In determining the tax under this chapter of any holder of a regular interest in a REMIC, such interest (if not otherwise a debt instrument) shall be treated as a debt instrument.
The amounts includible in gross income with respect to any regular interest in a REMIC shall be determined under the accrual method of accounting.
Gain on the disposition of a regular interest shall be treated as ordinary income to the extent such gain does not exceed the excess (if any) of—
(1) the amount which would have been includible in the gross income of the taxpayer with respect to such interest if the yield on such interest were 110 percent of the applicable Federal rate (as defined in section 1274(d) without regard to paragraph (2) thereof) as of the beginning of the taxpayer's holding period, over
(2) the amount actually includible in gross income with respect to such interest by the taxpayer.
(Added Pub. L. 99–514, title VI, §671(a), Oct. 22, 1986, 100 Stat. 2309.)
Sections: Previous 855 856 857 858 859 860 860A 860B 860C 860D 860E 860F 860G 861 862 Next
Last modified: October 26, 2015