Treasury Regulations (26 C.F.R.)
26 CFR § 1.860C-1
Taxation of holders of residual interests.
# (a) Pass-thru of income or loss.
Any holder of a residual interest in a REMIC must take into account the holder's daily portion of the taxable income or net loss of the REMIC for each day during the taxable year on which the holder owned the residual interest.
# (b)
Adjustments to basis of residual interests—(1) Increase in basis. A holder's basis in a residual interest is increased by—
(i) The daily portions of taxable income taken into account by that holder under section 860C(a) with respect to that interest; and
(ii) The amount of any contribution described in section 860G(d)(2) made by that holder.
(2) Decrease in basis. A holder's basis in a residual interest is reduced (but not below zero) by—
(i) First, the amount of any cash or the fair market value of any property distributed to that holder with respect to that interest; and
(ii) Second, the daily portions of net loss of the REMIC taken into account under section 860C(a) by that holder with respect to that interest.
(3) Adjustments made before disposition. If any person disposes of a residual interest, the adjustments to basis prescribed in paragraph (b)(1) and (2) of this section are deemed to occur immediately before the disposition.
# (c) Counting conventions.
For purposes of determining the daily portion of REMIC taxable income or net loss under section 860C(a)(2), any reasonable convention may be used. An example of a reasonable convention is “30 days per month/90 days per quarter/360 days per year.”
# (d)
For rules on the proper accounting for income from inducement fees, see § 1.446-6.
[T.D. 8458, 57 FR 61301, Dec. 24, 1992, as amended by T.D. 9128, 69 FR 26041, May 11, 2004]
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In this part (40 sections)
- 1.856-10 · Definition of real property.
- 1.857-1 · Taxation of real estate investment trusts.
- 1.857-2 · Real estate investment trust taxable income and net capital…
- 1.857-3 · Net income from foreclosure property.
- 1.857-4 · Tax imposed by reason of the failure to meet certain…
- 1.857-5 · Net income and loss from prohibited transactions.
- 1.857-6 · Method of taxation of shareholders of real estate investment…
- 1.857-7 · Earnings and profits of a real estate investment trust.
- 1.857-8 · Records to be kept by a real estate investment trust.
- 1.857-9 · Information required in returns of shareholders.
- 1.857-10 · Information returns.
- 1.857-11 · Non-REIT earnings and profits.
- 1.858-1 · Dividends paid by a real estate investment trust after close…
- 1.860-1 · Deficiency dividends.
- 1.860-2 · Requirements for deficiency dividends.
- 1.860-3 · Interest and additions to tax.
- 1.860-4 · Claim for credit or refund.
- 1.860-5 · Effective date.
- 1.860A-0 · Outline of REMIC provisions.
- 1.860A-1 · Effective dates and transition rules.
- 1.860C-1 · Taxation of holders of residual interests.
- 1.860C-2 · Determination of REMIC taxable income or net loss.
- 1.860D-1 · Definition of a REMIC.
- 1.860E-1 · Treatment of taxable income of a residual interest holder in…
- 1.860E-2 · Tax on transfers of residual interests to certain…
- 1.860F-1 · Qualified liquidations.
- 1.860F-2 · Transfers to a REMIC.
- 1.860F-4 · REMIC reporting requirements and other administrative rules.
- 1.860G-1 · Definition of regular and residual interests.
- 1.860G-2 · Other rules.
- 1.860G-3 · Treatment of foreign persons.
- 1.861-1 · Income from sources within the United States.
- 1.861-2 · Interest.
- 1.861-3 · Dividends and income inclusions under sections 951, 951A, and…
- 1.861-4 · Compensation for labor or personal services.
- 1.861-5 · Rentals and royalties.
- 1.861-6 · Sale of real property.
- 1.861-7 · Sale of personal property.
- 1.861-8 · Computation of taxable income from sources within the United…
- 1.861-8T · Computation of taxable income from sources within the United…