§ 1.863-1T - Allocation of gross income under section 863(a) (temporary).

(a) through (d) [Reserved] For further guidance, see § 1.863-1(a) through (d).

(e) Residual interest in a REMIC—(1) REMIC inducement fees. [Reserved] For further guidance, see § 1.863-1(e)(1).

(2) Excess inclusion income and net losses. An excess inclusion (as defined in section 860E(c)) shall be treated as income from sources within the United States. To the extent of excess inclusion income previously taken into account with respect to a residual interest (reduced by net losses previously taken into account under this paragraph), a net loss (described in section 860C(b)(2)) with respect to the residual interest shall be allocated to the class of gross income and apportioned to the statutory grouping(s) or residual grouping of gross income to which the excess inclusion income was assigned.

(f) Effective date. Paragraph (e)(2) of this section applies for taxable years ending after August 1, 2006. For further guidance, see § 1.863-1(f). This section will expire July 31, 2009.