6.26 Ark. Code R. 51-440

Current through Register Vol. 49, No. 9, September, 2024

Rule 6.26-51-440 - Prohibited Transactions

In order to ensure that FASITs are not used for purposes other than securitization, a 100% federal excise tax is imposed on any income not related to securitization (that is, income derived from prohibited transactions). Prohibited transactions are specifically set forth at IRC Sec. 860L(e)(1)&(2).