1066 Sch. Q

Quarterly Notice to Residual Interest Holder of REMIC Taxable Income or Net Loss Allocation

Agency
IRS
Revision
Rev. September 2018
Fillable fields
35
Pages
2
Official source
IRS form page
Checked
October 21, 2026
Fill 1066 Sch. Q online
Page 1 of form 1066 Sch. Q

Schedule Q (Form 1066): Quarterly Notice to Residual Interest Holder

Schedule Q (Form 1066), Quarterly Notice to Residual Interest Holder of REMIC Taxable Income or Net Loss Allocation, is completed by a real estate mortgage investment conduit (REMIC). The instructions for Form 1066 say it shows each residual interest holder's share of the REMIC's quarterly taxable income or net loss, the excess inclusion for the holder's interest, and the holder's share of the REMIC's section 212 expenses for the quarter.

The REMIC completes one Schedule Q for each person who was a residual interest holder at any time during a calendar quarter. It files the schedule with Form 1066, gives a copy to the holder and keeps a copy in its records. The instructions note that Schedule Q is a separate tax form that is not part of Form 1066.

Page 2 of the PDF holds the Instructions for Residual Interest Holder. You can fill out the PDF free in your browser on this page and download it without an account.

What's on Schedule Q (Form 1066)

Header

The calendar quarter ended, the holder's identifying number, name and address, and the REMIC's identifying number, name and address.

Items A to E

Type of entity, the holder's percentage of all residual interests before a change and at quarter end, the REMIC's asset percentages, the IRS service center where the REMIC files, and final or amended boxes.

Item F: capital account

Columns (a) to (g): capital at the start of the quarter, capital contributed, taxable income or net loss, nontaxable income, unallowable deductions, withdrawals and distributions, and capital at quarter end.

Line 1: taxable income or net loss

Line 1a is the REMIC's taxable income or net loss for the quarter and line 1b the holder's share.

Line 2: excess inclusion

Daily accruals under section 860E for all residual interests and for this interest, and the excess inclusion on line 2c (line 1b minus line 2b, not less than zero).

Line 3: section 212 expenses

The REMIC's section 212 expenses for the quarter and the holder's share, for individuals and other pass-through interest holders.

How to fill out Schedule Q (Form 1066)

  1. 1

    Holder and REMIC details

    Enter names, addresses and identifying numbers. The instructions say to use an SSN or ITIN for an individual holder and an EIN for all other holders.

  2. 2

    Item A

    State whether the holder is an individual, corporation, estate, trust, partnership, exempt organization, nominee (custodian) or another REMIC. For a nominee, add a code in parentheses: I, C, F, P, E, R or IRA.

  3. 3

    Items B and C

    Enter the end-of-quarter percentage in B2, and in B1 the percentage just before any change. Item C percentages use the average adjusted basis of assets held during the quarter; 95% or more may be shown as "95 or more".

  4. 4

    Lines 1a and 1b

    Enter the REMIC's taxable income or net loss for the quarter; the four quarters must add up to Form 1066, Section I, line 15. Line 1b adds the holder's daily portions for each day it held the interest.

  5. 5

    Lines 2a to 2c

    Line 2a uses the adjusted issue prices of all residual interests at the start of the quarter and 120% of the long-term federal rate. Line 2b divides 2a by the days in the quarter and applies the holder's daily ownership.

  6. 6

    Lines 3a and 3b

    Only for individuals and other pass-through interest holders. Enter the REMIC's allocable section 212 expenses, such as rent, salaries and legal or accounting fees, and the holder's share.

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Where it goes and when

Filed with Form 1066

The instructions say to file Schedule Q with Form 1066 and keep one copy with a copy of Form 1066 as part of the REMIC's records.

Holder's copy

Give one copy to the residual interest holder by the last day of the month following the month in which the calendar quarter ends.

Where Form 1066 goes

For a REMIC whose principal business, office or agency is in the United States, the instructions give Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0007. Otherwise, Internal Revenue Service, P.O. Box 409101, Ogden, UT 84409.

Final and amended schedules

Check item E(1) for the final quarter when the REMIC ceases to exist. A REMIC not subject to BBA filing an amended return files amended Schedules Q with Form 1065-X and gives them to the holders.

Errors

The holder instructions say to notify the REMIC and ask for a corrected Schedule Q rather than change items on the copy, and point to Form 8082 when no agreement is reached.

Related forms

Who completes Schedule Q (Form 1066)?

  • REMICs that file Form 1066

    For each calendar quarter, the REMIC completes Schedule Q for each person who was a residual interest holder at any time during the quarter and files it with Form 1066.

  • Residual interest holders

    Holders receive a copy. The holder instructions on page 2 say to keep it for the holder's records and not to file it with the tax return.

  • Individuals and pass-through holders

    The form says line 3 is completed for residual interest holders who are individuals or other pass-through interest holders, and is not required for other entities.

  • REITs and building and loan associations

    The holder instructions say item C is provided for a holder such as a real estate investment trust or domestic building and loan association that needs to know the REMIC's asset mix.

  • Nominees and IRAs

    A nominee holder is listed with a code for the type of entity it represents. For an IRA, the instructions say to enter the IRA trust's identifying number, not the individual's SSN or ITIN.

The REMIC completes and files the schedule. The residual interest holder receives a copy and does not file it.

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Questions about Form 1066 Sch. Q

Who prepares Schedule Q (Form 1066)?

The REMIC. It completes one for each person who was a residual interest holder at any time during the calendar quarter and files it with Form 1066.

Does a residual interest holder file Schedule Q with a tax return?

No. The holder instructions say to keep the copy for the holder's records and not to file it with the tax return.

When does the holder receive it?

The instructions say by the last day of the month following the month in which the calendar quarter ends.

Is Schedule Q part of Form 1066?

No. The instructions for Form 1066 say Schedule Q is a separate tax form that is not part of Form 1066.

Where does an individual holder report line 1b?

The holder instructions say an individual reports the total of the line 1b amounts for the tax year on Schedule E (Form 1040), Part IV, column (d), after applying any basis limitations.

What if the Schedule Q has an error?

The holder instructions say to notify the REMIC, ask for a corrected Schedule Q and make sure the REMIC sends the corrected copy to the IRS. Form 8082 applies if no agreement is reached.