. Enter the number of persons

of a class of regular interests when, by

interest accrued on debt of the REMIC

who were residual interest holders at

reason of prior payments with respect

attributable to the carrying of

any time during the tax year.

to those interests, the administrative

foreclosure property, real estate taxes,

Item G — Consolidated REMIC

costs associated with servicing that

and fees charged by an independent

proceedings. Generally, the tax

class outweigh the benefits of

contractor to manage foreclosure

treatment of REMIC items is

maintaining the class. It does not

property. Do not deduct general

determined at the REMIC level in a

include the redemption of a class in

overhead and administrative expenses.

consolidated REMIC proceeding, rather

order to profit from a change in interest

Line 10 — Tax on net income from

than in separate proceedings with

rates.

foreclosure property. The REMIC is

individual residual interest holders.

Line 1a — Gain from certain

allowed a deduction for the amount of

Check the box for item G if any of

dispositions of qualified mortgages.

tax shown on this line. Include this

the following apply.

Enter the amount of gain from the

amount in computing the deduction for

•

The REMIC had more than 10

disposition of any qualified mortgage

taxes entered on Form 1066, page 1,

residual interest holders at any time

transferred to the REMIC other than a

Section I, line 11.

during the tax year (a husband and wife

disposition from:

•

Part III—Tax on Contributions

count as one holder).

The substitution of a qualified

•

Any residual interest holder was a

replacement mortgage for a qualified

After the Startup Day

nonresident alien, or was other than an

mortgage or the repurchase in lieu of

Do not complete this part if the startup

individual, a C corporation, or an

substitution of a defective obligation;

day was before July 1, 1987. For this

•

estate, unless there was at no time

The foreclosure, default, or imminent

purpose, startup day means any day

during the tax year more than one

default of the mortgage;

selected by a REMIC that is on or

•

holder of the residual interest.

The bankruptcy or insolvency of the

before the first day on which interests in

•

The REMIC has elected to be subject

REMIC; or

the REMIC are issued.

•

to the rules for consolidated REMIC

A qualified liquidation.

Line 11 — Tax. Enter the amount of

proceedings.

See section 860F(a) for details and

contributions received during the

exceptions.

“Small REMICs,” as defined in

calendar year after the startup day (as

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

Line 1b — Income from nonpermitted

defined in the prior paragraph). Do not

the regulations of both, are not subject

assets. Enter the amount of any

include cash contributions described

to the rules for consolidated REMIC

income received or accrued during the

next.

proceedings, but may make an election

•

year attributable to any asset other than

Any contribution to facilitate a

to be covered by them. This election

a qualified mortgage or permitted

clean-up call or a qualified liquidation.

can be revoked only with the consent of

•

investment. See section 860G(a) for

Any payment in the nature of a

the Commissioner.

definitions.

guarantee.

•

Item H — Foreign financial accounts.

Line 1c — Compensation for

Any contribution during the 3-month

Check the “Yes” box if either 1 or 2

services. Enter the receipt by the

period beginning on the startup day.

•

below applies to the REMIC. Otherwise,

REMIC of any amount representing a

Any contribution to a qualified

check the “No” box.

fee or other compensation for services.

reserve fund by any holder of a residual

interest in the REMIC.

1. At any time during the 2009

Line 1d — Gain from the disposition

calendar year, the REMIC had a

of cash flow investments (except

Attach a schedule showing your

financial interest in or signature or other

from a qualified liquidation). Enter

computation.

authority over any foreign financial

the amount of gain from the disposition

account, including bank, securities, or

of any cash flow investment except

Designation of Tax Matters

other types of financial accounts in a

from a qualified liquidation. A “cash flow

Person (TMP)

foreign country (see Form TD F

investment” is any investment of

A REMIC may designate a TMP in the

90-22.1, Report of Foreign Bank and

amounts received under qualified

same manner that a partnership may

Financial Accounts); and

mortgages for a temporary period (not

designate a tax matters partner under

more than 13 months) before

a. The combined value of the

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

distribution to holders of interests in the

accounts was more than $10,000 at

When applying that section, treat all

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

any time during the calendar year and

holders of a residual interest in the

definition of a qualified liquidation.

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

REMIC as general partners. The

military banking facility operated by a

Part II—Tax on Net Income

designation may be made by

U.S. financial institution.

From Foreclosure Property

completing the Designation of Tax

2. The REMIC owns more than 50%

Matters Person section on Form 1066,

For a definition of foreclosure property,

of the stock in any corporation that

page 4.

see instructions on page 7 for Schedule

would answer “Yes” to item 1 above.

L, line 1c. Net income from foreclosure

Additional Information

property must also be included in the

If the “Yes” box is checked:

computation of taxable income (or net

Be sure to answer the questions and

•

Enter the name of the foreign country

loss) shown on Form 1066, page 1,

provide other information in items E

or countries. Attach a separate sheet if

Section I.

through L.

more space is needed.

•

Line 6 — Gross income from

Item E — Type of entity. Check the

File Form TD F 90-22.1 by June 30,

foreclosure property. Do not include

box for the entity type of the REMIC

2009, with the Department of the

on line 6 amounts described in section

recognized under state or local law. If

Treasury at the address shown on the

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

the REMIC is not a separate entity

form. Because TD F 90-22.1 is not a

Line 8 — Deductions. Only those

under state or local law, check the box

tax form, do not file it with Form 1066.

expenses that are directly connected

for “Segregated Pool of Assets,” and

You can order Form TD F 90-22.1 by

with the production of the income

state the name and type of entity that

calling 1-800-TAX-FORM

-6-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2009 Page 6

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