If the taxpayer holds a residual interest in a REMIC, they need to report their total share of the REMIC's taxable income or loss. They should receive Schedule Q and instructions from the REMIC for each quarter.
If the taxpayer is a shareholder in an S corporation that holds a residual interest in a REMIC, the corporation will report on Schedule K-1 (Form 1120-S) their share of taxable income or net loss, excess inclusion, and section 212 expenses which are treated as income.
To report the REMIC information in TaxSlayer ProWeb, from the Federal Section of the tax return select:
- Income
- Other Income
- Schedule Q (Form 1066) - Enter the REMIC's name, EIN, and amounts from Schedule Q lines 2c, 1b, and 3b.
Schedule Q does not need to be attached the return.
Additional Information:
IRS: Publication 938, Real Estate Mortgage Investment conduits (REMICs) Reporting Information