Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 111

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 111
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 be taxable to the U.S. Holder as ordinary income. Such distributions generally
will be eligible (i) for the dividends received deduction in the case of corporate U.S. Holders and (ii) for treatment as “qualified
dividends” as discussed below, in the case of individual U.S. Holders provided certain holding period and other requirements are
met, as described below. In addition, in order to requalify for taxation as a RIC, the Fund may be required to recognize unrealized gains,
pay substantial taxes and interest, and make certain distributions.

<div align='center'>B-19</div>

Taxation of Distributions to U.S. Holders

Distributions from the Fund, except in the case
of distributions of qualified dividend income or capital gain dividends, as described below, generally will be taxable to U.S. Holders
as ordinary dividend income to the extent of the Fund’s current and accumulated earnings and profits. Distributions of net capital
gains (that is, the excess of net gains from the sale of capital assets held more than one year over net losses from the sale of capital
assets held for not more than one year) properly designated as capital gain dividends (“Capital Gain Dividends”) will be
taxable to U.S. Holders as long-term capital gain, regardless of how long a U.S. Holder has held the shares in the Fund. If a U.S. Holder’s
distributions are automatically reinvested pursuant to the Plan and the Plan Administrator invests the distribution in shares acquired
on behalf of the U.S. Holder in open-market purchases, for U.S. federal income tax purposes, the U.S. Holder will generally be treated
as having received a taxable distribution in the amount of the cash dividend that the U.S. Holder would have received if the U.S. Holder
had elected to receive cash. If a U.S. Holder’s distributions are automatically reinvested pursuant to the Plan and the Plan Administrator
invests the distribution in newly issued shares of the Fund, the U.S. Holder will generally be treated as receiving a taxable distribution
equal to the fair market value of the stock the U.S. Holder receives.

Under current law, certain income distributions
paid by the Fund to individual taxpayers are taxed at rates equal to those applicable to net long-term capital gains (generally, 20%).
This tax treatment applies only if certain holding period requirements and other requirements are satisfied by the U.S. Holder and the