Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 78

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 78
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 is available
on the Fund’s website, .

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Net Investment Income Tax

A U.S. Holder (as defined in the Fund’s Statement
of Additional Information under the heading “Certain Material United States Federal Income Tax Consequences”) that is an
individual or estate, or a trust that does not fall into a special class of trusts that is exempt from such tax, will be subject to a
3.8% tax on the lesser of (1) the U.S. Holder’s “net investment income” for the relevant taxable year and (2) the excess
of the U.S. Holder’s modified adjusted gross income for the taxable year over a certain threshold (which, in the case of individuals,
will be between $125,000 and $250,000 depending on the individual’s circumstances). A U.S. Holder’s “net investment
income” may generally include portfolio income (such as interest and dividends), and income and net gains from an activity that
is subject to certain passive activity limitations, unless such income or net gains are derived in the ordinary course of the conduct
of a trade or business (other than a trade or business that consists of certain passive or trading activities). If you are a U.S. holder
that is an individual, estate or trust, you should consult your tax advisors regarding the applicability of the Net Investment Income
Tax to your ownership and disposition of shares of the Fund.

Payments to Foreign Financial Institutions

Sections 1471 through 1474 of the Code (provisions
commonly referred to as “FATCA”), and Treasury regulations promulgated thereunder, generally provide that a 30% withholding
tax may be imposed on payments of U.S. source income, including U.S. source interest and dividends, to certain non-U.S. entities unless
such entities enter into an agreement with the IRS to disclose the name, address and taxpayer identification number of certain U.S. persons
that own, directly or indirectly, interests in such entities, as well as certain other information relating to such interests. While
withholding under FATCA would have also applied to payments of gross proceeds from the sale or other disposition of Shares on or after
January 1, 2019, proposed Treasury regulations eliminate FATCA withholding on payments of gross proceeds entirely. The preamble to these
proposed regulations indicates that taxpayers may rely on them pending their finalization. Non-U.S. Holders are encouraged to consult
with their own tax advisors regarding the possible implications and obligations