Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 117

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 117
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 corporations), the U.S. Holder generally must file with the IRS a disclosure statement on Form
8886 except to the extent such losses are from assets that have a qualifying basis and meet certain other requirements. Direct stockholders
of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, stockholders of a regulated
investment company are not excepted. Future guidance may extend the current exception from this reporting requirement to stockholders
of most or all regulated investment companies. In addition, pursuant to recently enacted legislation, significant penalties may be imposed
for the failure to comply with the reporting requirements. The fact that a loss is reportable under these regulations does not affect
the legal determination of whether the taxpayer’s treatment of the loss is proper. Stockholders should consult their tax advisers
to determine the applicability of these regulations in light of their individual circumstances.

<div align='center'>B-22</div>

The foregoing discussion does not address the
special tax rules applicable to certain classes of investors, such as tax-exempt entities, foreign investors, insurance companies and
financial institutions. Stockholders should consult their own tax advisers with respect to special tax rules that may apply in their particular
situations, as well as the state, local, and, where applicable, foreign tax consequences of investing in the Fund.

The Fund will inform stockholders of the source
and tax status of all distributions after the close of each calendar year. The IRS currently requires that a RIC that has two or more
classes of stock allocate to each such class proportionate amounts of each type of its income (such as ordinary income, capital gains,
dividends qualifying for the dividends received deduction and qualified dividend income) based upon the percentage of total dividends
paid out of earnings or profits to each class for the tax year. Accordingly, if the Fund issues preferred shares in the future, the Fund
intends each year to allocate capital gain dividends, dividends qualifying for the dividends received deduction and dividends derived
from qualified dividend income, if any, between its common shares and preferred shares in proportion to the total dividends paid out of
earnings or profits to each class with respect to such tax year.

Taxation of Non-U.S. Shareholders

Dividends paid to a Non-U.S. Holder generally
will be subject to U.S. withholding tax at a 30% rate or a reduced rate specified by an applicable income tax treaty. If a Non-U.S. Holder
is eligible for a reduced rate of withholding