26 U.S. Code § 860B - Taxation of holders of regular interests

(a) General rule
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.
(b) Holders must use accrual method
The amounts includible in gross income with respect to any regular interest in a REMIC shall be determined under the accrual method of accounting.
(c) Portion of gain treated as ordinary income
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.
(d) Cross reference
For special rules in determining inclusion of original issue discount on regular interests, see section 1272 (a)(6).

Source

(Added Pub. L. 99–514, title VI, § 671(a),Oct. 22, 1986, 100 Stat. 2309.)

The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.

26 USCDescription of ChangeSession YearPublic LawStatutes at Large

 

LII has no control over and does not endorse any external Internet site that contains links to or references LII.