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Capital Deployment Risk · Structured and blank-check vehicles

Real Estate Mortgage Investment Conduits (REMICs)

Definition

A real estate mortgage investment conduit: a pool of mortgages, usually held in a trust, that issues regular interests taxed like debt and a residual interest that bears the pool's taxable income. A REMIC itself is generally not subject to federal income tax; its income is taxed to the holders of its interests[1].

Federal law

  1. Tax Reform Act of 1986, Pub. L. 99-514, § 671, 100 Stat. 2085 (enacting 26 U.S.C. §§ 860A-860G). Created REMICs and their tax treatment (26 U.S.C. §§ 860A-860G). Official text: govinfo.gov, U.S. Government Publishing Office.