Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 333

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 333
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 cannot assure you, however, that we can comply with the safe-harbor provisions or that we will avoid owning
property that may be characterized as property that we hold “primarily for sale to customers in the ordinary course of a trade or
business.” The 100% tax will not apply to gains from the sale of property that is held through a TRS or other taxable corporation,
although such income will be taxed to the corporation at regular U.S. federal corporate income tax rates.

Recordkeeping Requirements

We must maintain certain records
in order to maintain our qualification as a REIT. In addition, to avoid a monetary penalty, we must request on an annual basis information
from our stockholders designed to disclose the actual ownership of our outstanding stock. We intend to comply with these requirements.

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Failure to Qualify

If we fail to satisfy one
or more requirements for REIT qualification, other than the gross income tests and the asset tests, we could avoid disqualification if
our failure is due to reasonable cause and not to willful neglect and we pay a penalty of $50,000 for each such failure. In addition,
there are relief provisions for a failure of the gross income tests and asset tests, as described in “— Gross Income Tests”
and “— Asset Tests.”

If we fail to qualify as a
REIT in any taxable year, and no relief provision applies, we would be subject to U.S. federal income tax, and any applicable alternative
minimum tax on our taxable income at regular U.S. federal corporate income tax rates, plus potential penalties and/or interest. In calculating
our taxable income in a year in which we fail to qualify as a REIT, we would not be able to deduct amounts paid out to stockholders. In
such a case, we would not be required to distribute any amounts to stockholders in that year. In such event, to the extent of our current
and accumulated earnings and profits, distributions to stockholders generally would be taxable as ordinary dividend income. Subject to
certain limitations of the U.S. federal income tax laws, corporate stockholders may be eligible for the dividends received deduction and
non-corporate U.S. stockholders may be eligible for the reduced U.S. federal income tax rate of up to 20% on such dividends. Unless we
qualified for relief under specific statutory provisions, we also would be disqualified from taxation as a REIT for the four taxable years
following the year during which