Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 181

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 181
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 a section 163(j) dividend for a tax year is generally limited to the excess of our business interest income over the sum of our (i) business interest expense and (ii) other deductions properly allocable to our business interest income.

If we are not a publicly offered RIC for any period, a non-corporate U.S. preferred stockholder’s pro rata portion of our affected expenses, including our management fees, will be treated as an additional dividend to the stockholder and will be deductible by such stockholder only to the extent permitted under the limitations described below. For non-corporate U.S. preferred stockholders, including individuals, trusts, and estates, significant limitations generally apply to the deductibility of certain expenses of a nonpublicly offered RIC, including advisory fees. In particular, these expenses, referred to as miscellaneous itemized deductions, currently are not deductible by non-corporate U.S. preferred stockholders (and beginning in 2026, will be deductible only to non-corporate U.S. preferred stockholders to the extent they exceed 2% of such non-corporate U.S. preferred stockholders’ adjusted gross income, and will not be deductible for alternative minimum tax purposes). A “publicly offered” RIC is a RIC whose shares are either (i) continuously offered pursuant to a public offering, (ii) regularly traded on an established securities market or (iii) held by at least 500 persons at all times during the taxable year. While we anticipate that we will constitute a publicly offered RIC for the current taxable year, there can be no assurance that we will in fact so qualify for any of our taxable years.

We or the applicable withholding agent (generally, the financial intermediary through which your Series M Term Preferred Stock is held) will send to each of our U.S. preferred stockholders, as promptly as possible after the end of each calendar year, a notice reporting the amounts includible in such U.S. preferred stockholder’s taxable income for such year as ordinary income and as long-term capital gain, and the amount of such distributions, if any, that are eligible for the reduced maximum rate applicable to Qualified Dividends. In addition, the U.S. federal tax status of each year’s distributions generally will be reported to the IRS (including the amount of dividends, if any, eligible for the current 20% maximum rate).

Distributions may also be subject to additional state, local and foreign taxes depending on a U.S. preferred stockholder