Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 219

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 219
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 for

other tax

purposes. However, there

is also

authority which characterizes

time charter

income

as rental

income rather

than services

income for

other tax

purposes.

It should

be noted

that in

the absence

of any

legal authority specifically

relating to

the statutory

provisions governing PFICs,

the IRS

or a

court

could

disagree

with

this

position. In

addition,

although

the

Company

intends

to

conduct

its

affairs

in

a

manner to

avoid being classified

as a

PFIC with respect

to any taxable

year, there

can be no

assurance

that the nature of its operations will not change in the future.

As discussed more fully below,

if the Company were to

be treated as a PFIC for

any taxable year,

a U. S.

Holder

would

be

subject

to

different

U. S.

federal

income taxation

rules

depending on

whether the

U. S.

Holder makes an

election to treat

the Company as

a “ Qualified Electing Fund,”

which election is referred

to as

a “ QEF

Election.” As

discussed below,

as an

alternative to

making a

QEF Election,

a U. S.

Holder

should be

able to

make a

“mark-to-market” election with

respect to

the common

stock, which

election is

referred to

as a

“ Mark-to-Market Election”.

If the

Company were

to be

treated as

a PFIC,

a U. S.

Holder

would be

required to

file with

respect to

taxable years

ending on

or after

December 31,

2013 IRS

Form

8621 to report certain information regarding the Company.

Taxation of U. S. Holders Making a Timely QEF Election

If a U. S. Holder makes a

timely QEF Election, which U. S. Holder

is referred to as an “ Electing

Holder”, the

Electing

Holder

must

report

each

year

for

U. S.

federal

income

tax

purposes

his

pro

rata

share

of

the

Company’s ordinary earnings and

net capital gain, if any, for the Company