Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 358

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 358
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 year of such Partnership ending within or with our taxable year, without regard to whether we have received or will receive
any distribution from such Partnership. However, as discussed below, the tax liability for adjustments to a partnership’s tax returns
made as a result of an audit by the IRS will be imposed on the partnership itself in certain circumstances absent an election to the contrary
(if available).

Partnership Allocations. Although a partnership agreement generally will determine the allocation of income and losses among
partners, such allocations will be disregarded for tax purposes if they do not comply with the provisions of the U.S. federal income tax
laws governing partnership allocations. If an allocation is not recognized for U.S. federal income tax purposes, the item subject to the
allocation will be reallocated in accordance with the partners’ interests in the partnership, which will be determined by taking
into account all of the facts and circumstances relating to the economic arrangement of the partners with respect to such item. Each Partnership’s
allocations of taxable income, gain and loss are intended to comply with the requirements of the U.S. federal income tax laws governing
partnership allocations.

Tax Allocations with Respect to Partnership Properties. Income, gain, loss and deduction attributable to appreciated
or depreciated property that is contributed to a partnership in exchange for an interest in the partnership must be allocated in a manner
such that the contributing partner is charged with, or benefits from, respectively, the unrealized gain or unrealized loss associated
with the property at the time of the contribution, or the 704(c) Allocations. The amount of the unrealized gain or unrealized loss,
or built-in gain or built-in loss, respectively, is generally equal to the difference between the fair market value of the contributed
property at the time of contribution and the adjusted tax basis of such property at the time of contribution, or a book-tax difference.
Any property purchased for cash initially will have an adjusted tax basis equal to its fair market value, resulting in no book-tax difference.
A book-tax difference generally is decreased on an annual basis as a result of depreciation deductions to the contributing partner for
book purposes but not for tax purposes. The 704(c) Allocations are solely for U.S. federal income tax purposes and do not affect
the book capital accounts or other economic or legal arrangements among the partners. In the future, our Operating Partnership may acquire
property that may have a built-in gain or a built-in loss in exchange for OP Units. Our Operating Partnership will have