Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 143

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 143
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 counsel that the Restructuring (or any other aspect of the Transaction) qualify as tax-free transactions. Neither the REIT, New NHT nor NXDT has requested or will request a ruling from the IRS with respect to any aspect of the U.S. federal income tax treatment of the Transaction.

Assuming that the Restructuring qualifies as an F Reorg:

| ● | a U.S. Holder that exchanges its Units pursuant to the Restructuring generally will not recognize gain or loss on the exchange of such Units for New NHT Shares, |

| ● | the adjusted tax basis of a U.S. Holder in New NHT Shares received as a result of the Restructuring generally will equal the adjusted tax basis of the Units surrendered in exchange therefor, and |

| ● | a U.S. Holder’s holding period in New NHT Shares received in the exchange will include the holding period in the Units surrendered in exchange therefor. |

If the Restructuring does not qualify as an F Reorg, the Restructuring generally will be treated as a taxable sale or exchange of Units by U.S. Holders in exchange for New NHT Shares. In such case, subject to the discussion of backup withholding below, a U.S. Holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. Holder’s adjusted tax basis in its Units. This gain or loss generally will be long-term capital gain or loss if the U.S. Holder has held such Units for more than one year. However, if a U.S. Holder recognizes a loss upon such disposition of Units that it has held for six months or less, after applying certain holding period rules, the loss recognized generally will be treated as a long-term capital loss to the extent the U.S. Holder received distributions from the REIT which were required to be treated as long-term capital gains. Long-term capital gains recognized by non-corporate U.S. Holders will be eligible to be taxed at reduced rates. The deductibility of capital losses realized by a U.S. Holder on a taxable sale or exchange of Units is subject to certain limitations.

Generally the amount of gain or loss recognized by a U.S. Holder on a taxable sale or exchange of Units pursuant to the Restructuring will be an amount equal to the difference between (i) the fair market value of the New NHT Shares received by the U.S. Holder in the Restructuring and (ii) the U.S. Holder’s adjusted