Company: SQFTP
Filing Date: 2025-08-25
Form Type: 424B3
Source: 0001493152-25-012275
Chunk: 97

Company: Presidio Property Trust, Inc.
Filing Date: 2025-08-25
Form: 424B3
Chunk 97
---
 basis of the holder’s capital stock, but rather will reduce the adjusted tax basis of such stock. To the extent that such distributions exceed the non-U.S. holder’s adjusted tax basis in such capital stock, they generally will give rise to gain from the sale or exchange of such stock, the tax treatment of which is described below. However, under current U.S. tax law such excess distributions may be treated as dividend income for certain non-U.S. holders. For withholding purposes, we expect to treat all distributions as made out of our current or accumulated earnings and profits. However, amounts withheld may be refundable if it is subsequently determined that the distribution was, in fact, in excess of our current and accumulated earnings and profits, provided that certain conditions are met.

| 62 |

Capital Gain Dividends and Distributions Attributable to a Sale or Exchange of United States Real Property Interests.

Distributions paid to a non-U.S. holder that we properly designate as capital gain dividends, other than those arising from the disposition of a USRPI, generally should not be subject to U.S. federal income taxation, unless:

| (1) | the                                                                                                                                   
 investment in our capital stock is treated as effectively connected income with the conduct by the non-U.S. holder of a trade or      
 business within the United States (and, if required by an applicable income tax treaty, the non-U.S. holder maintains a permanent     
 establishment in the United States to which such dividends are attributable), in which case the non-U.S. holder will be subject to    
 the same treatment as U.S. holders with respect to such gain, except that a non-U.S. holder that is a corporation may also be subject 
 to a branch profits tax of up to 30%, as discussed above; or                                                                          |
| (2) | the                                                                                                                                   
 non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more during the taxable year    
 and certain other conditions are met, in which case the non-U.S. holder will be subject to U.S. federal income tax at a rate of 30%   
 on the non-U.S. holder’s capital gains (or such lower rate specified by an applicable income tax treaty), which may be offset         
 by U.S. source capital losses of such non-U.S. holder (even though the individual is not considered a resident of the United States), 
 provided the non-U.S. holder has timely filed U.S. federal income tax