Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 375

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 375
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 transaction income may have an adverse effect upon our ability to satisfy the income tests for
REIT qualification. See “—Gross Income Tests.” We do not presently intend to acquire or hold or to allow any Partnership
to acquire or hold any property that represents inventory or other property held primarily for sale to customers in the ordinary course
of our or such Partnership’s trade or business.

Partnership Audit Rules

Under the Bipartisan Budget
Act of 2015, any audit adjustments to items of income, gain, loss, deduction or credit of a partnership (and any partner’s distributive
share thereof) are now determined, and taxes, interest or penalties attributable thereto are assessed and collected, at the partnership
level. Although it is not entirely clear how these new rules will be implemented, it is possible that they could result in partnerships
in which we directly or indirectly invest being required to pay additional taxes, interest and penalties as a result of an audit adjustment,
and we, as a direct or indirect partner of those partnerships, could be required to bear the economic burden of those taxes, interest
and penalties even though we, as a REIT, may not otherwise have been required to pay additional corporate-level taxes as a result of the
related audit adjustment. The changes created by these new rules are sweeping and in many respects dependent on the promulgation
of future regulations or other guidance by the U.S. Treasury Department. Investors are urged to consult their tax advisors with respect
to these changes and their potential impact on their investment in our securities.

Legislative or Other Actions Affecting REITs

The present U.S. federal income
tax treatment of REITs may be modified, possibly with retroactive effect, by legislative, judicial or administrative action at any time,
which could affect the U.S. federal income tax treatment of an investment in our securities. The REIT rules are constantly under
review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department, which may result in statutory changes
as well as revisions to regulations and interpretations. Additionally, several of the tax considerations described herein are currently
under review and are subject to change. Prospective securityholders are urged to consult with their tax advisors regarding the effect
of potential changes to the U.S. federal tax laws on an investment in our securities.

State and Local Taxes

We and/or you may be subject
to taxation by various states and localities, including those in which we or a stockholder trans