Form 1066 – U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

Last reviewed: 2025-10-26

Use the Form 1066: Form 1066 – U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return Tax Form Calculator Form 1066: Form 1066 – U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 1066 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form 1066 is filed by Real Estate Mortgage Investment Conduits (REMICs) to report annual income, deductions, and taxes due to the IRS. REMICs are structured investment vehicles that pool mortgage loans and issue mortgage-backed securities. Unlike corporations, REMICs are not subject to corporate income tax but must file Form 1066 to account for all income earned and distributions made to investors.REMICs must file Form 1066 if they are active for any part of the tax year. This includes both calendar-year and fiscal-year entities. Key components of the form include:

Lines 1–5: Record various types of mortgage-related income and other revenue sources.
Lines 6–15: Deduct qualified expenses and calculate net REMIC taxable income or excess inclusion income.
Schedule J: Calculates the tax due using income amounts, percentage rates, and adjustments such as overpayments and withholding.
Schedules L & M: Reconcile asset, liability, and tax computation data for the conduit and supporting distributions.

U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
Please Type or Print	Name					A Employer identification number (EIN)
	Number, street, and room or suite no. (If a P.O. box, see instructions.)					B Date REMIC started
	City or town, state or province, country, ZIP or foreign postal code					C Enter total assets at end of tax year $
D Check applicable boxes: (1) Final return (2) Name change (3) Address change
Section I—Computation of Taxable Income or Net Loss
Income (excluding amounts from prohibited transactions)
1	Taxable interest					1
2	Accrued market discount under section 860C(b)(1)(B)					2
3	Reserved					3
4	Ordinary gain or (loss) (attach Form 4797)					4
5	Other income (attach statement—see instructions)					5
6	Total income (loss). Add lines 1 through 5					6
Deductions (excluding amounts aL1066_Locable to prohibited transactions)
7	Salaries and wages					7
8	Rent					8
9	Amount accrued to regular interest holders in the REMIC that is deductible as interest					9
10	Other interest					10
11	Taxes					11
12	Depreciation (see instructions)					12
13	Other deductions (attach statement)					13
14	Total deductions. Add lines 7 through 13					14
15	Taxable income (or net loss). Subtract line 14 from line 6. Enter here and on page 3, Schedule M, column (c)					15
Section II—Tax and Payments
1	Total tax (Schedule J, line 12)					1
2	Tax paid with Form 7004					2
3	Tax due. Enter excess of line 1 over line 2. See Payment of Tax Due in instructions					3
4	Overpayment. Enter excess of line 2 over line 1 Taxable interest					4
Sign Here	Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on aL1066_L information of which preparer has any knowledge.
	Signature	Date			May the IRS discuss this return with the preparer shown below? See instructions. YesNo
Paid Preparer Use Only	Print/Type preparer's name	Preparer's signature	Date	Check if self-employed	PTIN
	Firm's name ▸					Firm's EIN ▸
	Firm's address ▸					Phone no.

Schedule J Tax Computation

Schedule J Tax Computation
Part I—Tax on Net Income From Prohibited Transactions
1	Income (see instructions)
a	Gain from certain dispositions of qualified mortgages					1a
b	Income from nonpermitted assets					1b
c	Compensation for services					1c
d	Gain from the disposition of cash flow investments (except from a qualified liquidation)					1d
2	Total Income. Add lines 1a through 1d					2
3	Deductions directly connected with the production of income shown on line 2 (excluding deductions attributable to prohibited transactions resulting in a loss)					3
4	Tax on net income from prohibited transactions. Subtract line 3 from line 2					4
Part II—Tax on Net Income From Foreclosure Property (as defined in section 860G(a)(8)) (Caution: See instructions before completing this part.)
5	Net gain or (loss) from the sale or other disposition of foreclosure property described in section 1221(a)(1) (attach statement)					5
6	Gross income from foreclosure property (attach statement)					6
7	Total income from foreclosure property. Add lines 5 and 6					7
8	Deductions directly connected with the production of income shown on line 7 (attach statement)					8
9	Net income from foreclosure property. Subtract line 8 from line 7					9
10	Tax on net income from foreclosure property. Enter 35% of line 9					10
Part III—Tax on Contributions After the Startup Day (Don't complete this part if the startup day was before July 1, 1987. See instructions.)
11	Tax. Enter amount of taxable contributions received during the calendar year after the startup day. See instructions (attach statement)					11
Part IV—Total Tax
12	Total tax. Add lines 4, 10, and 11. Enter here and on page 1, Section II, line 1					12
Designation of Tax Matters Person (TMP)
Enter below the residual interest holder designated as the TMP for the calendar year of this return. Name of Deisgnated TMP ▸ Identifying number of TMP ▸
Address of designated TMP ▸
Additional Information (see instructions)
E	What type of entity is this REMIC? Check box ▸ Corporation Partnership Trust Segregated Pool of Assets				Yes		No
	If you checked “Segregated Pool of Assets,” enter the name and type of entity that owns the assets: Name Type
F	Number of residual interest holders in this REMIC ▸
G	Check this box if this REMIC is subject to the consolidated entity-level audit procedures of sections 6221 through 6231 ▸
H	At any time during calendar year 2016, did the REMIC have a financial interest in or signature authority or other authority over any foreign financial account, including bank, securities, or other types of financial accounts in a foreign country? If “Yes,” the REMIC may have to file FinCEN Form 114. See instructions. If “Yes,” enter name of foreign country ▸
I	During the tax year, did the REMIC receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” see instructions for other forms the REMIC may have to file
J	Enter the amount of tax-exempt interest accrued during the year ▸
K	Check this box if the REMIC had more than one class of regular interests ▸ If so, attach a statement identifying the classes and principal amounts outstanding for each at the end of the year.
L	Enter the sum of the daily accruals determined under section 860E(c) for the calendar year ▸
	Schedule L Balance Sheets per Books		(a) Beginning of year	(b) End of year
Assets
1	Permitted investments (see instructions):
a	Cash flow investments
b	Qualified reserve assets
c	Foreclosure property
2	Qualified mortgages
3	Other assets (attach statement)
4	Total assets
Liabilities and Capital
5	Current liabilities (attach statement)
6	Other liabilities (attach statement)
7	Regular interests in REMIC
8	Residual interest holders’ capital accounts
9	Total liabilities and capital
Schedule M Reconciliation of Residual Interest Holders’ Capital Accounts (Show reconciliation of each residual interest holder’s capital account quarterly on Schedule Q (Form 1066), Item F.)
(a) Residual interest holders’ capital accounts at beginning of year	(b) Capital contributed during year	(c) Taxable income (or net loss) from Section I, line 15	(d) Nontaxable income	(e) UnaL1066_Lowable deductions		(f) Withdrawals and distributions	(g) Residual interest holders’ capital accounts at end of year (combine cols. (a) through (f))

Form 1066 must be filed by March 15 (if following a calendar year) and submitted whether or not the REMIC has taxable income. Investors in REMICs receive Schedule Q (Form 1066), which reports their pro rata share of the income and is required for their own tax filings. Failure to file Form 1066 may result in penalties, particularly if Schedule Q is also not delivered to investors in a timely manner.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

To streamline preparation and ensure accuracy, you can use the Form 1066 REMIC Calculator. This tool mirrors the IRS layout, totals relevant lines, applies income adjustments, and performs Schedule J tax calculations. This 2026 version reflects the most recent published IRS form, including calculations for REMIC income, expenses, and net liability. Always consult IRS instructions for Form 1066 when preparing a return.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.