IRS Proposes Rule to Correct ‘Misallocation’ of Tax Burden Among Buyers and Sellers of REMICs
September 24, 2004
The Internal Revenue Service has proposed a new regulation that will affect how real estate mortgage investment conduits are taxed. The proposal addresses the treatment of “original issue discount,” or discount from par value. OID is essentially the difference between an instrument’s stated redemption price at maturity and its issue price.