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Enter the name of the foreign country or

Item E—Type of entity. Check the box

Line 1c—Foreclosure property. This is

countries where the foreign account(s) is

for the entity type of the REMIC

any real property (including interests in

held. Attach a separate sheet if more

recognized under state or local law. If the

real property), and any personal property

space is needed.

REMIC isn't a separate entity under state

incident to such real property, acquired by

Electronically file FinCEN Form 114,

or local law, check the box for

the REMIC as a result of the REMIC's

also referred to as FBAR, with the

“Segregated Pool of Assets,” and state the

having bid in the property at foreclosure,

Department of the Treasury using the

name and type of entity that owns the

or having otherwise reduced the property

FinCEN's BSA E-Filing System. Because

assets in the spaces provided.

to ownership or possession by agreement

FinCEN Form 114 isn't a tax form, don't

or process of law, after there was a default

Item F—Number of residual interest

file it with Form 1066.

or imminent default on a qualified

holders. Enter the number of persons

See

for more

mortgage held by the REMIC. Generally,

who were residual interest holders at any

information.

this property ceases to be foreclosure

time during the tax year.

property at the close of the third tax year

Item I—Foreign trust. The REMIC may

Item G—Consolidated REMIC proceed-

following the tax year in which the REMIC

be required to file Form 3520, Annual

ings. Generally, the tax treatment of

acquired the property. See sections

Return To Report Transactions With

REMIC items is determined at the REMIC

860G(a)(8), 856(e), and Regulations

Foreign Trusts and Receipt of Certain

level in a consolidated REMIC

section 1.856-6 for more details.

Foreign Gifts, if:

proceeding, rather than in separate

It directly or indirectly transferred

Note. Solely for purposes of section

proceedings with individual residual

money or property to a foreign trust (for

860D(a), the determination of whether any

interest holders.

this purpose, any U.S. person who

property is foreclosure property will be

Check the box for item G if any of the

created a foreign trust is considered a

made without regard to section 856(e)(4).

following apply.

transferor);

The REMIC had more than 10 residual

Line 7—Regular interests. These are

It is treated as the owner of any part of

interest holders at any time during the tax

interests in the REMIC that are issued on

the assets of a foreign trust under the

year (spouses count as one holder).

the startup day with fixed terms and that

grantor trust rules; or

Any residual interest holder was a

are designated as regular interests, if:

It received a distribution from a foreign

nonresident alien, or was other than an

trust.

1. Such interest unconditionally

individual, a C corporation, or an estate,

entitles the holder to receive a specified

For more information, see the

unless there was at no time during the tax

principal amount or other similar amounts;

Instructions for Form 3520.

year more than one holder of the residual

and

interest.

Note. An owner of a foreign trust must

2. Interest payments (or similar

The REMIC has elected to be subject to

ensure that the trust files an annual

amounts), if any, with respect to the

the rules for consolidated REMIC

information return on Form 3520-A,

interest at or before maturity are payable

proceedings.

Annual Information Return of Foreign

based on a fixed rate (or at a variable rate

“Small REMICs,” as defined in sections

Trust With a U.S. Owner. For details, see

described in Regulations section

860F(e), 6231(a)(1)(B), and the

the Instructions for Form 3520-A.

1.860G-1(a)(3)), or consist of a specified

regulations of both, aren't subject to the

To report information required under

portion of the interest payments on

rules for consolidated REMIC

section 6038B the REMIC may be

qualified mortgages and this portion

proceedings, but may make an election to

required to file Form 926, Return by a U.S.

doesn't vary during the period that the

be covered by them. This election can be

Transferor of Property to a Foreign

interest is outstanding.

revoked only with the consent of the

Corporation, or Form 8865, Return of U.S.

Commissioner.

The interest will meet the requirements

Persons With Respect to Certain Foreign

of 1 even if the timing (but not the amount)

Partnerships. See the instructions for

Item H—Foreign financial accounts.

of the principal payments (or other similar

these forms for more information.

Check the “Yes” box if either 1 or 2 below

amounts) is contingent on the extent of

applies to the REMIC. Otherwise, check

Item L—Sum of the daily accruals.

prepayments on qualified mortgages and

the “No” box.

Enter the total of the daily accruals for all

the amount of income from permitted

1. At any time during the 2017

residual interests for the calendar year.

investments.

calendar year, the REMIC had a financial

See section 860E(c)(2) for details.

An interest will still qualify as a regular

interest in or signature or other authority

Schedule L

interest even if the specified principal

over any foreign financial account,

amount of the regular interest (or the

Balance Sheets per Books

including bank, securities, or other types

amount of interest accrued on the regular

of financial accounts in a foreign country

The amounts shown should agree with the

interest) can be reduced as a result of the

(see FinCEN Form 114, Report of Foreign

REMIC's books and records. Attach a

nonoccurrence of one or more contingent

Bank and Financial Accounts (FBAR));

statement explaining any differences.

payments with respect to any reverse

and

mortgage loan held by the REMIC if, on

Line 1a—Cash flow investments.

a. The combined value of the

the startup day for the REMIC, the

These are any investments of amounts

accounts was more than $10,000 at any

sponsor reasonably believes that all

received under qualified mortgages for a

time during the calendar year and

principal and interest due under the

temporary period (not more than 13

regular interest will be paid at or prior to

b. The account wasn't with a U.S.

months) before distribution to holders of

the liquidation of the REMIC.

military banking facility operated by a U.S.

interests in the REMIC.

financial institution.

Line 1b—Qualified reserve assets. The

2. The REMIC owns more than 50%

term “qualified reserve asset” means any

of the stock in any corporation that would

intangible property which is held for

answer “Yes” to item 1 above.

investment and as part of a qualified

reserve fund. For a definition of qualified

If the “Yes” box is checked:

reserve fund, including exceptions, see

sections 860G(a)(7)(B) and (C).

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Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2017 Page 6

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