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social security number (SSN) (or

REMIC must also report to any real

Section 212 expenses generally

individual taxpayer identification

estate investment trust that holds a

include operational expenses such as:

•

number (ITIN) for a resident or

residual interest the information

Rent,

•

nonresident alien). For all other residual

specified in Regulations section

Salaries,

•

interest holders, you must enter the

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

Legal fees,

•

residual interest holder’s EIN. However,

Accounting fees,

Item F — Reconciliation of residual

•

if a residual interest holder is an IRA,

Litigation expenses, and

interest holder’s capital account.

•

enter the identifying number of the IRA

The cost of preparing and distributing

See the instructions for Schedule M on

trust. Do not enter the SSN (or ITIN) of

reports and notices to interest holders.

page 7.

the individual for whom the IRA is

Line 3b — Your share of section 212

Line 1a — Taxable income (net loss)

maintained.

expenses for the calendar quarter.

of the REMIC for the calendar

Item A — What type of entity is this

Enter the residual interest holder’s

quarter. Enter the REMIC’s taxable

residual interest holder? State on

share of the amount shown on line 3a.

income (net loss) for the calendar

this line whether the residual interest

quarter. The sum of the totals for the 4

Privacy Act and Paperwork

holder is an individual, a corporation,

quarters in the calendar year must

Reduction Act Notice. We ask for the

an estate, a trust, a partnership, an

equal the amount shown on Form

information on this form to carry out the

exempt organization, a nominee

1066, Section I, line 15.

Internal Revenue laws of the United

(custodian), or another REMIC. If the

Line 1b — Your share of the taxable

States. You are required to give us the

residual interest holder is a nominee,

income (net loss) for the calendar

information. We need it to ensure that

use the following codes to indicate in

quarter. Enter the residual interest

you are complying with these laws and

parentheses the type of entity the

holder’s share of the taxable income

to allow us to figure and collect the right

nominee represents:

(net loss) shown on line 1a (determined

amount of tax. Section 6109 requires

I – Individual, C – Corporation, F –

by adding the holder’s daily portions

return preparers to provide their

Estate or Trust, P – Partnership, E –

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

identifying numbers on the return.

Exempt Organization, R – REMIC, or

in the quarter the holder held the

You are not required to provide the

IRA – Individual Retirement

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

information requested on a form that is

Arrangement.

enter the residual interest holder’s full

subject to the Paperwork Reduction Act

Item B — Residual interest holder’s

share of the loss, without regard to the

unless the form displays a valid OMB

percentage of ownership. Enter in

adjusted basis of the residual interest

control number. Books or records

item B2 the percentage at the end of

holder’s interest in the REMIC.

relating to a form or its instructions

the calendar quarter. However, if a

Line 2a — Sum of the daily accruals

must be retained as long as their

residual interest holder’s percentage of

under section 860E for all residual

contents may become material in the

ownership changed during the quarter,

interests for the calendar quarter.

administration of any Internal Revenue

enter in item B1 the percentage

Enter the product of the sum of the

law. Generally, tax returns and return

immediately before the change. If there

adjusted issue prices of all residual

information are confidential, as required

are multiple changes in the percentage

interests at the beginning of the quarter

by section 6103.

of ownership during the quarter, attach

and 120% of the long-term federal rate

a statement giving the date and

The time needed to complete and

(determined on the basis of

percentage before each change.

file this form and related schedule will

compounding at the end of each

vary depending on individual

Item C — REMIC assets. Enter in item

quarter and properly adjusted for the

circumstances. The estimated average

C the percentage of the REMIC’s

length of such quarter). See section

times are:

assets during the calendar quarter

860E(c) for details.

represented by each of the following

Line 2b — Sum of the daily accruals

Schedule Q

categories of assets:

Form 1066

(Form 1066)

under section 860E for your interest.

•

Real estate assets under section

Enter zero if line 2a is zero. Otherwise,

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

Recordkeeping

32 hr., 3 min.

6 hr., 27 min.

divide the amount shown on line 2a by

•

Learning about

Assets described in section

the number of days in the quarter.

the law or the

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

Multiply the result by the residual

form . . . . . . .

8 hr., 51 min.

1 hr., 40 min.

of a domestic building and loan

interest holder’s percentage of

Preparing the

association).

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

1 hr., 52 min.

ownership for each day in the quarter

Copying,

These percentages must be

that the residual interest holder owned

assembling,

computed using the average adjusted

the interest. Total the daily amounts

and sending the

basis of the assets held during the

and enter the result.

form to the IRS

48 min.

calendar quarter. To do this, the REMIC

Line 3 — Complete lines 3a and 3b

If you have comments concerning

must make the appropriate computation

only for residual interest holders

the accuracy of these time estimates or

as of the close of each month, week, or

who are individuals or other

suggestions for making this form and

day and then average the monthly,

pass-through interest holders (as

related schedule simpler, we would be

weekly, or daily percentages for the

defined in Temporary Regulations

happy to hear from you. You can write

quarter. The monthly, weekly, or daily

section 1.67-3T).

to the Internal Revenue Service, Tax

computation period must be applied

Line 3a — Section 212 expenses of

Products Coordinating Committee,

uniformly during the calendar quarter to

the REMIC for the calendar quarter.

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

both categories of assets, and may not

Enter the REMIC’s allocable section

Constitution Ave. NW, IR-6526,

be changed in succeeding calendar

212 expenses for the calendar quarter.

Washington, DC 20224. Do not send

quarters without IRS consent. If the

The term “allocable section 212

the tax form to this office. Instead, see

percentage of the REMIC’s assets for

expenses” means the aggregate

Where To File on page 2.

either category is at least 95%, the

amount of the expenses paid or

REMIC may show “95 or more” for that

accrued in the calendar quarter for

category in item C.

which a deduction is allowable under

If less than 95% of the assets of the

section 212 in determining the taxable

REMIC are real estate assets (as

income of the REMIC for the calendar

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

quarter.

-8-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2009 Page 8

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