Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 157

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 157
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 federal income tax at corporate rates on its net income, and distributions
to its partners would constitute dividends that would not be deductible in computing such Partnership’s taxable income.

Income Taxation of the Partnerships and their
Partners

Partners, Not the Partnerships, Subject to Tax. A partnership is generally not a taxable entity for U.S. federal income tax purposes. Rather, we are required to take into account
our allocable share of each Partnership’s income, gains, losses, deductions, and credits for any taxable 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.

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 (the “704(c)
Allocations”). The amount of the unrealized gain or unrealized loss (“Built-in Gain” or “Built-in Loss”)
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 (a “Book-Tax Difference”). Any property purchased for cash initially
will have an adjusted tax basis equal to its fair market value, resulting in